I had promised that I was going to start my own thread regarding stock investments and the markets. So many things have happened since last time I was here and I really do not feel like sharing my knowledge. But a promise is a promise and there have been few people that have emailed me and supported me.

This thread will deal with investing in the stock markets. I will not discuss individual stocks but discuss ETFs like SPY, DIA, IWM and QQQQ. The one good thing about trading ETFs compared to individual stocks is the the ETFs provide instant diversification among similar companies within the same sector.

I will post more as we go along, regarding entry-price, profit-target and stop-losses. I do not think that any ETF is good or bad. It is good only if I'm making money and bad if I'm losig money.

If you have not been in the market so far, please read this as an information piece only rather than my recommendations. There is risk involved and you should know how much risk to take on any position.

Any suggestations, comments and criticisms are welcome as long as it is market related. If this thread gets out of hand and we start discussing off-topics, I'll stop posting.

Have a happy new year!!!! May 2007 bring you and your family lots of joys and riches.

Emini,
did a lil' read-up on USAT.

I like it.

Put it under watchglass to look at price action. June 30 is the fiscal year end. Entry point is hard to define, as they got listed not very long ago.

Long-term is definitely akin to Washington post or coco cola for Mr.Buffet. I can bet on that.

Like Mr. Jensen. Hardened player. Likes team play. People's CEO is my first impression.

Recession-proof market is what catches my attention.

TT bhai,

DNDN was so exciting... I did not buy it, but saw the price action yesterday. One small news from FDA got it on fire at 40 percent up. hahaha... Drug industy is really drugged! hahaha... most volatile of stocks I have seen so far in my learnings.

Good luck w/ ur rest of the picks. Q, CHTR and CYCL.

To the rest:

where are thee lost?

Best~!

-b

PS Emini those four books you recommended were worth in Gold I think. Although I shall have to prove that statement of mine. Still need couple of weeks to give you my feedback on my read.

CHTR is in a bit of a pullback....so im waiting for it to go down, hit support and then watch it rally up again...

I might get into CMGI soon. I hate to see failed breakouts.

Good luck everyone!

got four more on my watch list that look very promising...ABXA, PMRY, FCGI, VIR.
as always, dd required :)

Jyalincha ji,

ABXA is on air cargo side of stuff with some diversifications here and there.

PMRY and FCGI are on human capital and some project solutions therein. I think both of these will have to wait a bit to show some real bucks. My personal opinion hai.

Neways, nice to see ya here. Please keep the postings hence the thread alive.

Best~!

-B

Just a word of caution with those picks, since the volume on some of those is less than 50,000, I will be scared to hold it for long-term. It is best to put those on a watch list and act on it when they become more active.

Bri, I'm glad that you liked those books. I have read all of those multiple times. Reminiscience of a Stock Operator is probably my favourite, although Livermore ended up killing himself. I hope you get the human psychology from the book. See if you can get Market Wizards 1, 2, and 3. Your local library should have it. It has interviews with all the top traders of our times.

Personally, I feel that the market is ready for a pullback, if we see a pullback it should come this week. I would recommend you to look for 1% true selling days. The yield on 10 year is getting close to 5% and that could mean trouble.

As you guys have noticed that my market calls are much better than my stock picks so I like to trade S&P futures more than individual stocks. Hopefully, we can make some serious money after July.

True emini. I've been taking courses on futures alongside my quant degree and S&P 500 futures seem sooo much better if you're managing a whack load of money.

I've used leverage for the first time to buy stocks. I've shorted but this time I'm borrowing to buy some. Hopefuly it works out good.

I'm also gonna trasnfer all my assets to my dad so that the government wont ask me to pay back my loans...LOL!

The benefits of living with your parents hehe.

Hurricane play: IPII

Very speculative. It goes up every hurricane season and gets hammered if there is no hurricane. It is around 14, buy between 10-14, get out if it goes below 10. Get out in August or if there are no hurricanes.

TT: Look at www.cme.com and www.cbot.com for information on futures. It is very risky and the rewards are way better than stocks if you can do it right.

For currency players, check out EUR/CHF. Put a 13day bollinger band with 1 std, do the same with Keltner channel. When their slope is below 30, buy support and sell resistance, stop if the slope is +/- 30.

I have been holding VRAZ, LVLT for sometime, VRAZ seems now to be raising from its dip, LVLT is showing some promise too. Some good news out there for both. What say??? Have you guys been watching these? Long??

K Bha Ko: Not sure about VRAZ fundamentally but I'll hold on to that looking at the chart only.

LVLT is a dog stock. This market has been rallying so strong and LVLT is just stuck there.
I will get out of that.

DAMMIT!!!!
THATS ALL I CAN SAY.... DAMMIT!!!!!!

lol...Im glad I had a small position in GNVC...20% loss!!!! GRRR!!!!

TT bhai,

in cash is a good idea like Emini prescribed. I only hold, CMGI for this weeks financial result. And STEC for long term.


Market has been choppy after yesterday's China-sneeze. I have found out that CNNmoney is pretty accurate about market openings here in NYC based on foreign overnight numbers.

Emini ji, so my question is, sud we buy it when the correction occurs, or after that?

Best~!

-B

Last week I had said that this market will start the decline this week. We are going to see about 10% decline in S&P. Individual stocks might decline more or less depending on its beta.

I would see some buying to come at 1480 and 1440 but we'll probably see 1380 in few months. Save your money because after this decline is done we'll get great prices for good stocks.

Thanks Much for your foresight Emini ji.

Yet again your forecast was bang on the money. I pulled out a bit, but got into some as well. I have 50 percent vested.

I hold, MGPI (alt energy / ethanol);CDE (silver, time to get into precious metal for long term);also I still hold STEC on techie side. I believe that I am going to hold these for a while.

NFLX was great today. Missed out on it though. Every year this stock seem to come out with rumours. This time Amazon took the hit. God knows if it will happen though. I mean the M&A.

CMGI was another lesson learnt; Shorting-playing bastards taught me few things to remember. Well, gotta pay the price of learning, hai na? Lost some bucks, as I was holding 1000 pcs of it.

All in all, getting hands dirty has been experience to live with.

Stan is the most confident one of the lot that I read. Technical he is, but I guess, present time market is way too computerized to just follow the tape reader times. Yet, quite a bit of basics he teaches. Great reco again Emini.

TT bhai,
sabai theek cha hai na? kata gayab ni?

Best~!

-B

If i buy stock from online and i want to sell the stock through another company. Can i do it ? How do i get divident from stock?

Also I have another layman question. If I buy stock of a company operating in canada then will my stock value depend on canada dollar? Emini ji answer garnu paryo.

I am going short here with futures. This r/r looks too good to pass. If the market closes at a new high, I'll take my loss. I'm expecting atleast 15% decline in the indices.

Biruwa,

>>If i buy stock from online and i want to sell the stock through another company. Can i do it ?

If you open a position (buy) with an online banker you will usually have to close the position (sell) before moving to another brokerage firm. Taking ownership of an equity in a public company is fairly liquid- therefore, you could sell them at your current broker and quickly buy them back through another if your end goal is to switch your banker WITHOUT letting go of your position. If you have a large stake and do not want to risk the spread or commission fees you may be able to transfer the ownership of your stocks; this depends on your banker, really.

>>How do i get divident from stock?

Payment of stock dividends depends on the company you buy into- there is nothing you can do that will influence a company to pay dividends. As a rule of thumb- dividends are usually paid by 'cash cows', which means a slow growth company with large sums of income. This income is paid back to shareholders as a dividend. Growth companies usually do not pay dividends as they mostly 'burn' any income received on growing their markets, etc.

>>If I buy stock of a company operating in canada then will my stock value depend on canada dollar?

This depends on what you are asking- if you meant Canadian dollars are used as a means of valuing a company then the answer is 'YES'. If you meant whether currency fluctuations in the market will have inadvertent affect on the price of the stock, then the answer is usually 'NO'. Of course, the latter part could also be 'maybe' if you are talking about, lets say, a bank like Toronto Dominion Bank which may have large Canadian reserve. And a slight downturn against the Greenback could devalue their overall assets IF the majority of their revenue comes from outside Canada.

Hope this helps.
-JB

Eminitrader,

SPECULATING is a dangerous habit. Shorting a stock has unlimited loss potential. And why would you want to short an index? Shorting is proper when you think a company may tank due to managment problems, slower growth than expected, missed earnings estimate, etc. OR it may be proper when you use it with another position as a trading strategy- many professional traders do! As such these kinds of habit are proper for them, who have the RIGHT tools, such as Bloomberg terminal for news feed, Nasdaq Level II for executing trade, Professional Stochastics indicators for reading technical charts, proprieatry software movement indicators etc.

Never give your money away to market makers this way- especially when you trade as if you are playing poker in Las Vegas!

-JB

This is definitely one of my favorite threads. Keep it up, guys!

Phamaceuticals anyone?

Seems like Schering-Plough (SGP) is doing pretty well compared to Pfizer (PFE), Eli Lily (LLY), Bristo-Myers Squibb (BMY) and even Novartis (NVS). What do you guys think? Care impart any wisdom on this sector?