Wednesday, 31 October 2012
Thursday, 20 September 2012
New Amazon Review of "Stock Trading Riches"
Posted on 09:51 by Unknown
Today, a reader posted a nice, detailed 5-star review of "Stock Trading Riches" on Amazon.com:
"I am a short term trader by heart but needed a system to manage my retirement accounts and this one certainly works very well.
I used the excel sheet provided in the book to test dozens of random stocks over the past 6 years and about 80% beat Buy and Hold over the same time period.
The results were good but I needed more proof since the market conditions of the last 6 years did not capture every possible market scenerio.
With the excel sheet , I simply created every possible market movement I could think of and still my results were very good.
This is the kind of system someone with very little investment or trading experience can pick-up and implement right away,that's how simple it is. I found that it will work for retirement accounts and trading accounts.
Many times ,especially those of us who are traders, dismiss the simple for being ineffective but the truth is the more complex the trading system the more likely it is to fail over time.
And oh yeah-what I love most about this book-he gets right to the point and shows you how the system works. No beating around the bush for a 100 pages."
"I am a short term trader by heart but needed a system to manage my retirement accounts and this one certainly works very well.
I used the excel sheet provided in the book to test dozens of random stocks over the past 6 years and about 80% beat Buy and Hold over the same time period.
The results were good but I needed more proof since the market conditions of the last 6 years did not capture every possible market scenerio.
With the excel sheet , I simply created every possible market movement I could think of and still my results were very good.
This is the kind of system someone with very little investment or trading experience can pick-up and implement right away,that's how simple it is. I found that it will work for retirement accounts and trading accounts.
Many times ,especially those of us who are traders, dismiss the simple for being ineffective but the truth is the more complex the trading system the more likely it is to fail over time.
And oh yeah-what I love most about this book-he gets right to the point and shows you how the system works. No beating around the bush for a 100 pages."
Tuesday, 18 September 2012
Gangnam Style - You Just Have To Watch This
Posted on 21:22 by Unknown
Tuesday, 28 August 2012
Praveen in a Video Discussion on The Future of Money: Bitcoin, Economics, The Gold Standard, And Work
Posted on 09:36 by Unknown
Saturday, 25 August 2012
Follow Up to "Why I Just Bought Facebook (FB) Stock"
Posted on 23:19 by Unknown
I consider my IPO purchase of Facebook (FB) to be a contrarian move because the stock behaved differently than the conventional wisdom at the time.
I wasn't initially planning to buy but, from what I had read and from talking to other people in high technology, everyone expected Facebook to soar at the opening. I know someone, a senior executive at a high-tech company, who placed a limit order at the open to not buy over 55. So, he expected it to pop.
When I saw that it didn't soar like everyone predicted, I decided to buy it.
I thought it would increase over the next few days/weeks. As we now know, it didn't. Instead, it is down about 50%. Even though I didn't expect this, I am ok with it.
Because my system diversifies, and each individual position is re-balanced yearly, I feel safe sometimes taking a risk on stock.
I will rebalance my Facebook position at the end of the year. Even with Facebook's performance, my portfolio is up 11% for the year.
I don't use any stop losses with the Stock Trading Riches system - other than replace a position if I feel that there is something fundamentally wrong with the company. In my book, I list an optional stop loss rule in the section about customizing my system. It calls for replacing a stock if it declines 50% (or X% - it can be customized) from the initial buy. I state in the section that I don't use this rule myself, and it would have prevented the performance in the AMZN stock example in my book.
I wasn't initially planning to buy but, from what I had read and from talking to other people in high technology, everyone expected Facebook to soar at the opening. I know someone, a senior executive at a high-tech company, who placed a limit order at the open to not buy over 55. So, he expected it to pop.
When I saw that it didn't soar like everyone predicted, I decided to buy it.
I thought it would increase over the next few days/weeks. As we now know, it didn't. Instead, it is down about 50%. Even though I didn't expect this, I am ok with it.
Because my system diversifies, and each individual position is re-balanced yearly, I feel safe sometimes taking a risk on stock.
I will rebalance my Facebook position at the end of the year. Even with Facebook's performance, my portfolio is up 11% for the year.
I don't use any stop losses with the Stock Trading Riches system - other than replace a position if I feel that there is something fundamentally wrong with the company. In my book, I list an optional stop loss rule in the section about customizing my system. It calls for replacing a stock if it declines 50% (or X% - it can be customized) from the initial buy. I state in the section that I don't use this rule myself, and it would have prevented the performance in the AMZN stock example in my book.
Friday, 18 May 2012
Why I Just Bought Facebook (FB) Stock
Posted on 11:51 by Unknown
I just bought Facebook (FB) to be contrarian because of the way the IPO "fizzled".
I first started to think about buying Facebook because, for the last several weeks, I saw lots of news stories warning against buying Facebook when it went public.
Everywhere I looked, reports and columnists warned how the stock is over-hyped, the insiders want to cash out, people are foaming at the mouth to buy it, etc. The stock would run away at the open and, if you were foolish enough to try and buy it during the first day, you would end up getting burned.
I've learned to be skeptical of all these financial stories.
Then, this afternoon, I saw that Facebook did go public this morning at $38. The stock only opened at $42 (so much for the "frenzied pop"), touched $45, and now is around $40.
Also, the last couple of weeks have been bad for stocks, and it looks like Facebook failed to rally the over all market.
At this point, I don't feel like Facebook is overpriced. I think that, over the next several months, it has a good chance to go up because, as the uncertainty with Greece works itself out, and the markets put it behind and start to recover, individual investors and funds will start to revisit Facebook.
On the other hand, I don't see a lot of room on the downside for Facebook. Google Plus doesn't appear likely to do to Facebook what Facebook did to My Space - at least not yet.
As always, I bought Facebook as a long term investment, and plan to manage the position and harvest it for cash by trading around a core position according to my Stock Trading Riches system.
I first started to think about buying Facebook because, for the last several weeks, I saw lots of news stories warning against buying Facebook when it went public.
Everywhere I looked, reports and columnists warned how the stock is over-hyped, the insiders want to cash out, people are foaming at the mouth to buy it, etc. The stock would run away at the open and, if you were foolish enough to try and buy it during the first day, you would end up getting burned.
I've learned to be skeptical of all these financial stories.
Then, this afternoon, I saw that Facebook did go public this morning at $38. The stock only opened at $42 (so much for the "frenzied pop"), touched $45, and now is around $40.
Also, the last couple of weeks have been bad for stocks, and it looks like Facebook failed to rally the over all market.
At this point, I don't feel like Facebook is overpriced. I think that, over the next several months, it has a good chance to go up because, as the uncertainty with Greece works itself out, and the markets put it behind and start to recover, individual investors and funds will start to revisit Facebook.
On the other hand, I don't see a lot of room on the downside for Facebook. Google Plus doesn't appear likely to do to Facebook what Facebook did to My Space - at least not yet.
As always, I bought Facebook as a long term investment, and plan to manage the position and harvest it for cash by trading around a core position according to my Stock Trading Riches system.
Wednesday, 25 April 2012
Naked I Trade, Naked I Live
Posted on 22:36 by Unknown
No - I don't literally trade naked or live out my day running around the house naked!
I had a zen shift after getting zen slapped - I can't grasp, hold onto concepts anymore - I'm free. That's what has made me a successful stock trader. I no longer hide behind technical analysis or look for patterns, or expect the market to do what i think it should - I m no longer attached to the outcome.
I just use my Stock Trading Riches system.
All I care about is the stock fluctuates - I then play the stock. I follow it in and out - reset constantly.
That is how the rest of my life is now - old patterns are shifting, changing.
I want to be reborn every time I trade or write.
I had a zen shift after getting zen slapped - I can't grasp, hold onto concepts anymore - I'm free. That's what has made me a successful stock trader. I no longer hide behind technical analysis or look for patterns, or expect the market to do what i think it should - I m no longer attached to the outcome.
I just use my Stock Trading Riches system.
All I care about is the stock fluctuates - I then play the stock. I follow it in and out - reset constantly.
That is how the rest of my life is now - old patterns are shifting, changing.
I want to be reborn every time I trade or write.
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