Post by Admin on Jul 7, 2004 3:13:55 GMT -5
Good Evening,
I hope everyone had a safe and happy holiday. Our news article today on Yahoo,
news.yahoo.com/news?tmpl=story&u=/040703/234/7aroa.html
really stirred up some interest from both the Financial as well as Christian media outlets. The phones were humming. If you see us, or hear about us anywhere else in the media, be sure and let everyone know.
It's God's grace and you the members, not me, who are making Christian Traders one of the internet's fastest growing Christian communities.
I didn't offer any selections last night because today turned out to be exactly what I thought it would be, a day to just sit and watch, or go to the park. I think if we can gain some early traction tomorrow we may finish strong. As the markets turn and you move your cash off of the sidelines, remember to protect your profits and minimize your losses.
Every Guru out there want's to sell you a system on "How To Make A Zillion in 3 Minutes a Day", but nobody is selling any programs that focus on the opposite - "Not Losing A Zillion in 3 Minutes a Day". Why? It's not exciting. It has no sizzle. It reaks of reality, and we all get our reality on TV now.
Right?
Since no one is selling it, I'm going to GIVE you an excerpt from a recent CT Newsletter which was titled:
NEVER TRADE NAKED!
Never, Never, Never! We could have taught a class, had an on-line chat, mailed you some manuals or videos, but you would have never understood the absolute necessity of implementing a STOP on every position you trade until you saw some real money lost. You saw it today. Take notice so it never happens again.
While the CT Model Portfolio (stop protected) gained a healthy 1.85% today or $1,966.00 which erased yesterdays loss and added $1,153.00 to our bottom line, our 10K Portfolio, naked as Adam, not covered by a single stop, was decimated.
How could that happen? We were fat and jolly yesterday, high-fiving it all the way to the bank. Right? Wrong! This was inevitable. Better now than after we racked up some serious gains. After 2 trading days we were up 5.04%, tonight we are up .03%. Stop whinning, suck it up and let's figure out what happened and how to make sure it never happens again.
So how did it happen?
#1) We were naked on Wall Street. Un-covered by any type of stop-loss price, we should have been arrested. The good news is we only lost our 2 day profit and not our investment. Cheap lesson.
#2) No matter how much you study your charts and graphs, you can never predict the likes of what happened this morning to Giant Industries. GI has a value of $30.00 in our opinion, based on several factors one of which is a Growth Rate of 33% per year. Add in a Price to Earnings Ratio of 12.65, then compare the Growth to P/E Ratio and you have a seriously undervalued stock on your hands. O.K.?
Q.Then why did it fall $4.04 today?
A. No good reason!
An analyst at Friedman Billings decided to put pen to pulp before the open and downgrade the stock. This is the same guy who UPgraded it only 3 weeks ago. I can't help but wonder if his middle name is David. He throws one stone and Goliath topples.
So that's the story. You never know when some pundit is going to stub his toe, change his mind and wreck your portfolio. So what's an investor to do?
NEVER TRADE NAKED!
We said from the beginning, we would make no changes to the 10K Portfolio during the trading day. All we could do today was stare at the screen and scream: STOP! STOP! STOP!, wishing we had one, all the way down. Whether you set a stop 10-15% below your purchase price (good idea) or use a trailing stop (excellent idea) 15-20% below the market price, you won't be crushed when the Giant falls.
ESMC has been on a ramapage and has us a little nervous. Since I'm tired, you're still bored, and we already had our Bible Lesson (David and Goliath) let's just set some stops and call it a night. Any position in the 10k portfolio that falls more than 10% from it's opening price is automatically stopped out. On the CT Model Portfolio we'll be generous and make it 15%.
Now you know. You can and will lose real money unless you're covered. Fig leafs just won't cut it. Set your stops and sleep well.
Tomorrow night I'll share the following day's newsletter where we made it all back. God is Good!
Stay alert for entry points
RPT - GTM - WLDA
Looking weak
ROXI-MEDX-SUNW-VRTX-SGP-GR
You can now reach the message board by simply typing christiantraders.com/forum into your browser.
Also, a Level II Quotes free-trial is available at christiantraders.com/level2.html
I will be sending members an e-mail tomorrow. If you don't receive it, check your spam box, and teach your e-mail client to allow CT mail through. If you need help, just let me know.
Again, thank all of you for your prayers and support.
Blessings
CT
I hope everyone had a safe and happy holiday. Our news article today on Yahoo,
news.yahoo.com/news?tmpl=story&u=/040703/234/7aroa.html
really stirred up some interest from both the Financial as well as Christian media outlets. The phones were humming. If you see us, or hear about us anywhere else in the media, be sure and let everyone know.
It's God's grace and you the members, not me, who are making Christian Traders one of the internet's fastest growing Christian communities.
I didn't offer any selections last night because today turned out to be exactly what I thought it would be, a day to just sit and watch, or go to the park. I think if we can gain some early traction tomorrow we may finish strong. As the markets turn and you move your cash off of the sidelines, remember to protect your profits and minimize your losses.
Every Guru out there want's to sell you a system on "How To Make A Zillion in 3 Minutes a Day", but nobody is selling any programs that focus on the opposite - "Not Losing A Zillion in 3 Minutes a Day". Why? It's not exciting. It has no sizzle. It reaks of reality, and we all get our reality on TV now.
Right?Since no one is selling it, I'm going to GIVE you an excerpt from a recent CT Newsletter which was titled:
NEVER TRADE NAKED!
Never, Never, Never! We could have taught a class, had an on-line chat, mailed you some manuals or videos, but you would have never understood the absolute necessity of implementing a STOP on every position you trade until you saw some real money lost. You saw it today. Take notice so it never happens again.
While the CT Model Portfolio (stop protected) gained a healthy 1.85% today or $1,966.00 which erased yesterdays loss and added $1,153.00 to our bottom line, our 10K Portfolio, naked as Adam, not covered by a single stop, was decimated.
How could that happen? We were fat and jolly yesterday, high-fiving it all the way to the bank. Right? Wrong! This was inevitable. Better now than after we racked up some serious gains. After 2 trading days we were up 5.04%, tonight we are up .03%. Stop whinning, suck it up and let's figure out what happened and how to make sure it never happens again.
So how did it happen?
#1) We were naked on Wall Street. Un-covered by any type of stop-loss price, we should have been arrested. The good news is we only lost our 2 day profit and not our investment. Cheap lesson.
#2) No matter how much you study your charts and graphs, you can never predict the likes of what happened this morning to Giant Industries. GI has a value of $30.00 in our opinion, based on several factors one of which is a Growth Rate of 33% per year. Add in a Price to Earnings Ratio of 12.65, then compare the Growth to P/E Ratio and you have a seriously undervalued stock on your hands. O.K.?
Q.Then why did it fall $4.04 today?
A. No good reason!
An analyst at Friedman Billings decided to put pen to pulp before the open and downgrade the stock. This is the same guy who UPgraded it only 3 weeks ago. I can't help but wonder if his middle name is David. He throws one stone and Goliath topples.
So that's the story. You never know when some pundit is going to stub his toe, change his mind and wreck your portfolio. So what's an investor to do?
NEVER TRADE NAKED!
We said from the beginning, we would make no changes to the 10K Portfolio during the trading day. All we could do today was stare at the screen and scream: STOP! STOP! STOP!, wishing we had one, all the way down. Whether you set a stop 10-15% below your purchase price (good idea) or use a trailing stop (excellent idea) 15-20% below the market price, you won't be crushed when the Giant falls.
ESMC has been on a ramapage and has us a little nervous. Since I'm tired, you're still bored, and we already had our Bible Lesson (David and Goliath) let's just set some stops and call it a night. Any position in the 10k portfolio that falls more than 10% from it's opening price is automatically stopped out. On the CT Model Portfolio we'll be generous and make it 15%.
Now you know. You can and will lose real money unless you're covered. Fig leafs just won't cut it. Set your stops and sleep well.
Tomorrow night I'll share the following day's newsletter where we made it all back. God is Good!
Stay alert for entry points
RPT - GTM - WLDA
Looking weak
ROXI-MEDX-SUNW-VRTX-SGP-GR
You can now reach the message board by simply typing christiantraders.com/forum into your browser.
Also, a Level II Quotes free-trial is available at christiantraders.com/level2.html
I will be sending members an e-mail tomorrow. If you don't receive it, check your spam box, and teach your e-mail client to allow CT mail through. If you need help, just let me know.
Again, thank all of you for your prayers and support.
Blessings
CT