Post by Admin on Jul 8, 2004 2:15:27 GMT -5
Good Evening,
Last night we talked about not trading naked. To re-cap, alway set a stop-loss price on every position. I gave you sound %'s to work with, but you the individual investor must determine how much pain you can tolerate when a stock runs the wrong way. Discipline is key. When you reach your pain threshold, get out. The easiest way to exercise this discipline is with electronic stop-losses. It's not a perfect science but it will prevent you from falling in love with a stock. Romancing an equity creates more losses on Wall Street than all the greedy fund managers combined.
I gave you an excerpt from a newsletter earlier this year to show you what happened in real-time. The date of that Newsletter was 3-3-04. On Sunday 3-7-04 we issued another newsletter recapping the weeks activities. If you weren't a subscriber then, the 10K Portfolio referred to in the excerpt is a Model Portfolio based on a $10K investment divided between 10 stocks with a goal of a 1% gain per trading day. We called it the working man's portfolio, because we agreed to make no changes during the trading day. Why? Because the working man was at work, not glued to a trading screen. The Model Portfolio was based on a $100k investment and also contained 10 stocks but allowed entries and exits during the trading day.
Enough said, here's the excerpt:
We've been MIA since Wednesday night. Thursady we had an ice storm which flooded the Church. Ice storm in Phoenix? Is that like Hell freezing over? So instead of charts and graphs it was mops and buckets. Second we had a big wedding Saturday which took all of Friday night to prepare for, but here we are back to work.
Monday we opened our 10k Portfolio, made a fast $500.00 and promptly lost it for reasons previously explained. We were stopped out Thursday on HURC @ $7.38 and we replaced it at Friday's close with 500 shares of IPT. Our goal of a 1% gain per day was realized as we closed the week up 5.86% or $586.00 after commissions. We made money, lost the money, got the money back. God is good. We learned a priceless lesson in real-time that you never want to forget.
In our Model Portfolio we were stopped out on CSTL @ $5.17. We doubled our investment on ESMC and chose to exit Friday @ $18.95. That leaves 2 empty slots and $24,109.01 to invest. We'll take 5000 shares of IPT and 1300 shares of EVOL at Friday's closing price. Final tally for the week: after commissions +$9,100.00.
Watch PCR, IPAR and PES.TO tomorrow. All 3 were up Friday on declining volume and this may be the bullish indicator we've been waiting for to signal a break-out.
Keep in mind, the above is historical info and not to be used as part of your due dilligence for tomorrow.
Here we go>
+ CBJ EPR SKT HOC ACAS GRT ARI GTM VEIX
- SGP ICGE DCEL XOMA NABI GENE AXYX
Radar / PDEX HICKA MTCT
I try not to duplicate my selections. This does not reflect a change in opinion. I'm simply alerting you to new opportunities on a daily basis. For example, my first alert on KMRT (the store on the corner that no one wanted) went out at the low $50's. I haven't brought it back up because my opinion hasn't changed. Sears validated my call when they decided to give K-Mart $3 Billion dollars for those empty stores on the corner that no one wanted. I'm blushing because that was my first $3 Billion call.
I had a personal target of $75-$80 before the deal, but I'm comfortable now with $100. If rumors start to float about a split you can make that $125, but depart the day before, let it slide, then play it again Sam. The beautiful thing about KMRT are the daily trading ranges. If you're a professional day trader, you've been given endless opportunities to take 3-7 points out of the market almost daily. Long some days, short the next. Reading it became easy because the after hours trading almost always told the story of the following days action.
I'll end tonight's post with another excerpt from the 3-7-04 Newsletter quoted above.
Reflection
Mary Magdalene spent countless nights making love but never had any.
What are you making?
Last week I was busy making a web site and making sure our portfolio produced.
Completely obssesed.
Tunnel vision.
Then came the storm.
As the rains fell and the water rose, web sites and stocks suddenly lost their importance. I began to pray. I have to admit the prayer angel did I.D. me. Why? Well let's just say I had been so busy making other stuff I had stopped making contact with God. Uh-oh. The harder I prayed the harder it rained. You see, God loves fellowship and I guess he missed me. Now that he finally had me in his presence, he just kept me there for a while.
When the towers fell on 9-11, everyone was obsessed. Almost everyone. That guy trout fishing in Alaska, he wasn't fazed by it all. The group camping at the bottom of the Grand Canyon? Nope! Why? They didn't know about it. They weren't scared, freaked out or glued to CNN. They were just out there enjoying God's creation. Whatever happens in this life is temporary. We must keep our focus on that which is eternal. Everything else is just stuff. Whatever you make this week, make time for Him!
Blessings
CT
Last night we talked about not trading naked. To re-cap, alway set a stop-loss price on every position. I gave you sound %'s to work with, but you the individual investor must determine how much pain you can tolerate when a stock runs the wrong way. Discipline is key. When you reach your pain threshold, get out. The easiest way to exercise this discipline is with electronic stop-losses. It's not a perfect science but it will prevent you from falling in love with a stock. Romancing an equity creates more losses on Wall Street than all the greedy fund managers combined.
I gave you an excerpt from a newsletter earlier this year to show you what happened in real-time. The date of that Newsletter was 3-3-04. On Sunday 3-7-04 we issued another newsletter recapping the weeks activities. If you weren't a subscriber then, the 10K Portfolio referred to in the excerpt is a Model Portfolio based on a $10K investment divided between 10 stocks with a goal of a 1% gain per trading day. We called it the working man's portfolio, because we agreed to make no changes during the trading day. Why? Because the working man was at work, not glued to a trading screen. The Model Portfolio was based on a $100k investment and also contained 10 stocks but allowed entries and exits during the trading day.
Enough said, here's the excerpt:
We've been MIA since Wednesday night. Thursady we had an ice storm which flooded the Church. Ice storm in Phoenix? Is that like Hell freezing over? So instead of charts and graphs it was mops and buckets. Second we had a big wedding Saturday which took all of Friday night to prepare for, but here we are back to work.
Monday we opened our 10k Portfolio, made a fast $500.00 and promptly lost it for reasons previously explained. We were stopped out Thursday on HURC @ $7.38 and we replaced it at Friday's close with 500 shares of IPT. Our goal of a 1% gain per day was realized as we closed the week up 5.86% or $586.00 after commissions. We made money, lost the money, got the money back. God is good. We learned a priceless lesson in real-time that you never want to forget.
In our Model Portfolio we were stopped out on CSTL @ $5.17. We doubled our investment on ESMC and chose to exit Friday @ $18.95. That leaves 2 empty slots and $24,109.01 to invest. We'll take 5000 shares of IPT and 1300 shares of EVOL at Friday's closing price. Final tally for the week: after commissions +$9,100.00.
Watch PCR, IPAR and PES.TO tomorrow. All 3 were up Friday on declining volume and this may be the bullish indicator we've been waiting for to signal a break-out.
Keep in mind, the above is historical info and not to be used as part of your due dilligence for tomorrow.
Here we go>
+ CBJ EPR SKT HOC ACAS GRT ARI GTM VEIX
- SGP ICGE DCEL XOMA NABI GENE AXYX
Radar / PDEX HICKA MTCT
I try not to duplicate my selections. This does not reflect a change in opinion. I'm simply alerting you to new opportunities on a daily basis. For example, my first alert on KMRT (the store on the corner that no one wanted) went out at the low $50's. I haven't brought it back up because my opinion hasn't changed. Sears validated my call when they decided to give K-Mart $3 Billion dollars for those empty stores on the corner that no one wanted. I'm blushing because that was my first $3 Billion call.
I had a personal target of $75-$80 before the deal, but I'm comfortable now with $100. If rumors start to float about a split you can make that $125, but depart the day before, let it slide, then play it again Sam. The beautiful thing about KMRT are the daily trading ranges. If you're a professional day trader, you've been given endless opportunities to take 3-7 points out of the market almost daily. Long some days, short the next. Reading it became easy because the after hours trading almost always told the story of the following days action.
I'll end tonight's post with another excerpt from the 3-7-04 Newsletter quoted above.
Reflection
Mary Magdalene spent countless nights making love but never had any.
What are you making?
Last week I was busy making a web site and making sure our portfolio produced.
Completely obssesed.
Tunnel vision.
Then came the storm.
As the rains fell and the water rose, web sites and stocks suddenly lost their importance. I began to pray. I have to admit the prayer angel did I.D. me. Why? Well let's just say I had been so busy making other stuff I had stopped making contact with God. Uh-oh. The harder I prayed the harder it rained. You see, God loves fellowship and I guess he missed me. Now that he finally had me in his presence, he just kept me there for a while.
When the towers fell on 9-11, everyone was obsessed. Almost everyone. That guy trout fishing in Alaska, he wasn't fazed by it all. The group camping at the bottom of the Grand Canyon? Nope! Why? They didn't know about it. They weren't scared, freaked out or glued to CNN. They were just out there enjoying God's creation. Whatever happens in this life is temporary. We must keep our focus on that which is eternal. Everything else is just stuff. Whatever you make this week, make time for Him!
Blessings
CT