by Das Brain
In this post called ”When To Buy A Stock or Option – Market Timing – Part 3″, I am going to mainly focus on short-term trading, as in Part 1 and Part 2 the subject of long-term and intermediate term timing was covered.
One thing to note, that the reference to “timing” here is a indication of entering a “long position” or buying a stock or option in anticipation the price would go up.
by Das BrainÂ
This is an addenum to Discount Broker Review #1 – TD WaterHouse Web Broker Trading Platform is Outdated.
In addition to the TD Web Broker platform being outdated, for investors who want to trade options there is no way for them to set “Sell Stop” or “Stop Loss” orders.
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 by Das Brain
As someone who only have been very actively trading for the last 7-8 months, it is nice to be able to chat online with veteran traders, and get feedback and answer questions about timing trades and trading strategies. The two professional turned home traders I am talking about have well over 10 years experience each actively trading from home each and every day and they have turned out very successful.
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by Das Brain
When trading in the financial markets, whether its stocks, options, foreign exchange or commodities knowing when to buy and sell, obviously is the key to profiting and also the key to avoiding losses. To know when to buy and sell financial instruments, you must as a trader or investor look at charts and know how to read the charts using “technical analysis.”
by Das Brain
Over the last month the stock market has taken a big down turn. All stock market indexes are down starting from roughly the second or third week of November, and recently just had a small bounce upwards.
Stock prices have followed and many of the stocks that I have been tracking has lost
up to 35 percent of their value of their stock price. To be transparent there are a few stocks that I am holding that has taken a big hit. All sectors have been hit, technology, financial and retail as well.
by Das BrainÂ
On August 16 there was a stock market correction, and where there is turmoil there is opportunity. I opened quite a few CALL contract positions during that time and then left for vacation, when I got back 2 weeks later at the beginning of September the market recovered and the stocks I bought option contracts for did recover as well.Â
Below are some of the most profitable trades:
by Das Brain
The last time I wrote about a big stock market plunge was back August 16th, I believe right before I left for vacation and the Dow Jones around that time fell almost 10 percent.
by Das Brain
Currently the Dow, S&P and Nasdaq are down big. Watching Bloomberg news at my trading desk here Bloomberg has announced that it is officially a 10% correction.
This fits one of my criteria for buying quality stocks or options as outlined in my post “When to buy a stock or option – Market Timing”
by Das Brain
Last Friday August 10th, Apple’s stock (AAPL) got hit. On the intraday Apple’s stock price hit a low of $120 and then shot back up to $127.62 then closed on the day at $125. Whoaaa…..what a roller coaster ride, volatility has been a big issue over the month or so.
by Das Brain
Today Apple’s (AAPL) stock price took a big hit, it was down almost 5%. It went from $133 down to a low of $125, and now currently trading at $127.25. It wasn’t just the increase in DRAM cost that hit the stock, once again the sub-prime loan issue has reared its head and took the Dow Jones Index down currently 325 points…OUCH!
by Das Brain
I bought InvesTools (SWIM) CALL contracts with a strike price of $12.50 expiring January 2008, option symbol UKHAV back in mid July and since then all financial stocks in the U.S markets took a big blow to the head including InvesTools. The stock price dropped from about $12 down to $9.50. I average down my trade, as based on my research InvesTools is a solid company.Â
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