A recent report shows that Canada has the world’s most stable banking system, unlike Canada’s neighbors to the south, the United States currently ranks 40. The U.S has suffered a financial industry, stock market collapse due to de-regulations which allowed their banks to do anything they want, including greedy un-scrupulous lending practices.
Read the article below.
I’ve been out of the market since March 2008 and for a good reason. The subprime financial mess has far and wide reaching ripples effects which is now causing more and more problems for the financial markets.
Today, Lehman Brother files for bankruptcy and Merrill Lynch was forced to sell itself to Bank of America for $50 billion in stock, sending the U.S stock markets tumbling and investor confidence down with it.
I was wondering to myself “Is the 415 point rally the stock market had on the Dow Jones Industrial sustainable?”
The answer here is no, the stock market is really volatile. Today, the Dow is down about 235 points right now due to bad news from the financial sector, which will in the near future I think keep rearing its ugly head.
by Das Brain
I added a new category to my blog called “Trading Psychology” to explore of course the psychology of trading, whether it be stock, option, futures or foreign exchange trading.
Under this category, I will be posting articles that deals with why investors, speculators buy, why they sell and when. Also, how losses in trading can affect your psychology.
I will sharing a lot of my own personal experiences as well under this new category.
In the next few weeks to month, I will be looking to buy into long-term option contracts of selective stocks that look like they’ve reached a bottom. In the last 6 months buying shorter-term CALL option contracts has lead to some losses in my portfolio to be honest.
Look at the chart below of the $DJX, the decline started from mid October 2007 to just January 22, 2008 then a bounce and now we are heading back down.
To be on the safe side, I will now only look at LEAPS which are long-term option contracts with at least 1 year before expiration. Looking at the $DJX Dow Jones 100 chart we can see to the far right of the chart, recently the Dow Jones market has try to form “W” shape but failed, and it looks like it is dipping back down. Read the “Trading the 123 Strategy” for double bottom info.
My guess here is the $DJX may go back down to the 122 (DJIA would be 12200) before turning up or go sideways more with a series of small bounces.
Recent weak economic reports in particular today from the service sector, has turn the markets down. At the time of writing this post, the Dow Jones is down by 293 points, and the Nasdaq (above chart) is down 54 points. From the looks of it, my guess is that the indexes will retest the lows set in the last few weeks.
With only a few hours to go before the FOMC announces their rate cut, I’m wondering which way the Fed will go.
Some think that the Fed might just cut the interest rate by 25 basis points to round out the total cut to 1 percent. This is the total of last weeks emergency cut, plus todays cut if they go .25 of a percent.
by Das Brain
Over the last 2 trading sessions the stock market indexes has been beaten down. Yesterday the first trading day of the 2008 the markets were slammed and also on the last trading day of 2007. Not very good signs for the health of the U.S stock markets at all.
by Das Brain
 In my last post of “What Stocks I am Looking At To Buy In Recent Downturn” I specified a few stocks. They are Sandisk, Blue Coat Systems, Coach, Amazon and the Nasdaq ETF. If you look at the charts for these companies the only one that did well was Amazon (AMZN), in my last post I mentioned getting in at $76, it is now at $95.24. Made about $1200 on AMZN options, got out early but “Profit is Profit.”
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.
Â
 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.
Don't forget to bookmark or LINK to this site! (CTRL-D)
Learn to pay off debt, save money, spend wisely, invest and trade stocks and options at MoneyAccumulator.com
You are currently browsing the archives for the Stock Trading category.
Back to Home Page
MoneyAccumulator.com
