Wednesday, November 3, 2010

Friday, October 29, 2010

$12k into nearly $2 million

In the span of two years, Tim Sykes turned $12,415 in Bar Mitzvah gift money into nearly $2 million. And, during his senior year of college, he started his own hedge fund. Pretty interesting story. I need to read more about his trading tactics.

Tuesday, October 26, 2010

Stock Definition

Stock: "a type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings. 

A holder of stock (a shareholder) has a claim to a part of the corporation's assets and earnings. In other words, a shareholder is an owner of a company. Ownership is determined by the number of shares a person owns relative to the number of outstanding shares. For example, if a company has 1,000 shares of stock outstanding and one person owns 100 shares, that person would own and have claim to 10% of the company's assets." (investopedia)

How do you make money from trading stocks?
The simplest example: You buy 100 shares of XYZ for $1.00. In two weeks, you look back at your portfolio, and see that the price of the underlying stock has gone from $1.00 to $2.00. You then sell all 100 shares for $2.00. Your return on investment would be 100%. haha

Simple enough right?
No, it's a lot harder than that. But, I'll touch up on the rest later. 

Monday, October 25, 2010

Stock watch list

SOHU chart
SOHU getting a little top heavy. Setting up for a nice short.

APSG chart
APSG same thing. Also setting up for a nice short.

DJSP chart
DJSP bottom play. Indicators starting to shape up. Could be a nice 3 day swing trade.

ACOR chart
ACOR nice bottom play. Chart is looking real sweet. I'm already in this one. Short term target: 20ma at 29.64 or so.

Tuesday, October 19, 2010

My next short.

The link up there directs you to a chart that looks real good for a short position. That stock has been on a tear for the past couple of weeks. Today it gapped up huge and is now floating way above the bollinger bands. It had a spinning top type candle today, usually signaling time to take profits. Along with the reversal candle, most of the indicators are showing overbought. This puppy could still have some steam left in it, but my technical analysis shows that it's likely to have a pullback tomorrow. Let's see what happens....