Thursday, August 6, 2009

Alert t-bond

We see more downward momentum for the t-bond with the extra amount of dollars that most likely will be printed and a declining dollar. Also the trend is downwards and the MACD almost crosses over.

Chart courtesy of: Market club: tools for the trader

Price: 116.4

Wednesday, August 5, 2009

Trading alerts and advice

For about a year we are studying the markets especially the DOW Jones, junior mines, silver, gold, oil and also individual stocks. We did also focus on technical and fundamental analysis and keeping an eye on the global trend of markets and sectors in those markets.

The reason of this blog is to give you every month a few possible trades that we like that you can evaluate and trade yourself.

What we especially like to do is give a buy advice on stocks we like after some kind off pullback.

This blog is new, so some links will not work, but we will keep refining everything. At first it is just about the information we provide. The rest is all extra.

Each article about a new potential trade will come with a certain maple leaf icon. There are three versions which I will try to explain.

When we rate a stock with a golden Maple Leaf that means that we consider the trade to have more potential upside than there is downside in the very near term future. That also means we are of the opinion that we are more likely to see the stock take on higher gains than that it will go lower.


When we rate a stock with a silver Maple Leaf that means that we do consider the stock has the potential for a short term rally but it just means that the technicals (MACD, RSI, trend,...) are just not that good as with a golden rating.



When we rate a stock with a red Maple Leaf that means that while we do expect some upward action from this stock in the very near future we also conceed that the risk is much higher and the chart technicals at the moment of the posting are not so favorable as they would be with the other ratings.


Disclaimer
IN NO EVENT SHALL WE BE LIABLE FOR ANY LOSS OR DAMAGES OF ANY NATURE RESULTING FROM, ARISING OUT OF OR IN CONNECTION WITH THE USE OF, OR INABILITY TO USE THIS WEB SITE OR THE CONTENT, EXCEPT AS REQUIRED BY LAW. NOR DO WE REPRESENT THAT THE INFORMATION SELECTED FOR THE CONTENT IS COMPREHENSIVE, COMPLETE, VERIFIED OR ACCURATE.

Tuesday, August 4, 2009

Trading Terms

On this page I will post some commonly used terms in trading with some explanation or a direct link to a page on Wikipedia containing the information.

MACD
MACD or Moving Average Convergence/Divergence. I could explain it here but if you study the page on Wikipedia on MACD I'm sure you'll do fine. Another useful link about MACD is found at the following stockcharts page.

RSI
RSI or Relative Strength Index is measuring the velocity and magnitude of directional price movement by comparing upward and downward close-to-close movements. Read the interpretation on Wikipedia here.

Trading Tips

Trading TipsOn this page I will be writing down a number of trading tips which might be of use to beginning as well as hardened traders.

Although the last category of traders should already have mastered these and even practicing them daily they should however not be forgotten.

1. When investing in the stock-market only do so with money you have already said goodbye to. By this I mean that in the worst case scenario if you do happen to loose all your invested money that there will be no bills which can't be paid, no loans which can't be paid off, no mortgage issues, no nothing. When you loose money on the stock market and it effects the normal course of your life then you are breaking rule #1. Remember this.

Before putting any dollars in your brokerage account...Kiss them goodbye first!
Before putting any dollars in your brokerage account...Kiss them goodbye first
Before putting any Euro's in your brokerage account...Kiss them goodbye first
...
2. Never invest more than 10-15% of your portfolio in any given stock. No matter what the news at the time is. I don't care if your neighbors wife's son in law whose uncle knows a good friend who happens to know the person who works at the local gas station where the CEO of company x fills up his gas tank. Whatever the reason, whatever the motivation. Never ever put more than 10-15% in any given trade.

3. Diversify. Don't put all your eggs in one basket. Try to find out the best markets at the time to dedicate your money to. That might be energy, gold, silver, copper, agriculture, oil, uranium,...whatever. Just find out which ones still have plenty upside potential and try to go with the trend. Ask yourself, which sectors might do good in this or that situation.

4. Never enter a trade without having first determined for yourself at which price you're putting your Stoploss if things should turn ugly, at which price you will Enter the stock and what your Exit position will be or rather when you start taking your profits. Stoploss, Entry and Exit or SEE! You SEE?

5. Don't believe everything you read, hear or see. The stock market is not just charts and it is not just emotion. It is sometimes a combination of the two, sometimes just either one and most of the times its something absolutely nobody has any clue about. So basically, always ALSO do your own research and follow your own gut feeling. Oh yeah, if that gut feeling turns out to be costing you more money than it gets you, just try to follow the opposite of your gut feeling each time and you'll do fine.

6. Study this highly informational video on youtube made by Stockjockey. Nobody likes a horse beater let alone a dead horse beater. Trust me on that! Don't let it ever get this far. If you did let it get this far then you probably have ignored pretty much most if not all of these rules. Like Stockjockey says, if you have gotten to this level, if you take just 1/10th of all the energy you use into beating that dead horse and use it to become a better trader you'd be far better off. Rule #6 is thus to try to never become the one beating the dead horse.

7. Try to learn what makes stocks tick, what makes investors tick. That way if you do happen to get that long awaited subscribed newsletter of the stock you're invested in you will know what to do. Sometimes the news will look very good and lo and behold...the stock is dropping faster than apples from trees? Sometimes the news is bad yet lo and behold again...the stock is rising? Try to find out why but now continue with rule #8.

8.My Favorite Deal! Something for Nothing! Don't sell your shares cheaply. Though this rule has some overlap with rule #6, this rule however deals mostly with the events that lead up to the transformation of normal human being to dead horse beater. Most of the times when there is a sell-off everybody tries to get in, you keep lowering and lowering your price until at one moment you discovered that in fact you just have sold all of your shares at a bottom. Most of the times when we're in a rally everybody tries to shift their buy price up and up until they realized they just bought at a top. Don't pay more for your shares then what you were originally planning to pay for them. Either self-inflicted action can and sometimes will result in the dreaded transformation. This brings us right onto rule #9.

9. Sell on UP-days and buy and DOWN-days. I know I know, that's hard but try to master this single aspect of trading. Only break this rule on selling if there is really bad company related news or other non definable event which might have a very negative effect on the price of the stock and only break it on buying when there is really good company related news or other non definable event which might have a very positive effect on the price of the stock.

10. Rule #10 will be to study all above posted rules and understand them until I find the time to write a new rule #10 in which case this rule #10 will become rule #11 and so on and on.



YeOldGoldNugget's links of interest

Monday, August 3, 2009

Ratings

Each article about a new potential trade will come with a certain maple leaf icon. There are three versions which I will try to explain.

When we rate a stock with a golden Maple Leaf that means that we consider the trade to have more potential upside than there is downside in the very near term future. That also means we are of the opinion that we are more likely to see the stock take on higher gains than that it will go lower. Basically, low risk, calm but steady gains over time.


When we rate a stock with a silver Maple Leaf that means that we do consider the stock has the potential for a short term rally but it just means that the technicals (MACD, RSI, trend,...) are just not that good as with a golden rating. Basically, medium risk, gains could be greater short term.



When we rate a stock with a red Maple Leaf that means that while we do expect some upward action from this stock in the very near term future we also concede that the risk is much higher and the chart technicals at the moment of the posting are not so favorable as they would be with the other ratings.