Great shorts are stocks that are over valued with huge price to earnings ratios hoping for huge sales and earnings growth in the future. The best shorts have 50, 75, and sometimes even 100 P/E ratios. When they fail to make their earnings and their growth declines their stock […]
Five Reasons I Won’t Short $AAPL Read More »
One of the ways I coach myself each day before trading begins is to say to myself “Don’t do anything stupid”. When I quit doing stupid things that is when I started being consistently profitable year after year. You can do all your homework for trading, you can write your
When Good Traders do Stupid Things. Top Ten List Read More »
Last week was a wild ride with some of the most destructive action I have ever seen in price after many earnings reports. Then when the majority was bearish and many people were short waiting for the unraveling of Spain with its high bond yields and Greece to leave the
Potential New Leaders? Here are My New Picks> Read More »
Many traders are very hesitant to short a stock because while a stock you are long can only go to zero a stock you are short can go to infinity. While I have never personally seen a stock go up to infinity Apple’s run this year and the internet stocks of 1999 did make a
How to Short a Stock Without Infinite Risk Read More »
“Mr. Seykota himself has put together a money management track record with returns of roughly +60% net of fees over the three-decade span of his trading career…” -Futures Magazine Ed Seykota, first featured in the book Market Wizards has one of the best records of all time for any trader.
Ed Seykota: Greatest Trader of All Time? Read More »
A common theme I have seen while studying rich traders and I have experienced in my own trading is that more trading is not necessarily the path to making more money. Great traders tend to be patient and pick their trades carefully. Some will go long periods of time with
Ten Times When A Trader Should do Nothing Read More »
If you could ask advice from the world’s most successful hedge fund managers what would they tell you? Jack Schwager has done the work to get us some answers, here are some of the best tips garnered from the top traders in the hedge fund industry. The following quotes are from Jack Schwagers book Hedge
What Would a Successful Hedge Fund Manager Do? Read More »
What a week we have had with earnings, many plunges. Even for the markets beloved Apple. When talking heads on CNBC straight talking about “buying opportunities” and “investors” start trying to put an earnings miss into “perspective” we are generally in trouble. What many of the big call option bettors
How To Play Earnings?> Don’t. Here are Ten Reasons Why Read More »
If you still wonder what the dividing line is between an up trending market and a down trending market is here are some charts to look at. In the Apple chart you will see the powerful trend that exploded after Apple over took the 50 day line this year. Also
The Bull’s First Line in the Stand Read More »
Even though Apple is THE monster stock of the last 10 years and I love the fundamentals and I love the company story, I still have a rule in my trading plan: I do not hold through earnings. Why? I could catch a $40 pop after
My $AAPL Earnings Trading Plan Read More »