In accordance with the list of changes I need to make, I’ve begun the process of changing brokerage firms. As of this morning, my Think or Swim account is active with an options per contract rate of $1.25. Zecco’s base contract rate is $4 + $0.65 per contract. The switch to TOS will save me, on average, $2.50 per options trade. In the past couple of months, my options activity has increase to approximately 200 trades, or about $1,000. The switch will save me at the very least, $250. Along with their software platform and instructional classes, I think I’ll be extremely happy with the move.
As for the fundamental shift in trading styles, I’ve gone ahead and ordered from Amazon John J. Murphy’s Technical Analysis of the Financial Markets. From the reviews I’ve read and gathered from other technical analysts, Murphy’s book is the gold standard in the industry, a “Bible” for all TAs so to speak. That should be coming in within the next week.
I’m also looking at redesigning the theme of this blog. Over the past month Investingadventures has gone from being a little known blog to averaging 75 visitors per day. I never assumed a personal blog for my thoughts would be read by so many folks. It’s encouraging to say the least! If you have any suggestions on low cost theme redesigns let me know. I know a few folks use Unique Blog Designs but they’re a tad pricy for my tastes.
I have some computer simulations for my PhD to run this morning. Once those are settled, I’ll go ahead and continue the ETF series. the emerging markets ETF (EEM) is next on the list I believe. Good luck the rest of the week!
I’m still here! I realize posts from the last week or so haven’t been as personal as I would like. Between being sick, a potential part-time job, the market humbling me (180% profit to 15% in the red), and a general shift in trading rules and theory, I’ve been partly bummed. I’ve actually been in cash for about a week now only taking a quick nibble earlier today. Confidence is definitely rattled but it’s been tough staying away from the game. I’m also in the process of switching brokerage platforms. While Zecco has treated me well, ThinkorSwim appears to be better suited (and cheaper) for my options trading needs. I’ve also begun to break away from the Mad Money / Cramer mindset. While the show and his books help teach some fundamentals, the market doesn’t work on fundamentals alone. Rather, the more I analyze things, the more I’ve realized that technicals could have secured my profits weeks ago.
Here’s my plan of attack for the coming weeks:
- Change platforms from Zecco to ThinkorSwim
- Fundamental shift from fundamentals to technicals
- Spend less time on Stockpickr and shift time to OptionAddict
- Begin reading and learning the technicals of the market
- Hopefully land the part time job (more to come)
- Continue ETF series (large interest it appears)
Quite a bit on the investing platter but I think this may be for the best. As I complete the tasks above, you all will be the first to know.
Be careful with the bounce today. If this truly is the bottom, expect DJIA 13,600. If we collapse back under 13,000, all bets are off as to when the bottom appears.
It’s back! The Festival of Stocks, the November 12th edition! We have love and romance… we have greed and jealousy… and… well… we have bears and bulls. Without further ado, here’s your November 12th edition. Enjoy!
Editor’s Picks
Yes I’m biased, but what’d you expect.
- The Investor’s Journal presents How to Make a List of Rules to Invest By posted at The Investor’s Journal, saying, “Every investor needs a self created list of rules to invest by so that they stay disciplined and successful. Many investors learn the hard way what the do’s and don’t’s of the stock market are, but fail to write them down so that they don’t repeat these mistakes over the course of their investing career. You need to make a list of rules to invest by yourself, and this article will show you how to do that.”
I have my rules posted on my desktop so that I can never forget them.
<insert supermodel + intellect joke here>
- Leon Gettler presents Wall Street to be hit by a Level Three Storm posted at Sox First, saying, “We are about to find out how much toxic waste is on the balance sheets of the big banks with a new American accounting rule SFAS157 that goes into effect on November 15 . It will force banks to rate their assets according to how liquid they are. And that will affect markets and investment.”
I’ve been hearing quite a bit regarding the new accounting rules going into effect. Curious how it’s going to affect Goldman in particular. Keep us posted
I still think Carl Ichan needs to be a tad higher
General Investing
- Logan Flatt, CFA presents “Growth Investing” Nothing More Than Rank Speculation posted at PowerWealth.com, saying, “Thanks to decades of promulgation by the financial services industry, it is now common for many people not unlike Mr. Authers to mistakenly use the terms “value” and “growth” to describe two contrasting styles of investing. However, there are not two styles of investing. Instead, there is investing and there is speculation.”
- ATradeADay presents How I Trade Support and Resistance posted at A Trade A Day, saying, “An understanding of the nuances of support and resistance is critical to successful stock trading. Here are three easy to remember concepts from my trading methodology.”
Portfoilo and Ego Boosting
Personal Finance
- Jason Elder presents Chapter 7 Bankruptcy – 5 Good Reasons To File Bankruptcy posted at A Bankruptcy Lawyer’s Blog, saying, “Chapter 7 bankruptcy is a popular form of bankruptcy in the United States. For some, it is the last resort of those who have experienced a sudden job loss or a major medical issue that they had no control over. Through bankruptcy liquidation filed under this chapter the debtor can get a fresh financial start by receiving a discharge of all debts.”
- Ian Welsh presents The Wile E. Coyote Economy posted at The Agonist, saying, “The US markets have been operating like Wile. E. Coyote running off a cliff. For years many of us have been looking at the US like Wile E. Coyote, scratching our heads and wondering “What the heck is keeping him up there?””
That concludes this edition. Submit your blog article to the next edition of festival of stocks using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page. If you don’t submit this week, I will have Chuck Prince run your portfolio (I’m sorry… that was a cheap shot… well I’m not really sorry… but it was still a cheap shot… actually I’ll take my apology back.)
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Hope everyone’s enjoying their Veteran’s Day holiday weekend. Remember that the equities markets will be open Monday but the bonds market I believe will be closed. Anywho, here’s a short list of articles I’ve managed to enjoy this week throughout the market free fall. Enjoy!
- Blain on Stocktradingtogo explains why liquid money (oil and gold… pretend the gold’s in a melted form) is much better than the actual US currency, the Peso… err.. Dollar.
- Dean Reese (I believe the same Dean Reese on Stockpickr.com) posted on the Trading Goddess’ blog regarding the ‘perfect storm’ rally we may be facing with the market this week.
- I came across Optionaddict.net a few days ago and I have to say I couldn’t be any happier. It’s a great wealth of information and the readers are extremely friendly and helpful. OA recently posted how E-Mini futures work especially as a use for hedging against what we’ve seen recently.
- Looks like Timothy Sykes, author of An American Hedge Fund, is back in the game with the TIM portfolio and about $12,000 in assets. Yes Tim, it’s awful not being able to day trade. The margin calls on a pattern day trader are scary, at least for folks doing this the first time around!
- Cheesecake Factory wins $74 million in a lawsuit this week. Why? Some mall didn’t want them as tenants.
Options expiration is this Friday. Festival of Stocks will be hosted here again on Monday as well. Just a friendly heads up!
Today’s action confirmed my thoughts on yesterday’s rally based more on the bears covering than actual buying. The last 20 minutes of trading today showed that the bears are in complete control of this market. The technicals for all three indices have broken down and look to be bearish in the near future. I’ll reiterate that, at least in my limited knowledge of technicals and experience in the market, we won’t have a rebound until at the very least DJIA 13k and S&P 1420. The technicals indicate a battleground at those levels. I hope we won’t see that play out next week but with options expiration coming up, I can see even more profit taking and short selling as a result of the horrible third quarter earnings reports we had and the credit / housing crisis. I’m currently about 80% cash and sitting on the sidelines attempting to regroup. It’s been a rough week for everyone I think.
I’ve been under the weather the past few days (Florida flu.. aka first cold front of the season!) and as a result I’m a bit behind on the index / ETF series. I’ll get back to that as soon as possible. Perhaps I’ll read my own articles and take some of my own advice to heart. If you went short the QQQQ or the SPY, you probably did alright this week.
Holiday on Monday (although not for the markets) so enjoy the long weekend!