- Posted by Joe Fahmy on March 11th, 2014 at 6:04 pm
In this video, I discuss: 1) A stock market overview 2) The importance of a strong entry point and 3) The market’s pattern and knowing your timeframe. The purpose of this video is to pass along some of my experiences from 18 years of trading, and to provide education and market commentary. If you have any questions, you can email me directly at [email protected]. Thank you for watching and good luck trading!
- Posted by Joe Fahmy on March 8th, 2014 at 12:30 am
Something strange happened to me last week. A friend (who is not really involved in the stock market) asked me to give him a stock to buy. I thought about it for a while and couldn’t come up with anything. It was strange to me because I usually have tons of ideas in my head, but I couldn’t come up with ONE! Let me explain.
When a friend casually asks me for a stock, I try to give them something that I am fairly confident in over the next 6-12 months. I do this for a few reasons: 1) I know they’re not going to buy a big position 2) They’re not going to watch the stock closely and most likely won’t sell it (up or down) and 3) I want to give them something “fairly” safe, so I don’t get yelled at if the stock goes down
For example, in the summer of 2012, a friend asked me for a stock to buy in his own brokerage account and I gave him $DDD at $20 per share. He bought 300 shares and sold it at $60 (it ended up going to $97). I explained my reasoning for this pick here back in July 2012.
In early 2013, a different friend told me that “cloud software stocks were going to be hot.” I gave him $SPLK and $CSOD (both were around $30). I gave him these two because their technicals were strong, their fundamental growth stories were just beginning, and some VERY smart money was buying these stocks. He hasn’t sold any yet. $SPLK is at $88 and $CSOD is at $58.
One final example. In August 2013, another friend who had never bought a stock before in his life told me how $YELP was the main app he used on his phone and he “couldn’t live without it.” I helped him open a brokerage account and he bought 50 shares at $50. It’s close to $100 now, he still owns it, and he thinks investing in the stock market is the easiest thing ever, lol.
I’m not telling you these stories to brag about my stock picking. I am simply making the point that if a friend casually asked me for a stock RIGHT NOW, I couldn’t give him one. Are there companies that I still love long-term? Absolutely! However, most of them have run so much over the past 6-18 months and entry point is so critical to me. I can trade them personally because if they break down I can stop myself out. But giving a stock to someone who can’t watch it would only put them in harm’s way. Who knows? Maybe some of these stocks will blow off to the upside from here, but in my opinion, it is very difficult to start aggressive new positions right now.
I can be reached at: [email protected].
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Joseph Fahmy is the managing director at Zor Capital, LLC, a New York based investment management firm. Joe has over 17 years of trading experience...More »