A Big Challenge For Many Traders
When it comes to analyzing the market and deciding how much capital to commit, everyone has different strategies. For me, I learned many of the principles taught by Jesse Livermore and William O'Neil. Specifically, follow the price action of leading stocks and analyze the price and volume of the major market averages. For example, when I see leading stocks break down and distribution builds up in the market, I raise cash and wait for better [...]
5 Reasons I Like Netflix
Netflix, Inc. (ticker symbol: $NFLX) provides Internet television network service that enables subscribers to stream TV shows and movies directly on TVs, computers, and mobile devices in the United States and internationally. I assume the title of this blog post gives away that I am bullish on the stock, so let's jump into the reasons why: 1) Strong fundamentals. Although their revenue growth has slowed recently, earnings are expected to grow +372% this year and +118% in [...]
Led Zeppelin: Best. Band. Ever.
In December 2012, the greatest Rock and Roll band of all time received the prestigious Kennedy Center Honors. The following video is the 22-minute ceremony honoring Led Zeppelin. Here are the highlights: 1) I agree with Jack Black when he describes Led Zeppelin as the "Best Band Ever." 2) The audience is filled with many dignitaries, including President Obama and First Lady Michelle. It's awesome to see the entire crowd almost "feel the music" in [...]
The Greatest Trading Book Ever
About 3 months ago, a 22 year-old friend of a friend (we'll call him Mike) asked if he could sit down with me and pick my brain about stock trading. I agreed, and we met for an hour over a couple of beers. At the end, Mike said to me: "I asked to discuss trading with you, and for the last hour you gave me great advice, but you said NOTHING about trading?" Last week, [...]
Please Stop With The Nonsense
I haven't written a blog post in a while, so here are a few thoughts going through my head right now: 1) I see so many angry bears out there. They argue EVERY DAY with such bitterness about the market grinding up. My advice to them is: "Don't focus on what you THINK the market should be doing, focus on what it is ACTUALLY doing." There's tons of liquidity out there, STOP ARGUING WITH IT! [...]
Stay Humble
"Every day I assume every position I have is wrong." --- Paul Tudor Jones When the market is strong, everyone is a genius. Since 4 out of 5 stocks move with the general direction of the market, pretty much any stock you pick will move higher during an uptrend. I have always said that "strong markets tend to forgive your mistakes." In other words, you can buy extended stocks or not be as strict with [...]