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Steady Thinking for Interesting Times!
HOW TO INVEST IN THE STOCK MARKET IN 2014-15
These are some very simple ideas that I will be following in my investing this year.
We will be posting a link to selected investing portfolios that should help you in your thinking process.
Check Out Motif Investing!
Rules for Trading Options and selected stocks January 2014- August 2015
1. Only buy in the money strike price or better. If you cannot afford to buy in the money and time do not buy less expensive strikes.
2. Minimum time spread 60 days.
3. Only buy individual stocks or ETF's you understand.
4. Stock must have a defined catalyst within the first two weeks.
5. Only buy on market down days or on a severe oversold plunge.
6. Avoid paying a premium and try to sell on an up day with a premium.
7. Research three month strike prices forward- no open interest- do not buy. Don't be alone in the trade.
9. Kill losing trades quickly- if the catalyst passes without the action expected- get out.
10. If stock falters on resistance for three days- get out.
11. Be aware of when earnings dates are. If stock does not pop on earnings get out quick.
12. Buy 2 positions and then 2 more if your idea is still sound in a day or two.
13. Be familiar with the stock and its pattern. Never buy options in a stock you don't know.
14. If there is significant inside selling only buy puts.
15. Under no circumstances get closer than 3 weeks to expiration.
16. If the market moves against you in triple digits get out if you can. Stocks don't fight the trend.
17. Playing puts requires more homework than calls. Better to buy calls in undervalued ETF's instead.
18. Understand that TV advice may be contrary to actual positions held. Find three confirming reasons to buy.
20. Time is your enemy. Don't pay for a premium and don't try to run out the clock. You will not be spared.
21. The expiration date is the MOST important piece of information. Never get within 3 weeks of it.
Most people have seen this guy on TV and think he is nuts. If you listen to the nuggets of truth
you can learn a lot. However he jumps around and rarely does follow ups on his picks. He does fess up once
in a while and says he was wrong.Recently he was really wrong on a number of stocks and some have
however started to come back.Jim Cramer's Cramerica can get you into a lot of trouble but it can
teach you the basics-and get you excited. MAD MONEY is money you can afford to loose that you can put on
a long shot stock. I prefer to think of it as a sniper with one bullet. If you make a kill you get another
bullet. You have a mission, you have the tool,you have pressure and success is required. Patience is needed
and a steady hand.
This page is about making stock market selections that work in today's economy! Remember if you are interested in a new novel check out
When To Quit! A fine read.
If you have limited exposure to Investing in the stock market and you are interested in getting into the game but don't want
to go it alone get in touch. I have forty years of investing experience and offer strategic stock market investing and trading
guidance. If you need to hire a personal consultant to keep your ideas solid and your investing on track I am taking on a
limited number of coaching clients. This service is on a retainer basis after a free one hour interview. If you are ready to
make a change in your financial situation and want to "rent" some wisdom please get in touch. My mistakes are all paid for.