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HOW TO INVEST IN THE STOCK MARKET IN 2010 These are some very simple ideas that I will be following in my investing this year. There will be a lot of pressure on the part of investment managers to produce higher returns this is the biggest threat to your finacial investing success: There is no doubt that this year will make or break many portfolios. There is still serious trouble in the financials and the credit problems may NOT be confined to just housing. This problem will spread to commercial real estate, All REITs and eventually credit card companies including transaction processors. For those of you who need a speculative hit to build up some investment grade funds check out the section just below this box. I hope to turn $2,000 into $1,000,000 in 8 trades-only starting with $2,000. It is important for you to know if you are a genuine risk taker or not. If you are not a risk taker and are over 50 and have less than 25K in savings then the biggest risk you can take-is NOT TAKING ONE! The clock is running out. This speculation allows you to compartmentalize the risk. If you(and by that I mean WE!)hit then you can block the money into traditional risk balancing allocations. To do this you have to get the money! If you are looking for an interesting book you might give this a read.- WHY SMART PEOPLE MAKE BIG MONEY MISTAKES- Gary Belsky and Thomas Gilovich REMEMBER BE QUICK TO TAKE A GOOD PROFIT AND SLOW TO INVEST IN A TREND THAT WILL NOSEDIVE! (May25,2008) Don't expect the commodity run to come back but watch for the first sector recovery. Keep an eye on the steel ETF. If you have a profit showing in a declining commodity you should take it. The vast majority of pundits are saying that there will be slight corrections but that there are now new rules at play. We are looking for the first time at a truly global financial market place and that the next target for the DOW is 10,700 but we have a range bound between 9800 and 10,700. MY ADVICE-Accumulate cash and head for the sidelines. The next downdraft could be a major piece of financial destruction that occurs with the first real test of 10,700. I would hedge with triple down ETF's like FAZ,BGZ just below that level as a parachute. If it breaks 9,700 and hold sell them on the first down turn. You will not survive if you don't learn how to hedge your long term positions. When the China bubble reemerges this year-AND IT WILL-it will effect every market if it comes after a downward leg on the DJII. Expect to see some sectors recover-but slowly. Keep an eye on FXP. We are on the verge of another bout of stock bubble mania and as one disciplined investor after another gets pulled into it the greed surges and the forces that make a market get honed and heavier. Be prepared to take a simple but adequate profit. THe big scores are done for this year. The reason one conducts an annual rebalancing is to have an automatic discipline that prevents jumping in those sectors that appear hottest. My advice is to gamble with money that is allocated for speculation and let the rest stay intact-UNLESS you are cashing in a significant profit and intend to keep it as cash until your annual rebalancing session. This is the wisest course at this point. The risk of another downside move leading to a real lingering recession is not to be underestimated. My advice is to let decisions made from a long term planning view stay intact. The only shift away from a well thought out plan should be to lock in cash. This market can suddenly bottom out and drop three to five times faster than it rose. The only exception to this will be to take your speculation money and invest it into an ETF that increases as the market decreases like SDS or SRS-also consider SKF and FAZ. You can do this if you want to let your winners run and want a parachute to slow your losses if the bulls start to look like hamburger. Another speculation ETF is FXP or EEV-they are not for the faint hearted.Be prepared to lose if the market continues to run. Excesses being what they are we are in the process of seeing large players take leveraged positions. The hedge funds who survived 2008 will not be transparent in 2009. THe new "winning" strategy hasn't emerged yet. If they decide to drive down a position you are holding-get out quick. If you have not done your annual restructuring yet consider doing it by the end of February at the latest. Buy low sell high is the mantra. I expect TDON(Now Light Wave Logic-LWLG) to finally double by the end of April. This has taken longer than I expected but volume keeps coming in while sales are restrained. REMEMBER BE QUICK TO TAKE A GOOD PROFIT AND SLOW TO INVEST IN A TREND THAT WILL NOSEDIVE! |
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A STEP BY STEP JOURNAL DESCRIBING IN LIVE TIME HOW TO TURN $2000 INTO $1 MILLION IN EIGHT TRADES (Today's Date 3/15/2006)Here is the basic info on the investing plan-open up a trading account with an on line broker. Fund it with $2000 and you must be willing to lose the whole amount! Step one during the week of August 14-19th purchase 2000 shares of PTHO at or below $1.00. Always put your offer in above the bid but below the asked. This is a highly speculative gamble. If you want to you can research the company. Getting ahead is about taking risks! I am neither inclined to explain my choice or hold your hand. This advice if being followed by my friends so you can tag along-no promises. If you come late just catch up and follow directions!Click the link for a face to face! UPDATE!!!! On December 13th a comprehensive report on the company puts earnings within 3 years at over 30 million dollars. The stock pick by the way is TDON-it was PTHO when I first selected it. On this day it was about .60 a share-down from where I picked it but I'm holding firm. New News-Strategic partner announced-Photon X-will be involved in a joint venture with TDON. Recently Third Order Nanotechnology launched an updated web site (http://www.third-order.com) CLICK HERE TO CHECK THEM OUT! (TODAY'S DATE 4/19/2007)A quick update. Although this stock is moving a lot slower than I had hoped it is pointing in the right direction now. News is good-VOLUME IS INCREASING! There are a number of other stocks I am watching closely to switch into once TDON doubles and goes over $2.10. (TODAY'S DATE 5/25/07)The story is in the volume. Over the past 6 weeks around 2 Million shares have changed hands-often in large blocks-and the price frequently only moved a couple of cents. Apparrently people who know a lot more-and who are a lot richer-feel this stock is going to move very soon. My guess is by the end of June.. but I have no idea yet. Information is sparse but ALWAYS interesting. TODAY'S DATE 6/12/07)The volume has dried up but no one seems to be inclined to sell. One of the news releases in early summer indicated the company wished to move off the pink sheets up to a real trading platform. That news mixed with news of a new strategic partner should get this stock hopping. I still think its a winner! Third Order Nanotechnologies( TDON ) is playing their cards close to the chest but their science is breakthrough and their management has decades of experience. (TODAY'S DATE 07/22/07) On the 19th of June TDON released the contents of their 10-SB report through pinksheets.com which contains all the legal information required to take the next step in the growth of the company. It is a very comprehensive statement that includes every share issued and an excellent summary of their business plan, markets and intentions. I'm looking for more immediate news VERY soon! I believe the company is currently in registration and in a quiet period so I may extend the move to October. TODAY'S DATE-June 30,2007-Although not much has happened with the stock the volume seems to be picking up I expect great things sometime in the month of July! (9/27/2007)TDON began to make the first of a series of high volume moves this week and appears to be positioning itself for the move we have been waiting for. Another press release and additional volume in the next two weeks should FINALLY put this trade in the right direction. (TODAY'S DATE, 10/27/2007) TDON is not in the .90's about 1/2 the price of when I first got in. I expect GIGANTIC news in the next 45 days. Watch the volume and the buying pattern. There IS no official news being released. (TODAY'S DATE,12/04/2007)TDON will be featured at a stock picker's presentation at the Yale Club in NYC by EQUITIES magazine. Why do you think they would risk their reputation by picking TDON as an emerging company.? I say continue to hold. (HAPPY NEW YEAR,01/05/08) Stick with the plan-hold onto your position in this stock. There is volume and price confirmation and the stock seems to like the .90 level. Good things are about to happen. TDON now listed on OTC. Expect anew press release befor Feb. 1 and watch the volume confirm. (MARCH 8,2008) Today TDON announced the are changing their name to Light Wave Logic (LWLG). Recently they have moved off the Pink sheets to the OTC, hired a new IR firm, and hired an industry sector strategic consulting company. My guess-they have a partner,a product,a voice,and new capacity! (March 27,2008)By now you know LWLG announced yesterday that they are in prototype production and "development of electro-optic polymer chips for applications in high-speed fiber-optic telecommunications and optical computing, has commenced production of its first prototype photonic chip." The stock jumped up to $1.20 a share closed at $1.00 on volume of 250,000 shares. Today it opened and jumped to $1.13 on volume of 57,000 shares. Hopefully the run will continue-looks like it might be more than a double! (April 2,2008) Light Wave Logic is now over $2.00 a share. But we will stick around as it may produce more than a double. Over the past 5 trading days over a million dollars has come into the shares of this company with the daily volume for the past 10 days now around 100,000 shares per day. Looks like Light Wave Logic has some legs to its run! (April 20,2008) LWLG is now over $2.50. I feel their news might be worth waiting for so I haven't pulled the trigger yet on the sell trade. Watch this baby run!!! (May 4,2008) The buying continues and yet the stock refuses to go UP or DOWN! The operative take-away here is that money is still coming into the stock. In the past couple of months over $2 million dollars have been invested. The float remains at 34 million shares. There is a conference at the end of this month that will be attended by a company officer who has been in the industry for over 30 years. What is the chance that he will want to attend this conference without positive results or no news? NONE!! I'm guessing they will come out with preliminary testing results in the next two weeks and it will be followed by a MAJOR news release at the conference. If this happens and there is a spike this position will be closed out during that spike. Human nature being what it is this particular pattern looks predictively accurate. (May 25,2008) Chaos reigns with the volume moves in this stock. It takes balls of titanium to play this game but we are holding the position. If they don't have the press release out with the next two weeks and we tag a double on the price we will close out the position. The Gilder Conference that Turpin is attending is this week and the Short Interest for the month of May should tell an interesting story. Time to be right or wrong and move on. You may have noticed the high volume surge on the press release on the 27th. There was no real meat in the release but it may have caused the shorts to cover. This is the week that will either move the trend into a positive upward move or leave it flat and vulnerable to the shorts. I'm sticking with the position! Basically this position will be closed out at or just over $2.00 when it recrosses the target. The action and news from the company indicate it will be a while longer. Look to sell during the first week of June. August 16,2008 The position continues to be rangebound from $1.20 to $2.00 per share. A new CEO is now in place so you can expect to see some movement. The sell order has been taken off at $2.00. This stock may explode. January,21,2009 Owning this stock is half way between waterboarding and watching the paint dry. They are still at work still hiring scientists and adding to their Board. I continue to hold but it isn't easy. The volume keeps coming in big chunks and when it sells off it NEVER does so on heavy volume. People are buying large chunks on ZERO news. There must be a reason for this. Their new guy Marcelli seems like a real result producer but they sure are tight lipped! Check out LWLG's latest 10KBonuses galore! (June 12,2009) Well they finally have announced that they have their product and they traded over 400,000 shares and broke the dollar mark. I expect to finally see a move worthy of note next week. (October 7,2009)Stock rose to $1.95 this week- will sell when it hits $2.08-Should be by the end of October> (October 6, 2009) Decided to wait a few more days before closing out this first trade. Stock has run up over $2.50 and may be heading even higher. If it dips below $2.20 I'll dump it. Light wave Logic has been a long time getting here and rather than sell before the big news announcement I thought I'd give it a chance to stretch its legs a little. (October 30,2009)POSITION CLOSED OUT at $2.34 for a sale price of $4680 (November 4,2009) Moving right along into the next trade= 19,000 shares of HDVY at an average cost of .25 for a grand total of $4560. Health Discovery is a REALLY interesting play on fractal genomics. More to follow....
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