Trader? Self, property trading, trader for others or Investor?

We have received some emails asking how the world of trading property inside, their advantages, disadvantages, alternatives, etc … After a time one stares trading where he has spent and is coming to conclusions about everything involved in this world.

The key question is: How do I live in the bag?

As you can see from the title of the post, there are four main types of people entering the market (we could rush to a fifth type, the employee of a broker, but I will ignore this, since this does not work, he seeks the spread (commission) and operates in the market). As I was saying, there are four types of people in the markets:

G7 currencies, what are you waiting for?

We saw in the previous article as the G7 intervened jointly in favor of Japan, pushing the yen to lose ground. After a successful intervention seems, now another objective of the G7 is to prevent it from being one-sided and formed a speculative market than the current level of the yen. The G-7 in fact do not like the speculative markets unilaterally.

L ‘€ in the last few hours rose against both the yen against the dollar, just after the announcement of the G-7 on expectations that the European Central Bank will do its part to keep down the Japanese currency. There was no indication from the central bank, however, that intervened in the market. If the ECB will enter the market in any case, it will be during the hours of European trading.
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Buying Stocks On Breakouts part 2

Step Three: The third step is to take your new list of stocks (preferably 10-15) and begin watching them daily. You will want to watch for the stock to make a breakout to the upside. This breakout will be defined by a move above the trendline which we have drawn to connect the tops of each peak of the trading range. When the stocks makes its move you will want to do some research, you don’t want the stock to make a jump because of news and if it does you will want to see it follow through for at least 2-3 days before getting in. Often time’s stocks that break out on news alone will have a tendency to drift back down after the news subsides. The best case scenario would be to have the stock make the breakout on its own merit. On the chart shown below you will see an example of Apple Computer making a breakout. Another factor to take into consideration is the stocks volume on the breakout day. You will want to see a substantial increase in volume on the initial day that the stock breaks out.
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Buying Stocks On Breakouts part 1

The following strategy outlines the technique of buying stocks on technical breakouts. Although this is one of the most basic investment strategies, we found the need to outline it for the less experienced investor who may be buying into a stock for the wrong reason. Many times if you ask a new investor why they got into a stock the answers can be quite unbelievable, ” I like their food, I shop in their stores, a friend told me it would take off, etc.”. If you are buying a stock for any of these reasons you might as well hang the financial section of the newspaper on the wall and throw darts at it.

If by chance you happen to make money on this type of trade, trust me you were lucky and chances are that the stock gods will take the money away from you on your next trade. Investing is serious business, and if your going to put your hard earned money into an investment you had darned well better be basing this decision on a technical or fundamental characteristic of the stock and not on a prediction form the guy down the block. The next time the guy down the block recommends a stock to you, ask him how much money he put into it and why exactly he thinks it’s worth buying.

Continue reading Buying Stocks On Breakouts part 1

You Can’t Afford To Sit On A Loser

When the market began its decline in the spring of 2000 many investors froze like a dear caught in the headlights of an oncoming car. These individuals are now sitting in stocks that have declined by as much as 50-60%. Although we sympathize with them this situation can only be attributed to a complete lack of discipline. Whether you are a long-term investor or a short-term trader, stop losses need to be set and obeyed. Traders should always remember that there is absolutely no guarantee that a stock will ever come back. Today’s big names could easily be forgotten in the next bull market.

Besides taking the risk that a stock may not bounce back you are also tying up money that could potentially be put to work in a different stock. A perfect example would be investors who sat in Cisco Systems (CSCO) from January until April of this year while the stock went from $40 to $20 per share. During this exact same timeframe BlockBuster Inc. (BBI) went from $8 to $16 a 100% increase in price.
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Hedge Funds, the allocation

The SEC requires owners of shares in a company or a fund to identify themselves as qualified customers. Learn how to apply multiple layers of hedge funds, where once again each shareholder of each fund must be a qualified customer. E ‘required by law that there is a registered investment adviser.

The qualified buyers who are they? The test of equity is satisfied even if the investor is a qualified customer. In practice, this means that if the bottom is a section of the fund, a performance fee may always decide to take an investor.

In making an examination for compliance, the audit team of the SEC may provide procedures that a fund manager uses to ensure that all customers who pay to meet the performance criteria and evidence of satisfaction.
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We’ll see whether the intervention by the Bank of Japan?

Japanese yen is at a very important technical levels at the moment, against the dollar recently upgraded to a maximum of 15 years, and the Yen against the Euro is trading at record low levels, the last time that we saw in 2001. Now defining moment as to whether the yen strengthened further? Any logical persuasion will speak for the fact that there is no need yen to rise further, it would be time correction, but the market will be about this opinion, and how it will be difficult to say. I can only summarize the factors are the pros and cons of strengthening yen.
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Different patterns of investor behavior

The objectives and methods of those operating in markets are very important differentiating characters, and you can set several different types:

  • Institutional investors.
  • Collective Investment Institutions and asset managers.
  • Foreign funds.
  • Investors.
  • Speculators.
  • Players.
  • Ready, “Gurus and Visionaries.

We will briefly describe each of these groups:
Continue reading Different patterns of investor behavior