Yes I said it... Great-West Life offers a 4.6% Yield!
To learn more visit my new blog at http://how2tradestock.com/?p=227
Steve
To learn more visit my new blog at http://how2tradestock.com/?p=227
Steve
Friday, May 6, 2011
Tuesday, December 7, 2010
Flat PBR (Sold 500 shares) at $33.66 for a gain of $610
PBR hit $35 and found strong resistance at that point. The stock sold off all day and broke the upward trend line. Ideally I would have sold earlier (closer to the trend line break) but I am out of the position now with a nice $610 gain on the trade.
Currently we have $30,458 in cash and I am waiting for the next chart set up.
Steve
Tuesday, November 30, 2010
Investing
Investing:
Investors only take Long positions. They can only make money if a stock goes up. Most investors should have a 3-5 year plus time horizon. There are several types of investors. Some look for companies that have been growing their market segment in a growing sector then they buy the stock. This is a growth investor. Some look for relative value compared to other companies in the same sector or compared to the companies earnings. This is a value investor. Some take a macro economic look and think of global trends like 'going green' and try and invest in companies that will benefit from this global trend ( ie. alternative energy, solar panels). Others take a micro economic view and look at the fundamentals of the specific business including their sales, balance sheet, income statement and management. Investing is a great way to build long term wealth.
- Steve -
Investors only take Long positions. They can only make money if a stock goes up. Most investors should have a 3-5 year plus time horizon. There are several types of investors. Some look for companies that have been growing their market segment in a growing sector then they buy the stock. This is a growth investor. Some look for relative value compared to other companies in the same sector or compared to the companies earnings. This is a value investor. Some take a macro economic look and think of global trends like 'going green' and try and invest in companies that will benefit from this global trend ( ie. alternative energy, solar panels). Others take a micro economic view and look at the fundamentals of the specific business including their sales, balance sheet, income statement and management. Investing is a great way to build long term wealth.
- Steve -
Swing Trading
Swing Trading:
Swing traders also go Long or Short the market. They will look to hold their position from 2-60 days. A swing trader normally analyses daily and weekly price charts and is looking for 2 things.
1) A support level (to go Long at) or a resistance level (to go Short at)
2) A trend-line break (used to time the entry)
A support level is a place where the stock price has fallen to then bounced. The bounce is for 2 reasons. One is because at that level people are unwilling to sell their asset and the second is because several buyers step in at that price and buy based on their perceived value of the asset. The more often the stock has fallen to that price level and bounced the stronger the support.
A resistance level is a place where the stock price had risen to then buyers lost interest. The more often buyers lose interest at a particular price level the stronger the resistance. Once the owners of this asset see that there are no more buyers at a certain (high) price point they are then willing to sell their asset for less causing the price to continue to fall.
A swing trader wants to BUY at SUPPORT and SELL at RESISTANCE!
The trend-line is used to time the entry. A trend-line break signals a change in direction.
To see some live examples go to http://www.how2tradestock.com/ and visit the ‘Technical Trading 101′ section of the site.
I like to use Swing Trading with a focus on Support, Resistance & Trends.
- Steve-
Swing traders also go Long or Short the market. They will look to hold their position from 2-60 days. A swing trader normally analyses daily and weekly price charts and is looking for 2 things.
1) A support level (to go Long at) or a resistance level (to go Short at)
2) A trend-line break (used to time the entry)
A support level is a place where the stock price has fallen to then bounced. The bounce is for 2 reasons. One is because at that level people are unwilling to sell their asset and the second is because several buyers step in at that price and buy based on their perceived value of the asset. The more often the stock has fallen to that price level and bounced the stronger the support.
A resistance level is a place where the stock price had risen to then buyers lost interest. The more often buyers lose interest at a particular price level the stronger the resistance. Once the owners of this asset see that there are no more buyers at a certain (high) price point they are then willing to sell their asset for less causing the price to continue to fall.
A swing trader wants to BUY at SUPPORT and SELL at RESISTANCE!
The trend-line is used to time the entry. A trend-line break signals a change in direction.
To see some live examples go to http://www.how2tradestock.com/ and visit the ‘Technical Trading 101′ section of the site.
I like to use Swing Trading with a focus on Support, Resistance & Trends.
- Steve-
Day Trading
Day Trading:
When you Day Trade you can enter a position Long or Short for under 1 second, 5 minutes, 30 minutes, and hour or until 4:00pm that same trading day. A Day Trader will never hold a position overnight. Every day by 4:00pm they will be ‘flat’ meaning they will have no positions in the market and their whole account will be in cash… just waiting for the market to open the next morning at 9:30am. Their goal is to capitalize on intra-day movements and market momentum. Normally a Day Trader will use 1 minute, 5 minute and 15 minute charts as well as other indicators to help them make a trade.
An analogy I heard a Day Trader use once was: I am a little guy…Like a tiny fish I wait for the Shark to start eating then I go in and feast on the scraps. Translation… when you see Goldman Sachs & Morgan Stanley buying AAPL in large volumes Buy AAPL, then sell it for a profit very fast and get out of the way.
You can make fast money and lose your shirt…or both! All in the same day!
- Steve -
When you Day Trade you can enter a position Long or Short for under 1 second, 5 minutes, 30 minutes, and hour or until 4:00pm that same trading day. A Day Trader will never hold a position overnight. Every day by 4:00pm they will be ‘flat’ meaning they will have no positions in the market and their whole account will be in cash… just waiting for the market to open the next morning at 9:30am. Their goal is to capitalize on intra-day movements and market momentum. Normally a Day Trader will use 1 minute, 5 minute and 15 minute charts as well as other indicators to help them make a trade.
An analogy I heard a Day Trader use once was: I am a little guy…Like a tiny fish I wait for the Shark to start eating then I go in and feast on the scraps. Translation… when you see Goldman Sachs & Morgan Stanley buying AAPL in large volumes Buy AAPL, then sell it for a profit very fast and get out of the way.
You can make fast money and lose your shirt…or both! All in the same day!
- Steve -
How much $Money$ do I need to start?
I often get asked ‘how much money do I need to start trading?’ The answer can very from person to person but here is a general guideline:
If you are a beginner trader and want to start your own trading account I would not do so with less then $3,000. If your account is this size I would recommend focusing on stocks in the $10-$25 dollar range and holding your positions longer. This is to avoid the erosion caused by trading fees. If you just want to take trading for a ‘test drive’ you can open a paper money account to see how you do. Paper money is not real so the experience will not be real either… but it will give you a chance to take some trades without any risk.
If you want to take 15 minute to 5 day positions then I would recommend having over $10,000 of capital.
As you will see most of the time I will commit $5,000 to $15,000 to one position. My goal is to hold a postion from 2-60 days. I also set my Stop loss close enough that if the stock goes against me it will trigger my Stop for a loss of less then $500.
Some platforms offer free trades to get you started. If you use the promotional code kenut8ia you will get $50 in free trades with Questrade. I opened a TFSA with them and the process went quite well.
- Steve -
If you are a beginner trader and want to start your own trading account I would not do so with less then $3,000. If your account is this size I would recommend focusing on stocks in the $10-$25 dollar range and holding your positions longer. This is to avoid the erosion caused by trading fees. If you just want to take trading for a ‘test drive’ you can open a paper money account to see how you do. Paper money is not real so the experience will not be real either… but it will give you a chance to take some trades without any risk.
If you want to take 15 minute to 5 day positions then I would recommend having over $10,000 of capital.
As you will see most of the time I will commit $5,000 to $15,000 to one position. My goal is to hold a postion from 2-60 days. I also set my Stop loss close enough that if the stock goes against me it will trigger my Stop for a loss of less then $500.
Some platforms offer free trades to get you started. If you use the promotional code kenut8ia you will get $50 in free trades with Questrade. I opened a TFSA with them and the process went quite well.
- Steve -
Wednesday, November 24, 2010
LONG 500 Shares of PBR at $32.41 (PETROLEO BRASILEIIRO)
PBR may have support at ~$31.00!!
• On May 25 2010 PBR hit a low of $31.21. After the stock hit that low it rallied to a high of $39.63.
• It then sold off again and hit a low of $31.50 on Oct 21st and rallied (again) to a high of $36.51.
Recently (Nov 23, 2010) PBR just hit a low of $31.87 and bounced. I am LONG 500 shares at $32.41 with my STOP at $31.15 (Just below the low on May 25, 2010). The target is $35.50 but we may look to take some profit if the stock goes to $33.50 or move our STOP to lock in Profits.
For all you VALUE investors this stock also has a P/E of 7.4. For the people searching for YIELD, this stock has a yield of 2.6%. (See the link) http://tmx.quotemedia.com/quote.php?qm_symbol=PBR:US
• On May 25 2010 PBR hit a low of $31.21. After the stock hit that low it rallied to a high of $39.63.
• It then sold off again and hit a low of $31.50 on Oct 21st and rallied (again) to a high of $36.51.
Recently (Nov 23, 2010) PBR just hit a low of $31.87 and bounced. I am LONG 500 shares at $32.41 with my STOP at $31.15 (Just below the low on May 25, 2010). The target is $35.50 but we may look to take some profit if the stock goes to $33.50 or move our STOP to lock in Profits.
For all you VALUE investors this stock also has a P/E of 7.4. For the people searching for YIELD, this stock has a yield of 2.6%. (See the link) http://tmx.quotemedia.com/quote.php?qm_symbol=PBR:US
In the chart below you will clearly see PBR hitting support 3 times at ~$31.
(Click charts to enlarge)
The profitability ratio is better then 2:1
Trade to trade well, not to make money!
-Steve-
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