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Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Cisco;
Did not work for them, but they would blow their stacks and the smell would travel for miles.
Could not do that today, EPA would get on them.
The Co. went south and stuck us with an old building and the Mayor & council are tripping over each other trying to figure out what to do with with that prime piece of property.
Politics are funny.
EDGH - $1.00 buyout offer - stock still under .50: up 212%
http://biz.yahoo.com/iw/030731/055972.html
Jake;
I didn't raise my voice and everything I say is tongue in cheek, which is better than Copenhagen in cheek.
From the town where Copenhagen use to be made.
Boy I miss that smell.
Jake;
I think we have a good board here, and keeping it light is the key. I have my own problems and didn't realise she was having a rough summer, but after reading the rest of her posts I can understand why she is upset with all of us and responding only feeds the fire.
On a lighter side, July is over, mutual fund managers are done jocking their portfolios, let the party begin.
Sheriff Ron
WAIT A MINUTE! I leave for a couple of hours and all hell breaks out.
Deva/Lisa is our Gumbi. I didn't realise that until'ske she started talking'ske like that. You two sound like a brother and sister trying to get one up on the other. I don't know (or want to know) what started this, but can it stop now. TIA
Fred;
Swing trade on RB boards: http://ragingbull.lycos.com/mboard/viewclub.cgi?board=CLB00118
"RESPECT 98" from the RB boards, I use to respect him until I saw him post the same message on several sites, pumping the same stock over & over. FWIW
LMRI T/A
You da man, when you talk I listen. Keep up the good work.
R-man, something else to ponder;
http://quotes.barchart.com/quote.asp?sym=$comp&code=BSTK
FWIW
Jake, compaired to you I don't know anything, just a good looking chart. IMO
Jake, how fast can you trade, looks like 33% moves.
http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=card&sid=0&o_symb=card&f...
Jake, CLN, hold on with both hands, looks like a wild ride, straight up.
Does anybody know what this $1.80 means, or is a computer glitch?
http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=hpon&sid=0&o_symb=hpon&f....
Jake;
Good 'ole INAP just broke through 52 week high at 1.55.
AdZone Cited for Discovering Terrorist Activity
http://biz.yahoo.com/pz/030728/43128.html
*NNMO*
Jake;
SIRI looks like it tested resistance and has gapped several times in the past, just might again. IMHO
Jake;
Thank you for those kind words, my friend.
Cure for the West Nile.
http://www.shockhaber.com/zzzzzzzzzzzzzzz.htm
Weekly Market Indicators
The DJIA remained locked in a 186 point trading range last week as closing values fluctuated between 9096 and 9284. On Thursday, the DJIA flirted with the June high (DJIA - 9323.02), as it topped 9280 early on before it reversed course giving up 81.73 points to close at 9106.42. For the period, the DJIA gained 96 points (+1.0%) and closed at 9284. It was the same story over at the NASDAQ, which gained 22 points (+1.3%) for the week and settled at 1730. For the year the NASDAQ is up over 29% while the DJIA has gained more than 11%.
Momentum Index: The Momentum Index, +4, lost two points from last week's +6 reading. Breadth was mixed as the NYSE Advance/Decline line lost 24 units while the number of NYSE stocks making new 52-week highs outpaced the new lows on all five trading days. The percentage of NYSE stocks above their 200-day moving average eased to 84.4% vs. 85.2% while those above their 50-day fell to 66.6% vs 68.2%.
Sentiment Index: The Sentiment Index is neutral at +1, unchanged from last week's neutral +1 reading. This is the lowest reading in over two years and reflects a large degree of complacency that has permeated the market. The percentage of bullish advisors is in bearish ground at 55.2%, down slightly from 57.4%. Readings over 55% are considered bearish. The put/call ratio was steady at 1.20 down from last week's 1.23 reading while VIX slid to 20.46 down from last weeks 22.82. Readings under 20 are regarded as bearish. For the week ending 07/23/03, U.S. equity mutual fund inflows was $3.2 billion compared to inflows of $852 million the previous week.
Strength Indexes: All three of the Strength Indexes remain in negative ground suggesting a continuation of a trading range market over the next several weeks. The percentage of Dow stocks under accumulation improved to 30.0 up from 26.7 last week. The percentage of NASDAQ-100 stocks considered to be under accumulation slipped to 31.3 from 33.3 while those in the S&P-100 increased to 29.6 vs 24.5. Readings under 50.0 indicate that the majority of the stocks in the index are under distribution, a short-term bearish condition.
Support for the DJIA is at 8870 followed by 8461 while resistance remains at 9413. Support for the NASDAQ is 1598 and then 1478 while resistance remains around 1760.
*NNMO*
Fred;
Sorry, I monitor over 2 dozen boards on RB and was unable to find the board I copied it from.
BTW, the RB site is working pretty well today, maybe some of our emails hit home. I still plan on staying here, the Sheriff is doing a good job, "fair but firm".
Jake;
When I read that post I thought it was worth repeating, even though we all should know those rules, it doesn't hurt to remind us once and a while. Fear & greed (emotions) are so strong...I mean, you just know that looser you are holding is going to come back. lol
Earning season;
http://stocktastic.com/Events.htm
Wall Street Riding High Again
http://tinyurl.com/i6yh
AVHC with a hammer, but not a Doji on POSC.
AVHC ,CRDM, WBR & GOAM on radar. FWIW
50 Basic Rules for Traders
1. Follow the trends. This is probably some of the hardest advice for a trader to follow because the personality of the typical futures trader is not "one of the crowd." Futures traders (and futures brokers) are highly individualistic; the markets seem to attract those who are. Very simply, it takes a special kind of person, not "one of the crowd," to earn enough risk capital to get involved in the futures markets. So the typical trader and the typical broker must guard against their natural instincts to be highly individualistic, to buck the trend.
2. Know why you are in the markets. To relieve boredom? To hit it big? When you can honestly answer this question, you may be on your way to successful futures trading.
3. Use a system, any system, and stick to it.
4. Apply money management techniques to your trading.
5. Do not overtrade.
6. Take a position only when you know where your profit goal is and where you are going to get out if the market goes against you.
7. Trade with the trends, rather than trying to pick tops and bottoms.
8. Don't trade many markets with little capital.
9. Don't just trade the volatile contracts.
10. Calculate the risk/reward ratio before putting a trade on, then
guard against holding it too long.
11. Establish your trading plans before the market opening to eliminate emotional reactions. Decide on entry points, exit points, and objectives. Subject your decisions to only minor changes during the session. Profits are for those who act, not react. Don't change during the session unless you have a very good reason.
12. Follow your plan. Once a position is established and stops are selected, do not get out unless the stop is reached or the fundamental reason for taking the position changes.
13. Use technical signals (charts) to maintain discipline-the vast majority of traders are not emotionally equipped to stay disciplined without some technical tools.
14. Have a disciplined, detailed trading plan for each trade; i.e., entry, objective, exit, with no changes unless hard data changes. Disciplined money management means intelligent trading allocation and risk management. The overall objective is end-of-year bottom line, not each individual trade.
15. When you have a successful trade, fight the natural tendency to give some of it back.
16. Use a disciplined trade selection system...an organized, systematic process to eliminate impulse or emotional trading.
17. Trade with a plan-not with hope, greed, or fear. Plan where you will get in the market, how much you will risk on the trade, and where you will take your profits.
18. Most importantly, cut your losses short and let your profits run. It sounds simple, but it isn't. Let's look at some of the reasons many traders have a hard time "cutting losses short." First, it's hard for any of us to admit we've made a mistake. Let's say a position starts going against you, and all your "good" reasons for putting the position on are still there. You say to yourself, "it's only a temporary set-back. After all (you reason), the more the position goes against me, the better chance it has to come back-the odds will catch up." Also, the reasons for entering the trade are still there. By now you've lost quite a bit; you sell yourself on giving it "one more day." It's easy to convince yourself because, by this time, you probably aren't thinking very clearly about the position. Besides, you've lost so much already, what's a little more? Panic sets in, and then comes the worst, the most devastating, the most fallacious reasoning of all, when you figure: "That contract doesn't expire for a few more months; things are bound to turn around in the meantime."
So it goes; so cut those losses short. In fact, many experienced traders say if a position still goes against you the third day in, get out. Cut those losses fast, before the losing position starts to infect you, before you "fall in love" with it. The easiest way is to inscribe across the front of your brain, "Cut my losses fast." Use stop loss orders, aim for a $500 per contract loss limit...or whatever works for you, but do it.
Now to the "letting profits run" side of the equation. This is even harder because who knows when those profits will stop running? Well, of course, no one does, but there are some things to consider. First of all, be aware that there is an urge in all of us to want to win...even if it's only by a narrow margin. Most of us were raised that way. Win-even if it's only by one touchdown, one point, or one run. Following that philosophy almost assures you of losing in the futures markets because the nature of trading futures usually means that there are more losers than winners. The winners are often big, big, big winners, not "one run" winners. Here again, you have to fight human nature. Let's say you've had several losses (like most traders), and now one of your positions is developing into a pretty good winner. The temptation to close it out is universally overwhelming. You're sick about all those losses, and here's a chance to cash in on a pretty good winner. You don't want it to get away. Besides, it gives you a nice warm feeling to close out a winning position and tell yourself (and maybe even your friends) how smart you were (particularly if you're beginning to doubt yourself because of all those past losers). That kind of reasoning and emotionalism have no place in futures trading; therefore, the next time you are about to close out a winning position, ask yourself why. If the cold, calculating, sound reasons you used to put on the position are still there, you should strongly consider staying. Of course, you can use trailing stops to protect your profits, but if you are exiting a winning position out of fear...don't; out of greed...don't; out of ego... don't; out of impatience...don't; out of anxiety...don't; out of sound fundamental and/or technical reasoning...do.
19. You can avoid the emotionalism, the second guessing, the wondering, the agonizing, if you have a sound trading plan (including price objectives, entry points, exit points, risk-reward ratios, stops, information about historical price levels, seasonal influences, government reports, prices of related markets, chart analysis, etc.) and follow it. Most traders don't want to bother, they like to "wing it." Perhaps they think a plan might take the fun out of it for them. If you're like that and trade futures for the fun of it, fine. If you're trying to make money without a plan-forget it. Trading a sound, smart plan is the answer to cutting your losses short and letting your profits run.
20. Do not overstay a good market. If you do, you are bound to overstay a bad one also.
21. Take your lumps, just be sure they are little lumps. Very successful traders generally have more losing trades than winning trades. They don't have any hang-ups about admitting they're wrong, and have the ability to close out losing positions quickly.
22. Trade all positions in futures on a performance basis. The position must give a profit by the end of the third day after the position is taken, or else get out.
23. Program your mind to accept many small losses. Program your mind to "sit still" for a few large gains.
24. Most people would rather own something (go long) than owe something (go short). Markets can (and should) also be traded from the short side.
25. Watch for divergences in related markets-is one market making a new high and another not following?
26. Recognize that fear, greed. ignorance, generosity, stupidity, impatience. self-delusion, etc., can cost you a lot more money than the market(s) going against you, and that there is no fundamental method to recognize these factors.
27. Don't blindly follow computer trading. A computer trading plan is only as good as the program. As the old saying goes, "Garbage in, garbage out."
28. Learn the basics of futures trading. It's amazing how many people simply don't know what they're doing. They're bound to lose, unless they have a strong broker to guide them and keep them out of trouble.
29. Standing aside is a position.
30. Client and broker must have rapport. Chemistry between account executive and client is very important; the odds of picking the right AE the first time are remote. Pick a broker who will protect you from yourself...greed, ego, fear, subconscious desire to lose (actually true with some traders). Ask someone who trades if they know a good futures broker. If you find one who has room for you, give him your account.
31. Sometimes, when things aren't going well and you're thinking about changing brokerage firms, think about just changing AEs instead. Phone the manager of the local office, let him describe some of the other AEs in the office, and see if any of them seem right enough to have a first meeting with. Don't worry about getting your account executive in trouble; the office certainly would rather have you switch AEs than to lose your business altogether.
32. Broker/client psychology must be in tune, or else the broker and client should part company early in the program. Client and broker should be in touch repeatedly, so when the time comes, both parties are mentally programmed to take the necessary action without delay.
33. Most people do not have the time or the experience to trade futures profitably, so choosing a broker is the most important step to profitable futures trading.
34. When you go stale, get out of the markets for a while. Trading futures is demanding, and can be draining-especially when you're losing. Step back; get away from it all to recharge your batteries.
35. If you're in futures simply for the thrill of gambling, you'll probably lose because, chances are, the money does not mean as much to you as the excitement. Just knowing this about yourself may cause you to be more prudent, which could improve your trading record. Have a business-like approach to the markets. Anyone who is inclined to speculate in futures should look at speculation as a business, and treat it as such. Do not regard it as a pure gamble, as so many people do. If speculation is a business, anyone in that business should learn and understand it to the best of his/her ability.
36. When you open an account with a broker, don't just decide on the amount of money, decide on the length of time you should trade. This approach helps you conserve your equity, and helps avoid the Las Vegas approach of "Well, I'll trade till my stake runs out." Experience shows that many who have been at it over a long period of time end up making money.
37. Don't trade on rumors. If you have, ask yourself this: "Over the long run, have I made money or lost money trading on rumors?" O.K. then, stop it.
38. Beware of all tips and inside information. Wait for the market's action to tell you if the information you've obtained is accurate, then take a position with the developing trend.
39. Don't trade unless you're well financed...so that market action, not financial condition, dictates your entry and exit from the market. If you don't start with enough money, you may not be able to hang in there if the market temporarily turns against you.
40. Be more careful if you're extra smart. Smart people very often put on a position a little too early. They see the potential for a price movement before it becomes actual. They become worn out or "tapped out," and aren't around when a big move finally gets underway. They were too busy trading to make money.
41. Stay out of trouble, your first loss is your smallest loss.
42. Analyze your losses. Learn from your losses. They're expensive lessons; you paid for them. Most traders don't learn from their mistakes because they don't like to think about them.
43. Survive! In futures trading, the ones who stay around long enough to be there when those "big moves" come along are often successful.
44. If you're just getting into the markets, be a small trader for at least a year, then analyze your good trades and your bad ones. You can really learn more from your bad ones.
45. Carry a notebook with you, and jot down interesting market information. Write down the market openings, price ranges, your fills, stop orders, and your own personal observations. Re-read your notes from time to time; use them to help analyze your performance.
46. "Rome was not built in a day," and no real movement of importance takes place in one day. A speculator should have enough excess margin in his account to provide staying power so he can participate in big moves.
47. Take windfall profits (profits that have no sound reasons for occurring).
48. Periodically redefine the kind of capital you have in the markets. If your personal financial situation changes and the risk capital becomes necessary capital, don't wait for "just one more day" or "one more price tick," get out right away. If you don't, you'll most likely start trading with your heart instead of your head, and then you'll surely lose.
49. Always use stop orders, always...always...always.
50. Don't use the markets to feed your need for excitement.
Note: this list is not my own composition. I cut-n-pasted it from a free website.
Good Trading,
*NNMO* Not Necessarily My Opinion
Ron
Jake;
Looks like HOMS is your kind of stock, decent PR lately.
It's the weekend Cisco hope Rocky is well, Fred hope all the stones are over, Jake and RhMAN great picks.
Everyone have a great weekend, gunna be the best weather of this summer in Joisy.
Anyone for golf, WGFL is looking good and I'm not one for tiny penny's. Check out the news on World Golf League.
Jake
CNBC reported there are a lot of stocks going short, just curious what you think about NXTL being a short candidate.
Watch the volume, I think you know the volume is the key.
I know they say they will not go BK, but are the odds today, anyone?
WOW, I leave for a few days and Rocky gets operated on and Fred gets stoned again. Hope all are feeling well.
Jake;
That was just a small portion of that article, but I thought that post might help newbees.
Hows the wheels?
Microcap stock trading:
Trading Strategies For MicroCap Stocks
Here are some tried and true trading strategies for microcap stocks, which have have proven to be successful over time:
Never invest the entire amount you are willing to commit on the first trade. We have never profiled a company that did not trade below our profiled price at some point in time. Unfavorable market conditions can be excellent opportunities to add to positions. Also, small companies stumble in the execution of their business plans, thus leading to depressed pricing of their stock. If they right the ship at a future point in time, this can represent a buying opportunity. If the stock is trading in your favor, you can always add to a position at higher levels if the company is performing beyond your expectations.
Always use limit orders. Market Makers in microcap stocks are in business to make money on your trade, and they are ruthless. Microcaps trade less volume than larger stocks and are therefore more easily subject to manipulation by market makers. We have often watched market makers fill a market order to the detriment of the investor. Even if you are willing to pay the current market price, please place it as a limit order. The next generation of direct execution brokerage firms will help eliminate the predatory practices of market makers. However, stocks on the OTC Bulletin Board do not trade within the electronic systems, which allow investors to bypass the market makers. We hope the regulators will make a change soon.
Never Place an Order to Buy a Stock at the Market Price when it Gaps Open. A Gap occurs when a stock opens at a much higher price than it closed the previous day based on some news or event. When market makers have market orders for a stock at the open, they will often take the stock up and fill the market orders at an exaggerated higher price. When shareholders sell into the newly established higher price, the stock will drop back down and fill the price gap previously created. Market Makers have been using gaps to line their pockets with money from investors for years. Generally, if you want to purchase the stock that day, place a limit order at the previous day's closing price. You will nearly always get your order filled.
Never Sell a MicroCap Stock At the Market When it Gaps Down at the Open. Traders use the same tricks on bad news. If they have an excess of market sell orders at the open, they will fill those orders at a ridiculously low price. Always wait for the inevitable bounce before liquidating your position if the news is bad enough. You should always be looking to preserve your remaining capital.
Don't Be Afraid to Add To Positions During Unfavorable Markets. If you have followed the rules and not committed the entire amount you are willing to invest, bear markets can be excellent buying opportunities. Microcap stocks will generally drift down in the absence of buyers and can drop to ridiculously low levels during bad markets. Profits can be made when you purchase during these periods of time when no one wants the stock. As a general rule, a microcap stock will make 90% of its move up in 10% of the time that it trades. Before adding to a position, make your best effort to determine that the company is still on track to execute its business plan. Try not to put good money after bad if you can get the information required to make an informed decision. Don't be afraid to pick up the phone and contact the company directly.
Take Some Profits When the Stock Is Hot. Since microcaps tend to make 90% of their moves in 10% of the time there is nothing wrong with taking a profit when your stock is climbing the charts. One tried and true strategy is to sell 50% of your position after the stock doubles in value. This allows you to recoup your initial investment and hold the remainder for the long term with no risk. However, don't sell your entire position. You never know how high a stock will go.
Conclusion
There is a whole world of investment opportunities in securities, and microcap stocks are just a small part of it. However, they do represent the basic tenant of the American Dream. Hard working entrepreneurial management can use revolutionary ideas and technologies to make extraordinary returns for the average investor.
We have seen it happen hundreds of times- $2 stocks that go to $50, and $2 stocks that go to $0. Our challenge is to uncover the hidden gems amongst the 5,000 microcap stocks currently trading. This is the role of the OTC Journal- to uncover those hidden gems that have the potential to go from $2 to $50.
We are merely a provider of ideas - You are ultimately the one to decide if an idea we present, is right for you. We will have winners and we will have losers. However, we have already uncovered and profiled several huge winners. We can only hope you are informed and interested in our profiled companies, and are along for the ride on at least one of our big winners.
http://www.otcjournal.com/tradingstrat.html
Atlanta1
Could you post a link for bottompicks, TIA.
Dow Theory
Through Dow's writings in The Wall Street Journal, several analysts derived what has become known as Dow Theory. Keep in mind that Dow Theory was never coined by Dow himself. He merely wrote his observations. Others decided that it was a valid theory. It has also gone through various interpretations. However, the basic points to Dow Theory are as follows:
There are three types of movements. A primary trend which takes place over the course of years. They can be either bull or bear trends. There are secondary movements which take place from weeks to months. These run contrary to the primary trend. And there are day to day fluctuations which can move in either direction (bull or bear). These are of slight importance other than the fact that they comprise the overall primary trend.
The second part of the Dow Theory is that the Industrial Average and the Railroad Average (at the time of Dow's writing there was only the Railroad Average. In 1969, Dow Jones & Company broadened this to include truckers and airlines so that today it would be confirmation by the Industrial Average and the Transportation Average) must corroborate each other's direction for there to be a reliable market direction signal.
When movements of several weeks or longer take place and are confined to a range of about 5%, a line is said to have been drawn. Accumulation or distribution is said to be taking place. When both averages break out above this line, accumulation is said to have taken place and prices should head higher. When both averages break down below this line, distribution is said to have taken place and prices should head lower. If one average crosses and the other doesn't, the move is said to be inconclusive.
An overbought market becomes dull on rallies and active on declines. An oversold market becomes dull on declines and active on rallies. Large volume shows up at the end of bull markets and light volume characterizes the end of a bear market.
Large active stocks will generally reflect the market averages. However, individual issues may deviate from the broad averages because of circumstances peculiar to them.
The logic behind the makeup of the specific averages is that both the industrials and the transports are independent of each other. Yet, for the industrials to get their product to market, they must use the transports. When the industrials are doing well, the transports will do well. However, when one sector is doing substantially better than the other, a divergence is taking place. This demonstrates that one sector is much stronger than the other; and if it continues, without the other sector catching up, a major reversal in the market will take place.
For the confirmation to take place, it isn't necessary for both averages to cross together. However, the one should then follow the other before the first average crossing pulls back across the line.
Dow Theory also specifies that closing prices should only be used. This is because closing prices reflect the price level at which informed investors are willing to carry positions overnight.
The first phase of a bull market is the accumulation phase. This is when prices are depressed and financial reports don't look good. However, farsighted investors use this period of depressed prices to take advantage and buy shares.
The second phase of the bull market is characterized by increased activity, rising prices, and better financial reports. This is the period where the large gains are made. Wall Street is the hot topic. And tales of large amounts of money being made are bandied about. At this point, the market becomes vulnerable to a reversal.
The first phase of a bear market is the distribution phase. This is where farsighted investors see the uninformed investors scrambling to buy shares. The farsighted investors begin to sell shares. Oversupply leads to weakening prices and profits are harder to come by.
The second phase of the bear market is characterized by near panic selling. Prices accelerate to the downside and more and more people begin to liquidate their holdings.
The third phase of the bear market is characterized by further weakening and erosion of prices. Lesser quality issues erase the gains of the previous bull market. The news is full of bad market news.
What's a chart and what does it do..
http://stockcharts.com/education/What/ChartAnalysis/index.html
Jake;
Take a look at FPDI, looks like your kind of chart.