January 29, 2011

1929 Crash of Market

It has been said that studying History is a great way to learn about the present. That we are able to evaluate and learn from our mistakes. However, there have been other market crashes since, as experienced in 2008-2009. The stock market draws in the public to trade and invest in stocks. It is vitally important to have a general understanding on subjects such as economics, statistics, and supply and demand principles. Society can learn a lot by studying the Crash of 1929. How exuberance can lead to irrational heights of stock market level, and when the fall comes, it is steep and unforgiving!

I just finished writing the Great Depression section of my website I'm putting together: www.Investing-for-Beginner.org It was very interesting research and well worth the time and effort. Anyone interested in history should check it out:

January 21, 2011

Jesse Livermore, Wise Trader from History

As you probably have seen by now if you've checked out my other posts, I am a devotee of certain principles of stock trading that can largely be attributed to Jesse Livermore, one of the greatest traders the world has ever seen. I knew that Mr. Livermore studied psychology, that he was an avid reader, and that his stock market operations were often conducted in absolute secrecy. I see this guy as a trading master and have studied him very closely. Many of the books on investing that I've read, often describe the same things Jesse does, except Jesse described them first! Below is a quote to make you think as it did for me the first time I read it.

“You will derive from successful trades based on your own judgment a singular pleasure and satisfaction. You will discover that profits made in this way are immensely more gratifying than any which could possibly come from the tips or guidance of someone else.”
- Jesse Livermore

January 20, 2011

Jesse Livermore Speaks

Jesse livermore quotes on stock trading strategy
Here is a quote by Jesse Livermore that I have always remembered. It was a great realization to personally realize the importance and benefits that come from keeping your own records:

“You must, I repeat, keep your own records. You must put down your own figures. Don’t let anyone else do it for you. You will be surprised how many new ideas you will formulate in doing so; ideas which no one else could give you because they are your discovery, your secret, and you should keep them secret.”

-Jesse Livermore

I have been following Jesse Livermore's advice for several years and I must admit, it has been the difference between buying and selling at the right times versus, buying or selling at the wrong times. Buying a stock I think has to include not only buying that right stock, but buying it at the right time! That's where keeping records comes in. It is tedious and time consuming not only to make your records, but to study them as well.

This takes a lot of discipline but I believe it to be well worthy it. I encourage anyone trading in the stock market to record everyday price open, price close, days high, days low, and days volume. You will definitely realize emerging patterns which at the moment you see them, is an insight only you may have at that very moment...

January 9, 2011

Documenting Stock Market Observations

I've created presentations to Document some of my important discoveries; many of which will be shared on this blog in due time. Much of my knowledge and trading experience has developed from constant observation and review. It also helps being a voracious reader taking meticulous notes to analyze later, and who does their best to not miss anything of vital importance!

January 5, 2011

Ford passes Toyota as #2 seller in U.S.

Ford market share over Toyota motor company
Ford Passes Toyota in 2010 as #2 seller in the U.S. & has gained market share for the 2nd consecutive year. Here is a link to a NY times article about this with more info: Ford Market Share. It is interesting that Toyota has been losing market share in the auto industry but it is also the management of Ford. They were the only large U.S. automaker that didn't require a government bailout and forced bankruptcy like it's counterparts General Motors and Chrysler did.

That efficiency I think is paying off. While General Motors were manufacturing and pushing large trucks and SUV's, Ford had a more diverse approach to what type of vehicles it offered. For example, the hybrid became even more popular when gas prices rose in 2008 and are rising again now. Although hybrids are made by Toyota as well, recent negative publicity has hurt their image. Recalls for the infamous sticky gas pedals is one example that hurt Toyota's image with consumers.

I've held Ford since early September when I got in at $11.42 a share. I have observed this stock rise steadily since that time. There have been days where the rise seemed to stall and even pull back a little bit. These were natural corrections as I observed the rest of the general markets doing the same. In my view, the fundamentals for continued growth and expanded market share have helped propel this stock forward. I have used the price performance as a fairly reliable forecaster for general stock market movements. I also have been on the look out for the first time I notice this capacity diminish. At that point, I'll look to find another market leader to use for gauging sentiment in the overall stock market. Ford's market share increase has given it good attention among investors. One thing I find interesting, is Fords stock performance seems to be one day ahead of general markets. For example, if the broad market is rising but on that same day, Ford is falling, I've noticed the following day, the general markets will mostly be down.

I also see the reverse of this scenario happen. When General markets are trending down, and that same day Ford is up, Most of the time on the very next day, general markets go up. I learned this through observation day after day of the stock markets. You start to realize that patterns emerge that can be useful in extracting stock market information and gauging public sentiment, becoming valuable information when trading the Market, giving you insights to trade on.

January 4, 2011

MetroPCS up more than 6% today

MetroPCS (PCS) was up 6.50% today to close at $13.92. I have been watching the performance of this particular stock for the past six months or so (I made some $$ on their IPO several years ago, but that is another story :)

On November 23rd 2010, I methodically went through every company in the S&P500. I sorted out the best performers year to date and organized them. The objective was two-fold. One - I wanted to find out which companies were leading and two - I wanted to identify the leading Industries. Remarkably, MetroPCS and Quest Communications came in places 12th and 13th of all the S&P500 companies. At the time, PCS was at $12.19. Although going through the S&P500 list was tedious and time consuming, it was well worth it as I was able to extract the information I was looking for: Which Industries were leading and which companies within those industries were showing strong results.... The Communications Services Industry was leading and after today's gains in PCS, it looks like its still going strong.

January 2, 2011

Announcing Investing for Beginner

I heard a reporter say on Bloomberg News on Friday that December 2010 was the best December the Stock Market has seen since 1991. I recall a recession in 1991 coming to an end and the strong performance that December, setting the stage for a much stronger 1992. I'm looking toward a better year in 2011 for Stock Market performance and feel we will not have to wait until the last month of the year to see it! I wish everyone investing success for the New Year, as we welcome in 2011! Thanks for reading. I am also making a complimentary Website which will be more detailed and designed to provide plenty of Stock Market investing, ideas, information, and Advice. www.Investing-for-Beginner.org

Happy New Years Everybody!