For all links please visit our main TradersBlog homepage at http://club.ino.com/trading/?blognet
----Dear trader,
In the world of trading, gold is one of those special markets that seems to defy the laws of physics.
That all changed last week.
After skyrocketing to over 1,030 dollars an ounce, gold
So, the question is, has the bubble in gold burst?
No registration is required.
Here's to your future success.
For all links please visit our main TradersBlog homepage at http://club.ino.com/trading/?blognet
-----
There used to be a time when investing was simple.
You know what I mean, you buy at 10 and sell at 15 and make 50% on your money. I can understand that, and so can most investors.
I have to admit that some of these off book derivatives that banks and hedge funds are creating and trading are just not that simple to understand.
When the time comes, and it will, you will see, the you know what, hit the fan. Some of these hedge fund managers will see that a lot of stuff that looked good in computer simulations may not look or work as well in the real world (see the sub prime melt down).
Just look at what happened to this hedge fund, Amarath Advisors who lost 6 BILLION and how they thought they where smarter that the markets.
And now the Blackstone Group has gone public with great fanfare. Now that's going to be an interesting one to watch. I am going to be watching this one closely, if it drops below its initial public offering at price of $31.00 it could spell problems for the whole market. If this stock trades below 30 you are going to see a lot of press and finger pointing and speculating that we are seeing a top in the markets.
The only way to consistently be successful in the market is to learn how the market works, have a game plan and have two other key elements necessary for success.
Here they are:
* Discipline
* Diversification
Once you understand how the markets work, have a game plan, and master discipline and diversification, you are on your way to success.
Every success in the future,
It seems like if you don't like the price one day in the stock market, just wait a day and the market comes back. This will not continue forever. Sooner or later the downward trend in the stock market will reverse and go higher. But for now, the trend according to our market indicators is pointed lower.
Vote in this weeks poll: Do you think that stocks have bottomed out?
In the world of commodities, a bubble was burst last week when we witnessed a dramatic drop in gold.
Has the commodities bubble finally burst?
Yes, we believe the bubble has burst. We expect commodity prices will continue to be volatile and more on the defensive in the weeks ahead.
This may not be good news for the hedge funds, who have seen many of their profits evaporate in past few weeks. As we are coming to the end of the Q1, how many of these funds are going to show a negative or a flat return for the entire year?
We expect that 2008 will be remembered for its volatility, and the fact that many hedge funds closed up shop because of disappointing returns.
I think you'll agree, that we have done very well in some difficult and volatile market conditions.
Every success in the future.
Adam Hewison
President,INO.com
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Special Note to All Blog Readers:
Q3 '07 Results
Q3 '07 Ag Results
Q4 '07 Results
Q1 '08 Results (coming soon)
The "Traders Whiteboard" series
"90 Second Trading" series
For all links please visit our main TradersBlog homepage at http://club.ino.com/trading/?blognet
-----As we used to say in the pits of Chicago, "This is going to get ugly."
Today, we confirmed that "Ugly" has arrived.
Trade update: We exited long gold positions on the 18th at 990.2 basis spot.
Today (the 19th) we also had a major sell signal in spot gold. Very unusual that this happend so quickly after our exit signal. Like I said "Ugly" has arrived.
Downside targets (Fibonacci Retracements) for gold are:
1. $855
2. $800
3. $750
Stand aside and give these guys a lot of room as every hedge fund and commodity fund is bolting for the exit doors in all the commodity markets, including gold.
You have read on this blog before that the markets slide faster than they glide. Just look at Bear Stearns slide and several other recent meltdowns.
With the end of the month and the quarter fast approaching these hedge funds have got to have something to show for the month and the quarter. This slide may wipe out all their profits.
It all reminds me of what Bette Davis said in her 1950 movie, "All About Eve."
"Fasten your seatbelts, it's going to be a bumpy night"
Look for more bumpy markets and more volatility as the hedgies continue to bolt for the exit door that just got a whole lot smaller today.
Trade smart and trade to win.
Adam Hewison
President INO.com
WHICH WAY FOR THE MARKETS NOW?
Use this really cool analysis tool and get instant answers in plain English on any market. There is no cost.
Dear trader,
You may not have heard about our Trade Triangle technology, but nows your opportunity to put Trade Triangles to work for you … all for free.
For a limited time only we are opening the gates and allowing non members an opportunity to enter any symbol into our Instant Trade Triangle Analysis Engine.
Here's how it works.
Enter either a name or a symbol, and VOILA! In a matter of seconds we will shoot you an email that includes a chart of your selected market, a complete unbiased analysis in plain English of that market, and finally our Trade Triangles, that pinpoint the big trends.
The reason we are offering this now, is that we believe our Trade Triangle technology can help you in today's volatile markets.
The answer to volatility is here
There's nothing else like this on the web, so give it a whirl with our compliments.
See how your trading can benefit from the Trade Triangles.
Adam Hewison
President, INO.com
For all links please visit our main TradersBlog homepage at http://club.ino.com/trading/?blognet
-----Take a look at what Jim Cramer said about Bear Stearns (NYSE_BSC). Bear Stearns was trading over $60 dollars a share at the time!
Boy, we love the internet. As it keeps a record of what who said what and when they said it. Cramer is a great entertainer, but he was 100% wrong on Bear Stearns and a great many other stock moves that have cost investors billions!
When you trade with a "game plan" you win. When you listen to the talking heads you lose, as they never tell you when to get out of a bad trade!
We have discussed Mr. Cramer before on this blog. You can see his track record here.
For all links please visit our main TradersBlog homepage at http://club.ino.com/trading/?blognet
------This just in:
Never buy because a price looks low, and never sell because a price looks too high.
Why would I say something like that? Why doesn't it matter what you think?
Well here's the cruel reality of the marketplace…
It doesn't matter where these markets are headed. What matters most is you get the direction right.
Just look at Bear Stearns this morning. Joe Lewis, the Bahamas based investor (smart guy) is a little less wealthy as his 9.4% shares of Bear Stearns has a loss of 1.16 billion dollars.
MARKET DIRECTION … that's whats important.
The reality is, these are trading markets. They are all driven by market sentiment.
That's the kind of markets we are in right now, and we are likely to stay in this mode for quite some time.
What matters most, is that you get the direction of the market right. You can only determine the trend by using pure market action. The easiest way to do this is by using a program that can tell you in plain English what the market is doing.
Don't let the hype, hoopla, news and the chat rooms fool you. A market can only do three things, it can go UP, DOWN or SIDEWAYS, that's it!
When you hear about the next hot or cold market that is headed for the stars or the cellar, just say to yourself "it doesn't matter." That way you will know when to get in and more importantly, when to get out.
Take the next several minutes and watch our latest video on Bear Stearns and let me know what you think.
Here's to thinking "it doesn't matter" what you think, it's the direction of the market that is important.
We are going to see some amazing market and trading opportunities this year. So plan now to make some big profits. It's important to stay cool, listen to what the markets are saying and have a "game plan" that works. You can see it all here.
Let the markets have their say … all you have to do is listen.
For all links please visit our main TradersBlog homepage at http://club.ino.com/trading/?blognet
J P Morgan to Buy Bear for $2 a Share
Sunday March 16, 9:01 pm ET
By Joe Bel Bruno and Madlen Read, AP Business Writers
| |
JPMorgan Says It Will Buy Ailing Bear Stearns for $2 a Share, or $236.2 Million NEW YORK (AP) — JPMorgan Chase said Sunday it will acquire rival Bear Stearns for a bargain-basement $236.2 million — or $2 a share — a stunning collapse for one of the world's largest and most storied investment banks.
The last-minute buyout was aimed at averting a Bear Stearns bankruptcy and a spreading crisis of confidence in the global financial system.
The Federal Reserve and the U.S. government swiftly approved the all-stock deal, showing the urgency of completing the deal before world markets opened. Early indications, though, pointed to continued fear about the stability of the U.S. market, as the dollar hit fresh record lows against the euro, gold broke through $1,015 an ounce and Asian stocks sank.
"This is going to go down in very historic terms," said Peter Dunay, chief investment strategist for New York-based Meridian Equity Partners. "This is about credit being overextended, and how bad it is for major financial institutions and for individuals. This is why we're probably heading into a recession."
The Fed will provide special financing to JPMorgan Chase for the deal, JPMorgan Chase said. The central bank has agreed to fund up to $30 billion of Bear Stearns' less liquid assets. Meanwhile, JPMorgan said it will guarantee all business — such as trading and investment banking — until Bear Stearns' shareholders approve the deal, which is expected to be completed during the second quarter.
JPMorgan Chase Chief Financial Officer Michael Cavanaugh did not say what would happen to Bear Stearns' 14,000 employees worldwide or whether the Bear Stearns name would survive. He told analysts and investors on a conference call that JPMorgan was most interested in buying Bear Stearns' prime brokerage business, which completes trades for big investors such as hedge funds.
Risky bets on securities tied to subprime mortgages — loans given to customers with poor credit history — crippled Bear Stearns, the nations' fifth-largest investment bank. So far, global banks have written down some $200 billion worth of securities slammed amid the credit crisis.
At almost the same time as the deal for control of Bear Stearns was announced, the Federal Reserve said it approved a cut in its lending rate to banks to 3.25 percent from 3.50 percent and created another lending facility for big investment banks. The central bank's official meeting is on Tuesday. Before the emergency move to lower the discount rate, which is the rate at which banks lend each other money, the Fed was widely expected to again cut its headline rate by as much as a full point to 2 percent.
"Having taking Bear Stearns out of the problem category, and the strong action by the Federal Reserve, we would anticipate the market will behave quite differently on Monday than it was Thursday or Friday," JPMorgan Chase Chief Financial Officer Michael Cavanaugh told analysts during a conference call.
Some analysts expected it to be a brutal day for global stocks, nevertheless. Japan's benchmark Nikkei stock index has plunged more than 3 percent in morning trading.The Nikkei 225 stock index fell 407.81 points, or 3.33 percent, to 11,833.79 on the Tokyo Stock Exchange shortly after the market opened Monday.
A collapse of Bear Stearns could have heightened anxiety in world financial markets amid a deepening credit crunch. JPMorgan's acquisition of Bear Stearns represents roughly 1 percent of what the investment bank was worth just 16 days ago.
The deal marked a 93.3 percent discount to Bear Stearns' market capitalization as of Friday, and roughly a 98.8 percent discount to its book value as of Feb. 29. The company is set to report its first-quarter results after the closing bell on Monday.
Bear Stearns shares closed Friday at $30 a share. At their peak, the shares traded at $159.36.
"The past week has been an incredibly difficult time for Bear Stearns," said Bear Stearns Chief Executive Alan Schwartz in a statement. "This represents the best outcome for all of our constituencies based upon the current circumstances."
Wall Street analysts say the bid to rescue Bear Stearns was more than just saving one of the world's largest investments bank — it was a prop for the U.S. economy and the global financial system. An outright collapse could cause huge losses for banks, hedge funds and other investors to which Bear Stearns is connected.
The government, led by the Treasury Department and the Fed, was reported to have closely monitored the talks between JPMorgan and Bear Stearns. Treasury Secretary Henry Paulson, former chief executive of Goldman Sachs Group Inc., "has been in nearly continuous consultations all weekend," said Brookly McLaughlin, a Treasury Department spokeswoman.
After days of denials that it had liquidity problems, Bear was forced into a JPMorgan-led, government-backed bailout on Friday. The arrangement, the first of its kind since the 1930s, resulted in Bear getting a 28-day loan from JPMorgan with the government's guarantee that JPMorgan would not suffer any losses on the deal.
This is not the first time Bear Stearns has earned a place in Wall Street history. A decade ago, Bear Stearns refused to help bail out a hedge fund that was deemed "too big to fail." On Friday, the tables had turned, with the now-struggling investment bank in need of the same kind of aid.
Bear Stearns was founded in 1923 and in recent years was best known for its aggressive investing in mortgage-backed securities — and what was once a cash cow turned into the investment bank's undoing.
In June, two Bear-managed hedge funds worth billions of dollars collapsed. The funds were heavily invested in securities backed by subprime mortgages. Until that point, subprime mortgage-backed securities were immensely popular with investors because of their profitability.
The funds' collapse and subsequent problems in the credit markets called into question Bear Stearns' ability to manage its own risk and the leadership ability of then-Chief Executive James Cayne. Critics of the company said Cayne spent too much time away from the office last year playing golf and bridge as the problems unfolded.
Cayne is the same executive who refused to let Bear Stearns provide support as part of a Federal Reserve-led plan to rescue Long-Term Capital Management in 1998. His reticence was said to deeply anger some of his fellow Wall Street CEOs, and the episode came up every time Bear was reported to be in trouble in recent months.
Cayne took over from the legendary Alan "Ace" Greenberg in 1993. Greenberg joined Bear Stearns as a clerk, working his way up through the ranks to eventually take over as CEO in 1978. Greenberg was known for his irreverent style, and his regular memos to employees were turned into a book called "Memos from the Chairman."
Before Greenberg's ascendancy to CEO, Bear Stearns began to expand from its New York roots throughout the 1950s and 1960s, opening international offices and expanding its U.S. operations.
The company was opened in 1923 as an equity trading shop. Today, it has subsidiaries providing a wide array of financial services products for individuals, corporations, institutions and governments. Generally, it provides capital markets, wealth management and global clearing services to its customers.
AP Business Writers Jeannine Aversa in Washington and Stephen Bernard contributed to this story.
For all links please visit our main TradersBlog homepage at http://club.ino.com/trading/?blognet
MarketClub members nailed Bear Stearns 378 days ago.
We are also pleased to announce that INO.com and MarketClub.com will be carrying Associated Press AP stories in the very near future.
So for news, quotes, trading videos and charts, look no further than INO.com and MarketClub.
Watch this brand new video and see how you can personally benefit from this totally non-emotional approach to analyzing any market, including the meltdown in Bear Stearns stock price.
This story is taken from the Associated Press wire, and is a sample of what you will be able to read on INO.com and MarketClub.com in the very near future.
Enjoy the video.
Adam Hewison
President, INO.com
————–
AP
Bear Stearns Bailed Out by Fed, JPMorgan
Friday March 14, 2:10 pm ET
By Stephen Bernard and Joe Bel Bruno, AP Business Writer
Teetering Bear Stearns Gets Bailout From Federal Reserve, JPMorgan Chase
NEW YORK (AP) — Bear Stearns Cos., one of the most venerable names on Wall Street, turned to a rival bank and the federal government for a last-minute bailout Friday to prevent it from collapsing.
The Federal Reserve responded swiftly to pleas from Bear Stearns that its coffers had "significantly deteriorated" within a 24-hour period as rumors about the bank's situation fueled the Wall Street version of a run on the bank. Central bankers tapped a rarely used Depression-era provision to provide loans, and said they were ready to provide extra resources to combat an erosion of confidence in America's biggest financial institutions.
Nearly half the value of Bear Stearns, or about $5.7 billion, was wiped out in a matter of minutes as investors felt the bailout signaled that the credit crisis has reached a more serious stage, and now threatens to undermine the broader financial system — and the U.S. economy.
"My guess is by next week, there will be rumors of other large, familiar institutions" that might be in financial trouble similar to Bear Stearns, said Anil Kashyap, a professor at the Graduate School of Business at the University of Chicago.
Bear Stearns, the nation's fifth-largest investment bank, made its fortune dealing in opaque mortgage-backed securities — a strategy that backfired amid the worst housing slump in a quarter century. The bank has racked up $2.75 billion in write-downs since last year, and releases first-quarter results on Monday that could show more losses.
Alan Schwartz, Bear Stearns' chief executive, said the bank had enough money to keep operating at the start of the week. However, market speculation swelled Thursday — leading investors, customers and lenders to withdraw their business or rescind credit lines.
By that night, Schwartz said the bank recognized that the pace of withdrawals could outstrip the company's resources. He then contacted JPMorgan Chase & Co. — the third-largest U.S. commercial bank — for help.
JPMorgan, which has been hurt far less by the mortgage morass than other investment banks, is providing secured funding to Bear Stearns for 28 days, and those loans will in essence be insured by the Federal Reserve. Schwartz said this will buy Bear Stearns time — allowing it to "convince customers and counterparties that we have the ability to fund ourselves every day, to do business as usual."
Schwartz confirmed, as many on Wall Street suspected, that Bear Stearns could now be up for sale. He told analysts during a conference call that the short-term funding "is a bridge to a more permanent solution." Bear Stearns is working with investment bank Lazard Ltd. to explore its options.
Top executives from Bear Stearns and JPMorgan were discussing the outright sale of Bear Stearns to JPMorgan, according to a person familiar with the talks who was not authorized to speak on the record.
The next 28 days could provide JPMorgan with the time needed to complete due diligence on Bear Stearns before buying the company, giving detail about how much risk is on the books.
JPMorgan is considered to have one of the strongest balance sheets among Wall Street banks, and is not already involved in a rescue like Bank of America's purchase of Countrywide. In a memo sent to employees, Schwartz said the temporary financing would allow the company to "get back to business as usual."
Bear Stearns, which has about 14,000 employees worldwide, has struggled since two hedge funds under its control lost billions of dollars after investing heavily in securities backed by pools of subprime mortgages.
"They were the dominant firm for repackaging mortgages," said Andrew Wilkinson, senior market analyst at Interactive Brokers Group LLC. "That's where all earnings came from. They had the least diversified earnings stream of all of Wall Street securities firms, and as a result, they're paying the price today."
As delinquencies and defaults swelled among subprime mortgages — given to customers with poor credit history — investors shied away from purchase securities backed by the troubled loans. Those fears expanded to encompass all but the safest bonds and securities, forcing investment banks to significantly reduce the value of their holdings and drying up liquidity throughout the market. The broader financial services sector has amassed nearly $160 billion in write-downs since the middle of last year.
JPMorgan Chase said the financing would not expose its company to any material risk, though its shares dropped 3.6 percent, or $1.37, to $36.74. Bear Stearns plummeted 39 percent, or $22.50, to $34.50. The news rattled investors around the world, pushing the Dow Jones industrial average down about 225 points and pulling other indexes lower.
AP Business Writers Madlen Read in New York and Martin Crutsinger in Washington contributed to this report.Governments lie, corporations lie, and politicians bend the truth.
O.K., so what don't we know?
So what doesn't lie, and what tells the truth every time?
Well that's something you need to know and that's what I call the F.T.P. market approach.
This new video lesson shows how even the smart people can be duped by the market, and how you can avoid making many of these same mistakes.
You are not going to find anything like this on the web, I know because I looked for it
before I made this video. Once you have seen this six minute video lesson, you will be able to detect and avoid bad markets in the future.
The F.T.P. approach makes more sense and tells the truth more than anything else I have ever witnessed in my 30 plus years of trading.
There are no registration requirements to watch the video.
Enjoy,
Adam Hewison
President, INO.com
P.S. If you missed any of the "Traders Whiteboard" series watch them here.
Be Our Guest
We welcome syndication of our content in your blog or on your trading website. Please feel free to use our content with attribution - more details here to syndicate our content
For all links please visit our main TradersBlog homepage at http://club.ino.com/trading/?blognet
----Gold trades over $1,000 an oz. … now what?
Is the party just beginning or it it almost over?
From a technical perspective the trend for gold remain firmly in the hands of the bulls.
The bull market for Gold is now seven years old and by most accounts that is pretty old as far as bull markets go.
Here are the levels we would watch on the upside: $1,050 and 1,100. That represent another 5 or possibly 10 percent move from current levels. The caveat has to be we are at all time highs in dollar terms and a great deal of the upward move in gold has come about because of the declining dollar.
Our "Trade Triangle" signals have been doing extremely well in the gold market this quarter. In fact you can see our Q3 '07 and Q4 '07 trading results here.
Our last trend signal to be long gold based on our "Trade Triangle" signals was on 12/26/07 at $817.10. See Chart. This week we are protecting our long positions with a stop at $964.70. This stop is adjusted every day to meet market conditions.
You might also want to watch a short video titled 90 second gold. In this 90 second video, I told you it was a short, you will see exactly how we approach the gold market.
Every success in the yellow metal.
Adam Hewison
President, INO.com
For all links please visit our main TradersBlog homepage at http://club.ino.com/trading/?blognet
-----I can honestly say that 30 years ago I learned how to trade the markets in the pits of Chicago.
This one trading secret opened my eyes to why things happen in the markets.
This trading secret, which is over 800 years old, is one of the most monumental mathematical discoveries of all time.
The publication in 1202 of the "The Book of Calculation" was never meant to be a road map to success in the markets. However, it turned out to be an extraordinary blueprint for how modern day markets work.
The number sequences contained in this amazing 800 year old book, is like having a virtual DNA for every stock, futures and foreign exchange market.
No one knows for sure why these number sequences work. Some traders believe them to be mystical, others, like myself prefer to call them one of life's little mysteries.
I have been using this sequence of numbers to trade the markets for over 30 years. I have to say that after all this time, I am still amazed that these numbers still work!
Once you view the video and absorb this valuable educational trading lesson, you can apply the exact same principals you learn to your own trading. What could be better than that.
Discover and benefit today, from what I learned over 30 years ago in the trading pits of Chicago.
Every success.
Adam Hewison
President, INO.com.
Be Our Guest
We welcome syndication of our content in your blog or on your trading website. Please feel free to use our content with attribution - more details here to syndicate our content
For all links please visit our main TradersBlog homepage at http://club.ino.com/trading/?blognet
-----
Last week I took a business trip to beautiful Boston, Massachusetts. I attended a marketing conference
Funny Side Note
Just to give you my background… I really haven't traveled too much. I was terrified of the airplane ride and even more terrified of navigating a new city on my own. Also to note… I am clumsy and often times very "unlucky." Boston was no vacation from my "unluckiness."
-Had a 1 hour delay leaving MD.
-Flew on the smallest airplane imaginable.
-Cab driver overcharged me from the airport to my hotel (unknowingly overcharged $20).
-Cab driver conned me into taking a ride to the conference when I could have walked (1.5 block walk - 5.5 block drive).
-Flagged for full security check at Logan International.
-Had a 5 hour delay leaving MA.
-Accidentally screamed on the plane because we had minor turbulence. Very embarrassing.
Regardless of the minor problems on my trip, I am extremely excited to attend another conference. I learned many marketing tips from others which will help me do my job better, and that was most more important thing I learned.
==========
What do I mean by that and why does it apply to trading? Why can't it apply to trading?
As a trader, you have made the conscious decision to be a full time student as well. You can learn from professional traders and trading systems, but an untapped resource could be just another self-directed trader sitting at their computer screen.
We know that a common trading practice is to test theories, indicators, and systems… however this takes time and patience. Wouldn't it be nice to get the skinny from someone who has already completed these tasks? Or ask, "Hey does anyone know what MarketClub tools would best work with "X" trading style?" Of course the MarketClub staff has a suggested techniques… but what if you want to hear it from a MarketClub trader themselves. "What do you think about the news feed," or "Do you know any charting or navigational tricks?"
Well, I think I can help you out. Our technical director has just added a new feature to our MarketClub Help Section. It is called "Open Questions." Propose a question to MarketClub members and hopefully someone will give you a response. If you are a niche style trader, there may be another trader of the same style that can give you some pointers.
If your question has already been answered you can find it by using the search tool on the left hand column. I do my best to answer these questions with our suggested technique, but I will be adding member answered questions if they are in good taste and are in compliance with our content policy. To see currently posted answers use the instant response box and type in a general description.
If you've never been to the MarketClub's Help Section, consider this your "lucky day." This section will break down MarketClub's tools and suggested techniques. I would recommend you visit this section even just to browse around.
Please visit MarketClub's Help Section to help traders answer their questions and perhaps post your own.
Bookmark this URL: http://club.ino.com/help/faq/index.php?action=show
P.S. - You don't have to be a MarketClub member yet to view the Help Section. Everyone is welcome to look around.
For all links please visit our main TradersBlog homepage at http://club.ino.com/trading/?blognet
-----
Here is the number one secret to market diversification, spread the risk and trade in non correlating assets.
Here's an example of a non diversified portfolio.
Say you are bullish on Crude Oil and you buy a futures contract in crude, but what if the rest of your portfolio was full of energy stocks?
What you have created is one basket of eggs. In this case a basket of energy eggs. Your portfolio is dependent on one sector and that is energy. This is just too risky for the average investor. No matter how many stories you hear from the various experts saying that energy is going through the roof you don't bet the farm on one market … ever.
You need to have as many non correlating asset classes as you can follow. This short video illustrates diversification perfectly.
The other key to diversification is cash. You don't have to be in all the markets everyday. Cash is a way of diversify … Swiss Francs, Canadian Dollars, Euros, etc etc.
Here's an example of how a well diversified portfolio.
Stocks, bonds, futures and cash.
Out of those four asset classes, you have a multitude of choices. Stocks allow you to cover a broad spectrum of different domestic and international sectors. Bonds do the same thing, and the futures markets cover everything from raw commodities to financial instruments.
You can divide your portfolio into different percentages and allocate then to various asset classes. The more you divide into non correlated asset the less your risk will be.
The American humorist Will Rogers (1879 - 1935) had a special way of making a point. Here's another one of his insights about trading and investing.
Here are two of Will Rogers most famous quips.
"I'm more concerned about the return of my money than with the return on my money".– Will Rogers
"Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it". – Will Rogers
Will was right!
Only buy sectors when they are going up. (Here's how to tell if markets are going up). When they turn down, get out and move into cash. Then look for another non correlating market sector for your portfolio that's moving up. For sophisticated traders you can even short different asset classes which is a way to turbo charge your returns.
Learning when a market is moving higher or lower is not as difficult as you might think. Take a look at how you can tell if your favorite market is going higher or lower here.
Enjoy,
J. Adam Hewison
President, INO.com
Be Our Guest
We welcome syndication of our content in your blog or on your trading website. Please feel free to use our content with attribution - more details here to syndicate our content
If I had a brother or sister, I would want to share this market proven logical approach with them …Why?
Because I know it works.
So why am I sharing this information with you, someone I am not related to and don't know personally?
Here's the reason…
I am tired and frustrated of seeing individuals getting ripped off with all these get rich quick systems that look great on paper, but fail miserably in the real world.
Call it my personal crusade to help others become better investors and traders.
Emotion has no place in the market, watch this video and see why.
Adam Hewison
President, INO.comP.S. If you missed any of the "Traders Whiteboard" series watch them here.
We have just posted a new poll on our Traders Blog (main page) that asks, "what are you most interested in." We want to know what you would like to see us deliver more of. The poll is based on what you trade or are interested in trading in.
Please visit this main page and vote in our poll. Traders Blog - http://club.ino.com/trading/?ltblognetwork
It could be stocks, future, precious metals or ETFs?
Let us know with your vote. It will help us deliver the kind of information and content that is important to you.
Take a look at the poll in the right hand column and make a choice. It only takes a second to select the market that most closely interests you.
Vote now and help us be better for you.
Many thanks,
Adam Hewison
President, INO.com.
To become a successful trader it begins with believing in yourself and having a winning attitude.
Everyone wants to be a winner, at least they think so. Unfortunately, most are not willing to perform the tasks necessary to become a consistent winner.
Winners generally achieve success by being focused on a goal. Being focused allows winners to remain committed to the tasks at hand. Most winners perform a lot of hard work, including a willingness to deal with sometimes mundane duties. Most of all, winners perform with an "I am responsible for both my failures and successes" attitude.
So, where does the would-be trader start to become a success? By focusing on the tasks at hand. Most of all, treat trading as a business. And, as in any business, money management is critical.
Money management, next to trend, is probably the aspect of trading most overlooked by smaller investors. Man, by nature, is an optimistic creature and the amateur trader often acts instinctively. Unfortunately, this instinct or optimism is often the undoing of the smaller trader.
When a person enters a trade, he does so with the hope that it will be a winner. When the position goes against him, he keeps thinking (or hoping) "it will come back." He knows he should have a stop in place, but hope keeps telling him to stay just a little longer since everybody knows, "you always get stopped out the day the market turns." Eventually, hope turns into frustration, desperation and, finally panic which prompts the trader to issue a GMO (get me out) order.
If the trader hasn't learned his lesson by this point, he develops the "I have to get it back" syndrome. He generally rushes into another poorly planned trade, throwing good money after bad.
Winners show several different characteristics. They enter the market knowing they can be wrong and, in fact are wrong as often as they are right. They have learned markets don't run on hope. They understand markets tell them when they are right or wrong. When a trader is losing money and getting worse, the market is telling them to get out.
A bad trade is like a dead fish: The longer you keep it, the worse it smells.
When a trade is making money, the market is telling them they are right and to let the position ride.
Don't ever do this …
Winners don't add to, or "average", losing positions. They dump the trade and go looking for a new opportunity. Successful investors may add to the winning trades. When ahead, they press their advantage while remembering that at any time the market can turn on them and prove them wrong.
In trading keep your mind clear and do not get emotional about a trade. Remember you are not married to a stock rather you are in the dating game.
Every trader needs one.
Do you know what it is?
Many times it's the difference between success and failure in the market.
Watch it with our compliments.
Adam Hewison
President, INO.com.
Be Our Guest
We welcome syndication of our content in your blog or on your trading website. Please feel free to use our content with attribution - more details here to syndicate our content
We first showed you the theory in our introductory Traders Whiteboard video. If you missed this video we highly recommend that you take a few minutes to watch it before you watch our second video with real world trading examples.
After you watch the theory, watch as we put this theory into practice with two real world trading examples. Our first example shows how one of the biggest stocks in the world falls apart, and how you could have taken advantage of this fact by using this simple trading theory. In our next example of this theory, we show a stock whose move is just beginning and still has along way to go on the upside.
It's all here, the theory, two real world examples, and proof that this concept works. Watch, learn and benefit from this powerful new trading video. Watch with our compliments.
Adam Hewison
President, INO.com.
Be Our Guest
We welcome syndication of our content in your blog or on your trading website. Please feel free to use our content with attribution - more details here to syndicate our content
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