Wealth Building Tips

Wealth Building Tips

Its October, Time to Take the Money and Run?

October 14, 2017

This week, most key US Equities indexes hit new highs again, with the Dow industrials leading +.52 %.   This upcoming week marks the 30-year anniversary of the great market meltdown or the crash of 1987.

October, although generally a good month for stock market returns, also hosts the biggest market selloffs including the great crash of 1929. Borrowing a quote form Henry Wadsworth Longfellow “and when she is good she is very, very good; but when she is bad she is horrid.”

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How to "Buy the Dips" Like a Pro Market in focus: Starbucks (NASDAQ: SBUX)

You know what the EASIEST way to make money trading is?
Trade WITH the larger trend. If the trend is down, sell the rallies. If the larger trend is up, buy the dips.

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If I Had to Choose One Indicator for Technical Analysis, It Would Be This

I participated in a trading webinar this past weekend where I demonstrated a few strategies to about 1,000 traders. The question I got asked the most over and over by at least 20 participants was...

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Precision Trading: Simpler Than You Think

One of the easiest ways to dramatically improve your potential and skill as a trader is to simply slow down and focus on one market.

Novice practitioners immediately reject such a thought.

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The #1 Secret To Trading Success The Gurus Don’t Want You To Know

Hold on to your hat. I’m going to be brutally honest about trading. More honest than anyone has been with you before.

But if you truly care about becoming a profitable trader and ending the non-stop losses, struggle, and frustration, then you’ll read this with care.

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How the Greats Trade Stocks

Let me explain how investment strategies turned people to become great investors.

Long-term investment philosophy has been one of the significant contributors for the success of many of the investors across world. Most of the successful investors did believe in investing money to get long- term benefits in the stock market. Paul Cabot’s State Street Research Investment Trust had been working with an objective to achieve long-term growth and income and capital. Similar approach was adopted my many in options trading. People need to be cautious which choosing right options trading strategies to get their expected returns on their investments.

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The Top 87 Stocks & ETFs for Weekly Options Success

You’re probably wondering by now, why do we trim our watch list to 87 stocks, indexes and ETF’s for our weekly (sometimes monthly) option trades?

The answer is quite simple: LIQUIDITY.

A liquid asset is anything that can be bought and sold easily. Options on Stocks, Indexes and ETFs with good liquidity have tighter Bid/Ask spreads and have more daily trading volume and open interest.

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Using Futures as an Indicator

By now, most people who pay attention to the financial markets realize that what happens in Asia and Europe will affect our market here in the US.  How many times have we woken up in the morning to hear CNBC or Bloomberg telling us that the European markets are down 2%, that futures are pointing to a lower open, and markets are below fair value?  We now live in a global economy;  what happens overseas will drive our markets higher or lower depending on what occurred while we were sleeping.   This causes the S&P 500 cash, Dow 30 cash, and NASDAQ 100 cash indexes to gap up or down at the US open.  If you are on the right side of the market, this could be a good thing, however, most feel the pain as the bad news drives the markets lower.

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Technical Analysis: The Importance of Money Flow

When it comes to trading, one of the best ways to tell what’s happening is by paying attention to the flow of money in and out of a stock. None of us want to buy a stock if money is flowing out, right? Of course not… It’s a great way to lose money.  Instead, we want to buy if we’re seeing money flow in.

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A Crash Course in Stock Spin-Offs

Following the herd is the surest way of achieving mediocre performance. To produce superior returns, investors have two options.

First, be smarter or know more than the other guy. Legendary investor, Howard Marks, refers to this as “second level thinking." For example, “Everyone thinks Apple has peaked and sales will begin to suffer. But I believe they are wrong and the company’s brand loyalty and continued innovation will generate greater-than-expected sales and profits. Therefore, I’m going to buy the stock even though the talking heads on CNBC prefer Samsung.”

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Why I sold Every Mutual Fund I Had

Mutual funds are one of the biggest scams ever pulled on the average investor.

Despite high fees, over diversification, and decades of staggering underperformance, well-dressed salesmen (“financial professionals” as they call themselves) continue to herd our personal wealth into these abysmal products.

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The Biggest Reason Why Investors Never Become Rich

If you want to be a millionaire, that’s great. I wish you all the best of luck.

But you won’t get there if you don’t take the time to learn, practice, or even allow emotion to dictate how you trade.  It takes discipline in the end.  Without it, you’ll never reap the rewards that many stocks offer. 

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The Absolute Best Entry Points for Stocks

Over the years, we’ve found that studying nothing more than charts can help traders break away from the herd-like pack and spot moves before they actually happen.

While homework on fundamentals is essential, it’s a terrible idea to pull the trigger on any trade without first looking at the chart.  Stock ABC may seem fundamentally strong after further review, but if the chart shows resistance at current prices, and a higher likelihood of failure, you need to be aware of that.

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