buy deep ITM call options (with May or June expiration) on the 5 worst performing, year-to-date Oct 30-03, DOW stocks. that would be EK, T, MRK, SBC, JNJ http://www.dogsofthedow.com/dogytdch.htm close you options by Apr expiration. historically, the worst DOW doggie increase ~ 25-33%% from 1 Nov to 16 Apr time periods. generally options cost 12-18% of stock price, so the potential profit from these doggie options could range from 180 to 200+% the secret is BLSH and SHBL
Also shouldn't he invest in some security in January? I remember studying about some security that people sell in December and then buy again in January.
your're thinking of the "January effect" phoenomenon. make sure you sell before the President's state to the union address, usually early week 3.
Winning the game is easy: Forget studying investments just crack the code where everyone's information is kept (not sure if it's your profs computer or an on-lien site that does it)! If you aren't cheating, you aren't trying.
take a look at NEOM...i tried to buy it right before it bounced but couldn't because scottrade wouldn't let me buy on tenths of a cent. i hate scottrade now for this. i called everything 5 days before and i called the top on this stock. that goes out to everyone who thinks the efficient market hypothesis is valid and that goes out to everyone who thinks you can't predict price movements. not to you DD, but to other people.
january effect phenomenon is basically gone now. people know about it and too many people try to take advantage of it. but there are certainly other patterns out there. eg. there has never been a losing year in the 5th year of each decade for the past 12 decades. not just a coincidence either...
not trying to rip on you, but that is generally one of the worst ways to pick stocks to short and one of the biggest mistakes people make when looking for shorts. generally stocks that win keep winning and stocks that lose keep losing.
the secret is buy high and sell higher....not buy low sell high. buying low can leave your money tied up for periods of time waiting for the price to move. you can wait for confirmations that the stock is going to start moving rather than always trying to nail the dead bottom or by trying to buy bottom feeders. buy on pull backs and sell on weaknesses.
money makes money. So I agree with buy in high and sell higher. But most people can't get into those high stocks because they are poor.
In the short term, homebuilders, which have already been doing well, should get a boost from Alan Greenspan's comments about keeping a loose hand on the prime lending rate. God knows it's killing my morgage lenders today. The big winners recently have been Chinese stocks, homebuilders, and technology stocks that aren't hardware vendors (like Dell or HP) consider some small-medium cap growth stocks in these sectors. Just keep in mind that these are all, to some degree, bubble stocks and keep a firm grip on the sell button.
Bluestar Airlines (BST) and Teldar Paper are also climbing. "I could dump the stock just to burn your ass!!!!"
My two buys this morning FTUS Factory 2-U inc. 50,000 shares @ 2.35 Right now, this is blowing up... +0.12 +5.11% Not sure when to sell.... MTSN 5,333 shares @ 14.99 rigtht now, this is NOT blowing up... -0.52 -3.47% SO basically I have made about 6,470.05 off of the FTUS stock and lost 3,176.42 on the other stock. The rest of my portfolio: Symbol Quantity Curr Price Curr Value Gain/Loss % Chg % Equity CNXT 20000 5.61 112,200.00 4,170.05 3.89% 22.34% CIEN 10000 6.83 68,300.00 1,070.05 1.64% 13.60% ABC 1866 61.03 113,881.98 1,518.83 1.38% 22.67% What would I want to do if I wanted to say sell all my shares of FTUS when it 2.50 a share? Whats the correct terminology?
