Stock Trading Techniques

Our China 25 ETF (FXI) has struggled lately, almost reaching our sell stop before rebounding slightly. However, two different advisory newsletters I receive are now pointing to a possible rebound in the Chinese stock market. Following is a reprint (with permission) from today’s Money and Markets. It’s entitled “What China Wants, China Gets!” by [...]

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Our covered call play (CROX) is slightly negative. We bought 500 shares of CROX and sold 5 September $12.50 calls. This is called a “covered call” because we own the stock we are writing the calls against. A “call” gives the purchaser the right, but not the obligation, to buy our CROX shares anytime up [...]

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When Wall Street’s darling growth stocks start reversing course, they become beaten-up value stocks.  Growth-stock investors have no patience for companies that fail to meet inflated earnings expectations and value investors are too timid to step up and buy for fear of getting into a declining situation too soon.
When the former stars of Wall Street [...]

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Never risk more than 2% of your account equity on any one investment, trade, or recommendation.
Make this a “golden rule” for any trading you do on your own. The only exceptions to this would be long-term core positions where you are not using any kind of leverage or margin.
However, for short-term investing like day-trading or [...]

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Tuesday, April 29, CXZ hit our sell stop of $0.69 and we were sold out at that price. Uranium stocks are in a long downtrend due to uranium prices dropping from almost $150.00/pound last year to $65.00/pound today.
We have a rule that says if we are stopped out of a stock we cannot buy it [...]

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We came close to being stopped out of CXZ while I was out of town this week, but we’re safe for now. Uranium is in the doldrums with its price declining to $65 a pound over the last month or so from $75 a pound. That has driven uranium exploration company stock prices down, way [...]

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Alistair Darling, the British Chancellor of the Exchequer who is responsible for economic and financial matters, speaking at the G7 meeting last weekend highlighted the global nature of the problem. “For the first time in a generation we are seeing inflationary pressures that are not home-grown but are being imported,” he said. “Food prices are [...]

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Back in January we bought Crosshair Exploration and Mining Corp. (CXZ) with great anticipation when it seemed that the price of uranium had bottomed and finally turned around. The next day Crosshair announced a winter drill campaign and the stock seemed ready to soar. Then the Nunatsiavut Government announced plans for a three-year moratorium on [...]

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Since peaking in October of last year, the Shanghai Composite index has lost a little over 40% of its value. If the Dow Jones Industrial Average had a similar percentage-sized decline, it would have to fall all the way to 8,500. This is a possibility with all the negative factors the U.S. market is facing: [...]

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Yesterday the price of FVI hit our $2.19 sell stop and was sold at $2.17 for $650 loss. This is really a shame because FVI.TO is going to be a huge winner, but we use stops for a reason. Look at CXZ. It hit $.81 today. We were stopped out at $1.40 and saved ourselves [...]

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