0 The Options Oracle
Attention all Oracle subscriber…
The latest trade alert has been sent out. Please check your email box for details.
Thanks,
AJ Monte CMT
Chief Market Strategist
The Market Guys, Inc.
0 Q&A from April 13th Scotia iTrade Webinar
Q: I am interested in learning which charting software tools the market guys use/recommend.
A: Sean, we keep our charts pretty simple. We use candlesticks with a 50 and 200 Day SMA, sometimes we add (20 day). Then we add volume, these are all available through Scotia iTrade.
3 Question from The Market Guys’ Five Points for Trading Success
Q: Hey in your book “5 points to trading success” mistake 8:unrealistic expectations paragraph 3, 1st sentence “The 1st & most realistic expectation from trading the markets is simply to outperform the broad market”. Does this apply to investments too, if so what time frame would you compare your portfolio to the broad markets, say your buying stocks at different time periods. Thanks – E.G.
A: The quick answer is that the rule applies to both trades as well as investments. However, there are some investments that will outperform the market but may take longer to do so. A stock that returns 5% for the first 3 years and then doubles in the 4th year may underperform the market on the short term but ultimately outperform the market. Your goal is to determine the lifespan of your investment as best as possible. All the while, make sure your expectations are realistic and not based on “hope”. Holding a dog because there is a remote chance that your company may hit the 9th inning home run is not a solid investment strategy.
Thanks for your question!
AJ Monte
The Market Guys
0 Fall 2009
We have a great line-up of events and offerings this fall! Thanks to our partnership with E*Trade in the US and Scotia iTrade in Canada, we’re developing new courses, videos, webinars and live events. Here are a few examples that you should check out:
1. Follow us now on Twitter - CLICK HERE
2. Chicago Board Options Exchange mock trading event – October 22nd – visit the CBOE trading floor and see how the trading pits work!
3. NEW videos – Fundamental Analysis, Technical Analysis and Options for Beginners – CLICK HERE
4 Q&A from the April 9 webinar
Q: Must there be a specific increment between my buy and where i place my sell stop? (Brian)
A: You can place your sell stop below the entry price in any increment – down to the penny. Continue Reading »
1 The Options Oracle Trade Alert 030709
This message is for members of The Options Oracle Trade Advisory Service
If you have any questions pertaining to the alert that went out on March 7th, 2009, please post them to this section so I will be able to help you.
Thanks,
AJ Monte CMT
Chief Market Strategist
The Market Guys, Inc.
3 An Open Letter to Traders and Investors
March 3, 2009
An open letter to traders and investors:
On February 13, 2009, Oregon Rep. Peter DeFazio introduced HR 1068 into the 1st session of the 111th Congress. He is calling his bill the “Let Wall Street Pay for Wall Street’s Bailout Act of 2009 .” Following are two key provisions included in this bill:
(5) The easiest method to raise the money from Wall Street is a securities transfer tax, a tax that has a negligible impact on the average investor.
(6) This transfer tax would be on the sale and purchase of financial instruments such as stock, options, and futures. A quarter percent (0.25) tax on financial transactions would raise approximately $150 billion a year.
As an example, if you buy and sell 100 shares of AAPL, you would pay approximately $50 on top of your trade commissions. Rep. DeFazio says that it is appropriate that Wall Street should pay for Wall Street’s bailout. His comments reflect a profound ignorance regarding our marketplace. Average traders and investors from all walks of life participate in the stock market through 401(k)s, mutual funds and college savings accounts. Furthermore, many investors have seen their account values plummet and need to make strategic buy and sell decisions to protect their assets. If HR 1068 becomes law, these Main Street investors – you and your family – will bear the brunt of the new tax. You will be taxed to sell your investments which have already lost value and you will then be taxed to reinvest your money.
The Market Guys have always been passionate advocates for participating and prospering in the markets. You know that we have always strived to help you manage risk and grow your wealth. The markets have been under extreme pressure and now is not the time to add to that pressure. Do not be deceived; this is not a tax on Wall Street – it is a tax on Main Street. Teachers, engineers, students, retirees – everyone – will fall under this proposed tax.
We urge you to contact Rep. De Fazio as well as your own representative and let them know you oppose HR 1068.
Sincerely,
AJ Monte
The Market Guys
1 An Option Oracle Trade alert will be going out by close of market today 2/27/09
If you are a subscriber to our premium trade alert service, The Options Oracle, and have any questions regarding the trade candidate highlighted in todays report feel free to submit your question to this blog page and I will attach my answer to your question as soon as possible.
I believe today’s strategy will be the best play for these current market conditions and I am targeting a 20 to 25% ROI for 2009 and beyond.
0 Webinar Q & A from 02/26/09
Kiai K. asks:
Q: Does a Put enable a stop-loss order?
A: A stop loss order is something you would use to protect against a drop in the market, but it does not offer you 100% protection. If a stock gaps down overnight and opens at a price below your stop price you can lose money. A put gives you pure protection and acts like an insurance policy for your stock. The put allows you to sell your stock at a predetermined price for a limited amount of time. For this insurance you would pay a premium. If you are using a put for protection you would not expect to make a profit from the investment you have made in the premium. Look at it as a way for you to exchange a small amount of money for the ability to sell your stock at a certain price should the stock drop below your strike price.
Lona C. asks
Q: So with a put option, do you own the stock?
A: If you are using the put as a protective strategy to mitigate the risk associated with owning a stock position then you would Continue Reading »
0 Webinar Q & A Part 3 of 3
Jonathan A. asks:
Q: When I want to purchase stock on etrade the cost is 5.69 a share, but the ask price is 5.70, what is the ask price?
A: There are three prices that are posted on your trading Continue Reading »
