Dooms Day Or Election Day- whatever you prefer to call it- (How Should I Position Myself?)11/6/2016 By: ShortMeTina If you’ve followed financial media outlets for the past few months, you undoubtedly subscribe to the notion of, “if Hillary wins then this, if Trump wins then that”. In other words, it is “common knowledge” that a Trump win will tank the markets; while a Hillary win will act as a stabilizer. If you believe these statements to be true, then it would make sense to short the markets (if you believe Trump will be our next president) or long the markets if you’re expecting our next president to be Clinton.
Comments
By: ShortMeTina This lesson is not speaking to your traditional “buy and hold” investors. Buy and hold investors aren’t concerned with the fluctuations of their securities. They are generally concerned with the fundamental aspects of the underlying business. Cash flow, revenue, growth, research and development, etc. For them, if the company is growing quarter over quarter, year over year, so will the price of the stock. BY: ShortMeTina
Phase 1 Accumulation This phase is characterized by sideways trading action or consolidation. Heavy weights and institutional investors are buying up the stock during this period in large quantities. The goal is to accumulate within a range without alerting the general public. Levels of support and resistance are typically well defined during this phase. By: ShortMeTina There's nothing like a rumor on Wallstreet to move a lagging stock. Remember when Netflix (NFLX) shot up on rumors that Disney (DIS) wanted to acquire it? How about those rumors that helped Teslas' (TSLA) stock when we thought they were pairing up with Apple (AAPL)? And most recently; Twitter's run on rumors that Saleforce (CRM), Alphabet's Google (GOOG), (GOOGL), Disney (DIS) and some nameless others are potential suitors? That rumor allowed Twitter (TWTR) to go from a close of $19.11 before said rumor to a high of $23.57, after rumor was reported. A gain of over 20% in only two trading days. One thing we know or we should know is a good rumor on Wallstreet can do a lot for a stock's share price. But what happens next? Tesla recently traded at yearly lows and Netflix is 30% off its yearly highs. Get the picture? On Wallstreet a rumor is just that, a rumor. You can trade a rumor but make sure you're not marrying said rumor. Rumor has it; when you want to create a market to unload your shares; the best thing you can do is, start a rumor. Remember, the deal isn't done unless the fat lady sings. Check out how I traded Twitter after Friday's rumor here. Good, Bad or Ugly comment below Don't forget to follow ShortMeTina on Stocktwits, Twitter, Facebook and Instagram. Email us at tina@shortmetina.com with any questions.
By: ShortMeTina
If you missed the first part of my “Rewind” blog, check it out here. For those of you who’ve been following all along since my journey started, this blog recaps what I've blogged about since part 1. If I can sum up the content of “Rewind II (Part Due)”, it mainly tackles the shady world of pennystocks, the psychology of trading and the importance of having a method. By:ShortMeTina When you start out as a new trader, for some reason, you’re drawn to the world of trading pennystocks. On surface, it makes sense why folks are more inclined to trade these securities. After all, trading at $5 dollars or less, buying penny stocks offers you the ability to buy large quantities of a stock. New traders mistakenly believe it’s wiser to buy 10,000 shares of a stock that cost (.25 cents) than 100 shares of a stock that cost $25 dollars. This thinking, while it comes off wise to new (and some seasoned) traders is inherently flawed and a recipe for disaster. Traders who trade pennystocks should know a few things about pennystocks and I feel; I am the person to tell them. By: ShortMeTina I have said it before and I will say it again. Even if you don't follow the methodology of the 'true' legends; it is still wise to know how they view the markets. I haven spoken about some that have been very influential in my trading like, Livermore and Mr. Jones. In the spirit of continuing the list; here are 9 Warren Buffett quotes that resonates. By: ShortMeTina If you're still on the fence as to what this market is considered, guess no more. We are in a bull market! Week after week, we are making new, all-time highs and today wasn't an exception. I will tell you, what I've told myself, "don't fight the tape; making money is a lot easier in these types of markets". With that said, I am about to share with you a strategy to trade during these types of markets. It is one of my all-time favorite techniques to deploy and a classic among traders. |
Get our FREE watchlist delivered to your inbox every week!
Our Top Blogs
|