Month: April 2016

821x sell: XLU / buy: PRIM

(watch video for market recap and trade details) XLU – sell at market PRIM – buy with a limit price of $23.43 (be aware that earnings are on 5/5/16 Other ideas: IRIX –  buy with a limit price of $10.32 GLRE –  buy with a limit price of $21.69 GLD – buy with a limit price of $119.42 GFI – buy with a limit price of $4.16 GPRO – buy with a limit price of $13.56 Please read the terms of service.

patience pays

A dangerous misconception many DIY Investors have is that our job day-to-day is to “make money”.  Obviously, that is the outcome we are hoping to achieve, but it is not what we actually do.  Remember, we have no control over the direction of the market or of our holdings at any point in time. No, our primary job is to manage risk.  Day in, day out this is what we  are actually doing.  The stock market can provide life changing monetary rewards, but with those rewards come enormous risks.  The only way to safely gain exposure to the rewards of trading is to strictly define and manage the risk you are taking. There are two primary ways we do […]

turn down the volume

In case you hadn’t noticed, the S&P 500 has had a MONSTER rally since February 11, rising over 14%.  Just since the beginning of March, the index has risen over 137 handles! Knowing this, look at the headlines below: March 2nd – Zero Hedge: Small Cap Stock Soar on the Lowest Volume Day of the Year March 17th – The Wall Street Journal: If No One’s Trading Stocks, Is it Really a Rally? Has any of the hand-wringing about the, at times, anemic volume of this rally been helpful?  ABSOLUTELY NOT! I understand the disbelief.  When I calculated the potential measured move of the bullish “W” formation in […]