Market Trading

[Spaf]

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Market Trading..................................................The Best Trader is U!

If you want to be a trader, make money, You need to take charge of your funds. If you are making money your strategy is working. If you are losing money You need a new strategy!

Stop following these other folks!!!!!! You got to make your own path. Listen to what other say and check it out! If it suits you fine! Other wise shuck it.

YOU GOTTA FOLLOW YOURSELF! Best trader there is, just gotta get U there.

Rule 1 = Capital preservation.
Transfer to 100% G immediately! If you are unsure, or lossing money.

Assignment No 1. Monday May 30 2005
Go to stockcharts.com download and print The Dow Theory (All 4 Parts).

http://www.stockcharts.com/education/MarketAnalysis/dowtheory1.html

Get a 3 binder with tabs and lined paper.
Put The Dow Theory in the binder, in a tabbed section.
Start reading the Theory. Slowly, at least 5 times. Parts 1,2,3 are most important. Part 4 should be understood.

Assignment No 2.
In the binder on the lined paper, one per month. Make vertical lines for Dates, DJIA, NASD, S&P500, then the TSP funds G, F, C, S, I. and a section to the right titled Remarks.
You can start for June. Set up all the days on the left, skip Sat/Sun. Use a horizontal line to divide weeks. Start tracking the closing prices of the market and thr TSP funds.

Assignment No 3.
Go to amazon.com and purchase Trading for Dummies by Michel Griffis and Lita Epstein. $16.49 new 14.00 used. Your option, but for +2.49 I'd get the new one. Have it sent ASAP.

Assignment No 4.
Read the book, highlighting and underling important items, suggest yellow highlighter and a red ball point. Make notes in the margins and on pages in the binder for each part and chapter. You should have a mini trading book when U get through for your binder, and the trading book for reference.

Stay in touch. Keep me posted on UR progress!

Now lets get going! The stock market is advancing.

We ain't gonna lose no more money!!!!!!!!!!

Rgds Spaf

e-mail: marq457@mail.com

Start studying!

 

[Spaf]

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Market Trading..................................................The Best Trader is U!

Accounts

TSP is one leg of your retirement system. The money put in TSP is tax-deferred. It is best rolled over to a traditional IRA when a person retires.

TSP has 5 funds. They are good, but not great. The investment world has countless funds.

You are gonna need other money, home, boat, medical, or etc.

Open a money market account at your bank and start a savings plan. You want to get roughly $10K. Anything over 10K you can invest.

Start looking for an online discount broker. One that is reputable, low trade fees, has an easy to use platform. And maybe near by. Personally I use Scottrade, but there are a lot of other good ones. Low trade fees and a easy to use platform, and reputation helped me decide which one.

Exchange traded funds ETF's are the easiest to use. Start reading up about them on the internet. Also at http://www.barchart.com

Right now we are planning and studying for a future strategy. To make money!

 

[Spaf]

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Market Trading..................................................The Best Trader is U!

Start setting up your computer to work for you, not against U!

Organize your favorates on the internet

Favorates

Financial
Chat Rooms
Fundamentals
Misc
My Favorates
My Portfolio
Technicals

Chat rooms: TSPTalk.com, etc.
Fundamentals: briefings.com, etc
Misc: incrediblecharts.com, ishares.com, etc.
My Favorates: (Local bank), (Internet discount Broker), (TSP), etc.
My Portfolio: (TSP funds on yahoo), etc.
Technicals: barchart.com, money.cnn.com/markets/morning_call, stockchart.com/gallery/$SPX, USAToday Markets, Yahoo Finance, etc.

Add those that serve you best in keeping a handle on the market and your investments. Listen to what Teknobucks offers on Fundamentals, and maybe select some of his listings.

Rgds Spaf

 

[Spaf]

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Market Trading..................................................The Best Trader is U!

Tip

1. When selecting an internet discount broker. Make sure you know how their system operates i.e., what is unsettled funds?

2. In your trading cash account. Some brokers pay dividends. So it's better than a matress or a tin can.

3. Remember it's a daily committment. But it sure beats re-runs on TV!

Rgds Spaf

 

[Spaf]

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Market Trading..................................................The Best Trader is U!

Considerations

Other books to help you out:

General Finance:
9 Steps to Financial Freedom by Suze Orman at Amazon.com

Mutual Funds i.e. a TSP rollover to IRA
Mutual funds for Dummies by Eric Tyson and James C. Collins at Amazon.com

Favorates/Financial/Fundamentals. Items that may be considered for your fundamentals:
signalwatch.com
conference-board.org/economics
today.reuters.com/news/default.aspx

Rgds Spaf

 

[Birchtree]

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Spaf,

My friend you have been busy today. Good work.

On 3/7/05 several Dow Theory newsletter writers put out a solid buy signal when the transports and utilities both confirmed the Dow Industrials. Then the secondary trend correction gave us a 900 points down celebration - I did manage to take some opportunity and do some serious buying. Richard Russell - a long time bear - refused to confirm and is still hedging his decisions - he will eventually arrive late - they all do.

I don't follow the Dow Theory but apparently I do practice what they preach. I was doing some serious accumulation back in 7/02, 10/02, and 3/03, before the first leg of 3000 points kicked in - the money was sweet. Now it looks like it won't be long before we begin stage 2 (second leg) of the primary bull market and are again at least 3000 or more points away from stage 3, which could remain overbought for many, many months.

The previous reaction high of the secondary trend correction has been surpassed.

 

[Birchtree]

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Spaf,

Also it would appear that the public for the moment is focusing on home prices and looking for ways to get some action from realestate. That is fine with this contrarian investor - they should wait until stage three anyway. A classic bull move is starting up and will run a long time - I happen to think this bull is secular in nature and not cyclic. Some heads say it will be over after this move probably in Sept-Oct. They are wrong - history has never seen a back to back secular bull market- until now.

Whew- homeowners are increasingly borrowing for shorter terms, and at adjustable rates. In the past 2 years, the share of new mortgage originations bearing adjustable rates surged to 60% from 20%. I just don't trust the Fed, at any rate what ever they do I feel safer in my stocks than I do in a house where I have to use an intercom to make my presence known. June 29-30 will tell the story on interest rates - it should be very interesting to be fully invested for the month - redemption here we come.

Dennis

 

[Spaf]

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Hi Dennis!

Agree with ya. I had a good ride with IYR iShare realestate. It peaked and I bailed!
Adjustable rates! EWWWWW
I wanted to pay off our home, my accountant advised against it because of our medical bills. I need to itemize. So I got the lowest loan at the lowest rate.

However

Several of our friends have had some problems with there TSP investments. So I started this thread to help in any way I can. Your assistance too would be appreciated.

The way I look at it is we are all in TSP together. Helping others also helps us. Right now I'm trying to get folks to buy Trading for Dummies,understanding The Dow Theory, setting up a trading journal. And getting their computer on their side.

Rgds Spaf

 

[Show-me]

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Spaf,

Amen brother! All help is appreciated!

 

[Spaf]

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Hi Show-me!

Market Trading..................................................The Best Trader is U!

Start setting up your computer to work for you, not against U! Contd

Favorates/Financial/Misc (contd)
also consider: investopedia.com

Favorates/Financial/My portfolio/TSP
wala: http://finance.yahoo.com/q?d=s&s=AGG+%5ESPX+%5EDWCPT+EFA

Note: click on 3mo under chart will open up the chart, go to Charts, click Technical Analysis will bring uo all the neat indicators and oscillators.

Also consider: advfn.com/p.php?... The FOREX currency exchange rate, for a quick look see.

Last will be the technicals!

Rgds Spaf

 

[Spaf]

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Market Trading..................................................The Best Trader is U!

Start setting up your computer to work for you, not against U! Contd

Technicals are the hardest to set up. Some of the links you have to set up yourself.
We talked about four technicals earlier, so I won't repeat now.

Others for consideration in Favorates/Financial/Technicals are:
Stockcharts.com the Bullish percent indicator under $BPSPX
cbs.marketwatch.com
money.cnn.com
morningstar.com
Stockcharts.com (home page)
tspmoney.com
finance.yahoo.com

I also will add any important sub section of the above sites to customize my technicals. These 7 plus the prior 4 gives a fairly good overview of the technicals. The three best that I like are the AM Market Calls, USAToday Markets, and the gallery view of $SPX at stockcharts.

.................................................................................................................................

I have gotten some comments. Gee you might get some feedback saying to go to the G fund. My ans. My coach wouldn't let me go to the deep end of the pool till I showed him I could swim. He'd say I ain't helping you to see how much water you can gulp!

Rgds Spaf

 

[Spaf]

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Market Trading..................................................The Best Trader is U!


Setting up your data

Your should have two data items. A trading journal and a spreadsheet.

The three ring binder is your trading journal. You have lined pages with the dates, market (Dow, Nasd, and S&P) and TSP funds (G,F,C,S.I)and remarks. Enter the closings in the vertical colums, one page per month. In the remarks enter your positions i.e., 50G 50C, and what this position did: good, bad, whatever. This way you have a record of your system and the strategy.

If you have a spreadsheet for your funds, great!
Tom has one.
And I have one for Microsoft Works for a broker and TSP. Ask and its yours via e-mail. I guess it's e-mailable??

Rgds Spaf

 

[Spaf]

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Market Trading..................................................The Best Trader is U!

General

The first post listed Rule One.
The first post lists the assignments.

I would ask that posts be kept to the topic of being better educated traders, less we loss someone in gibber gabber. Oh, in the book you will learn what type of a trader you are! For the price U can't afford not to have it! Oh, pls don't buy any newsletters out there. Before considering a news letter at $$$ lets talk first.

The buy hold market ended with the burst of the bubble. Folks at TSP are government employees not market guros. However, it doesn't mean we can't make money in our investments.

Making you, your best investoris our goal!

Rgds Spaf

 

[Spaf]

imported post

Market Trading..................................................The Best Trader is U!

Operating Rules

Rules in investing:

1. Protecting your principal comes first. Monitor your funds. Learn when to hold em, and when to fold em.

2. The key is to buy when the market signals the start of a bull trend. And then, setting up an exit strategy i.e., stops.

3. Select leading stocks that are outperforming the market. Not letting a large profit turn into a small profit.

4. Sell when the bull trend has ended. Don't let a small loss turn into a large loss.

5. There are exceptions to this rule: Sell individual stocks if they move against the trend.

 

[mayday]

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spaf thanks for motivating me in the right direction I read the dow theory there were only three parts. Now i can see a whole lot more meaning in all those charts. It looks like Tom is taking us in the right trend. It looks bullish for now. Thanks again for such usefull info.:^

 

[Spaf]

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mayday wrote:

I read the dow theory there were only three parts.

Adjusted eye glasses, yep ur right!......have a good one mayday! Rgds! Spaf

 

[Spaf]

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Ok

The market is in the 1191 range on the S&P500. This is a icy area. Below 1191 we could return to the trading ranges we have been in since January. Above 1191 we should be in a primary movement of bullish. Fundamentals are good, not great, but good. What will happen? Well only the market knows! I am somewhat bullish so long as oil stays below 55. However, I have a stop at 1174. If the market goes below 1174 I'll consider a return to safe haven (G-fund).

Rgds, do your homework, and be careful! Spaf

 

[Guest]

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Thanks Spaf. I need that plain language. Too often in these poststhere are so many buzz words, market jargon and acronyms used that I miss the whole meaning.

 

[Mike]

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If I ever say anything incomprehensible, feel free to ask. It tends to happen a lot when I'm talking to women.

 

[Guest]

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Mike wrote:

If I ever say anything incomprehensible, feel free to ask. It tends to happen a lot when I'm talking to women.

Well remember the time you said that "if I...... ".... na' never mind. Maybe I'll just PM you.