TASR $5 June Call Options

Gonna buy a boatload  at .30 if I can.

GEOY OPTIONS

selling both GEOY options;
March $15 call options at $6.50
March $20 call options at $3.60

Starting to get uncomfortable with the time erosion. It's break even for me on both.
GEOY is definitely a buy, but it may take longer than the next 6 weeks or so for it to make a move. Better safe than sorry on option plays.

Stockmarktdouble Trades

Hi everybody, I started this blog on December 12. The purpose of the blog was to record my attempt to double $10k in the market in less than one year. On December 12, the experience started by buying 525 shares of GEOY at $19.03. We sold today at $22 for a gain of  a little more than 15%.

I then re-invested the $11,560 into 3 positions;
DYSL at $1.88
BIOF at .62
MBND at $3.20

The account went up almost 5% today with DYSL leading the pack with a gain of 14% today. The account now stands at $12,158.

Stockmarketdouble is now up 22% in about 50 days, well on our way to doubling the account in less than one year.


Start Date: 12/12/2011
Starting balance: $10k
Current Balance : $12,158
Gain: 22% 

DHT is tomorrow's pick!!

QPSA UP 2% TODAY.
On Friday, we introduced a new day  trading strategy. (please see post from Friday 1/27). The pick was QPSA based on the strategy.
Tomorrow's pick is DHT, which was up more than 25% today.

Newt Gingrich is Laughable

A man of the people

Did you see the interview by Bloomberg of Gingrich?

In a desperate attempt to keep his campaign alive going into the Florida primaries, he labels Mitt Romney as "Wall Street Elite".
Geez, guys who live in glass houses throwing stones?

He continues on by accusing Romney of being a  "fundamentally dishonest" tool of Wall Street.
This coming from a guy who screwed us with his work for Freddie Mac.

 In Florida, 23 percent of all homes that have mortgages are either foreclosed or delinquent.

Atta boy Newt!  A man of the people.

10 FACTS ABOUT JAMIE DIMON

Jamie Dimon, tough, smart, unethical

In no particular order:
1. gave himself a 1500% raise in 2010

2. graduated from the Harvard Business School with an MBA

3. Under his leadership JPM was part of the robosigning scandal where banks foreclosed on homeowners without verifying whether or not the foreclosures were justified.

4. is the CEO of JP Morgan Chase

5. Hank Paulsen, the secretary of the treasury, practically begged Dimon to take Morgan Stanley for absolutely zero cost, more than once during the financial crisis. Dimon turned him down.

6. His company JP Morgan Chase manages $2 trillion in assets, more than twice that of Goldman Sachs 

7. It's well known that he spread negative rumors about Washington Mutual's finances and then went ahead  and bought them at a huge discount.

8. graduated 4rth in his high school class at the elite Browning School in NYC

9. His father and grandfather were also bankers.

10. To his credit, JP Morgan Chase started aggressively scaling back their exposure to mortgages one year before the financial crisis.


And for the record, the update on the portfolio for
STOCKMARKETDOUBLE

Start Date: 12/12/2011
Starting balance: $10k
Current Balance : $11,686
Gain: 17% 


And don't forget to check the Market Prediction Page to see which way the market is going tomorrow. 

FAST AND FURIOUS ETF STRATEGY

I am a complete stock maniac, I stay up until the wee hours of the morning back testing strategies trying to find ways to beat the market. The following strategy was back tested for the past 2 years and easily out performed the market.  Again, it is an easy to follow strategy that has worked for the last 2 years. It involves the trading of TNA and TZA. A quick warning, this trading strategy is not for the weak of heart. It's as volatile as it gets and can lead to huge gains and/or huge losses. The swings can easily be 50% in a month or less  

For those of you who are not familiar with TNA and TZA, they are 3x leveraged etfs. It's the wild wild west of the stock trading world.

OK, so this maniacal "investment strategy" goes something like this;
To keep it simple stupid, you buy either TNA or TZA and hold it for one month.
The rule is, you buy either TNA or TZA dependant on whichever of the etfs had the best performance in the previous month. For example if TNA was up 15% in January and TZA was down 12% in the same month, you would buy TNA and hold for the whole month of February.

Furthermore, if TNA outperformed TZA in the month of February, you would continue to hold it.

Or if TZA outperformed in January, you would sell TNA at the end of January and buy TZA and hold for the entire month of February.

Prices Date Open High Low Close Avg Vol Adj Close* Jan 28, 2012 48.21 56.58 43.94 56.20 18,676,900 56.20 Dec 1, 2011 44.38 47.87 38.97 44.84 25,622,300 44.84 Above is the table for TNA perforrmance:

If you were to go back and check the price of TNA on December 1, it was 44.84, it is now 56.20. A $10,000.00 investment would now be a bit more than $12,500.00. 

To further illustrate; because TNA outperformed TZA in the month of January, the strategy would then dictate that you would continue to hold TNA through the month of February.

Simple right? But fair warning, it is easy to look at the numbers objectively on paper for a few months, but if you were to sit there and follow it daily, it could get wildly chaotic. 

Thanks for reading! If you're having fun reading, please support the blog.

FREE DAY TRADING SYSTEM

As many of you know by now, I am blogging about turning $10k into at least $20k in the market in less than one year. I have a specific plan on how to accomplish this and it doesn't entail trading everyday, although I need to watch my positions carefully for resistance and support levels. I started on December 12, 2011 and the account is up 17%. There has only been one trade, the purchase of GEOY at $19.03, now trading at $22.24.

Discipline and patience are two of the most valuable assets you can possess as a trader. Achieving both however, can be very challenging.

I am no doubt a stock junkie and practically everyday I think of new theories on how to beat the market. My latest thought was more for day traders than investors/traders like myself.

It's a system that has to be tested, but I will leave that up to you. It goes like this;
1. go to barchart.com
2. find the bottom 100 sector (a feature of barchart that lists the 100 stocks that have most under performed the market using some kind of beta formula)
3. buy the stock that has gone up the highest that day, percentage wise, at the end of the trading day before 4pm. Make sure there is enough liquidity so that when you want to sell, it won't be a problem. For example, today Friday 1/27/11  it was QPSA which traded over 3m shares and was up 33%. Hold until the end of the next trading day and sell it. Many of these beaten down bottom 100 stocks can pop upwards of 100% in a few days or less. There are alot of dynamics at work here. First, there will be a ton of short covering, the penny stock whores will be going crazy and these stocks are so beaten down, there are no sellers left.
4. rinse and repeat the next day. make a note, see how QPSA does on Monday.

Oh, and one more thing, am I the only one who thinks that Jamie Dimon has gone from a socialist to a capitalist in just a few short years? From screaming for a bailout to crying about too much regulation?

Thanks for reading! If you like what your reading, please support the blog.

ENER PUT OPTIONS

I'm getting out march $1 Put Options at .31 and will take a 3% loss. not acting the way I thought.

CHTR JUNE $60 PUT OPTIONS

I like this play for a whole host of reasons, from both a fundamental and technical perspective. Looks like stock price is ready to break down. LOT OF INSIDER SELLING.

HOW TO BEAT THE MARKET

ITSY BITSY PORTFOLIO

Update on the portfolios:

Opened account 12/20/11   OPTIONS: 25% gain
Opened account 12/12/11   STOCKMARKETDOUBLE: 17% gain
Opened account 1/23/11     TURTLE: even
Opened account 12/21/11   PENNY: 17%

If you take a look, I created another page today, the PENNY STOCK PAGE, but I will soon be changing the name to the ITSY BITSY PORTFOLIO. I just want to give all my readers a heads up before I change the page name.  The PENNY account has been a remarkable success, with a 17% return since the inception date of December 21, however the thing that makes it even more remarkable is that there have been no trades in the account other than the original buys.

Here's the thing that is important; THE ITSY BITSY PORTFOLIO will be what some people would consider to be a penny stock fund. I don't think so, it is a low priced stock portfolio designed with some speculation, but the risk/reward factor is about 1/7. I can live with those kind of ratios.

Go to the pages section to see all current positions.

ZAGG MAY $6 CALL OPTIONS

Closing the position.
In at $2.30
out at $3.60
57% gain

And by the way, the OPTIONS PORTFOLIO is up 26% since it's inception, one month ago. (see options page for all positions)

And last but not least:

Stockmarketdouble Portfolio Update

Start Date: 12/12/2011
Starting balance: $10k
Current Balance : $11,712
Gain: 17% 

TURTLE STOCK PORTFOLIO

As I said yesterday, my main purpose when i started the blog was to chronicle my efforts to double $10k in the market in less than one year. It has now evolved into a greater purpose and that is to SHOW YOU step by step how to crush the market.  This will be illustrated by highlighting 4 different kinds of accounts, the first of which I am introducing called The Turtle Stock Portfolio. I am calling it The Turtle because it is designed to be slow and steady. But don't get any kind of misconceptions by the words slow and steady, this portfolio will crush the market. I invite you to follow along and track its progress. (see The Turtle Stock Portfolio Page)


ACCOUNT OPENED 1/23/2012
paid

BSX $6.02
CUZ $7.11
CRAY $7.22
BDN $10.35

BEATING the MARKET

This weekend, I been putting a lot of thought into the value can I bring readers. The best thing I could think of is to make you money. I started the blog as a simple day to day diary of an attempt to double $10k in less than one year. So far it has worked out pretty well, as you can see below, the account is up 16% in a little bit more than one month.

STOCKMARKETDOUBLE Portfolio Update:

Start Date: 12/12/2011
Starting balance: $10k
Current Balance : $11,581
Gain: 16% 

An unexpected benefit of writing this diary, is that it as given me the motivation to find more and better ways of doubling your money in the stock market in less than one year. Two theories that I have put to the test are low priced stocks that actually have solid fundamentals and longer outlook option plays. For the sake of this post (I will come up with something more appropriate soon) we will call them the Penny Stock Portfolio and the Options Portfolio. I have already created a page for the Options Portfolio-PLEASE check it out to your right.

The result are, the option trades are up 14% in exactly one month and because I haven't started the page for the "penny stocks". I will list the transactions below, but the results are quite astonishing. The portfolio is up 18% since in one month.

 Penny Stock Update

ACCOUNT OPENED 12/21/11
paid
1. BIOF .57 
2. DYSL $1.63 
3. ACAD $1.25 
4. TGC .70 
5. GBNK $1.47 

Current
1.BIOF .63 (10% gain) 
2.DYSL $2.38 (46% gain) 
3.ACAD $1.48 (18% gain) 
4.TGC .80 (14% gain)
5.GBNK $1.48 (1% gain) 

  

Investing or Trading Advice

Cramer is a whole lot better than you think

Last night I read a fortune cookie that said "Many receive advice, only the wise profit from it"
So simple, so brilliant.

I went back and looked at some of my prior posts to remind myself that I should practice what I preach. So here are some of the best ones.

1. Pick a sound strategy and stick with it, don't waver; emotion and over trading are your worst enemies.
2. Be disciplined and Patient, it's a fact that almost all self directed accounts lose money, 2 of the biggest reasons, a lack of patience and discipline.
3. Sometimes it is better to go golfing or shopping (hate shopping) whichever you prefer than to sit by your computer all day, especially when you are not in the best frame of mind.
4. Less is more in trading.

Trading/Investing is such a personal thing, the above 4 are most pertinent to my personality.

BTW, I been doing this for 25 years, one thing I am certain of, is that if you don't follow these 4 rules you will either lose your shirt or make a whole lot less money than you should.

High Rated, Low Price Stocks

This is the newest portfolio. All of these companies have great fundies and I fully expect that they will outperform the S&P by 3x.

The selections are as follows

BSX $5.98
CUZ $7.07
CRAY $7.11
BDN $10.37

Options Update

GEOEYE EARTH IMAGE of DUBAI

Hard to not fall in love with this option thing.

Today I added March $1 put options on ENER at .32  
Yesterday, I added March $15 call otions on GEOY at $6.5

Please seem my Options Page for the full details.

A quick lesson, if you are not at your best mentally: DON'T TRADE

STOCKMARKETDOUBLE Portfolio Update:

Start Date: 12/12/2011
Starting balance: $10k
Current Balance : $11,822
Gain: 18% 

ENER PUT OPTIONS

March $1 put options-looks like easy $$$.
I'm in at .32

GEOY March $15 Call OPTIONS

Look very inexpensive, I am in at $6.50.

Bank of America Shoots Higher (BAC)

THE EMPEROR of GOLDMAN

STOCK MARKET OBSERVATIONS

Just a few random thoughts that went through my head today. Most of it based on instinct or gut feelings. I must add that I do not make decisions based on my "gut feeling". My investment decisions are backed up with research, both the underlying fundamentals and technical ananlysis. With that being said, I will follow up on what my instincts are telling me with some homework (due dilligence).

1. First, it feels like the market is ready to turn higher, at least in the short term (next few weeks)

2. TRU is a really interesting story and I would love to know what the liquidation price was.

3. ACAD is breaking out. This stock is in my Penny Stock Portfolio and I am holding on. One of these days, this stock is going to explode upwards based  on some kind of break through with one of their drugs they have in the pipeline.

4. GEOY has broken out and I wouldnt be surprised to see some news or an upgrade or something that will move the stock higher.

5. CPY looks like it is headed lower, by ALOT

6. BAC looking strong

And 2 more things, make sure you check out my Market Prediction Page for tomorrow's up or down prediction (65% winning pct.) and last but not least, Stockmarketdouble Portfolio is up 16%-well on our way to a double...maybe even a triple, you never know!

STOCKMARKETDOUBLE Portfolio Update:

Start Date: 12/12/2011
Starting balance: $10k
Current Balance : $11,565
Gain: 16% 

Tesla Short Squeeze?

Just a hunch here, but this looks like a real good trade here! TSLA short interest ratio is 23.8. 23.8 I said! For those of you who don't know, 23.8 means, that it would take short sellers nearly 24 days to buy back the shares that have been shorted on this stock, if the number of shares traded daily were to meet it's average going forward.

Goldman Sachs just put a BUY on the stock. There is a good possibility that short sellers will now come in to cover at least in the short term. TSLA was up 16% today.  I'm betting SHORT SQUEEZE.

Stock Screen: Stocks Under $3 of Quality

The market is finally open again... It felt like an eternity to me.  As many of you know by now, the purpose of the blog is to journal about my attempt to double $10k in the market in less than one year. The account was started a little over a month ago and is up about  11% (see bottom of post for stats).

As I go along on this journey, I try and find better and better ways of doing this. So, when I come up with an idea that I think will clearly beat the matket , I run stock screens for stock selections and then I track the progress of these selections.  Today, I am tracking my "Stocks under $3 of Quality Portfolio"


AAME, bought at $1.98                
RAND, bought at $2.99    


STOCKMARKETDOUBLE Portfolio Update:

Start Date: 12/12/2011
Starting balance: $10k
Current Balance : $11,002
Gain: 11%

Book Value and Alcoa

This evening  I was coming home from dinner with a friend and he casually mentioned to me that he has started to dabble in the stock market. I asked him "how so?"

He said he had been reading books on investing and I asked "which one?"   He said it was a well known book by Benjamin Graham, but he couldn't remember the title.  I just assumed it was "The Intelligent Investor: A Book of Practical Counsel"

The whole situation was fascinating to me-he's a bright guy who knows very little about the market or investing. It was the simplicity of his thought process that made it so interesting to me.  His thought was-I want to invest in the market; What does he do?  He reads a book by a well known, successful investor. He told me the lesson he learned was to buy a stock whose price is under its book value. Brilliant!
He also mentioned that Graham says to buy a well established company that has a long history of earnings/profits.

Then I asked "which stock did you buy?"

He said he bought Alcoa at about 8.70. My first thought after he said Alcoa was "that sounds pretty good to me."  I had been reading a little about Alcoa and also knew that Jim Cramer thought it was ridiculously cheap and that someone could actually come in and make a bid for Alcoa at these price levels.

The first thing I did when I got home was look up Alcoa, well my friend was already up about 12%  in a week. It's current price is $9.80. I then looked up the book value and lo and behold, the book value is $13.98, about 40% less than where it is right now.

The lesson is that, with a little bit of homework, we can all outperform the market and most money managers,  to boot.

I just want to leave you with this one remarkable FACT:
75% of all money managers UNDERPERFORM THE MARKET
http://www.investmentu.com/2011/June/why-money-mangers-fail-to-beat-the-market.html

STOCKMARKETDOUBLE Portfolio Update:

Start Date: 12/12/2011
Starting balance: $10k
Current Balance : $11,251
Gain: 13%
 

About this donation request, PLEASE if I have made you $$$, donate $10 to cover my Ameritrade trade cost. I would really appreciate it. Thank you so much.

More about the "Under $3 Quality Stock Portfolio" and RAND

Before I start, I want to reiterate that this particular portfolio is designed for long term holds, meaning it isn't a frequently traded kind of investment strategy.
The first stock in the portfolio was AAME, added on 1/8/2011 at $1.98. Very little movement since then, down .01

2nd addition as I mentioned yesterday is RAND: $2.99

Rand Capital Corp
micro-cap

finance sector
pe 12.24

Earnings growth has seen significant increase in the past couple of quarters

The main reason for the pick is that there has been significant earnings growth over the last 6 months yet the  stock price has remained essentially the same during the same period. Also in comparison to the rest of the financial industry, the earning per share is 800% more than average. RAND is a venture capital firm that has also had a large increase recently in revenues from their investments. RAND is a smart choice here.

Don't forget to check the Stock Market Prediction Page for Tuesday.  

Stock Screens-Under $3 Quality Stocks

Not too long ago, I blogged about stock screens. I spend alot of time thinking of new ways to beat the market. After all, the name of the blog is Stockmarketdouble. Currently the method I am utilizing has performed quite well and if the rate of return would continue at this pace, the account would more than triple.

A weeks ago or so, I introduced the "Under $3 Quality Stocks Portfolio". The first component was AAME. I am now going to add a second stock; it is RAND. It is currently at $3, I will put an order limit in at $2.99 so it meets the criteria.










About this donation request, PLEASE if I have made you $$$, donate $10 to cover my Ameritrade trade cost. I would really appreciate it. Thank you so much.

GEOY and DGI and ANALYSTS.

GEOY and DGI and ANALYSTS.
Yesterday was one of those days that make you scratch your head and say "Huh? What? Can you say that again?"

FACTS about GEOY and DGI
1. DGI has a PE of 567, GEOY 9.96.
2. DGI 's earnings per share .03,  GEOY's $2.15
3. DGI and GEOY essentially have a duopoly  in an industry with a large moat, meaning it's tough to get into the business         because its expensive to start up and therefore there are few competitors.
4. DGI gets 80% of their biz from the fed gov, GEOY 67%
5. They both provide  earth imagery and imagery information products to both the public and private sectors through the use of satellites.

Here is where it gets weird and why so many investors don't trust Wall Street further than they can spit,  While reiterating a BUY on DGI, Benchmark Capital then downgraded GEOY to hold stating that the Government may spend less on earth imagery, which would effect DGI's bottom line about 7% and GEOY's about 5%.  

.. Is Benchmark looking at the same numbers we are?   

STOCKMARKETDOUBLE Portfolio Update:

Start Date: 12/12/2011
Starting balance: $10k
Current Balance : $11,251
Gain: 13%

And last but not least, check out our Market Prediction Page to see which way the market will go on Monday. Hey! I been right about 67% of the time.





About this donation request, PLEASE if I have made you $$$, donate $10 to cover my Ameritrade trade cost. I would really appreciate it. Thank you so much.

FYI ZAGG

 News broke on ZAGG possibly contracting with Walmart, up 15% today. Gotta love it. (see yesterday's call on ZAGG options. Sometimes its better to be lucky than to be good.)






About this donate request, PLEASE if I have made you $$$, donate $10 to cover my Ameritrade trade cost. I would really appreciate it. Thank you so much.
 

Zagg $6 May Call Option

I can't stand it. I'm in for 10 contracts at $2.30

Penny Stock Update

As far as Penny Stocks; Its been about a week since we last updated our Penny Stocks Portfolio and here is where we stand:

PENNY STOCK update: ACCOUNT OPENED 12/21/11
paid
1. BIOF .57 
2. DYSL $1.63 
3. ACAD $1.25 
4. TGC .70 
5. GBNK $1.47 

Current
1.BIOF .64 (12% gain) 
2.DYSL $2.25 (43% gain) 
3.ACAD $1.33 (12% gain) 
4.TGC .77 (10% gain)
5.GBNK $1.49 (1% gain) 

Portfolio is up 16% in 22 days.


Looking to sell out of dysl at $2.40 (resistance)
Surprised that GBNK hasn't done anything.




And of course the 
Stockmarketdouble Portfolio Update:

Start Date: 12/12/2011
Starting balance: $10k
Current Balance : $11,381
Gain: 14%


And last but not least, look at our Stock Market Prediction page for a look into the future to see which way the market is leaning tomorrow.

Options baby Options!

Woo Hoo! I am excited.

On 12/20/11, I started a simulated options account, the transactions were as follows:

YUM, July $60 calls, bought 10 contracts at $3.60 each       
GEOY, March $20 calls, bought 10 contracts at $3.60 each 
CHD, July $45 calls, bought 10 contracts at $3.80 each        


Today, the July $60 calls on YUM went to $4.62.  Gain is 28%.
The March $20 calls on GEOY went to $4.40.      Gain is 22%
The July $45 calls on CHD are at $3.90               Gain is 3%


I LOVE OPTIONS!! 
Account is up 18% since it was opened on 12/20/11


Please check my OPTIONS page for a full accounting and explanation of the plan. 





Stockmarketdouble Portfolio Update:

Start Date: 12/12/2011
Starting balance: $10k
Current Balance : $12,153
Gain: 22%

Stock Market Double Blog and GEOY

One of the beauties of having your own blog is that it belongs to you. There are no bosses, or editors telling you what to write... you just write anything you want.  As some of you know by now the intent of this blog is to get down on paper what my experiences are with trying to double $10k in the stock market in less than one year.  The thing I have found most challenging is being patient.  My strategy (and I am determined to stay with the plan) is to make 3 round trips to accomplish this feat over a 12 month period.  The first purchase was made on December 12, 2011.  The stock is GEOY, since the start, the account is up about 17%.  Not bad, but considering it was up 15% in the first 3 days after I purchased it, it has become a true test of my patience.

Being a stock junkie, my natural instinct is to want to veer from the plan and question whether there is a faster better way of achieving this double. But an objective reflection on the results so far would result in a double in less than 6 months.

Apparently, GEOY is in consolidation.  People say this is healthy for a stock, sure... easy to say if you are not holding the stock.  It feels like I am in stock market pergetory. This experience has taught me the importance of detachment, which is no doubt a good thing.

On a different subject, something happened yesterday that I can't explain and I think it means something, but I'm not quite sure what that is. Yesterday in after hours, someone bought about 20k shares of GEOY for $23.08, that is significantly higher than the closing price of $22.18. My question is, why in the world would anybody do that? I figure it was either someone who did not care what they paid for it or it was bought by someone who had no clue as to what he/she was doing.

It was the only trade in after hours for GEOY. Just something to think about.

Stockmarketdouble Portfolio Update:

Start Date: 12/12/2011
Starting balance: $10k
Current Balance : $11,739
Gain: 17%

"There is no such thing as perfection when it comes to investing. Many times, I’ve said that investing is not about perfection but rather about process and probability. The key to success is to develop a process or a plan that attempts to increase your probability of being right more often than wrong (because you will be wrong sometimes) and enhances the probability of making money more often than losing money (because you will lose money from time to time)."

Jim Yih
retire happy blog