How much time is spent reading the prospectus of this investment or that? How much energy do we pour into researching our next big investment? It is not as if they all turn out as expected. But in general, we tend to perform some type of due diligence when making a big investment in a company. Why, then, do we not apply the same due diligence to the biggest investment of all: ourselves?

When it comes to investing in businesses, there are rules and BEST practices that we can apply. Buy low; sell high is one such axiom. Here are a few more that may not make great bumper stickers, but are good advice all the same:images

Don’t let your life become a high-interest loan

When it comes to long-term payments on big-ticket items such as houses and automobiles, it is not the monthly payment that gets us; it’s the interest. For people with good credit, interest is not a big problem. They might pay 2% – 5%. They may even get offers that are interest free for a certain number of months.

Then, there is the other end of the spectrum where a person with pour credit making the same purchase might have to pay anywhere from 17% – 30% depending on what the law will allow in that state for that item. For the same item, the less affluent person with damaged credit will almost always pay significantly more.

When your financial life is dominated by risky paper and upside-down loans, it becomes difficult to find investors who believe in you. If you were to be perfectly honest, even you would not be a confident investor in such a life.

As long as you are in the high-interest trap, you will be a high-risk investment. There are a handful of things you can do:

If you are not familiar with 0% balance transfer credit cards, you will want to take some time to read the information linked above. It provides a nice overview of the system, as well as an actual testimonial, and a few cards you might want to further investigate as a starting point. When it comes to people, you would insist on limiting those investments to good credit risks. Don’t make an exception for yourself. High-risk paper is still a high-risk investment, even when it is for yourself. Improve your credit worthiness before making another big bet on yourself.

Invest in quality Skimping: It is the thing we do when we do not place a high enough value on the product or service for which we are about to pay. (more…)

By Chris Ebert

sunriseVery few things can be known for sure about the future; and even when something is known for sure, the word sure is open to interpretation. Certainly, one can be reasonably sure that the sun will rise tomorrow, though technically even that it is not 100% certain.

It is possible to be sure about the future of the stock market – perhaps not quite as sure as tomorrow’s sunrise – but sure nonetheless. As the Lobour Day holiday is upon us, and with the final trading months of the year now approaching, we may find it helpful to take some time to consider what we actually know for sure about the stock market, inasmuch as we can be sure of anything.

To determine what we know for sure regarding the final months of 2014 for the stock market, we must make a prediction. In order for that prediction – or any prediction – to have value, the accuracy of the prediction must be properly disclosed.

For example, based on centuries of historical data one can predict with nearly 100% accuracy that the sun will rise tomorrow. However, to simply state “The sun will rise tomorrow”, without citing a historiucal basis for the claim, and without interpreting those historical results to disclose the expected accuracy of the prediction, the statement is worthless. Anyone who has ever had to reassure a toddler that the sun will rise again knows the importance of providing a basis for the claim.

Baseless predictions about the future of the stock market are no better than baseless predictions regarding the sunrise. On the other hand, any prediction that has an edge, even if it is a small edge (for example, a 51% likelihood of being correct) can be valuable to a trader so long as the trader is aware of the expected accuracy.

The following analysis reveals how certain aspects of the future of the stock market can be predicted with a high degree of accuracy by studying a few simple stock options. Before predicting the future, it is important to know where the market is right now, and where it’s been.

Stocks and Options at a Glance 2014-08-30

Click on chart to enlarge

* All profits are calculated at expiration, as a percentage of the underlying SPY share price. SPY is an Exchange Traded Fund (ETF), the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) that closely tracks the performance of the S&P 500 stock index. All options are at-the-money (ATM) when-opened 4 months (112 days) to expiration. (e.g. Profit of $6 per share on an expiring Long Call would represent a 3% profit if $SPY was trading at $200, regardless of whether the call premium itself actually increased 50%, 100% or more)

You are here – Bull Market Stage 1 – the “Lottery Fever” Stage.

Options Market Stages

Click on chart to enlarge

On the chart above there are 3 categories of option trades: A, B and C. For this past week, ending August 30, 2014, this is how the trades performed:

  • Covered Call and Naked Put trading are each currently profitable (A+).
    This week’s profit was +2.8%.
  • Long Call and Married Put trading are each currently profitable (B+).
    This week’s profit was +3.8%.
  • Long Straddle and Strangle trading is currently profitable (C+).
    This week’s profit was +1.0%.

Using the chart above, it can be seen that the combination, A+ B+ C+, occurs whenever (more…)

By Astrology Traders

The Markets

The bullish trend we were expecting in the middle of August gained additional strength in last weeks trading session. The technical long term trend is for the Nasdaq has realigned to the upside and joins the DJIA. The Nasdaq has done a ‘whipsaw’, as Jeff likes to call it, giving a signal that is bullish for all the indexes. Jeff often sees this type of market being followed up by a very big bullish breakout. We could see this type of move next week or in the second week of September. We will continue to hold our long positions, trim profits, and add to our longs as new setups materialize. I will continue to advise caution in the first week of September, however, by mid September we will likely see another very strong move up on the indexes.

Oil ($WTIC)

Saturn and Mars will make a conjunction in the sky this week, will likely see a rebound with oil prices moving higher. A bullish move is likely into mid October.

wtic

The following is from last weeks premium report by Astrology Traders published Aug 24th. You can view all our trades here verified by Marketfy.

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Aug
stored in: Momentum and tagged:

By Jeff Pierce

Below is one of the most bullish charts I’ve seen in awhile. Let’s start with the weekly and note the massively overbought RSI condition in June/July. This is often a warm up to what’s to come. Yes it’s a penny stock and that’s why it doesn’t make my tradewithZEN watchlist, but these are exactly the sort of momentum stocks I look for that can provide excellent returns. Check out the weekly chart of PLUG and I think you’ll see what I’m seeing.

qtmm.weekly

RSI bullish trends oscillate between 80-40. We’ve corrected back to the 40 level this month so this could resume it’s uptrend any day now.

qtmm.daily

 

Weekly charts of QTMM looks strikingly similar to the period when PLUG started to make it’s big move.

plug