Yeryer,


what is your average hold time for these stocks. Days, weeks or Months. I have decided to go long on my position till the market hits my stop loss unless the stock is moving sideways for too long in heaving swings.

Jideams:
Yeryer,


what is your average hold time for these stocks. Days, weeks or Months. I have decided to go long on my position till the market hits my stop loss unless the stock is moving sideways for too long in heaving swings.

Believe it or not, I hold on for the long haul unless there's a sudden pop in the name or if I feel like the underlying appeal is deteriorating. On average, I guess I hold on for about 6months but my target is really 1yr to prevent that high capital gains tax. Even when the market was selling off before the election, I held on because if I had sold, my profits will register as short term gains and the IRS will want a premium tax from it. Look at this oil pipeline stock MDR for example, I'm currently up 84%, although it was selling off before the election but I wouldn't sell a month before the year ends for tax purposes... maybe early next year. Also a Trump presidency is supposedly good for the oil sector, coupled with the expectation that OPEC & Russia will cut their oil supply this week (fingers crossed), makes sense to hold a Lil longer.

Wow... Really impressed I have decided to hold my positions till the system knocks me out, seems it is much better. As i do not trade in the UK and a non US citizen, I do not worry about short term trade.

Never the less, is is better to hold out for long as long as the position is in your direction.

Hi guys, I will setup the webex tomorrow so we can try it.

zPixel:
Hi guys, I will setup the webex tomorrow so we can try it.

Zpixel,

Please note i will not be in Lagos till this weekend so bear with me. Need to have my fibre installation ready today and once am on ground i will set it up early next week. since you are in Lagos we could have the session at any time you desire.

AMBA Option

Guys, i have decided to test my options as an insurance against my stocks. what i have done here is a follows

1. Purchased 100 AMBA stock at market price opening today approximately 63 dollars.
2. Bought a DEC 2 Call option, please see strike price in the diagram.
3. Bought a DEC 2 PUT option. please see strike price in the diagram.

Reason.
Imagin i have 100 position of AMBA as shown in the purchase of 100 AMBA, and AMBA is about to declare result tomorrow, all i have to do is buy one contract of AMBA representing 100 stock on either CALL or PUT option depending on where the stock might head.

In this case, as i already have a long position AMBA, i will buy one contract of a PUT option for AMBA representing my 100 stock in case the price drops after announcement. This will make me money and compensate for a drop in price for my underlying stocks.

Let us see how this plays out this week as AMBA announces result this week.

Jideams let us know the outcome of your weeklys option, I guess it expires this Friday.

On other news, TXMD, one of the pharmaceutical stocks I own is popping a whooping 23% overnight and I'm up 24% overall. I own 900 shares only because the stock kept tanking and I kept buying the dip to reduce my cost average. Results came out last night showing a successful 3rd phase trial of their menopause drug. I'm pretty sure it will shoot up even more once the market opens today. These small cap stocks have been powering my portfolio thus far and I'm happy about it.

YerYer:
Jideams let us know the outcome of your weeklys option, I guess it expires this Friday.

On other news, TXMD, one of the pharmaceutical stocks I own is popping a whooping 23% overnight and I'm up 24% overall. I own 900 shares only because the stock kept tanking and I kept buying the dip to reduce my cost average. Results came out last night showing a successful 3rd phase trial of their menopause drug. I'm pretty sure it will shoot up even more once the market opens today. These small cap stocks have been powering my portfolio thus far and I'm happy about it.

I really like most of your stock picks, by the way do you use purely fundamental or technical analysis? Or both?

Can this approach be replicated on any other asset class?

Thanks.

LadunaI:


I really like most of your stock picks, by the way do you use purely fundamental or technical analysis? Or both?

Can this approach be replicated on any other asset class?

Thanks.

This is a really good question and my apologies for replying late. I'm guessing when you talk about other asset classes you are referring to bonds and fixed income classes, both of which I don't know much about unless you meant something else.

I do rely on both fundamentals and basic technical analysis if I can really call it that. I pick stocks based on the market trends and after familiarizing myself with the company and thankfully, I know most of the companies' stocks I own. When I see a name that I like, I first look at the chart to note any upward & downward resistance; then I set a small limit order close to the recent price "floor" while hoping for a pull back to buy more at an even lower price. Take for example this major airline stock I own LUV (Southwest Airlines), I bought in January of this year. This airline offers really cheap flights with basic to minimal frills while thriving on narrow profit margins. I nibbled on the name in the beginning of the year when the price of oil was trending lower which also means jet fuel will be considerably cheaper which should increase the airline's revenue. See the screenshots below, showing the January 27th 2016 purchase of 50 shares @ $37.37 a piece. Also see the attached 1yr graph for the stock, there seems to be some kind of floor/support around $36 as the price bounces higher while approaching $36. Being more of a long term investor, i'm not too fazed with the daily price swings as I would ultimately prefer to hold on to stocks for at least a year. So as you can see from the graph, the stock did shoot up to $48 in mid April before trending down to $36 between August to September, once again i took the opportunity to buy another 50 shares on October 26th at $37.28 (see screenshot) which is close to my initial purchase price in January. Today, I own 100.262 shares (the .262 is automatic dividend reinvestment) and the stock price is $50.11 or 34% above my cost average.

Bottom line, I don't know if I can call this very basic graphical analysis a technical analysis as I don't place much emphasis on the moving averages and other indicators, but thus far, this layman interpretation of charts and fundamentals have been good enough. I will learn more about technical analysis and plan to apply it even more as I delve deeper into options, but for right now i'm content with this bare bone analysis.

07065397190

Hi All,

Just got myself together. Been in Lagos for two weeks and it been a nightmare. Ok what is kicking, i have not been lucky with the options.

So back in September, I bought & sold Disney (DIS) options. I have been following the stock for sometime now but it had been lagging behind other DOW stocks and the broad market in the past 6 months or so. Once again, wall street analysts have written off the name because of recent decrease in ESPN subscribers. Again I just have to wonder how these so called experts come to conclusions about these stalwart companies without facing any negative repercussions. I mean this is a company that's been around for over 100yrs, I would at least give them the benefit of a doubt to figure out any current woes they might be having particularly when it comes to lower ESPN subscriptions and cord cutting fears. Even besides that, this is a company with a global presence, blockbuster theme parks both in the U.S and China, multiple record breaking movie releases and easily recognizable characters fetching them billions every year. Give me a break, Disney owns franchises like Starwars, Frozen, Toystory, Mickymouse, Minions ETC. Over the weekend, Starwars Rogue One smashed box office expectations bringing in over $290 million as more people watched the movie than anticipated, hence the reason the stock is higher today. I hate to be a contrarian, but I only invest in companies I know and understand.

So to the meat & potatoes, I initiated a bullish option trade in the name: sold an in-the-money put, then used the money from the sale to buy a far out-of-the money call and an at-the-money put (see screenshot). In other words, I didn't pay for this trade at all.

sold 5 contracts of the January 20th 2017 put
bought 5 contracts of the January 20th 2017 Call
bought 5 contracts of the January 20th 2017 put

See the screenshot below, the total gains for this trade is the sum of all 3 which is $2,660 + $1,365 - $735 = $3,290.

Now this is a profit basically out of nothing as I didn't pay for this trade, it paid for itself. There's still 1 month to expiration and I'm not about to close out right now as I strongly believe this name has more legs to run. I usually place some kind of hedge in my trade just in case anything happens, that's the reason for buying the DIS $85 put which will continue to lose money as the stock goes higher, had I just focused on just the profitably trades, I would be up over $4k. As I get better with options, I might take more riskier positions for a higher return margin, but i'm not there yet. Also, not all my trades are profitable, I have some bearish trades costing me money, its always about striking a balance.

YerYer:


This is a really good question and my apologies for replying late. I'm guessing when you talk about other asset classes you are referring to bonds and fixed income classes, both of which I don't know much about unless you meant something else.

I do rely on both fundamentals and basic technical analysis if I can really call it that. I pick stocks based on the market trends and after familiarizing myself with the company and thankfully, I know most of the companies' stocks I own. When I see a name that I like, I first look at the chart to note any upward & downward resistance; then I set a small limit order close to the recent price "floor" while hoping for a pull back to buy more at an even lower price. Take for example this major airline stock I own LUV (Southwest Airlines), I bought in January of this year. This airline offers really cheap flights with basic to minimal frills while thriving on narrow profit margins. I nibbled on the name in the beginning of the year when the price of oil was trending lower which also means jet fuel will be considerably cheaper which should increase the airline's revenue. See the screenshots below, showing the January 27th 2016 purchase of 50 shares @ $37.37 a piece. Also see the attached 1yr graph for the stock, there seems to be some kind of floor/support around $36 as the price bounces higher while approaching $36. Being more of a long term investor, i'm not too fazed with the daily price swings as I would ultimately prefer to hold on to stocks for at least a year. So as you can see from the graph, the stock did shoot up to $48 in mid April before trending down to $36 between August to September, once again i took the opportunity to buy another 50 shares on October 26th at $37.28 (see screenshot) which is close to my initial purchase price in January. Today, I own 100.262 shares (the .262 is automatic dividend reinvestment) and the stock price is $50.11 or 34% above my cost average.

Bottom line, I don't know if I can call this very basic graphical analysis a technical analysis as I don't place much emphasis on the moving averages and other indicators, but thus far, this layman interpretation of charts and fundamentals have been good enough. I will learn more about technical analysis and plan to apply it even more as I delve deeper into options, but for right now i'm content with this bare bone analysis.

Thanks @YerYer for that beautiful elucidation. It was concise, incisive and highly instructive. You ideally combined the two worlds (Fundamental and Technical analysis) in a very simple but powerful ways. I really love it!. This an example of KISS (Keep It Stupidly Simple) strategy approach.

Yes, others asset classes I mean is Fixed Income (Bond), Commodity and FX .From what I can deduce overall, your approach mimic VALUE investing approach used by Warren Buffet, but only that Buffet will not pick a wide volatile stock like LUV. He normally buy at very extreme LOW price against the intrinsic value of the stock, and that you did EXCELLENTLY WELL with this stock.I downloaded the historical data of SouthWest Airline and perform this analysis on it. Check the pic 1. you will see that you picked the stock as @ the time stock is greatly under value @ $37.


Then from the second pic2 you can see what happen and why you've to be critical about the current price of the stock, as it seems now o becoming over value, though there is possibility that price can still shoot up, if the price maintain a narrow range for another 2-3 months. I really like your long term approach, I read reasons why you opted for that in your previous post, but definitely will like to emulate this.

Thanks

@ Ladunal,

Yes I do plan to dump the stock at the end of January, I'm also hoping Trump will cut capital gain tax to 15% as he said, so it would make more sense waiting a little while. You are right, your chart above do show the stock might be in overbought territory right now. Do you currently trade stocks and other asset classes? Maybe you can also share some ideas here.

Jideams:
Wow... Really impressed I have decided to hold my positions till the system knocks me out, seems it is much better. As i do not trade in the UK and a non US citizen, I do not worry about short term trade.

Never the less, is is better to hold out for long as long as the position is in your direction.

That's the REAL gist. I think is always the best to have long term intent until the system knocks ones out.

It give excellent overall performance at the long run.

YerYer:
@ Ladunal,

Yes I do plan to dump the stock at the end of January, I'm also hoping Trump will cut capital gain tax to 15% as he said, so it would make more sense waiting a little while. You are right, your chart above do show the stock might be in overbought territory right now. Do you currently trade stocks and other asset classes? Maybe you can also share some ideas here.

I only traded FX and Commodity for now, but my approach can be successfully applied to other Asset Classes albeit having enough data to cover the period of my analysis. Though I have over time gone through CFD, and recently, aggressively into Stocks but not yet going LIVE with it.

I think it will be NICE to collaborate on any issue or security of choice, and share our various approach of investing in them, that would be absolutely excellent.

Thanks

check this out your lovely Southwest Airline

LadunaI:


I only traded FX and Commodity for now, but my approach can be successfully applied to other Asset Classes albeit having enough data to cover the period of my analysis. Though I have over time gone through CFD, and recently, aggressively into Stocks but not yet going LIVE with it.

I think it will be NICE to collaborate on any issue or security of choice, and share our various approach of investing in them, that would be absolutely excellent.

Thanks

check this out your lovely Southwest Airline

Please explain this graph, what exactly is it showing?

YerYer:



Please explain this graph, what exactly is it showing?

Basically the graph is showing same thing as the one I first posted but instead of using support/resistance line, here am using Cyclic Analysis. What you're seeing is the moment you're trying to buy LUV @ 37.5 on 27-1-2016.

Here am only applying the cyclic analysis to see if that date and time you pick the stock will be confirmed by this analysis or not. Actually it did confirmed it and that is exactly what the above graph is showing.

The Green box you're seeing is telling you the region you are expected to buy the Stock and the projected Red box show where the stock should be sold in the future for short term trade. The projected curve line you see is called FLD ( Future Line of Demarcation) is shows how the Stock share will behave between 2-3 after the entry.

The approach is based on the concept expounded by one American Engineer by the name JM Hurst which believe that Stock and all traded financial products are been influence by cycles. So SENTIENT TRADER is the software use to do just that.

The box at the middle left hand side represent the STATE of the cycles believe to be influencing the SouthWest stock (or any stock under consideration) and their directions. As you can observe from the signs, virtually most of the cycles shows that they're heading up, and that's what happened to your stock.

Sorry to put many analysis here but that what I use in conjunction with support/resistance level I earlier posted to analysis ANY form of liquid traded assets with great success. I hope with time, as we share more of these things, you will understand.

Thanks

@ Ladunal

Wow, this just seems like cheating lol. But how accurate are the predictions from this tool? Also, is it a free software one can download?

YerYer:
@ Ladunal

Wow, this just seems like cheating lol. But how accurate are the predictions from this tool? Also, is it a free software one can download?

@YerYer an "ethical cheating" you would say Lol.

Actually a lot of toil and struggle has been put into such analysis you just saw. The prediction is at least 80% accurate all things being equal.

The software is NOT free, in fact its cost more than $2000 dollars. Google it and see for your self.

You can as well google JM Hurst research on cycle theory and have feel of what am talking about.

Cheers.

Happy new year! Today being the first trading day of the year, I seized the opportunity to sell some of my holdings. Trump promised a lower income tax so any gains made from this sale will register in this year's lower tax rate. More selling to follow suit in the coming days. I still believe the market will soar higher this year but no need to be greedy and I have a big project at hand

A little update on the Disney (DIS) option. So finally Wallstreet analysts seem to love the name again, the stock got two upgrades from two firms and the underlying price has since moved higher by over 2.5%, but that small movement means a greater magnitude in options. Needless to say, it's yielding me almost 4k. I can close out this trade entirely or even sell a few now and take some profit, I still think it has more legs to run before the January 20th expiration date so I will let this one keep shooting for the stars.

Jideams, how naija?

Final update on the Disney (DIS) option trade. I will be closing out this trade today once the market opens. An almost $5k profit for a trade which cost me nothing is a good trade. A delusional analyst downgraded the name today and cut the price target, so I wouldn't take any more chances from here.

Later I will talk about another options trade making me some bang, though I took a small stake in the name, the percentage gain has been phenomenal.

Good morning everyone. I've been following this thread for sometimes and I like what you guys are doing here. I want to start trading American stocks from Nigeria. Can anyone tell me the trading app and other apps I need to use and how to get and open them. Do I need a dollar domiciliary account to withdraw my profits into?

Please I need help with my assignment on Investment.

Any day traders in the house? I'm thinking of starting a group where we can bounce ideas around and learn from each other.

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zPixel:
Any day traders in the house? I'm thinking of starting a group where we can bounce ideas around and learn from each other.

Yeah, day trader in the house, going full time soon.

What's up.

YerYer:
Final update on the Disney (DIS) option trade. I will be closing out this trade today once the market opens. An almost $5k profit for a trade which cost me nothing is a good trade. A delusional analyst downgraded the name today and cut the price target, so I wouldn't take any more chances from here.

Later I will talk about another options trade making me some bang, though I took a small stake in the name, the percentage gain has been phenomenal.

Bro, nice,

Looking into learning options, could you be as kind to teach the house.?

K

Hello,

Na wa o, am i I the wrong thread.

K