Mail Bag
An archive of my responses to members questions, comments and suggestions.
October 22, 2007
- Big Wall Street Myth: The Self Investor Can’t Be Successful
The following is a portion of an email sent to me from someone looking to get into the stock market and wondering how to proceed. I have had a few discussions with her getting her started down the right path and she sent me the following over the weekend:
"Last night I had dinner in a [...]
September 6, 2007
- CANSLIM Inquiry; Model Portfolio Performance & Buy/Sell Alerts
A member recently wrote in with the following questions:
I came across your site the other day when searching CANSLIM. I find your site very interesting, and would like to ask you a few questions if you don’t mind.
1. How is your portfolio doing this year, and what’s the YTD return?
2. I am [...]
May 3, 2007
- some hard hitting, thought provoking questions
I’ve been so busy I nearly forgot to respond to being tagged by Chris (aka "the pirahna") Perruna, but then an hour ago I was tagged again, this time from a member of www.tagged.com which to me reeks of spam. I have no idea who the person is that "tagged" me from this website but [...]
More on this topic (What's this?)Water Shortages: The Future Is Now (When Giants Fall, 3/6/10)A-Power (APWR) To Build Biomass Plant In Thailand (Green Stocks Central, 12/22/09)Mean Reversion Follow-Up (Or, the Political Uncertainty Portfolio) (World Beta - Engineering Targete..., 3/5/07)Crap Crap (Random Roger's Big Picture, 12/20/06)
March 15, 2007
- Tracking Upgrades and Downgrades
Question:
What source do you use for upgrades and downgrades.. or do you even mess with it?
My Response:
Upgrades and Downgrades are useful to know before the market opens. Often times valuation downgrades can occur after a stock has run up significantly and act as a "sale" allowing you to get in to the position if you [...]
March 6, 2007
- CNBC Stock Market Challenge
Comment:
I just went and did something unusual. I just entered the $1,000,000 challenge on CNBC. So now you have got to help me win. If I win, I will sign up for a lifetime membership with Self-Investors.
My Response:
Great! - people who win these things put all their eggs in one basket on highly volatile, bigger reward [...]More on this topic (What's this?)How to Profit From Volatility Through One Simple Investment (Investment U, 1/19/10)Daily Futures Commentary March 10, 2010 (Oxbury Publishing, 3/10/10)Volatility Tracker: Long Gamma Pays Off (Condor Options, 2/8/10)VIX Volatility is Back: Here’s How to Profit from a Complacent Market (Investment U, 1/5/10)
February 25, 2007
- Using An Automated Buy Order: Buy Stops With a Limit
Question:
I am a little confused. What does using buy stops with a limit mean? Isn’t using the buy stop good enough?My Response:
Using a buy stop will trigger an "at the market" order at a specified price. For example, if you were away for the day but wanted to get into a stock that might [...]
February 22, 2007
- Profiting From Mergers & Acquisitions – Almost Pure Luck
Question:
How does an investor play the mergers and acquisitions game? When two companies are expected to merge, which stock should an investor buy? How does an investor find the possible companies that may become acquired? The stock of the company almost always goes higher when it is announced. Cramer mentioned 10 possible mergers on his [...]More on this topic (What's this?)Jim Cramer Has Lightbulb Moment: Not Paying Mortgages is Keeping Americans Spending (Fund my Mutual Fund, 2/18/10)Lightyear Goes Public, Plans M&A (Telecom Ramblings, 2/23/10)Mining M&A to Double in 2010 (Wealth Daily, 2/16/10)M&A Krazy (Random Roger's Big Picture, 5/7/07)
February 20, 2007
- Technical Analysis: Importance of Looking at Multiple Time Frames
Question:
Thanks for the tips on reading the charts. I never knew a person was supposed to look at the weekly chart first. Maybe that is what I have been doing wrong? Thanks.
I looked at the charts for AVTR just to see if I could see what you meant. Where was the resistance on it? [...]More on this topic (What's this?)DeMark Indicators - A Book Review (Scott's Investments, 3/9/10)Technical Analysis Weekly Watchlist (market folly, 1/11/10)Walk the line(s) on the S&P 500 with Andre Gratian's Turning Points technical analysis update (CHARTLINES (tm), 3/7/10)Technical analysis of the S&P 500 index illuminates stock market's critical juncture: Andre Grati... (CHARTLINES (tm), 3/1/10)
February 15, 2007
- Tracking the Break Outs and Making the Purchase
Every once in awhile I get a request to send out alerts sooner so that members don’t miss the break out or get in at a better price. When a high quality stock breaks out often times I will purchase in the Model Portfolio, which you will be alerted to within minutes. Sometimes, by the [...]
February 12, 2007
- Trading On Earnings Reports
Question:
Do you follow all the stocks every day that post earnings or just the ones that are good companies? I can see what you mean by waiting until after the report to buy or not. Sometimes it is a good idea to buy before the report though. How does one really know? What service do [...]More on this topic (What's this?)Manipulating earnings (Canadian Business Blog, 2/24/10)CHART OF THE DAY: THE HUGE EARNINGS REBOUND (THE PRAGMATIC CAPITALIST, 2/21/10)EARNINGS CONTINUE TO OUTPERFORM (THE PRAGMATIC CAPITALIST, 1/28/10)An Inside Look at Earnings Season (The Rhino Stock Blog, 1/28/10)
February 1, 2007
- Searching for Multiple Stocks
Question:
Is it – or could it be – possible to do a search on more than one stock in the breakout tracker? I often have several (OK, many) stocks that I want to check on and I have to punch in their tickers one by one. I would like to input all of them in [...]
January 29, 2007
- The Bullish Pennant (triangle) Formation
Question:
What is a pennant pattern? I thought that a flat base was your favorite chart?
My Response:
I should have said one of my favorites.. flat bases are right up there too. I dont go into these patterns in the tutorial..I’ve been meaning to add them. In the meantime have a looks at these pages:
The pennant formation is [...]More on this topic (What's this?)Bullish Investor Sentiment Rises, But... (Disciplined Approach to Investing, 3/12/10)A Figment of the Bulls' Imagination (Financial Armageddon, 3/5/10)BULLISH SENTIMENT SURGES NEAR JANUARY HIGH (THE PRAGMATIC CAPITALIST, 3/11/10)CBSMarketwatch: Riding the Rally - How to Make Money in the Bull Market's 2nd Year (Fund my Mutual Fund, 3/8/10)
January 25, 2007
- Add Type of Base to Breakout Tracker?
Question:
I was thinking on your website that it might be a good idea to be able to sort stocks based on what kind of a base that it is in. Like a cup with handle, a flat base, a double bottom base, etc. You said that you like flat bases the best.My Response:
It’s very difficult [...]
January 24, 2007
- Demand Indicators in the Stocks Breakout Tracker – Focus On “Hot Stocks” List First
Question:
What is the highest possible score in the Breakout Tracker for the Demand Indicators (DI 20/40)? What is a good score?
My Response:
The scores can really be limitless in either direction. A stock that drops $20/share with very heavy volume could concievably have a DI score of less than -1000. In the opposite direction, a stock [...]
January 17, 2007
- I Got a Flyer in the Mail, the Stock Looks Good. Your Thoughts?
Question:
I got a flyer in the mail yesterday about ETLY:BB. What do you think of it? It was from James L. Rapholz’s, "Economic Advice" newsletter. Just wanted to know what you thought of it.
My Response:
Take that flyer or print out of any email promoting a stock and immediately use it for starting a fire [...]
October 19, 2006
- Member Q & A: IPO’s, Institutional Demand, How Long to Hold a Stock, Dealing With the Frustrations of Trading
A couple days ago I received a few questions from a member and I thought my answers to these questions would be of benefit to a few more. This is something I’ll be doing more of from now on and once the new website is released I’ll be creating a section where past member emails [...]
October 15, 2006
- When to Sell Before Earnings
Question:
You said you don’t like to hold a stock through it’s earnings date. I own DRIV with its earning date of 10-26. How close to the earnings date would you recommend selling? The stock just hugs its 20 day MA and I thought for sure it was ready to break below that today. Instead it [...]More on this topic (What's this?)Manipulating earnings (Canadian Business Blog, 2/24/10)CHART OF THE DAY: THE HUGE EARNINGS REBOUND (THE PRAGMATIC CAPITALIST, 2/21/10)EARNINGS CONTINUE TO OUTPERFORM (THE PRAGMATIC CAPITALIST, 1/28/10)An Inside Look at Earnings Season (The Rhino Stock Blog, 1/28/10)
September 2, 2006
- It’s Not A Bad Idea to Master the Basics First
Question:
I have a general question for you. I am currently a student of Investools. I addition to trading various stocks options, I also want to focus on short term trades on the OEX and SPX (about 1-5 day period per trade). Do you think that the timing system you use could be used in this [...]More on this topic (What's this?)BEWARE THE DOUBLE TOP (THE PRAGMATIC CAPITALIST, 3/13/10)Market In Denial Phase Of Sentiment Cycle (Disciplined Approach to Investing, 3/9/10)From SPX 666 to RUT 666: where will markets take us next (CHARTLINES (tm), 3/5/10)ROSENBERG: THE MARKET LOOKS TOPPY (THE PRAGMATIC CAPITALIST, 3/3/10)
August 31, 2006
- I’m Overwhelmed With All the Information
Comment:
I’m not sure the service is for me.. it looks very good but I’m overwhelmed by all the information.
My Response:
I know what you mean about information overload – it’s the main reason for creating this site. The success of my members is extremely important to me. This system is something I’ve been working on for [...]
January 13, 2006
- What’s the Criteria for Adding Stocks to the Database?
Question/Comment:
Thanks, Tate, for being so responsive. I also appreciate the feedback you give me to help continue the never-ending learning process. It is helpful to know that you have a watch list from which you take stocks for the database. Would you be willing to share the criteria for making the cut to your database? [...]
