Archive for April, 2007
30 April 2007 - First of all, a quick correction to a typo in a previous blog entry. I mentioned in a previous blog that I was in GM June 25 Puts. That was a typo. I’m in GM June 30 puts. However from the price points I gave in the previous blog of 1.20 and 1.30 a contract, it should have been quite obvious that I was in the June 30 puts and not the June 25 puts, as the June 25 puts never would have sold anywhere near the price points I mentioned during this past week. Read more …
April 30th, 2007
29 April 2007 - There’s a technique I call re-visiting the same stock that I’ve used many times to make easy 25% to 50% profits after taking triple-digit profits from the very same stock on my initial position. The way this technique works is that when I think that the stock starts looking toppy and perhaps the regional market it trades in starts looking toppy as well, I’ll sell out of the entire position and lock in profits.
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April 29th, 2007
27 April 2007 - Well today, when BIDU gapped up over 19% to $130 a share, I closed out the remaining BIDU May 100 Calls at 400% profits. Yesterday I took a little bit more off the table at 85% profits, and as you recall, I initially took 50% off the table at 50% profits. Not bad for less than 14 days, right? Read more …
April 27th, 2007
25 April 2007 - Normally I don’t speak much of option plays as my investment course, SmartKnowledgeU, focuses on long term plays that will yield phenomenal gains by identifying low risk- high reward opportunities. Occasionally, I will purchase options merely for the chance of supplementing the total returns of my portfolios when the same low risk- high reward scenarios present themselves. Read more …
April 25th, 2007
23 April 2007 - Hello, just a quick note today about a change in the format of our newsletter. I noticed that some of you have signed up multiple times for our newsletter, probably thinking that you were not “signed up” when you did not receive your weekly newsletter. Instead of sending out a weekly newsletter, we will be sending out a bi-weekly or a monthly newsletter only, depending upon global market conditions and significant developments in global stock markets. Furthermore, we will be changing the content of our newsletter to exclusive content not offered anywhere on our blog. So for more regular updates on global market conditions and investment education tips, please access our blog. For special content, please refer to our bi-weekly/ monthly newsletter. If you are not signed up already, our newsletter, for the time-being, is still free. You can register either by following the link on this page or by directly visiting our homepage.
April 23rd, 2007
23 April, 2007 - A big story that made the rounds in the financial media last month was Jim Cramer’s (of the Street.com) statement that some hedge fund managers spread false rumors about a company to large trading desks and the media to drive a stock price lower. Many people found this admission shocking, but I’ve known all too well that these types of practices have been utilized against the retail investor for decades. Cramer said this practice is illegal, but easy to do “because the SEC [Securities Exchange Commission, the U.S. regulatory body] doesn’t understand it.”
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April 23rd, 2007
20 April 2007 - Today, I’m sitting in for Kaeho, but have decided to keep the Friday theme of Zen and Martial Arts intact. This is perhaps one of the very best times for a blog entry about applying philosophies of Zen and the Art of War to investing. You must avoid the Art of War because investment firms apply the Art of War principles continuously and unyieldingly to get you to hand over more money to them. As such, you must counter and apply Zen philosophies to determine intelligent investment strategies that 99% of other retail investors will not apply.
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April 20th, 2007
19 April 2007 - Recently, there was an article on CNNMoney that spoke about the “secrets” of the elite rich in the United States. For an article that proclaimed to contain secrets about building wealth, it contained some of the most ridiculous, deceptive statements about building wealth that I’ve ever read. In turn, several articles were written about this article, including one that stated that the richest of Americans “built their wealth with diversification, wealth preservation and strategic growth.” That is a ridiculous statement in itself because two of those strategies, diversification and preservation, do not help build wealth.
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April 19th, 2007
April 17, 2007 - According to a recent study conducted by Charles Schwab, today’s teenagers in the United States have huge expectations about the type of wealth that they will build as young adults. Of the 1,000 teenagers that participated in the survey, boys on average expected to be earning $173,000 a year while girls expected to be earning $114,200 annually. The reality is, however, that only 5% of all wage-earning adults in the U.S. earn six figure salaries. Read more …
April 17th, 2007
April 15, 2007 - Given the demographics of The Underground Investor readers, this next series of blogs are going to be written more for the benefit of our readers that have high-school or college aged children. One of the membership levels, the Level I Membership, of our SmartKnowledgeU courses focuses on wealth literacy for young adults or older adults that are novice investors. The reason we have focused one of our key membership levels of coursework for novice investors is that we believe the traditional education system fails all students on all levels in this regard. If I were a university President, I would ensure that my business program offered the following courses: Read more …
April 15th, 2007
April 13, 2007 - Today in Kaeho’s Corner, I’m going to discuss the lessons that pop culture can teach investors. One can learn a lot about how to become a better investor by observing pop culture. Pop culture and investing share similarities in that both are prone to trends that influence millions of people all over the world through similar distribution channels. Read more …
April 13th, 2007
April 12, 2007 -To build wealth, you need to buy the right stocks in the right industries in the right countries at the right time. If you ever wonder why the Goldman Sachs or the Merrill Lynches of the world will tell you that timing the market is “impossible” and a “waste of time” or that buying a Chinese mutual fund is the best way to gain exposure to China or diversification across ten different industries is the “safest” way to invest, I’ll tell you why right now. Read more …
April 12th, 2007
April 11, 2007 - It is very difficult to understand where and how to invest your money without understanding politics. I know, I know. At first your reaction will probably be the same as 99% of all other investors. “What are you talking about?” is what you are thinking right? But understanding politics will help you pinpoint exactly what specific asset classes, what specific countries, and even at times, what specific stocks offer the best investment opportunities in the risk-reward paradigm of stock investing. Read more …
April 11th, 2007
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