Trending123 Blog

Juniper CEO Says Business Continues To do Well!

2008-07-08T13:10:08Z

Juniper CEO Says Business Continues To do Well!

Scott Kriens says his company will continue to focus on customers requiring high-performance network equipment rather than selling a broad range of products.

The head of Juniper Networks (JNPR) said Monday that sales of communications network equipment to corporate customers have been doing well, despite a weaker economy and tough competition from bigger rival Cisco Systems.

Juniper makes most of its revenue from selling high-performance routers to telecommunications service providers, but earlier this year it launched Ethernet switches aimed at corporate customers, going head to head with Cisco.

"The business has been growing and doing quite well over the past year," Juniper Chief Executive Scott Kriens told Reuters in an interview when asked about sales to enterprise customers.

Ethernet switches are used to direct traffic on corporate data networks. With analysts estimating the market to be worth somewhere between $17 billion to nearly $20 billion, it is seen as a lucrative market for Juniper to tap, but many also say Cisco's dominance will be tough to break.

Kriens said the EX-series of switches, unveiled in late January, had met "encouraging reception", although he declined to elaborate on specific sales results.

He also said data shows the Sunnyvale, California-based company was gaining market share from Cisco in service provider routing.

Despite its expansion into the enterprise market, however, Kriens said Juniper would continue to focus on customers requiring high-performance network equipment rather than selling a broad range of network equipment to a wide range of customers.

Analysts have said that strategy may be helping to shield the company from impact of slowing U.S. business activity and rising energy prices.

ECONOMY NOT GETTING BETTER

The price of oil has gained over 40% this year, driven partly by tension over Iran's nuclear program and expectations that global supply will fail to keep pace with demand from fast-growing Asian economies such as China.

Kriens said economic conditions were not improving, with oil prices rising and consumer uncertainty growing, but declined to comment on their impact on Juniper.

"Numerically, it's certainly not getting better yet," he said, adding that he could provide more details after the company announces its quarterly business results on July 24.

Kriens said the company was in a good position to respond to demands for more energy-efficient network equipment.

Telecoms carriers and firms with large data centers are grappling with increased Internet traffic, mainly due to the popularity of online video applications, and many are looking for ways to limit their data center electricity bills.

Verizon Communications (VZ) has said it wants to see energy cost savings of around 20% from its equipment vendors, starting next January.

Space and energy efficiency has been among the main selling points of Juniper's recent product launches, and Kriens said the company would seek to further improve the designs of future products.

He said a crucial aspect of energy efficient design was to improve "density" of a specific product, combining various capabilities into a smaller-size product that would require less power to run as well as cool.

"It is an engineering fact that energy efficiency must be designed from the outset," he said. "It's not possible to retrofit energy efficiency into a product."

Double your money by the end of the year!

2008-07-02T02:32:34Z

SALES ARE BOOMING!! (FLIR Systems, Inc.) Traded on the NASDAQ ticker symbol FLIR

Double your money by the end of the year!

With entry at $35 to $40 and the three to six month target at $70, that's where we're headed with FLIR.

Yes, the last week or so has been dismal for the overall market, with the S&P 500 ($SPX) dipping 2.9%, the Dow Jones ($INDU) falling 4%, and NASDAQ ($COMPQ) plunging 4.8%. FLIR, during the same period, is up 9% and is currently receiving more Buying Pressure than 97% of all stocks currently trading on the NASDAQ.

"Buying Pressure" is defined as, "a constant, on-going increase in demand for the shares of a particular stock." It reveals itself, to the technical analyst, as a price pattern of higher highs and higher lows combined with price behavior as price hits major support (does it bounce strongly off support?) and resistance levels (does it break through?). Analysis of buying pressure is a test I apply to each and every stock pick I suggest. FLIR, having shown the ability to outperform and rise in any type of market, passes the test with flying colors.

Wall Street insiders use smoke and mirrors to separate you from your money. FLIRs products, using infrared technology, literally see through smoke (and through fog, rain, dark, and even walls) providing clear images of the, previously, unseeable. FLIR products are the cutting edge of security/surveillance equipment.

The on-going international tension which has helped push Oil and Gold through the roof over the last year is providing the impetus for exploding government demand (almost $400 Million Dollars in new orders in the last 2 months), as the U.S. and other countries turn to FLIR for help in securing airports, seaports and borders against terrorists, drug smugglers, and weapons dealers.

This tension is not likely to ease off anytime soon and the same tensions have created a big demand from the Oil and Utility and Power sectors for FLIR products to protect their production facilities.

Have you ever had to pay for an extensive inspection to detect the location of malfunctioning plumbing, heating, or air-conditioning equipment? Or found a plumbing leak when roof changed color and bulged? In modern commercial buildings, this is a routine occurrence and a significant expense. FLIR technology can easily and economically detect, before they become major issues, water leaks, gas leaks, and heating system malfunctions, whether or not they are within sealed systems or behind walls. In addition, FLIR surveillance products are being used in crime detection and commercial security.

Searching for the survivors of maritime accidents has, until recently, often been a matter of searching for a very small needle in a very large (and often stormy) haystack. FLIR imaging technology makes survivors at sea stand out against the thermal background of ocean like a sore thumb, allowing the Coast Guard to save more lives more quickly.

Am I buying FLIR products for my home? Not yet. Is there a massive demand for FLIR products? Well, 2008 revenue is forecast at $1 billion to $1.05 billion, an increase of about 35% over 2007 with earnings exploding as well!

Technical Analysis, analysis based solely on patterns and relationships in price history, supports and complements Fundamental Analysis. FLIR, on June 27, broke out of an "Ascending Triangle, " a pattern with the upper trend line horizontal and the lower trend line rising.

ASCENDING TRIANGLE

This pattern occurs because the lows are moving increasingly higher but the highs are maintaining a constant price level. The highs represent a strong resistance level, and when that resistance is broken, the stock can be expected to rise to the next target level. Volume is an important factor to consider and when breakout occurs, there should be a noticeable increase in volume. If this volume picture is not clear, investors should be cautious. FLIR, on Friday, broke out of the ascending triangle on volume of 15.7 Million shares compared to its average share volume of 1.7 million, a very good indication that the breakout is valid and we are headed to target.

With a beta over 2 (beta indicates the volatility of a stock compared to its index), FLIR will be an exciting ride. On the way to target we can expect big swings, both up and down. You may not be comfortable with this volatility, and that's OK. At Trending123, I have selected stocks, using the same rigorous criteria I apply to all my picks that will allow you to invest at whatever level of volatility you are comfortable with.

Larry Mahan, one of the greats of professional rodeo, says this about bull riding:

"The key to riding the bull is that, before the gate is open, you need to be positioned properly on the bull. Then, stay as close as possible to the hand that is holding the rope. If you lean too far back, the bull has a tendency to throw you forward over his head."

To paraphrase Larry, the key is, "Get positioned properly in FLIR now." Its volatility, Up and Down, will have a tendency to throw many investors out of the saddle. Tune in to Trending123 to make money in the market. All the best in the coming week :)

Chart Pattern Recognition

2008-06-09T21:16:19Z

Chart Pattern Recognition

When analyzing charts, we look for patterns--that is, objects or shapes that call to mind an image of a similar event in the past. Because patterns repeat, we can use them to determine the probability of a certain outcome.

Technical Analysis helps us tell whether it's imagination, illusion, fact or fiction--that is, to distinguish between what is real and what we think is real. This, in my not so humble opinion, is often found in many other types of analysis. Hence the reason I always say, "The charts never lie." The only thing that is real is where price is at the end of the day. Price, as stated in my last blog entry, is nothing more than investor emotions plotted on a grid in the form of lines or candlesticks that show what they feel about that particular stock or security.

It has often been stated that an individual difference in intelligence can only be detected through measures of complex processes such as memory, imagination, attention and comprehension. (I don't know who said it, but I do remember it being said, which is somewhat ironic, because after all I am talking about memory. But I digress.)

Memory, imagination, attention, and comprehension all play a role in the success we have as traders and technicians. So in this blog entry, I want to explore the importance of being able to build on the strengths of what we remember, why imagination plays a vital role in pattern recognition, attention to object identification (which for years has been used to help memory), and why comprehension is roughly the same meaning as understanding.

In the study of Technical Analysis, let's break down M.I.A.C. (memory, imagination, attention, and comprehension).

1. Memory - Statistics; the set of past events affecting a given event in a stochastic process.
2. Imagination - The formation of a mental image of something that is neither perceived as real nor present to the senses.
3. Attention - Observant consideration.
4. Comprehension - Logic; the sum of meanings and corresponding implications.

Chart Pattern Recognition by definition is a grouping of "sticks on a grid" that display "sentiment," which has an outcome to the direction and distance something might move or break. With that outcome, we have attached different odds of probability to the success or failure of that pattern.

Each pattern that is identified typically forms a geometrical shape, and this is where memory and imagination come into play. First, you need to remember that different patterns have different outcomes, and different outcomes have degrees of failure and success. Second, you need to be able to see what others may not in an ever-growing world of technology that is in constant one-upmanship or who can see what may be there faster than the guy sitting next to you.

The object of the game as always is to identify the highest-probability chart patterns and milk them for all they're worth. (In the terms of beating your opponent at his own game, you have no idea who your opponent is and lastly will never know why.)

Skillful Chart Pattern Recognition also requires the ability to remain constantly vigilant for the possibility that there is no "logic" in what we are looking at and trying to understand. We often call "Expanding Triangle" patterns "Nut Hut Patterns" because they defy logic and refute the very things we instinctively know as human beings. We are told, "Higher highs are bullish." We are told, "Lower lows are bearish." The "Nut Hut Pattern" has both!

Here's an example of what the Expanding Triangle looks like:

Message Board Post

Well of course the first thing is the profits, but the next thing about being here is that after a day like today I feel no need to be concerned, worried or panicked as I would have before joining this web site.
Thank You JL

Donna

Message Board Post

John Lansing once again provides obscene profits. This time it was options. I've never had an option play in my life until I invested in John's option plays this month. I'm up an average of 108% in less than 2 weeks. Net gain $7,200!

Thanks JL

Message Board Post

Rocky

Thank you JL for this top notch educational service you so graciously provide. This is truly the "Earn while you learn" place to be. Totally agree with your KISS method regarding the option plays. Straddles, strangles, struddles, poddles, puddles, iron butterfly, sissy butterfly, or whatever KICS (keep it complicated stupid) are not the way for most folks to trade options, and I for one am one of those folks.

Thank you again JL,

Chewee

Message Board Post

JL Thanks for the profits in Sohu today I got in at 55 sold at 90

Also Thanks for WNR yesterday Profits Bring Em on !!!!

Iaranger

Message Board Post

JL, just wanted to say thanks and I hope you continue to point out patterns within patterns.
Now I'm stating this because the learning experience was very nice but I also must say I was in Qs calls at the time you started your educational explanation.

You might think I'm crazy but as you were explaning where the Qs would go down to and spring back I was playing calls and puts at the same time. I was actually able to make money on puts twice today feeling more confident with your pattern explanation in mind and holding the calls becuse of the overall trend.

The strike I was in on the puts was actually making more money than the calls were giving up so it worked out well.

However since I still have the calls if the Qs open up down tomorrow you can be sure I'm scrambling to make sure this trade is profitable.

Thanks again for a great lesson. I hope I will soon be able to see these patterns half as quickly as you do!

Sincerely, Brian

Semi Market to Hit Bottom by Fourth Quarter of 2008, Strong Rebound in 2009 Says SEMI World Fab Forecast

2008-06-09T02:21:34Z

Semi Market to Hit Bottom by Fourth Quarter of 2008, Strong Rebound in 2009 Says SEMI World Fab Forecast

Biggest Long-term Growth Expected for Taiwan and Southeast Asia

According to the World Fab Forecast report, recently released by SEMI, spending on worldwide fabs equipping is expected to show declines of about 17 percent in 2008, as more companies are forced to postpone fab projects due to global economic uncertainties. In 2009, however, the group expects to see a rebound with double-digit growth of over 12 percent.

Regions reflecting this trend most dramatically include Southeast Asia and Taiwan, who will likely experience declines of 40 percent and 33 percent respectively this year, but are expected to recover in 2009 with significant positive growth of over 50 percent and 80 percent respectively.

In the Americas, fab equipment spending is expected to decline over the next two years, while China and the Europe/Mideast are expected to see growth both years. Spending in Japan and South Korea is projected to remain slow, but should improve from negative double digits in 2008, to negative single digits in 2009.

The biggest three spenders in 2008 for equipping fabs are Samsung, Flash Alliance and Intel. Though most companies are investing in non-US fab opportunities, Samsung is making significant investment into its 300mm megafabs in Austin, Texas, and Intel continues to invest in its Arizona and New Mexico fabs. In 2009, Rexchip, TSMC, UMC, Promos and Hynix are expected to join Samsung, Flash Alliance and Intel as key spenders on fab equipping.

In the regional construction of new fabs, only Southeast Asia and South Korea are expected to show positive growth in 2008. Southeast Asia should see greater than 160 percent growth in spending on fab construction projects, due mainly to IM Flash's plan for a new megafab in Singapore.

After a year of very strong capacity growth in 2007 of about 17 percent, global fab capacity is projected to slow slightly, but is expected to post growth in the high single to low double-digits over the next two years. In addition, the overall capacity of volume fabs for 300mm is expected to surpass 200mm capacity by the third quarter of 2008. Looking forward, capacity for 200mm volume fabs will remain at the same level, while capacity for 300mm volume fabs is expected to grow consistently in the double digits with over 2.5 times less fabs.

The SEMI World Fab Forecast provides high level summaries and graphs; in-depth analyses of capital expenditure, capacity, technology and products, down to the detail of each fab; and forecasts for the next 18 months. These tools are invaluable for understanding how 2009 will look, and learning more about capex for construction projects, fab equipping, technology level, and products.

Please visit www.semi.org/fabs for additional information on these reports.

My number one pick in this sector would be NVEC

Introduction

The triangle pattern, also called the "coil," appears in three varieties:

1. symmetrical, 2. ascending, and 3. descending.

Generally, a triangle pattern is considered to be a continuation or consolidation pattern. Sometimes, however, the formation marks a reversal of a trend.

Symmetrical triangles are generally considered neutral, ascending triangles are bullish, and descending triangles are bearish. From a time perspective, triangles are usually considered to be intermediate patterns. Usually, it takes longer than a month to form a triangle. Seldom will a triangle last longer than three months. If a triangle pattern does take longer than three months to complete, Murphy advises that the formation will take on major trend significance.

What does a symmetrical triangle look like?

Converging trendlines of support and resistance gives the triangle pattern its distinctive shape. This occurs, Kahn explains, because "the trading action gets tighter and tighter until the market breaks out with great force." Buyers and sellers find themselves in a period where they are not sure where the market is headed. Their uncertainty is marked by their actions of buying and selling sooner, making the pattern look like an increasingly tight coil moving across the chart.

As the range between the peaks and troughs marking the progression of price narrows, the trendlines meet at the "apex," located at the right of the chart. The "base" of the triangle is the vertical line at the left of the chart which measures the vertical height of the pattern.

To Review The Entire NVEC Update Click Here

Nvidia sees no slowdown, eyes boom in ultra-small PCs

2008-06-02T11:01:28Z

Nvidia sees no slowdown, eyes boom in ultra-small PCs

Nvidia Corp (NVDA) the world's top graphics chip maker, said it sees no signs of a consumer slowdown, and expects sales of powerful, but smaller devices that can display high-definition video and games to drive growth.

The U.S. company said that the most powerful chips designed to display graphics on a computer -- once the preserve of gaming enthusiastics -- are increasingly going into smartphones and other mobile Internet devices. Nvidia announced on Sunday a line of new processors, called 'Tegra', for these compact mobile Internet devices.

"Every application needs visual now. People want to load videos on their iPods and download pictures to create scrapbooks," Rob Csonger, Nvidia vice president of corporate marketing, told Reuters in an interview at Computex, the world's second largest computer show.

With consumers feeling the pinch from the subprime crisis, economic slowdown and rising prices, smaller computing devices that can surf the Internet and play complex, graphics-heavy games, are expected to see strong sales.

Intel (INTC) has said it would not be surprised to see sales of what it calls Netbook PCs such as the Eee PC and others top 50 million by 2011.

"Consumers are now demanding visually rich PCs for their applications without spending more money," said Mike Rayfield, general manager of Nvidia's mobile business. Nvidia said it also sees demand for its high-performance graphics products from aerospace, film, energy, science and healthcare sectors.

For example, researchers can run virus simulations for cancer study on specialized, high-performance computers using Nvidia graphics chips.

Shares in Nvidia rose 5 percent to $24.70 on Friday in New York, outpacing a 0.6 percent gain in the Nasdaq.

Since March 1, the semiconductors ($SOX) are up 19.31 %. The Nasdaq 100 and QQQQ's are each up over 16% and the internets ($IIX) are not far behind at 14.39%.

As pessimissm continues to inhibit investor confidence, the market continues the rally that started in mid-March. It has been a broadly based rally, with The Dow, the S&P and Nasdaq, all showing gains. The S&P and the Dow have posted gains of 5.26% and 3.05% respectively, since March 1st, which are significant advances. But this is a tale of two markets. The major markets have, so far, been piggy-backing on the explosive gains in tech.

Meanwhile, the backbone of most major rallies, the financials, have been lagging, with banks ($BKX) showing a 7.55% drop and brokers ($XBD) sagging 7.44% since the rally started.

Message Board Post 06/01/08

Dear Jl,

I continue to grow as a trader here at 123. It is not just following a handful of picks, as so many sites offer that. Your constant education and updates give me the confidence to search out my own set-ups. For those that might be new reading this, it is important for you to understand: The longer you stay, the more JL seems to make sense. This is not because he is saying or doing anything differently. It is because your ears get smarter with every update, your eyes wiser with every pattern lesson.

...and the site just keeps growing and evolving. I am grateful for JL and Hillary and Mac and all those behind the scenes and look forward to Shannon's input.

As primarily an options trader, I have been able to use Jl's picks and the site tools to triple my account in six months, while only placing 20% of my portfolio in play at any given time. That said, when JL throws an option trade out, it is SO EASY TO FOLLOW! My gains have been much stronger with his guidance. I hope the folks at Phillips are paying attention to the response from the membership!

profit are good,

AmandaB

Message Board Post 06/01/08

I have to agree with everything Amanda has said and add to it. Joining T123 was one of the best things i could have done for my trading. JL's picks are not just thrown out there and left alone. The explanations behind the picks, analysis etc are the reason that i have decided to stick around and " earn while i learn ". Not one trader here should ever be satisfied where they are , as far as being a trader. Learn from JL, but, the ultimate goal imo , is to find your style.

Also, thank you to the guys and gals in the chatroom who make it a good teaching atmosphere and who are always eager to help other traders . Has to be the best on the net .

Jax

Getting a double return in options is definitely the golden goose of option trading.

2008-05-31T01:22:18Z

Getting a double return in options is definitely the golden goose of option trading. However, it can only be done with disciplined trading and a very clear understanding of the relationship between the pattern you are trading and the option you are buying.

When choosing an option look for the out of the money, with the maximum 10% move on the stock for the option to double. Another important factor is that the percentage to double has to put the stock under the target price.

This past week I picked 2 option plays that had everything to do with "GAPS"!

Gaps usually represent important areas of support or resistance. A Gap Down will indicate different situations based on the context in which it was formed. A Gap Down in a downtrend may indicate a previous level of support has been broken and now forms a resistance level. A Gap Down in an uptrend may indicate an end to, or a reversal of, the prior uptrend. Gaps provide an indication of a financial instrument's SHORT-TERM outlook.

The Option Trade Was Based On The Gap 'NOT" Filling And A Re-Test Of The Highs

BRCM Option Trade Method

AKAM Option Trade Method (That The Gap Would Fill To The North)

Alert Emailed

Profit Alert AKAM and BRCM Options Only Up 84% and 100% Percent Book Gains Fri, 30 May 2008 14:09:58 ET

Message Board Post 05/30/08

Dear John,

Thanks again for yet another profitable week in options. A double in BRCM & several other short term options certainly helped make this May the second best month this year & my best May in 3 yrs. If I had joined a few months earlier last year I might be looking at two great Mays back to back.

Get some well deserved rest .. you put other good newsletter & market gurus to shame, with the amount of help & time given to your members. I've read many market newsletters ... for my money T123 is the best place to be.

All the Very Profitable Best, Don P.

Message Board Post 05/30/08

Once again JL I have booked profits on the options plays. BRCM and AKAM were 100% and 90% respectively. Thanks for all you do....You da Man !!!!

Atti

Message Board Post 05/30/08

Yes John
You da man
keep the options coming
BRCM profit 82% woooohooowooohooo

gerald

Message Board Post 05/30/08

Great Option Play in AKAM, took 90% in just a week. Love these plays.... keeps us going while We wait for stocks to hit targets. Thanks Again JL. Keep em coming!

flymojo

Message Board Post 05/30/08

JL,

I wanted to thank you again for the fatastic profits in the options trading. Please keep them coming as appropriate.

Nice party bonus.

Message Board Post 05/30/08

JL,

Thanks yet again!! 118% profit on the BRCM option today. I bought 5/20/08 and sold 5/30/08.

Although I have been buying in very small $$ amounts the compounding on these short term option plays is making a large difference in my account. Each time I am able increase the amount I use for the equal weighting. Whoopeeee!

Linda

Message Board Post 05/30/08

YO JL
Who loves you man.............................I want to thank you once again, for all the option plays and words of wisdom. You keep proving all the so called experts wrong! The best thing I ever did was to join Trending 123, well maybe the second best thing. I also want to thank the great people in the trading room " traders helping traders". What you do to help us ,I have no words.

You raised the bar on customer service

CHEERS
ASJEFF

Message Board Post 05/30/08

John I sit in the trading room all day and I really appriciate the option trades. I have 12 of your stock picks and I have been playing most of the option plays with very small amounts of money. It's nice having 50-200% gains in a week or so.

Thanks! I made 100% on BRCM and 75% on AKAM.

Ping

Message Board Post 05/30/08

Thanks Jl,

Another profitable options trade on BRCM 100% ...... keep them coming...great addition to website!!!!!

Message Board Post 05/30/08

Great job on AKAM and BRCM options (banked profits 100% and 85%)

Bass

Message Board Post 05/30/08

I've taken every option trade (plus a couple sneakies) and it ain't lunch money, it's St. Maarten money. You Rock!

Eric

Message Board Post 05/30/08

JL,

I would like to thank you again for giving us option plays. I know that options are a party bonus right now, and I hope that someday they become a permanent feature of the website. You make trading options easy with specific entry/exit points. I like the fact that the options are on existing portfolio stocks that way I'm already familiar with the stock/chart pattern. The profits I've made are really helping me grow my small account.

Thanks again,

Craig

Message Board Post 05/30/08

John

Your options picks have been awesome.

Keep up the great work and no slacking off, ya hear. LOL

Cobra

Message Board Post 05/30/08

This last 6 or 7 weeks has been the most "FUN" in the chat room since I have been here. The attitude of the people has improved greatly and I think a lot of the bitching moaning and groaning has been left behind. WHY? Because you have been throwing out these option plays and making it a fun thing ,then today after you closed the AKAM and BRCM you explained why you had gotten into them. Your understanding of how to READ a chart goes far beyond just connecting the dots and drawing lines. I just sit back and shake my head after you explain why you do things!!!

Again Thank You.

Donna

Windows Mobile projected to grow 50% per year

2008-05-29T06:29:32Z

Reports are saying that Microsoft is expecting Windows Mobile to grow by 50% in 2008 and 2009. It is expected that by the time the fiscal year for Microsoft closes in June, over 20 million Windows Mobile handsets will have been sold. This is almost double what was sold the previous year, which came in at about 11 million Windows Mobile powered handsets sold.

The estimates state the at the very least, there will be a 50% growth sales over previous year for this year. This will be fueled by the exploding demand for smart phones, which is a trend that is being seen all over the world. All the fastest growing markets for Windows Mobile, are the same markets cell phones in general are growing in. This suggests Windows Mobile is widely adopted even by newer markets.

Though smart phones are a very vague class of device, the sales of them are growing very quickly, enough so that analysts say a 52.5% increase in sales is expected. This is basically in line with the figure Microsoft gives for Windows Mobile. Obviously Microsoft is not making this up, and with the strong partnership they have with the likes of Samsung and HTC, who knows how far the platform can go.

"Fifty percent growth is the minimum," Eddie Wu, the software company's managing director of OEM embedded devices Asia, told Reuters on the sidelines of a news conference on Tuesday.

He said Microsoft expects to sell 20 million units in its 2007/2008 fiscal year ending in June, and expects to grow at least 50 percent annually over the next two years. It sold over 11 million units of its Windows Mobile software in its 2006/2007 fiscal year ended June.

"We're actually still seeing very good growth (for our mobile software) in markets like Europe and the United States," said Wu.

Wu added that growth of Windows Mobile is seen fastest in Asia-Pacific, Middle East, Brazil, Russia and India.
Full Update

You may be asking yourself the simple question: Why should I be interested in trading options? Here is a list of seven reasons why you should consider investing in options.

2008-05-28T01:08:29Z

You may be asking yourself the simple question: Why should I be interested in trading options? Here is a list of seven reasons why you should consider investing in options.

1. Options offer potential for huge returns

Options offer you the potential to make a 200% even 400% return on your investment in a matter of days. Though stocks offer good returns, there is no trade in the stock market that offers the potential for such huge percentage returns over short periods of time. Last fall, for example, we have had the pleasure of enjoying option trades that realized an 400%, 800% return on our investment in just eight hours. Most months, we are involved in option trades that bring us 100% 200%, return on our investment. However, with this potential for high returns comes high risk.

2. Options can be profitable even when stocks are going nowhere

While stocks require movement either up or down to make money, options in addition to this can make money when stocks are in a holding pattern or essentially going nowhere in terms of price. When you write an option, stock neutrality can be one of your best friends. So while everyone else is watching paint dry, you can be making money.

3. Options can function as insurance

If you are holding stocks for an extended period of time and are concerned about significant price fluctuations, for a minimal amount of money you can purchase options to offset any potential losses due to price drops. Options can give you the opportunity to reap the rewards of riskier investments, while limiting your losses.

4. Options are a good add on

If you are planning to hold a stock for a number of months or even years, writing options can be an excellent way to add value to your investment without even selling your stock. Of course, you will have to chose the right option, but do it right and you can pocket most of the premiums (Cash) if not all of it.

5. Options are affordable

Another attraction of options is affordability. If you are fully invested in other areas, options can be a way to invest in stocks without having to fork over a lot of cash. At the same time, they limit your losses if the trade goes against you.

6. Options offer flexibility

While stocks can only be purchased at the current market price, options offer a variety of packages based on different Strike prices and expiration dates. Because of this unique feature, one can implement a number of different strategies and tactics to generate income.

7. Options are leverage

When you buy an option contract, you have bought the ability to control 100 stocks. It's a form of leverage and as a result, gives you the potential for significant returns.

When you buy and sell options on the options market, there are a number of inherent risks. These risks must be fully understood before you invest in Options.

Time is your enemy, if you are an Option buyer.

The major difference between purchasing stock and purchasing options, is the time factor. Where time can be your friend in a stock purchase, it is your enemy when you purchase an option. All options have an expiration date and as soon as you buy an option its value immediately begins to degrade due to loss of time. It should be noted that the time loss value increases as it gets closer to expiration.

When purchasing an option you must not only be right about the direction the underlying stock will go, but you must be right about when this move will happen. If you make a mistake in the timing, even by a couple of days, you could lose what you paid for a option.

It's all or nothing

One unusual feature of the options market is its all or nothing perspective. If the underlying stock goes opposite of what you expected, the option's value can rapidly decrease. Traders are often caught off guard by how rapidly options can lose their value. The rapid loss is due not only to the decreasing stock value, but is compounded by the loss of value due to time deterioration. The greater the movement of the stock in the wrong direction, the less likely it is to recover in the time remaining in the life of the option. Of course, on the other side of the coin, if you called the stock direction right, its easy to see your investment quickly double.

Neutrality is your enemy

When you buy an option, the underlying stock can do one of three things.

1. First it can go in the direction you believe it is going to go. If it does, then there is a good chance you will get a return on your investment.

2. The second thing it can do is go the opposite direction. If it does that, you may lose the full value of your investment if you don't see the change in direction before it happens.

3. The third thing that could happen is that the stock goes into a holding pattern. If the stock price basically stays in neutral, the price of your option could expire worthless, because of decreasing value due to time loss (This is for options out of the money, if the option still in the money there is value in the option, or by exercising the option).

In some instance, the option may lose value even if the underlying stock is going in the direction you hoped it would. This is because the value of the time loss exceeds any increase in the value of the option due to changing stock prices.

This is where stocks and options diverge significantly. Where stocks will still hold some value in neutral and declining markets, options stand to lose all their value.

Inaction is your enemy

When you buy the option, the purchase price is non refundable and you can only make a return on your option, if you either sell the option before expiration date or exercise the option. Failure to act before expiration date, means the (OTM) option expires worthless and you lose everything you invested.

Some have lost money even when their option was profitable because they failed to act before expiration date or failed to exercise their option. Some stock brokers will now automatically exercise your option and purchase the underlying stock on your behalf provided there is a profit in it for you.

This differs from the stock, though you may fail to sell a stock at its most profitable moment, it can still have some inherent value. Options out of the money (OTM) lose their value at expiration date.

Even if your stock is moving in the wrong direction, it is possible to recoup some of your losses by selling the option prior to expiration. However, you will often only get pennies on your dollar investment.

Call Options

Put Options

At the Money Option

In the rare circumstances, where the price of the stock matches one of the intervals (or is within a few cents), it is considered to be "at the money."

In the Money Option

Using our XYZ stock which is currently selling for $18.34, the nearest Strike Price would be either $17.50 or $20.00. If we decide to buy a call option and choose the Strike price of $17.50, our option is considered to be in the money. What we mean by that is that our option is already profitable. By buying this Option we have the right to buy the stock for $17.50 and can turn around and sell it for $18.34. Because of this, the Option price is higher to make up for this profitability. Though the option price is higher, it can result in a higher delta.

Out of the Money Option

Using our XYZ stock example of 18.34, if we were to buy the option with a strike price of $20,00, we are immediately in a loss position and have purchased an option considered out of the money. We have the right, but not the obligation, to buy the stock from an individual for $20 but can only sell it for $18.34. Since we are buying the option in a loss position, its value is considerably less than an "At the money" or "In the Money" option. The delta is also quite lower.

To Learn More Review Our Latest Trade Talk Weekly

A Flag (Bullish) follows a steep or nearly vertical rise in price, and consists of two parallel trendlines that form a rectangular flag shape.

2008-05-25T19:26:54Z

Flag (Bullish) Classic Pattern

Implication

A Flag (Bullish) is considered a bullish signal, indicating that the current uptrend may continue.

Description

A Flag (Bullish) follows a steep or nearly vertical rise in price, and consists of two parallel trendlines that form a rectangular flag shape. The Flag can be horizontal (as though the wind is blowing it), although it often has a slight downtrend.

The vertical uptrend, that precedes a Flag, may occur because of buyers' reactions to a favorable company earnings announcement, or a new product launch. The sharp price increase is sometimes referred to as the "flagpole" or "mast".

The rectangular flag shape is the product of what technical analysts refer to as consolidation. Consolidation occurs when the price seems to bounce between an upper and lower price limit. This might occur, for example, in the days following a positive product announcement, when the excitement is starting to subside, and fewer buyers are willing to pay the high price that was commanded just a few days before. But, at the same time, sellers are unwilling to sell below a lower support limit.

A bullish signal occurs when the price rebounds beyond the upper trendline of the Flag formation, and continues the original upward price movement. This is considered a pattern confirmation.

When speaking about Flags, technical analysts may use jargon and refer to the flag as "flying at half-mast". Visually, this reference is nothing like a flag at half-mast, such as on a day of national mourning. Instead, this term refers to the location of the flag - at the mid-point of what would otherwise be a continuous uptrend.

Important Characteristics

Following are important characteristics for this pattern.

Trendlines

Flags are very similar to Pennants. However, with a Flag, the price trendlines tend to run parallel, whereas with a Pennant, the price trendlines tend to converge.

Volume

As the Flag develops, the volume tends to decrease. Following a positive product announcement, the price may have reached an unexpected high, and fewer buyers will be willing to buy. Interest in the stock may resume, however, as prices drop, and sellers begin to lower their price. The increased activity explains why you will often notice a sharp spike in volume at the end of a Flag.

Duration of the Pattern

Martin Pring notes in his book, Technical Analysis Explained that "Flags can form in a period as short as 5 days or as longs as 3 to 5 weeks." John J. Murphy identifies that Flags "often last no longer than one or two weeks."

Trading Considerations

Possibility of Price Reversal

In some rare cases, the price will break against the original price movement, and create a reversal trend. The pattern reversal may be signaled during the Flag formation by a sharp increase in volume, as opposed to the more typical decrease.

Duration of the Pattern

The duration of the pattern depends on the extent of the price fluctuations (consolidation). The greater the fluctuations, the longer a pattern will take to develop.

Target Price

It is commonly held that the length of the flagpole indicates the potential price increase. When the Flag completes, the price typically jumps to replicate the height of the original flagpole, while continuing in the direction of the inbound trend.

Criteria that Support

Volume

Volume should diminish noticeably as the pattern forms.

A strong volume spike on the day of the pattern confirmation is a strong indicator in support of the potential for this pattern. The volume spike should be significantly above the average of the volume for the duration of the pattern. In addition, the volume over the course of the pattern should be declining on average.

Criteria that Refute

Duration of the Pattern

According to Martin Pring, a pattern that exceeds "4 weeks to develop should ... be treated with caution". After 4 weeks, interest in the stock is likely to decrease to point that it is unlikely to continue in a strong uptrend.

No Volume Spike on Breakout

The lack of a volume spike on the day of the pattern confirmation is an indication that this pattern may not be reliable. In addition, if the volume has remained constant, or was increasing, over the duration of the pattern, then this pattern should be considered less reliable and may actually reverse.

Long Inbound Trend

Shabacker writes that, "When a mast is long ... and it's Flag relatively small, we should naturally expect the movement to be pretty well exhausted when its indicated objective is reached." He suggests that when you observe this formation, and a price continuation occurs, it is best to use the flagpole as a "yard-stick" to indicate the level at which to "take profits, step aside, and watch for further chart developments."

Underlying Behavior

This pattern is effectively a pause in an uptrend. The price has gotten ahead of itself with a steep rise; therefore market activity takes a break before continuing the uptrend. This pause is reflected in the decreasing trading volume. Similarly, a spike in volume marks the resumption of the uptrend.

Message Board Post

JL,

Just quick note.........your nightly "Trading Desk Video" was truly great. Very concise and informative. We should all view it more than once as it covers a lot of bases as to how we should be viewing and trading this market. ( No charts etc. on this one for those who are interested), just pure plain talk and explanation.

Thanks, yet again for everything you give!

Linda

Think like we do. Ask yourself these 3 key questions before any trade:

1. What direction is the stock headed in?

At Trending123, we make money on both the long-and-short-sides. That's right, when stocks or entire sectors are in a downtrend, you can still make money -- instead of just wringing your hands like most investors.

2. How far is it likely to run?

This gives us our profit target.

3. And how long will it take to get there?

It depends. It's a very complex system of analysis that gives you easy access to sudden profits.

At Trending123, we track 238 different sectors, and sub-sectors, of the market -- over 16,000 different investment vehicles -- daily to find the handful of trades that will build your wealth in a cool, calm, rational manner.

Try Us Out Today!

Technical Analysis is Increasingly Popular--Ascending Triangle Portfolio Stocks

2008-05-21T02:41:12Z

Technical Analysis is Increasingly Popular

Technical analysis is one of the most basic and well-accepted approaches to investing. Developed in the early 1900s by Charles Dow (of Dow Jones Industrial Average fame), technical analysis is the study of market action. Using charts as the primary tool, a technical analyst forecasts future price trends of securities.

Security prices move in trends. This principle underlies technical analysis. Trends, however, do not last forever. As prices change direction, they tend to form recognizable patterns on the chart. These chart patterns often herald a predictable outcome in a security's price, enabling investors to identify new trading opportunities, or to confirm opportunities identified through other means, such as fundamental analysis.

By analyzing a security's historical prices, technical analysis allows investors to position themselves in the market. For the technical analyst, the past is the key to understanding the future. The essential tools for the analyst are the chart and the patterns formed on it.

Fast, Simple, Timely Access to Chart Patterns is Needed

Investors need fast, simple and timely access to chart pattern information from hundreds of thousands of financial instruments, from around the world, in order to make better trading and investment decisions.

The triangle pattern, also called the "coil," appears in three varieties:

1. ascending,
2. descending, and
3. symmetrical,

Ascending and descending triangles are also referred to as "right-angle" triangles.

Generally, a triangle pattern is considered to be a continuation or consolidation pattern. Sometimes, however, the formation marks a reversal of a trend.

What does an ascending triangle look like?

Converging trendlines of support and resistance give all three patterns their distinctive shape. This occurs, Kahn explains, because "the trading action gets tighter and tighter until the market breaks out with great force."2 Buyers and sellers find themselves in a period where they are not sure where the market is headed. Their uncertainty is marked by their actions of buying and selling sooner, making the pattern look like an increasingly tight coil moving across the chart.

An ascending triangle - the "flat-top" triangle - also shows two converging trendlines. In this case, however, the lower trendline is rising and the upper trendline is horizontal. This pattern occurs because the lows are moving increasingly higher but the highs are maintaining a constant price level.

To Learn More About This Pattern Review This Tutorial

Several Examples Of Trending123.com Portfolio Stocks Are Below

Hess Corporation, together with its subsidiaries, engages in the exploration, development, production, purchase, transportation, and sale of crude oil and natural gas. The company also manufactures, purchases, transports, trades, and markets refined petroleum, natural gas, and electricity, as well as offers distributed-electricity generating equipment to industrial and commercial customers. In addition, it owns a refinery through a 50% joint venture with HOVENSA L.L.C., as well as terminals and retail gasoline stations. The company markets its refined petroleum products to motoring public, wholesale distributors, petroleum companies, governmental agencies, and public utilities; and natural gas and electricity to utilities and other industrial and commercial customers. As of December 31, 2006, Hess Corporation had approximately 832 millions of barrels of crude oil and natural gas liquids; and 2,466 millions of thousand cubic feet of natural gas, as well as 1,350 HESS gasoline stations. The company was founded in 1920. It was formerly known as Amerada Hess Corporation and changed its name to Hess Corporation in 2006. Hess Corporation is based in New York, New York.

FLIR Systems, Inc. engages in the design, manufacture, and marketing of thermal imaging systems and infrared camera systems worldwide. It operates in two divisions, Thermography and Imaging. Thermography division produces systems that provide temperature measurement and thermal pattern, and other diagnostic capabilities used for various commercial, industrial, and governmental applications. Its cameras incorporate temperature measurement capability, enabling the user to perform various diagnostic and analytic activities. Applications for these cameras include electrical and mechanical preventative maintenance, process control, test and measurement, and scientific analysis. Imaging division offers various products, which enable the user to see in darkness and through various types of obscurants, such as smoke, haze, and fog. It offers hand-held imaging systems, as well as fixed mounted products for ground, airborne, and marine applications. Imaging products primarily include hand-held systems used for reconnaissance, surveillance, and law enforcement; stabilized gimbal mounted systems for fixed and rotary wing aircraft applications; fixed mounted ground systems for security and surveillance applications; and maritime systems designed for saltwater environment. These products incorporate additional sensors, including visible light cameras, laser rangefinders, laser illuminators, laser designators, and image analysis software. The company's customers include military, paramilitary, and police forces; original equipment manufacturers; commercial manufacturers; research and development facilities; universities; industrial companies; utilities; and news gathering agencies. It markets its products through direct sales, independent representatives, and distributors. FLIR Systems has a strategic alliance with Pelco, Inc. to offer thermal and visible light security surveillance systems. The company was founded in 1978 and is headquartered in Portland, Oregon.

Research In Motion Limited engages in the design, manufacture, and marketing of wireless solutions for the mobile communication market worldwide. The company provides platforms and solutions for access to email, phone, short message service, organizer, Internet, and intranet-based corporate data applications. It also licenses its technology to handset and software vendors to enable these companies to offer wireless data services using the BlackBerry Enterprise Server and BlackBerry Internet Service. The company also enables various third party developers and manufacturers to improve their products and services with wireless connectivity. The company offers its products to carrier partners, resellers, and end users. The company was incorporated in 1984 and is headquartered in Waterloo, Canada.

To Learn More About Trending123.com

Message Board Post

JL,

Thanks for going the extra mile and getting the STV update out and online early. Alot of information in one update...truly one I hope everyone reads at least once (or maybe 8 times)!

I noticed it this morning before 7am AST/11am EST (Sat) so got a jump start on my weekend "homework".

I know you had a lot to get organized for you trip to the Money Show so was very pleasantly surprised to see an update for Sunday already in place.

Wish you the best in Vegas and look forward to any reports from the Money Show that we may receive.

Linda

Chart patterns have been used in the financial markets for over 100 years

2008-05-21T02:13:05Z

Chart patterns have been used in the financial markets for over 100 years. In general, they reflect group behavior in the stock markets and provide insight on the direction the price is expected to take. The popularity of using these patterns to forecast price movements has been growing in recent years, partly due to the increase in home computers and the availability of stock market charting programs. The Internet has also contributed to increased use of this analysis technique.

What value does the Trending123.com pattern scan powered by Recognia bring to chart pattern identification?

Like many investment disciplines, chart pattern identification and analysis is a manual activity that has long been considered more of an art than science. A chart is drawn, either by hand or on a computer screen. The analyst looks at the chart over different price scales and using different time periods to attempt to visually determine if any of the 50 or so known chart patterns are forming. If the analyst does not see any patterns on the chart they continue on to the next chart.

Tools exist to help the analyst draw the chart but there have not been sufficient tools that automatically identify and classify the chart patterns. Even the most experienced investment professional can only track 50-75 securities a day using this manually-intensive technique. Recognia currently analyses more than 16,000 securities each day from world stock exchanges and is expanding this capability to include additional markets around the world. This allows investment professionals to become more productive, and facilitates the introduction of retail investors to the field.

Learn More On Our Demo Site

Message Board Post 05/16/08

JL,

Just want to say thanks for the great call on the drys option. Made some good gains on it and if everybody evenly distributed on their contracts, will take care the few that will not work. Thanks again for the added options portfolio and keep it up!!!!!!!!

From a fairly new subscriber

jaxricane

Message Board Post 05/16/08

John,

Thanks again for the options....made money. BRCM, NVDA, and DRYS came in great. I am now ahead and gained back my losses . Thank you so much.

Atti2dok

FLIR wins US Army contract worth up to $60.5M

2008-05-20T23:55:00Z

FLIR wins US Army contract worth up to $60.5 million to provide service and logistics support

Thermal imaging company FLIR Systems Inc. said Tuesday that it won a support contract worth up to $60.5 million from the U.S. Army to provide service, upgrades and logistics support.

The contract was awarded by the U.S. Army Space and Missile Command in Huntsville, Ala. and will go toward Army and U.S. Marine Corps programs.

Message Board Post 05/20/08

Having been here for about 18 months and gone through 2 other times with other people recommending options this past month has just been unblieveable. John your option picks have been real money makers for me. Please keep them comming.

Donna

Message Board Post 05/20/08

Thanks JL!!!

My portfolio has come back in 5 weeks to where I was late October. I have learned more in the past 9 months about trading, both stocks and options, then I had in the past 5 years. Looking forward to more profits!

Crankcity

Message Board Post 05/20/08

JL - Following are my individual option gains/losses % since the inception of the T123 options alerts:

JNPR - 450% Gain
AKAM - 400% Gain
DRYS - 350% Gain
FFIV - 225% Gain
BRCM - 200% Gain
CEO - 170% Gain
NVDA - 110% Gain
SEPR - 75% Gain
RIO - 65% Gain
HES - 25% Gain

Only 3 losers RSTI, SPWR, and ISRG

By following your guidance and keeping the option plays equally weighted, I am about 160% ahead overall in my options activity and I consider that significant to say the least. I would like to express my gratitude to you and your staff for the great job! Now I can afford to pay my subscriptions for many years to come! :-)

Thanks again, you guys and the Trading Room are the best!!!

Rod

DRYS Beats Both Top And Bottom Line

2008-05-19T20:51:01Z

DRYS beats by $0.08, beats on revs Reports Q1 (Mar) earnings of $4.13 per share, $0.08 better than the First Call consensus of $4.05; revenues rose 167.8% year/year to $232.1 mln vs the $218.6 mln consensus. the co reported an average number of vessels operated of 38.3 at an average day rate of $63,127 , which compares with the prior period of 32.1 ships at an average day rate of $28,930.

Co says, "The acquisition of Ocean Rig, which already operates two UDW rigs, and the agreement to construct two state of the art drillships creates a significant platform for our foray into this sector. As we have mentioned before, we to spin off this business unit to our shareholders through a U.S. listing within the next 12 month."
Voyage revenue more than doubled to $232.1 million. Net revenue -- which is voyage revenue less voyage expenses -- rose to $217.9 million, compared with $81.4 million, a year earlier.

DryShips, which predominantly deploys its vessels in the spot market, said quarterly time charter equivalent rate surged about 118 percent to $63,127, helped by a strong spot rates.

Average number of vessels deployed during the quarter rose to 38.3 from 32.1, a year ago, and the fleet utilization stood at 99.1 percent.

Shares of the company were trading up about 2 percent at $107 after the bell. They closed at $105 Monday on Nasdaq.

Message Board Post 05/19/08

Just a HUGE word of thanks .. recent BRCM, CEO & NVDA option plays were much more than lunch money trades .. just these 3 paid for this month's mortgage payment insurance plus other monthly bills. Coupled with other options .. the monthly bills have been nicely taken care of by equally weighting the option opportunies you have suggested. - Thanks, just the right medicine during a really difficult time!

Message Board Post 05/19/08

What's happening right now at T123 is the most exciting thing I've seen since I joined over a year ago. With John giving out exceptional options plays, everyone who follows his direction should be making lots of money. There seems to be better focus and consistency here now than any time during the past year. Thanks to John. Keep it up!

Yozonetrader

Message Board Post 05/19/08

To any one that will listen. I joned Trending123.com about 5 mths ago and its one of the best ideas of ever came up with.

1. Better trader.
2. Education and Tools
3. Trade ideas for stocks and option Great .
4. Tradeing Room with JOHN L. founder and monitors like HELLI make the term Traders helping Traders so true .
5. Well i guess I would not be writeing this for the # 1 reason and that would be AWESOME PROFITS !!!!!!

THANKS AGAIN. JOHN L

Gil

Message Board Post 05/19/08

JL,

Thanks again for the options plays ... I have gotten into all but 3! Have had fantastic profits so far. Todays sale of the CEO option made me 166% profit.

Keep them coming,

Lana

Message Board Post 05/19/08

John

Thanks alot for the options plays here of late. I love the options type education that goes on all the time. I get it because you have taught me. I have made a ton of money from these options picks.

Sincerely thank you so much. I hope this portion of your service will continue and grow.

Loyal subscriber

Luke

Message Board Post 05/19/08

The option plays have rocked! Thanks! I have made over $10k in the past 2 weeks thanks to your option plays! Keep 'em coming - I'm looking forward to more great picks and tools I can use to increase my education.

TSmith129

Message Board Post 05/19/08

I've gotten in most of your option calls and have made some great money. You are fantastic. You've finally found your true calling. OPTIONS MEISTER! You rock!

Cobra

Message Board Post 05/19/08

Thanks John for the recent option plays! I'm only getting started with options but will continue with future plays.

.UVAFE ========> 235% profit
.RCQFF ========> 257% profit

Thanks Again!

BobbyC

Message Board Post 05/19/08

John,

I am extremely pleased with your recent introduction to option plays on your site. You are awsome in picking the option plays. my net worth has increase substantially due the option plays you suggested. Most of the options have retuned 100% or more in just a few days to a couple of weeks. keep up this fantastic work. I have been a memember for over 1 year and this is the best I have seen your picks on stocks and options. Thanks for your hard work.

Dave

Managing money wisely is one of the most difficult aspects of stock market trading to master.

2008-05-11T22:07:27Z

Money Management Tips for Stock Traders

Managing money wisely is one of the most difficult aspects of stock market trading to master. It refers to all the nitty-gritty detail work you have to do to make all your trades work together as a successful portfolio. It's not always easy, and it's not always fun, but it's crucial to coming out of the game with profits on the table.

There are four basic components to money management for traders: trading, allocating, recordkeeping and minimizing costs.

Trading

Most people end up holding losers too long and selling winners too early, leaving them to wonder what the secret of trading is. But the best traders know that one of the "secrets" to trading isn't really a secret at all. It just means ensuring that your gains outweigh your losses. To do this, you can't rely on fortune-telling, market-timing, or plain dumb luck--you need to follow a trading plan.

Believe it or not, it becomes stressful for people to have stocks that actually move up fast. Take GSS, for instance. It was in the upper $2s or low $3s, and then it shot up to the $4s. That meant a lot of gains on the table. But it actually caused panic. The same goes for a stock that goes down quickly.

That's where Trending123 comes in: We actually give you a stock trading system. All you have to do is follow it. How? Easy: Use the Trending123 Portfolio Table. It makes money management simple with a color-coded system of trading instructions:

1. Yellow means the setup has triggered the entry price and action can be taken.
2. Green means target has been hit or a profit alert has been issued.
3. Red means a stop loss has been hit or a stop alert has been issued.
4. Blue means the entry price has not been triggered but it's close, or as I like to say, "on deck," so stay tuned and be ready.

All you need to do is wait on alerts and direction, and remember that nothing is ever set in stone. We always have a trading plan, but trading plans, like the market, are not static. We have to revise them sometimes according to market conditions and new positions that we take on. Since the market is constantly evolving, we need to have the flexibility to change and modify our trading plans to accommodate the changing risks.

Allocating

When it comes to losers, we all know what to do: hold. It's winners that we have the biggest issues with--because we're not used to a lot of them. So let's talk about investment portfolio management and the word "dumb."

First and foremost, no position should ever be more than 5% of your investment portfolio. People get into the biggest trouble when they hear someone excited about a stock or are excited about it themselves, and they think for sure it's going to skyrocket. They think, "It's got to go to the moon, because did you not hear how he talked in that update? It's a surefire winner!"

But even though the majority of positions in a portfolio may be winners, some will be losers. This calls for strategic asset allocation, meaning that you can't allocate too much to any single position. Poor asset allocation is a sure way to ruin a portfolio of winners.

But why did I mention the word "dumb" at the beginning? That's simple: because from this point forward, we will never be as dumb as we are right now. Five minutes from now we're going to learn something new. And that makes us smarter. Tomorrow we're going to learn more. And that's going to make us even smarter. The next day you're going to learn even more. And we're going to be even smarter.

So as far as dumb goes, we've officially bottomed as the human race, because tomorrow, and the next day, and the next day, we're going to keep learning new things. But don't forget what you have already learned, because the last thing you want to do is make dumb moves in your portfolio management.

Recordkeeping

You can trade year in and year out without ever violating the rules of allocation, but if you don't keep track of what you're doing, you won't know if you've actually made progress. A simple way to do that is to keep a trading journal.

In your daily journal for stock trading, you should note all the information relevant to each trade you make. Your trading journal template (how it's formatted) is up to you, whatever works best for you--but it's important to keep it consistent and organized for easy reference and comparison.

Here are some things you should note in your journal:

1. Why did you buy a stock?
2. Did you have any issues with holding the stock as you waited for it to reach price target?
3. Why did you exit the stock?
4. Did you made a profit or a loss? And how much?
5. After all, if you don't know what you're doing right, you can't develop the skills you already have. And if you don't know what you're doing wrong, you could end up blaming "bad luck" instead of correcting bad habits.

Knowledge is power. Even better, knowledge is profits. Especially if you're going into technical analysis.

Minimizing Costs

When it comes to trading, you can't ignore costs. Whether it's ongoing expenses of an ETF or commissions you pay to make trades, costs always reduce your overall return. And just like with returns, you can't just look at the dollar amount of costs--you have to look at the percentage. After all, the smaller your portfolio, the more trading costs will hurt you.

For example, let's say each trade costs you $7. If you pay $7 to buy $100 worth of stock, your cost to initiate the trade is 7% of your principal. And if you pay another $7 to sell it, your cost to close the trade is also 7%. So your total commission costs are 14% of your principal ($14/$100), meaning you have to make at least a 14% profit in that stock just to break even. Those sure aren't very good odds.

But let's say you put in $1,000. The $14 you spend for one round trip in and out of the stock is only 1.4% of $1,000, giving you much better odds.

And now suppose you could trade for free--that would give you the best possible odds. Impossible, you say? Not at all:

The Money Show Las Vegas, May 12-15, 2008 I Hope To See You!!

2008-05-11T18:56:19Z

The Money Show Las Vegas, May 12-15, 2008, at The Mandalay Bay Resort & Casino is your best opportunity to learn how to manage your portfolio during these questionable, economic times. Hear from world-class experts in more than 220 FREE workshops where they will give you every opportunity to prepare yourself for the uncertainty that may lie ahead. Also, visit the exhibit hall and meet over 200 exhibitors face-to-face and evaluate the latest tools and software--all designed to help you profit in 2008. Register today-- it's FREE!

Meet face to face with top investment experts - expand your understanding of the markets in over 220 sessions presented by the leading experts on investing

• Discuss ideas with fellow investors - some of the best investment ideas come from other attendees, so talk to your fellow market enthusiasts about their strategies

• Explore the investors' mega-marketplace - representatives from over 200 of the top financial product-and-service providers, publications, funds, and publicly traded companies are all under one roof to answer your questions

• Fine-tune your portfolio - use our new workbook of investing questions to focus all of the intelligence you've gathered at the show into an effective game plan for boosting your profits

• Gain more independence - you'll consider specific, timely recommendations, but you'll also learn the strategies, skills, and resources that can make you an confident investor

John Lansing Speaker Schedule

Message Board Post

JL,

Thanks for going the extra mile and getting the STV update out and online early. Alot of information in one update...truly one I hope everyone reads at least once (or maybe 8 times)! I noticed it this morning before 7am AST/11am EST (Sat) so got a jump start on my weekend "homework".

I know you had a lot to get organized for you trip to the Money Show so was very pleasantly surprised to see an update for Sunday already in place.

Wish you the best in Vegas and look forward to any reports from the Money Show that we may receive.

Linda