I came across a funny version of stock market terminology. Thought I’d share.

STOCK – magical piece of paper that is worth Rs 1000 until the moment you buy it. It will be worth Rs 200.
BOND – What you had with your spouse until you invested in the stock market.
BROKER – The person you trust to help you make major financial decisions. Please note the first five letters of this word spell BROKE.
BEAR – What your trade account and wallet will be when you take a flyer on that hot stock tip your friend gave you.
BULL – What your broker uses to explain why your mutual funds tanked during the last quarter.
MARGIN – Where you scribble the latest quotes when you’re supposed to be listening to your manager’s presentation. Read the rest of this entry »

This video is actually very entertaining, and gives a very clear description on the credit crisis.

Three tips I use when buying dips:

1. You need to have a plan. Having a plan for each stock you enter is always wise. Find trades that can give you atleast triple what you’re planning to risk. Know when you want to sell your shares if the dip turns into a downturn. Once you reach your level, sell! Sell your entire position immediately.

2. Support. Seek support. You can see this on a chart when a stock pulls back to a price before trading range or its previous low, or a pullback to a key moving average within an uptrend. If in an area of recent support you see higher lows are in place, it means people are watching and the stock should stay afloat.

3. Enter and exit in pieces. You don’t need to go all the way in on a dip. Partial buys as a stock returns to support zone are best. This way if the pull back continues you won’t be ripping your hair out. If you see the stock with buying interest after a partial buy, you can start buying more. Once you see others have invested with you, take a chunk and sell off a little. Get out in pieces just the way you got in.

Etrade definitely has the funniest stock commericals, and this recent one is among the better ones.

If you are to succeed in trading, you need to find out which trading strategy best suits you. This means taking into account your needs and resources, your expectations for return, and your risk tolerance. Even things like your age must be considered when you are choosing a trading strategy.

Becoming a day trader – The term “day trader” refers to the fact that stock traders who use this approach to buying and selling stocks within a single day, not holding a stocks overnight. They make money by exploiting short-term fluctuations in the stock market, and avoid the risk of being exposed to changes in the market overnight.

You can reduce the risks involved with day trading by sticking to fast, small profits instead of waiting for a stock to hit its peak. As with all other forms of trade, there are always drawbacks. Day trading is hard work, we must remain vigilant throughout the trading day of the population. Moreover, since brokers charge a commission for each trade has its benefits outweigh the costs of frequent trading. Read the rest of this entry »

Among the online discount brokers Ameritrade has always been among the leaders. I find their trade window and usability much easier for most people. I’ve used been numerous online brokers over the years and Ameritrade still comes in first place.

The great thing about Ameritrade is that it incorporates with Quote Tracker. Quote Tracker works with many online brokers and was recently bought by Ameritrade not too long ago. QT allows for 1 click trading and is great for charting.

QT and Ameritrade is currently offering a special discount for new accounts. $5 comissions for 1 year!! You have to use this link though http://www.tdameritrade.com/offer/quotetracker.html?a=PFD&referrer=bullrally

If you get my newsletter then you’re probably aware about how much EESO has gone up in the past month but the real question from many people is how much more can it go?

The answer really is unknown but after a run like this, I suspect there will be 1-2 days with profit taking will hit hard and then a possible run back up.

Many people are just waiting for the launch party set in Feb. The company is in the process of transitioning into a biotechnology licensing company.

When a penny stock starts to trade this much volume it gains a life of it’s own and unless the company comes out with something signficant the highs may not last.