Monday, August 25, 2008

Ibm will it follow the tradition trend

I have been watching Ibm for several years. I have found a consistant trend of this stock dropping 10-15% between aug 5 to sept 30.

since Ibm topped at 129-130 in early august and its down to 122-123 now.

the indicators are that it will follow trend/\.

the second part of the trend is to watch Ibm go up 10% or more between 15 oct to 20 nov.

NOW how do you play this trend on a 100 buck stock

when you only have say 2500 total to spend.

I buy a leap call good till jan 2010

that stock symbol is wibah the 140 strike call good till jan 2010.

I expect to buy around 800 a contract

with 1bm around 111 a share.

Now the difference between me and other people is I will get out when Ibm is 5 bucks higher.

This stock option will increase in value at a rate of 30 cents for every dollar Ibm goes up.

That means a 5 buck uptrend will pay 150 return on an 800 investment

If you spend 2500 you bought 3 contracts.

so you made 450 gross and 420 net if you use a discount broker.

so you make better than 15% in 30 days or less.

thats a decent profit to me.

good luck

Saturday, August 2, 2008

Stock Trading ,Trading Agressively to win

Trading stocks aggressively does not mean pushing to the limit or trading every day.

YOU could simply track a trend of a stock and play it accordingly.

I have done this with Ibm and Rgr for years.

Recently, there was a nice drop in the dow from June to July.

I have found this trend with regularity, and you would too if you had tracked the Dow year to year as I have done.

With Ibm I bought the leap put in june wibmb a jan 2010 110 strike stock option.

when Ibm was around 125 I paid around 900 a contract.

at 118 the option was worth around 1000 a contract.

I got out and waited for the bottom.

Then I bought the wibah jan 2010 leap call for about 900 and sold again for about 1000, when Ibm hit 123

At the same time rgr went down to 6.00 a share and I bought 1000 shares.

my sell order was entered for 6.25cents and out, good till cancel.

even though rgr went up to 7.80, IT DID NOT MATTER.

I made my 25cents or 250 gross 220 net again for the 12th time since jan 08.

ie I was up 2700 on a 6-7k investment. or almost 45%. Thats both very agressive as well as conservative and safe, to me.

A day after rgr hit 7.80 it had a 2 buck tank and went to 5.61. And boy was I kicking myself as I was gonna short 500 shares.

but instead I bought my 1000 shares at 579 and got out at 5.99.

and when she pulled back to 5.72, two days later,I bought again and got out 2 days after for 5.97

As of 8/1/08 rgr is at 6 and I am up another 400 and waiting for the next traditional dow drop from mid aug throug late sept.

track my trends back 10 years. SEE IF YOU SEE WHAT I DO.

Good Luck

investarms 50 cal black powder rifle

investarms  50 cal black powder rifle

hawkins rifle

hawkins rifle