Sunday, December 13, 2009

earning 15% a year in the market is very easy

Earning 15% return is very easy if you pick a stable stock and track is movements against the dow.

recently I have played smith and wesson SWHC

I played a technical play where I bought shares at 5.11 and then shorted against the box as the stock was dropping.

this allowed me to gain from 2 different drops and rises making 100 net profit per trade and then when the stock rose above 5.11 I sold and took another 50 buucks profit

My total profit was 250 on a 3500 investment in 2 months.

thats about 7% in 2 months

the stock has recently dropped to 3.92 and I have again choose to control 400 shares using jun expiration call options for 50 a contract with a 5 buck strike

as that is the usuall point I get out.

if smith follows its trend I will either be out by christmas best case or by jan 20 2010 worst case.

I will keep you informed

Sunday, July 19, 2009

Short Selling for profit

Recently I bought a position of Smith an wesson symbol Swhc.

I made a mistake and bought too early at $6 a share. That was in May.

I july I finally was able to get out of my position at a profit.

but during the 2 months I held the stock I would have been able to do a short sale against the position.

This is called short against the box.

Its 1 way to turn a losing position into a winner.

you simply watch the stock find a new top and bottom price..

Then you sell short even though your sale price is below what you originally bought at.

With smith I watched it drop from 6.00 a share to 4.62 a share.

Now if you owned 1000 shares worth 6k and you short sold at 570 a share you put 5700 into your account.

now you wait for the stock to drop again

I saw it go between 570 and 505 6 times between may 09 and july 09.

now when the stock is say 520 a share you then buy back your short position and have your broker log this as a VERSES TRANSACTION.

This means the buy and sale will be listed on your taxes as the short sale occuring first and the buy that occured later was designated as the closing of that short position.

You now have made a 50 cent a share profit or 500 bucks gross profit.

YOU still own your original position and can use it again to guarantee another short position.

I was able to do this action 3 times while I waited for july as Thats when my research told me Swhc would have a new high and maybe high enough to sell my original may position at profit.

So I made 500 three times by shorting against the box and doing a versus buy back each time.

and then I made my 200 profit on my original position when I closed it in july.

That means 1700 gross profit on a 6k investment in 2 months.

Short against the box is the term used by brokers when you sell short against a position you own.

Versus buy back is the term you tell the broker to make sure that your short against the box sale is bought back with a new lower priced buy order.

Thus your original order is still in place.

The purpose of this trading strategy is to take advantage of market rules to turn a losing position into a winning position.

Even if I sold the position at a loss at say 570 in july.

I would have a 300 buck loss on the original trade.

But I would have had a 1500 gain on the short trades.

So I would have an overall profit of 1500 less 300 or 1200 and the wash rules would not stop me from writing off the loss as long as I did not trade the position within 30 days of the termination of my original position.

This is a very technical trade strategy and you should not try it if you are unfamiliar with the trading pattern of the stock you are playing.

Finally if you do a short against the box at a price less than your buy price and the market shifts and the stock rises. you can simply release the original long position that you shorted against.

Your total loss will be limited to the difference between your original buy price and your short sale price.

so If you bought at 6 a share and shorted at 5.70 a share and the stock went to 6.50 a share. instead of having an 80 cent a share loss on the short position.

You simply release the short position using the original 6 buck buy position and you only have a 30 cent loss.

This again is a very technical trade strategy and you better know your stock before you try it.

good luck

Saturday, March 14, 2009

who says you cant make 15% in the stock market every 3 months

This is a follow up post to my selling short post on RGR strum ruger and verifies how I play it. Since my short sell post I have since sold the 1000 share position that I bought at 6.85 for 6.92 Ie 80 bucks profit added to the 300 I made when I short sold that same position at 6.78 and closed the short at 6.42. I then bought another 1000 shares at 6.32 and sold at 6.73 3 weeks ago.

This means I have made 380 plus 400 or 780 net profit since jan 1 2009 on using the same 6k seed money investment. Ie 13% net return so far.

I have also recently bought some hewlett packard,symbol hpq, leap calls when the stock hit 26 a share. I know this stock only trades between 25-33 so I bought the jan 2011 expiration 30 dollar leap call symbol Vhpaf.o I am currently up 100 a contract with the stock at 29 a share.

I hope to sell on monday as I am looking for 31 a share on hpq. I look for the option to be at or around 800 a contract when I sell.

Its 3/14/09,I will update the final result.

Ashby Equity of Ashby , MN. victimized me did they do it to you

If you were a client of Ashby equity propane gas company of Ashby ,Mn., you were probably force filled last summer 2008 between july and august and you are not alone. I was too.

Unfortunately I am a 48 state trucker so I got home in sept to an overdue bill for a 363 gallon fill I know I DID NOT AUTHORIZE. When I called them I was not only assured they had permission, I was also told that they would offer a winter contract that would be 2.25 a gallon max and drop if the price dropped. My wife was unavailable for me to confirm the Ok to fill so I not only paid for the fuel I bought a contract for 800 gallons.

In Nov when I got back home from my next 6 week run on the road,I found out from my wife that she had not authorized the fill of our tank. She stated what I knew, which is the fact we only use propane in winter for heat.SO WHY BUY IN JULY?

When I called Mr Johnson the owner and requested a refund he refused.I then asked him about the winter contract and he stated it was 2.25 a gal,NO MATTER WHAT THE CURRENT RACK PRICE WAS. It was 1.70 a gal at that time.

I told him I was gonna sue him. And he told me he was gonna pull his tank.

I said fine. and had Ferrill gas remove his tank and put theirs on around 21 nov.

Around 24 nov ashby came out and got their tank BUT NEVER GAVE US A RECEIPT.

They have held my refund for 55% of fuel since 24 November.

Mr Johnson the owner said since I was gonna sue him for the bad faith winter fill contract that I could also sue him for the 55% of fuel.

He has held my refund now for over 4 months.

IT IS MY OPINION THAT ASHBY EQUITY DID THIS ACTION TO ME AND OTHER CLIENTS BECAUSE THEY KNEW THEY COULD HIDE BEHIND THEIR FINE PRINT OF KEEP FILL AND THAT CLIENTS WOULD NOT BE WILLING TO PAY FOR TANK REMOVAL AND THE DISCOUNTED REFUND OF LEFTOVER FUEL.

IN THIS MANNER THEY COULD GET RID OF HIGH PRICE FUEL THEY MISTAKENLY BOUGHT IN THE EARLY SUMMER WHEN PRICES WERE VERY HIGH.

They also knew any new company would charge a tank set fee of 200 dollars.

All these expenses would keep the clients at bay and make them kowtow to this unfair and predatory business tactic.

If you are a victim and would like to contact me. You may do so at Tbaarr@yahoo.com.

Wednesday, February 4, 2009

selling short

There are a lot of so called experienced brokers who say selling short or short against the box is a waste of time.

I beg to differ.

If you have tracked a stock for a long time and have a good sence of its trading pattern, selling short can save you a loss.

Recently I bought stock symbol RGR as its a bread and butter stock I own.

I bought at 6.85 and realized that the stock had hit a resistance at 6.90.

Within 10 minutes it was selling for 6.78. so I short sold rather then straight selling and taking a loss.

I did this as my experience with this stock told me that I was looking at a minimum 50-70 cent pullback from the high at 6.90.

3 days later I bought another 1000 shares at 6.42 and directed my broker to make it a verse my short sale at 6.78.

I now have a 360 gross profit and 2 days later the stock has already gone back up to 6.60.

If I had taken the loss by straight selling, the wash rules would have stopped me from rebuying the stock for 30 days.

if I did buy it then the wash rules state I no longer can claim the loss between 6.85 buy and 6.78 sale.

But by short selling i was able to make a profit and still hold my original position.

Now all I have to do is wait for RGR to go up to a point I can sell my original 1000 shares at profit.

Finally if rgr had turned up before it went down I could have simply released my original 1000 shares to cover the short and taken my 100 buck loss.

Ie I had very little risk.

hope this hells you

Good luck

Sunday, January 25, 2009

bumping credit card limits without paying interest

I recently was asked how I would raise the limit on a low limit credit card

Here is the question and my answer

Question: I recently recieved a credit card. The limit is not so high but I really plan on using it in case I have to. Can I keep on putting money into above the credit limit. Or will they eat my money up in interest? Is this wise or foolish? Thank you.

Answer: Not sure what you are asking,so I will give you an example of how I bump up my credit limits.

I pay my bills with a low limit card

example if its a 500 buck limit

I charge my cell phone and my fuel

I also see if they have a 1% cashback program

this way I get paid 5 bucks a month for the 500 in bills I charge ..

At months end,I simply take the 500 cash thats earmarked for those

bills and sitting in my bank earning interest.

And I pay the 500 limit card off in full.

I then keep up this procedure for 6 months.

after 6 months I ask for a credit line increase.

If I get it I simply charge more bills and pay them off at months end.

The vig here is that the credit card company is making money in merchant fees on each bill charged on their card.

They also are not losing money on you because they get their balance due paid in full early.

This is because you have the cash in the bank the day the bill comes.

So you can pay the bill in full EVERY MONTH.

I usually turn a 500 limit card into a 2500 limit card in 1 year.

I NEVER PAY A DIME IN INTEREST EITHER. YET MY CREDIT SCORE GOES UP.

If a credit card refuses to raise my limit after a year, I get another card.

And I let the first card sit unused for 3 months.

I then give them 1 more chance to raise my credit limit.


If they refuse they get their account cancelled and card cut up.

hope this helps

Friday, January 9, 2009

AL FRANKIN AND THE REPUBLICAN liars and attackers

Hey look Al Frankin won because all the Absentee voters like myself got their votes counted.

Now Normyboy says foul and files a lawsuit,typical repunk that he is.

FURTHER more is the loser repunk radio liars like RUSH dope fiend limpbrain and Oreilly boy are now Inferring that Al stole the election.

GUESS THEY remember how they stole the election in 2000 and think every close race is a theft of office.

At least The Democratic party did not outright Disenfrancise voters,

like the Repunks in Florida did. We ALL REMEMBER KATHY HARRIS very well

FACE IT REPUNKS

YOUR BOY NORM SUPPORTED BUSHPUNKS POLICIES AND IT GOT HIS BUTT BOOTED.

I BET RIGHT NOW THE REPUNKS ARE TRYING TO FIGURE OUT HOW TO BLAME THIS RECESSION ON THE DEMOCRATS.

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