Author: World Worst Stock Picker
Website: http://worldworststockpicker.com/2008/08/31/nintendo-wii-get…

Apparently the best feature of the Nintendo Wii could actually have been stolen from another company. The implications are serious as this could cost the company a lot of money if these allegations hold water. Click Here.

The investigation could take 15 months and there is a possibility that the supply of Wii’s could stop. You can start stockpiling the Wii for Christmas now.

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Author: World Worst Stock Picker
Website: http://worldworststockpicker.com/2008/08/24/recommended-inve…

In my opinion the books that have influenced my trading have been the following:

1. High Probability Trading by Marcel Link: This is a complete book that includes: trading systems, money management concepts, trading system design and back testing, the use of stops, trading psychology, and technical analysis. For the money it is one of the best and most complete books on investing I have ever read. I refer back to this book often.

2. How To Make Money In Stocks: A Winning System in Good Times or Bad, 3rd Edition by William O’Neill: The CANSLIM system have been my basis of stock selection for many years.

3. Come Into My Trading Room: A Complete Guide to Trading by Alexander Elder: This book teaches popular trading concepts and his “triple screen trading method”.

4. Trading in the Zone: Master the Market with Confidence, Discipline and a Winning Attitude by : This book does not teach a single trading system. This book deals entirely with trading psychology. Trading psychology is often…

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Author: World Worst Stock Picker
Website: http://worldworststockpicker.com/2008/08/27/july-durable-goo…

Click here.

Durable goods definition here:

And I quote:

“U.S. July durable goods orders rise surprising 1.3%
By Ruth Mantell
Last update: 8:30 a.m. EDT Aug. 27, 2008
WASHINGTON (MarketWatch) — Orders for U.S.-made durable goods surged in July, rising 1.3% on strong transportation equipment demand, the Commerce Department reported Wednesday. Economists surveyed by MarketWatch were looking for a gain in orders of 0.2%. Excluding transportation goods, orders rose 0.7%. New orders for durable goods in June were revised to a gain of 1.3% from a prior estimate of 0.8%. For July, shipments of manufactured goods rose 2.5%, following a gain of 0.9% in the prior month. Both inventories and unfilled orders in July rose 0.8%.”

What does this mean? Nothing, it is noise. What is telling about the statement is the last sentence. Inventories and unfilled orders rose. Inventories rising are not a sign of a healthy economy since the goods are getting to the store but at the same time, the inventory is… (Read the rest of this article at the following article source link for the full story)

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Author: World Worst Stock Picker
Website: http://worldworststockpicker.com/2008/08/25/we-are-going-dow…

The inverse of the 1997 Asian sell off is occurring. The sell off in the US markets is spreading to the Asian markets. Click here. In addition the markets in the US were down about 2%. That is classified as a distribution day or day of institutional selling. The feds are adding more banks to their problem list here. I cannot be very optimistic these days. Good luck with your trading. Keep your stops tight and practice good money management.

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Author: World Worst Stock Picker
Website: http://worldworststockpicker.com/2008/08/23/structured-inves…

An investment made up of a portfolio of securities and derivatives. A structured product can be customized by the investor, and since payoffs and components vary and contain no standards from product to product, an investor must acknowledge the risk in these investments.

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Author: World Worst Stock Picker
Website: http://worldworststockpicker.com/2008/08/19/covered-call-tut…

According to investopedia a covered call is an options strategy where an investor holds a long position in a stock or etf and writes (sells) call options on that same asset in an attempt to generate increased income from the asset. This is often employed when an investor has a short-term neutral view on the asset and for this reason holds the asset long and simultaneously has a short position via the option to generate income from the option premium.

This is also known as a “buy-write”. For example, let’s say that you own shares of the TSJ Sports Conglomerate and like its long-term prospects as well as its share price but feel in the shorter term the stock will likely trade relatively flat, perhaps within a few dollars of its current price of, say, $25. If you sell a call option on TSJ for $25.00, you earn the premium from the option sale but cap your upside. One of three scenarios is going to play out:

a) TSJ shares trade flat (below the $25 strike price) - the option will…

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Author: World Worst Stock Picker
Website: http://worldworststockpicker.com/2008/08/17/i-am-back-2.aspx…

This past couple of mosts have been filled with horrible trading. So bad that I almost blew my account. The market is deviant. I went very creative adjusting a position in MDVN form a calendar spread to a calendarized credit spread as the stock went from 15 to 11. I adjusted the calendar by rolling down the short option to 12.5 from 15. Obviously I had my reasons MDVN had announced a secondary offering and in theory when this happens the price should have had a ceiling at the secondary offering price of about 13 and a half. However the company announced some secondary trials and I suspect hat a lot of insiders traded on this information. In a month the stock goes from 11 to 22.  I closed the position for a credit of 70 on Friday as the short 12,5 option got exercised.

I am just going to trade covered calls and I will explain the selection methodology and a future post. I have been switching my mock accounts to this method and it seems promising. I need to raise some capital but I… (Read the rest of this article at the following article source link for the full story)

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Author: World Worst Stock Picker
Website: http://worldworststockpicker.com/2008/03/18/and-the-prize-fo…

DIVX the dog, uggg. This stock is down over 50%  since January. Anyway the position I have on the mock account and the real account will be exercised on Friday after expiration. At least I was able to roll forward one and decrease the loss but it is still frustrating. I have been retooling my stock selection process but with the market in disarray stock are doing everything contrary to logic.

At least I did not lose close to a billion dollars on Bear Stearns! I remember when I finished my MS degree on engineering I actually wanted to pursue a financial career as it is my true passion. The school I went to had a career fair and representatives from that firm where in attendance. They looked bored and arrogant. They took my resume but where not very excited to talk to me. Better die trying…

The Fed cut interest by 75 basis points and I am calling Ed Young prophetic in the sense that he explained that the Fed would have no choice other than bailing the banks and let them perform the…

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Author: World Worst Stock Picker
Website: http://worldworststockpicker.com/2008/02/26/the-college-prof…

Real world outside of the college campus can be a harsh place. After the jump…

http://www.marketwatch.com/news/story/bernankes-recession-here-11-reasons/story.aspx?guid=%7B39D13A23%2D5028%2D4976%2D9883%2DBB1975099038%7D

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Author: World Worst Stock Picker
Website: http://worldworststockpicker.com/2008/02/25/dont-count-your-…

“After pondering what went wrong with the DIVX spread that was close to the brink of disaster, I sat tight, and waited. Market makers are always playing with people’s minds and they where selling the stock down and eliminating the weak hands. However, volume was lighter on the way down and also could not reach the 11.35 bottom. DIVX kept rejecting it. The meaning of this is that someone knew what would happen today (2/25/2008). DIVX announced that it will shut down its Stage 6 service since it was being sued for distributing video content on the web. The stock is going up this morning and volume is heavy. I have an order to roll the short 15 March call to April for a credit of 50 cents. I am thinking if I should just cancel it or ask for more money. I will wait until lunch and decide. Volatility should increase towards the earnings announcement on March 11. Quoting Tom O’brien I will say “Thank God for small miracles!”

Volatility is the (option) trader’s best friend.”

I wrote the…

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