A WORD FOR THE FUTURE STOCK TRADERS

TRADING AND SPECULATION OPPORTUNITIES NOW.

STOCKHACKER
Publish date: Sat, 21 Mar 2015, 12:00 AM
A personal opinion in stock trading

Investment should enhance your life not rule your life;

Investment and speculations. When the volatility strikes, there's one more type of business. This type of investment is really a " trade ". Trading opportunities are different from investment opportunities and speculation opportunities, because they're invariably based on one particular piece of news that may or may not occur. It is speculative and it is emotional. Only if you recognize what you are looking for, you can mitigate that risk to some degree and increase the chances of booking a big gain in very short order. 

Bearish signs for the oil/energy sector price has been mounting. Could the breakthrough in the oil market be near? No one knows for sure, yet. But what I know is when the market recovers, the smattering of superb oil related stocks that have survived the slaughter, won't just go up. They will go vertical.

A few years from now, oil investors will call this the "good old days." Why aren't some traders worried? Because they've witnessed it all earlier. The extreme volatility is indicative of the last stages of a bear market coming into the bull market....you see the last weak holders give out, soon you will see some beginning of strong buyers come in.

Bull markets follow bear markets. You'll make lots of money by buying low and selling high. That you presupposes you bought low.This is the opportunity to buy low. That's why Warren Buffet should be happy if your stocks drop and a secret component of a great speculator. 

First of all,  you must not let yourself get spooked out of the market. You can build a fortune even in a down market. Volatility is a negative thing to a mainstream investor. Always look out what the experts say and raise your odds of hitting it big. It's true trading in the resources sector and specially speculating in the junior resource companies is not for the faint of heart. But those with intestinal fortitude and the perseverance to stick to the gun can make a literal fortune once the market goes up. 

Today, we're seeing a major shift. And that time might not far off. I believe 2015 is proceeding to be a fantastic year for beaten down oil/energy related stocks. People do dumb things when they are scared, like selling great companies, or sitting on the sidelines, and when the brighter day comes, they'll do dumber things, like spend twice or ten times, the current ask for the same stocks. Buy when everyone is ignoring it, ( Wall of worry ) and sell high/ trade when everybody is confident ( Trend followers or mania )

Hence, I am very optimistic at this point and beyond. The best time to buy in any market is when great stocks can be purchased along the basis of opportunity alone. Of course, that's generally possible when nobody wants to own them, because they are so beaten up in the previous bear market. It's then when people most bearish, that the new bull market is born. Quietly, unbeknownst to almost anyone. This is what I term it as the first stage of stealth phase. It's there, but nobody can see it.

In fact, this is the  best time to accumulate and trade some cyclical sector and payments industry sector that usually the most terrible and exciting things to hold right now. People are worried for numbers of reasons. Fundamentalist are concern demands will fall -- interest rates worries --new supplies -- environmentalist will make things difficult -- feckless and bankrupt governments -- taxes-- new technologies and so on... They worry about anything that can go wrong will go wrong. 

And they are correct, but their timing is wrong. 

At this point, despite all the fears and sell offs, the market slowly climbs on the walls of worry. It eventually digests selling from the profit takers and the timid as new buyers overwhelm them. As an investor/trader, this phase of the market is as good as the stealth phase.

There's a lot of reasons why. Enough that even a cursory treatment of them will takes another article. But in brief, to refute some of the worries, the world economy is evolving away from the debt burden major economic nations and numerous smaller nations, their growth will be volatile but it's for real. They will consume  an unbelievable amount of raw materials and energy in the coming years. Governments will always act stupidly, but the long term trend is the inevitable freer market, higher efficiency, higher standards of living, and forever higher resource consumption.

If I am right about these things, and I am confident that I am, then the current wall of worries will be followed by a mania. I expect the mania will resemble what we discovered in the Internet stocks in the 90s.

Finally, for the record, let me emphasize that if you don't have the tolerance for risk or willingness to do enough homework to reduce the risk of falling a good story without substance, you really shouldn't be investing/ trading in the resource and cyclical sector. Anymore you should invest with money you can't afford to lose. 

By definition, any investment that can turn dimes into dollars, can also turn dollars into dimes,.if you aren't attentive. Only if you can handle the risk, there's a very serious opportunity and for you well positioned in this wall of worry stage.

Don't ever miss it. 

P/s:.When I hear simple minded people simply say "don't understand " I can't help but to think that these people are naive and frankly stupid. This arena is working for work we are born to work. 

 

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Discussions
2 people like this. Showing 10 of 10 comments

Tom

你和 leno the cat 绝交了?

2015-03-21 00:28

duitKWSPkita

Agreed!!!!!!!!

2015-03-21 00:30

firehawk

wasting 10min reading this type of pointless article .....

2015-03-21 00:33

AyamTua

2015 year of pennies :-)

2015-03-21 02:01

AyamTua

xinghe - peanut oil. remedies to oil price crash

Only if you recognize what you are looking for, you can mitigate that risk to some degree and increase the chances of booking a big gain in very short order.

Bearish signs for the oil/energy sector price has been mounting. Could the breakthrough in the oil market be near? No one knows for sure, yet. But what I know is when the market recovers, the smattering of superb oil related stocks that have survived the slaughter, won't just go up. They will go vertical.

2015-03-21 12:56

AyamTua

jokingly: peanut oil (xinghe) and CBM Gas (glotec) in Bursa context and symantics is somewhat potential.

2015-03-21 12:58

AyamTua

the cure to oil price crash: peanut oil and cbm gas
alternative

2015-03-21 12:59

AyamTua

look ahead strategies - 5% to 6 or 7%
form 5 belief.

2015-03-21 13:01

johnny cash

GHEE OIL

2015-03-23 19:05

johnny cash

For capatis

2015-03-23 19:06

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