Investing and Trading

Updated 6/2/2017.  Previously published on People&Picks May 21, 2015 Edited: May 21, 2015

As you may not know, I had been posting blogs like this:

• ( 1) Index Support and Resistance for Tuesday 4/28/2015
• ( 2) Index Support and Resistance for Thursday, 5/21/2015

Summarizing observations from the data and calculations in my Support and Resistance Spreadsheets, databases, and charts analyses.      Sadly, Zacks shutdown People&Picks and all of my blogs as well as reader comments are gone.

Why do I do it?

It is a component of my daily long term, and short term, written investing and trading plans.  My homework.  My due diligence … done for myself, my family, my friends, et cetera.   I accumulate my homework, the PROs and the CONs, both the BULLISH and the BEARISH, notes in draft form and publish that here in blogs as well as in comments here and elsewhere.   The more homework I do … the more I learn.  I am happy to share!

First, the stock markets, whether it’s the USA, or globally, are each similar to a 1000 piece picture puzzle, and like a puzzle, each piece needs to be examined to see where it fits, and where it belongs in the puzzle, to see the whole picture.

We live, work, and play, in a global economy with global financial markets, and tossing a stone in the global economic waters, causes ripples, that can show up elsewhere, including the USA’s markets, affecting our investments. To get a nearly complete picture of the overall USA stock market, which I fondly refer to here, and elsewhere, as Mr. & Ms. Fickle Markets, we need to analyze

• the indices,
• the sectors,
• the industries,
• the sub-industries,
• the companies we are interested in,
• as well as their competitors.

 Second, it is your money, who better to know your own goals, to know your own tolerance for risk, and manage your money … than YOU!?

  I have repeatedly stressed that each investor, or trader, needs to do their own homework:

• on fundamental analysis
• on technical analysis,
• on sentiment analysis,
• listening to earnings report conference calls, webcasts, etc.
• having your own databases and spreadsheets …
• and to establish written long term and short term investing, or trading, plans
• write down your goals
• write down your concerns, or worries, about investing, this is your tolerance for risk

 

I strongly suggest everyone should have two written LONG TERM investing, or trading plans, one for taxable accounts, and a second capital conserving oriented plan for tax exempt retirement accounts, put each in its own binder, and check your investments’ long term performance weekly, and short term performance daily, against your written goals and concerns.

I also suggest short term investors, write and maintain  a daily short term plan, supported by their own homework, notes,  calculations from the homework done on the markets and their investments, goals, and RISKS.   Put this in the front of each binder.

I have my own multiple binders, and I take the info for the blogs above (see links) from MY daily short term trading plans. My support calculations define my “risk”. My resistance calculations define my potential “reward”. My goals versus my tolerance for risk, is mapped out, in writing, and the stock’s price per share (pps) is a buy, or sell, based on its position, and TREND, in that Daily/Weekly/Monthly resistance/support range … a.k.a. “my comfort zone.”

Citibanks’s Levkovich, apparently agrees with me, and thinks that you can’t just bank on one measure alone. “The more critical issue might be that the proof point cannot be a single chart but rather a series of data that generates a preponderance of evidence rather than an opinion built on a single data point,” he said, noting that his target ( of 2300 for the S&P500 in 2016 ) is based on ten inputs including consumer confidence, the VIX, earnings growth, as well as the price-earnings ratio.

Third, some of my investments, are speculative, like Neuralstem (CUR), and Vringo (VRNG) which is now FORM Holdings (Nasdaq: FH);  BUT, are also about MORE than money.  

I invest in Neuralstem (CUR) for speculative profit, but also because of the injuries I sustained in a couple of accidents. Lots of people, whether their lives are impacted by genetics, disease, or injury, want to be able more than to just exist. So, my “investment” in Neuralstem is BOTH financial, and personal.  

I invest in Vringo (VRNG), which is now FORM Holdings (Nasdaq: FH);  for speculative profit; BUT, also for all of the following:

• First, I have always viewed my investment in Vringo as speculative …and always refer to it as that.
• Second, Vringo is a USA company, and I look at my investment in Vringo as a statement of MY opinion and MY VOTE on intellectual property theft, especially the unlicensed use of the intellectual properties of USA companies by FOREIGN companies.
• Third, I am not happy with Google’s repeated ethical misconduct reports, and it is clear to me Google has profited from the knowing and deliberate unlicensed use of Vringo’s patents.
• I strongly believe in fair competition. Competition thru IP theft is NOT fair.
• Companies using unlicensed IP can NOT be trusted, not by enterprise customers, not by competitors, and especially not even by consumers. Selling products using unlicensed IP, to undercut the sales of companies striving to play by the rules should warrant action by the Attorney General to impound offending imports in US Customs until, under penalty of perjury, the culprit presents CERTIFICATION of licensing of all IP …

David vs. Goliath, a.k.a. Vringo vs. ZTE (CHINA!)

Think of all the stolen MUSIC, VIDEOS, knockoffs of luxury goods, … Think of Microsoft (MSFT) banging its head against the wall of IP theft with China turning a blind eye to the rampant theft of MSFT’s operating systems … China could do more .. but, it has embarked on its own plans of government sponsored hacking to gain USA corporate trade and IP secrets, as well as USA government classified documents.

Lastly, regarding Vringo vs ZTE, which appears to be 30% owned by the Chinese government … the REAL David vs. Goliath therefore plays out 5/29/2015 – 6/1/2015 in China where ZTE has brought a suit against Vringo for being a “monopoly” .

I’d say it is China that is getting an education from Vringo on how to play nice with the other children .

Please read my Research and Investing Disclaimer

Happy investing, or trading …

Vet67to82

 

 

P.S.  Regarding comments to this or any of my blogs …

I have a new reason for analyzing stocks, whether I’m invested in them or not, as family member children and their peers  are competing in school projects about the USA stock market.  Children are way smarter about marketing, trends, and company products than adults give them credit for.  Ask them why they picked the companies they picked for their school project … and sit back, listen, … and take notes.   Priceless!

However, because children are accessing my blogs to learn about stocks, some comments with inappropriate off topic comments, inappropriate screen names, or inappropriate links … are being screened by the site spam filter … and have not, will not, be published.   Sorry, to protect the children  … necessary.   Please think  before posting.   Thank you for your understanding and cooperation.