Tuesday, October 25, 2011

Made 10% on my investment in a week - this is how

This was a classic trade in which I made 10% on my investment in a week.

The setup was PAA (Pan American Silver Corp)

If you follow charts you can see PAA has found support at its 200 day moving average for the past few months, this is a strong buy signal when you see this.  So I purchased it the other day when it was at its 200 day moving average this is the exact time and date and price :

2011-10-19, 14:05:12    $27.55 per share

I will most likely sell it tomorrow over $30, I was planning on taking a quick 10% return so I will stick to my plan. (Never get greedy)

PAA hit 30.83 today and settled at 30.20 by the end of the day, if I get 30.30 tomorrow I will have made exactly 10% return since last wednesday the 19th of October.   This is 10% return in 7 days.

If PAA opens up lower I will wait until it comes back to touch the 50 day moving average @ my 30.30 price point which may take another few days.

Although I don't do these trades that often because they have to be almost near perfect setups to execute these short term trades.   

*Disclaimer - Don't try this at home unless you know what you are doing or have lots of experience with buying and selling securities. (Most day traders go bankrupt because the human mind is more susceptible to fear and greed which in the long run will catch up to the undisciplined trader.)

To be successful in the market you have to have plans 
and to stick those plans no matter what.

Thursday, October 20, 2011

Word Of The Day:

seigniorage :  the profit taken from the printing of paper money 

It costs the federal reserve (a private bank) 7¢ to print a US $100 bill. 
Cost for the average worker to obtain a $100 bill is 6 hours of labour...

In Canada it cost the Bank of Canada 5¢ on average for every $20 Canadian Bank Note

Thursday, October 13, 2011

Apple should buy RIM... & here's why

Apple should buy Research in Motion, the stock has been hammered the past 6 months its down 55% to 12.5 billion market cap, this company use to be over 60 billion back before the bubble burst in 2008! That's a great deal!

 Research in Motion the makers of Blackberry are on fire sale prices when you consider the corporate accounts and patents they have - the exact thing Apple needs to grow their corporate market share with the iPhone. (Why not take over the biggest player in this market?)

Apple could easily buy them up and still have 60 billion or so left over for future endevours. Apple could phase out the Blackberry and take over the BES system and combine it into iPhone system. Let's face it the main profit driver for RIM is the BES system and corporate accounts that are tied with it.

I say offer them a clean 15 billion tomorrow!
Let's go Mr. Cook, make your first big move as head of Apple.