The Undertrader

If you had bought Best Buy (bby) and Coke (ko) when I told you, you'd
be up 5.95% and 3.01% respectively in about a week. How does that
compare to your savings account interest?

Sent from my iPhone

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I bought into Coca Cola (KO) and Best Buy (BBY) today, already up on both of them.  It's a good day so far. $$

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A couple weeks ago Apple (AAPL) jumped to like $207.  All time high and all that.  I put a stop loss at $200 (which was a bit low, but the stock can be quite volatile because, well....people are morons and sell the best company in the market for no good reason.  Stock dropped like a brick to $188, so I got out at $200 with a huge profit.  When it hit $188 I put in a buy for more shares than I had before at $191.  Apple is now at $203.  So, while most people would be down $4 from their high point, I'm up.  WAY up.  And I have more shares than I did before using the same amount of cash that was already in the stock.

That's the key to trading my friends.  A stock doesn't need to go endlessly higher.  A stock simply has to move.  It's up to you to look for the signs and get out on a drop, get more shares at the bottom of the drop and ride those toward new highs, or at least back towards the stock's average.

In other words, buy Disney at $20, ride it to $30, stop loss at $28, but again at $22, etc...stock didn't move much, but you jumped on the moves.

The more shares you have, the more profit you have with less movement.

Invest in peace...

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So, since last week I felt like a pullback was coming, I set stop losses on most everything.  I got out of Costco (COST), Kraft (KFT) and Microsoft (MSFT) and went to 20% cash.  When things pull back I'll use that cash to hop onto some low lying fruit and ride the return back up.

Apple is a tough stock simply because it WILL go higher.  But, it also has some insane drops from people taking out their profit.  I set up a stop on it and if I hit that, I'll look to buy more shares with the same money after it drops.  I repeat, with the SAME MONEY.

Let's say you buy a stock for $10 and it goes to $20.  You sell it and it drops back down to $10.  Now you can buy twice as many shares for the SAME MONEY.  That's how you make money in the market.  By riding these ups and downs, not by hitting home runs all the time, (though those are nice, see Apple.) 

Pick a few stocks you like, see what their high and lows tend to be and trade between those and you'll be rockin'.

Invest in peace...

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Here are a list of my current positions, just so you know what I'm in.

Apple (AAPL)

Activision (ATVI)

Berkshire Hathaway B Shares (BRK.B)

Disney (DIS)

Dividend ETF (DVY) - Safety net investment

Midcap ETF (MDY) - Safety net investment

Sirius (SIRI) - This is my long-shot big risk.

Tim Hortons (THI)

World Wrestling Entertainment (WWE)

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My rest will soon be coming to an end.  I soon return to lay to rest more myths of Wall Street... Invest in peace...

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