The Undertrader - Laying to rest the Myths of Wall Street

March 13, 2010

Lesson 2 - Narrow your search...$$

I find people watch way too many stocks. Don't do that. It's stupid. What you should do is make a list of 50 or 60 companies and only watch those. How do you choose what to watch? I'd choose companies with 'name monopolies.' They don't necessarily have an actual monopoly, but they are the company you think of when you think of a product or service. For example, if you think of soda pop you think of Coke (KO) or Pepsi (PEP), if you think of motorcycles you think of Harley Davidson (HD), if you think of family entertainment you think of Disney (DIS), if you think of fast food you think of McDonalds (MCD). It's not that these companies don't have competition, they do, but these companies also won't go out of business.

Narrow your watchlist down to 50 or 60 of these types of companies and you'll be be able to tell just by looking at the price if it's a good buy or not. Tomorrow I'll tell you how to know what price to buy into stocks at.

Invest in peace...

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Posted by The Undertrader

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March 12, 2010

How I trade - Lesson 1...$$

Just thought I'd go over how I trade in a week long special again. I've told people many times throughout the years, but I think it's a good time to redo it.

Lesson 1 is simple - Be out of debt. If you have credit card bills, car payments, a home loan, etc and you have money in the stock market, you're a dumbass. Take the money out and pay off your debt. TRUST me. You will go through your day with so much less stress. Get rid of your bills before you start investing. Set aside a 6 month emergency fund and THEN start investing. Once you own all of the things that are important to you (car, house, whatever) you free up the money you were paying to those bills (and the interest payments) and can throw all of that straight into the stock market and make a killing.

So, like I said, get rid of all of the bills you can, make yourself a 6 month emergency fund and then start pouring as much money as you can into your stock account. (I use Scottrade and no, they don't pay me anything to say that.)

Invest in peace...

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Please join me in supporting the Arthritis Foundation in its efforts to find a cure for Arthritis and its related diseases. Each year since 2006, I have bicycled from San Francisco to Los Angeles to raise money to help find a cure for the 46,000,000 Americans and 300,000 children (yes, this is not only an "old person's" disease) with some form of Arthritis.Visit www.californiacoastclassic.org for more info.

I have set a personal goal of raising $6,000. Please help me reach this goal by DONATING on line at our secure web site at www.cccsocal.kintera.org/paulson or send a check to me payable to the "Arthritis Foundation". Thank you so much for your generosity and support. Working together, I know we can make a difference. The ride takes place 9/25 - 10/2/10.

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Posted by The Undertrader

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March 12, 2010

Hope you bought Apple when it was down...$$

Apple (AAPL) is currently being SLAMMED with orders for the iPad. All of those naysayers that screamed that it didn't have this or that just never 'got it.' This is the computer for people who are sick of computers. For people who don't want to screw with upgrades and operating systems and incompatibilities and ever changing minimum requirements. They just want something that works. This is it. Full Internet anywhere you go. Word processor with an iPod built in. People don't care that it's 4:3 because 99% of the population doesn't even know what that means. This is THE computer for the non-tech crowd and it's going to further propel Apple (AAPL) even further into the stratosphere. BTW, Apple just passed freakin' WALMART (WMT) to become the 3rd largest company in the U.S.

Invest in peace...

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Posted by The Undertrader

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March 5, 2010

Best buy and coke

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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Posted by Steve Paulson

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March 1, 2010

Picked up some stocks...

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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Posted by The Undertrader

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November 10, 2009

The proper way to trade Apple...

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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Posted by The Undertrader

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October 26, 2009

A drop is coming, or may already be here...

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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Posted by The Undertrader

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October 26, 2009