Share This letter with Friends on Twitter, Facebook and Other Social Networking Sites:
Past and Future -- By: Bill Kraft
Copyright 2010, Makin' Hay, Inc., All Rights Reserved
Bill Kraft
Editor |
Happy New Year!
Every once in a while, I wonder who is included in the "they" of
the "they say" school of reinforcing a statement. You know, "they say"
the market has been due for a rectracement. Or "they say" that 2010 is
going to be a good year for the market. In fact, they say the past is
destined to repeat itself. That is why we may rely on certain chart
formations like a head and shoulders or a double bottom to signal an
entry (bearish with a head and shoulders, bullish off a double
bottom). However, we need to remember that the formula is fallible.
Not every double bottom is followed by a move up or every head and
shoulders where the neckline is broken will be followed by a further
decline.
While what they say about the past repeating itself may be true,
we can never tell when the repeat may occur. That is one of the
reasons I always try to approach statements about good results in the
past with caution. I make that preface before I set out the results
of my paid subscription services for the percentage of closed trades
that were winners in 2009. It was a good year for me. In terms of
percentage of winners of closed trades in 2009, the following were my
results:
Trend Trader 92%
$10 Trader 80%
Option Trader 77%
The specific trades appear on the Trade Tables for each of the
services. Does that mean that I will do as well in 2010? Of course
not. Well, the past several years have also been pretty decent in
terms of percentage of closed trades that were winners, so does that
mean I'll do as well in 2010? Of course not. I could do better, or not
as well. Past performance, as they say, does not guarantee future
results.
What works in the markets, I am convinced, are those things I
write about and speak about regularly. They are the basic foundation
upon which we try to build good trading plans and good trades. Things
like cutting losses, letting profits run, managing money, having an
exit strategy and actually following it, etc. Most of us have heard
or read about these fundamentals, but as I have seen with seminar
attendees and sometimes with personal mentoring students it is a
failure to understand and adhere to the basics that results in
disappointing trading.
Incidentally, for those of you who may be local to the
Scottsdale/Phoenix area, I will be speaking to the Scottsdale/Phoenix
Trading Group on the evening of Wednesday, January 20, 2010. Please
say "hi" if you're there. Also, I will do some additional private
coaching again in 2010. I try to limit that to one student a month so
if you ever have an interest, please let me know as early as possible.
Good Trading!
Bill Kraft
Success Trading Group -- by Success Trading Team
Our Success Trading service delivers quality trading ideas for the elite investor that has the financial wherewithal and market nimbleness to profit on small moves in a stock's price. Become a member and you will be provided with email and/or PDA alerts intended to provide you with the opportunity to make many, many profitable trades.
Here is a play from the Success Trading Group:
Pepsico, Inc. (PEP)
Our Success Trading Group will be watching closely for entry points next week. We currently like Pepsico, Inc. (Ticker: PEP) at $60.45 or lower for new positions.
Have a great weekend and we'll trade next week.
Success Trading Group Team
Trade Quality
Stocks Over and Over Again
Over 320 winning trades and only 9 losses!
Register Now
and Get $50 off our Normal Website Rate
Option Trader -- by Bill Kraft
Our Option Trading Service is for conservative traders that understand leverage principles and enjoy the challenge of options trading. We focus on powerful option trading strategies that place volatility and momentum in your favor. And we pride ourselves on always minimizing our losses!
The Option Trader service utilizes standard trading in Puts and Calls as well as strategies using Leaps, Straddles, Credit Spreads, Calendar Spreads, and Naked Puts. But no matter how sophisticated a strategy may be, we ALWAYS know our downside potential on every trade.
Here's a look at a trade Bill is currently working on:
NVIDIA Corporation (NVDA)
I closed a 3 month trade using LEAPS calls on NVDA on
Monday with a 23.5% gain before commissions. The stock has begun a
little retracement and if the retracement falls to the $17.35 area or
even the apparently stronger $16.50 area and then bounces, I will
seriously consider a new entry with a LEAPS position.
Good Trading!
Bill Kraft
Editor of $10 Trader, Option Trader and Trend Trader
"Trade Your Way to Wealth" by Bill Kraft is an Amazon.com best seller!
"Smart Investors Money Machine" is Bill Kraft's most recent publication.
"Trading for Keeps: Making Money with Low Risk Option Trades" a trading DVD by Bill Kraft
Try our Option Trader Real-Time Alert Service
and Get $50 off our Normal Website Rate!
Achieve returns with us like
16.48% return in 5 days!
Trend Trader -- by Bill Kraft
Trend trading as we try to practice it is a form of momentum trading. We prefer to try to capture profit out of the middle of the trend rather than try to catch reversal at bottoms and tops.
Here's a look at a trade Bill is currently working on:
Ares Capital Corporation (ARCC)
This stock has been stair-stepping up and looks as though
it may begin the next riser on a close above $13.55. It has been
trading in a range and has current short term support around $13. ARCC
was also a late December Trend Trade that captured a 4.4% gain before
commission in 10 days.
Good Trading!
Bill Kraft
Editor of $10 Trader, Option Trader and Trend Trader
"Trade Your Way to Wealth" by Bill Kraft is an Amazon.com best seller!
"Smart Investors Money Machine" is Bill Kraft's most recent publication.
"Trading for Keeps: Making Money with Low Risk Option Trades" a trading DVD by Bill Kraft
Try our Trend Trader Real-Time Alert Service
and Get $50 off our Normal Website Rate!
$10 Trader -- by Bill Kraft
We really enjoy trading stocks that are $10 and under. Often they provide the chance to enjoy high percentage gains and, of course, at worst, the risk is limited to what we paid for the stock.
Here's a look at a trade Bill is currently working on:
FelCor Lodging Trust Inc. (FCH)
FCH has been consolidating into an ascending triangle and
that pattern often precedes a further upward move. In addition, MACD
has turned positive and volume has been increasing along with price.
Currently, the stock is dealing with a resistance level around $3.85.
FCH is a hotel/motel REIT that traded in the mid-$20 range until the
economic downturn.
Good Trading!
Bill Kraft
Editor of $10 Trader, Option Trader and Trend Trader
"Trade Your Way to Wealth" by Bill Kraft is an Amazon.com best seller!
"Smart Investors Money Machine" is Bill Kraft's most recent publication.
"Trading for Keeps: Making Money with Low Risk Option Trades" a trading DVD by Bill Kraft
Try our Under $10 Trader Real-Time Alert Service!
Dividend Trader -- by Dividend Trader Team
Our Dividend Trader service focuses solely on the "best of the best" dividend paying stocks. We trade these stocks for short-term gains and we will also buy these stocks for their powerful dividend producing income with a purpose to make capital gains as the stock increases in value.
With these trades we attempt to get in and get out quickly. Once we buy, we immediately set an exit point of 3% above the buy price. We have had great success in the past. In fact, we have put together a string of 61 positions in a row that have hit our 3% target subsequent to the buy alert!
While we titled this service a "trader" service, we also invest in these dividend-paying stocks from time to time for the long-term. We will buy these stocks for their powerful dividend producing income with a purpose to make capital gains as the stock increases in value.
Many of the stocks that we will be "investing" in have had a history of raising their dividends almost every year. Year after year. This can be powerful. Building up your dividend income in a tax deferred account such as an IRA can siginficantly boost your account over the years.
Feel free to sign-up for a free 30-day trial. During such time you can review our Trade Tables and see the type of stocks we are buying. You will also receive in real-time all the new trading and investing alerts we send during your trial period!
Register Now
and Get $50 off our Normal Website Rate
