Your Questions About Successful Trading Strategy

Nancy asks…

China, Russia and Iran in cahoots?

The Chinese and Russians have numerous overt (and probably covert) military and economic agreements with Iran.

The Chinese and Russians are allying themselves with the Iranians in a deliberate attempt to control and dominate the oil trade, thereby damaging and dominating the West.

Right now, Europe and the United States are every so gradually being edged out by Russia, China, and Iran.

Do you believe that the Russians, Chinese and Iranians will be successful with this strategy?

John answers:

I don’t believe so.

Where is your source? I hope it is not mid air.

Chinese and Russian never really trust each other. That is why they almost went to war back in the 1960s. Their relationship didn’t become normal until 1989 after the fall of Soviet Union.

They just happen to have some of the interests aligned at the moment.

John asks…

Daytrading Technical Debate Question!?

My colleague wants to be a day trader and he explains his strategy of scalping and he hopes to open an account with $25,000 due to the SEC rule as a pattern day trader of course. He also will be making his account into a margin account.
He explains to me that when he trades each time he wants to use his whole amount of $25,000 every trade so he can get the maximum amount of profit assuming he trades successfully. (I know this is stupid and dangerous and I explained that to him but yet he still likes to take chances.) He is hoping to do this exact strategy of buy/sell, buy/sell, buy/sell….as many times as he can within the day.
Now my question is this: Assuming his first trade was successful wouldn’t he have to wait T+3 days before he could use his $25,000 again on his next trade within that same day? Wouldn’t he be violating any SEC rules like “Good Faith Violation” or “free riding”??? Because the trades don’t actually settle 3 days from then?

John answers:

No, he will not be violating any regulations. In a cash account T+3 would prevent him from intraday trading the full $25,000, but with a margin account there are no such restrictions. Most brokers will allow you to intraday trade 4 times the cash amount in your account. So if he has $25,000 in his account then he will be able to make 4 round trips in one day. As far as using the entire $25,000 on each trade, that is one of the things that makes daytrading so risky. In order to make a sufficient return you have to make large trades, because you are looking to make only a few pennies profit on each trade. Daytrading is very risky. There are much safer ways to trade. I would advise against it. But he won’t be breaking any rules or regulations, so it’s up to him.

EDIT: Also, wash sale rules do not apply to pattern daytraders.

Lisa asks…

How do stocks have intrinsic value?

I understand it from a companies perspective, they get money to fund thier busiess, and i get company bonds and preffered stock. but whats the point of common stock? nothing makes it grow or fall other than market sentiment right? so a great company could plummet and a terrible company could rocket? i know thats not the normal scenario but whats the end goal of stock?

you buy a company at 5 dollars. it does really great more people want it so they pay 10 for it. you sell it at 10. it does great again it eventualy gets to 100. then it starts to do bad and people take profits so it goes down.

yes you get voting rights, but u vote so the companty does better, so that more people buy it and you can sell it to them for more than you paid

but theres no instrinsic value right, or am i missing something?

i know a decent amount about trading and investing strategies and rules…but whats the difference between stocks and saying to your friend “hey dude ill bet you 5,000 that this company reports good earnings” ?
I know that COMPANIES have intrinsic value…but the price is all based off of if people want to buy it sell it or short it. so theoretically the most profitable companies out there could go to $0 because people chose to make it that way. but when you buy stock, what are you actually paying for? if you buy up 50% of the stock youre buying ownership i get that. but if you buy 500 shares of a company with a float of 9 million what are you buying other than hoping people will pay more for it at a later date?

if the only thing that ACTUALLY makes the price move is more people buying it or selling it, what is the end goal? the money doesnt come from everywhere except for more people buying it, right?

so lets say i was to give u a piece of paper with my name on it, u paid a dollar for it. in 10 years i become successful and make a lot more money, then u sell it t somebody else for 10 dollars. then i become a wash up and he sells it to somebody else for 5 dollars. what is the difference between that and stock?

John answers:

All investments are designs to capitalize on the future. There is no certainty, ever. However, we can mitigate much of the risks through close examination and weighing interpretable information.

When I buy a stock, I never think in terms of an indefinite holding period. Rather, I recognize that there may be a value in the next month, two months, perhaps two or three days. Time is an quiet threat.

There is no such thing as permanent value in anything. All stock trades and profits or losses must be viewed on a basis of timeliness as well as profit potentials. The end goal is that of tapping into the potential WHILE IT IS AVAILABLE. Thus, when the clock is thrown out, most logic goes with it.

Len

Ruth asks…

Having trouble finding a job?

I have sent my resume to numerous amount of businesses, with no responses at all. No calls, or emails….nothing. Can someone please tell me what is wrong with my resume…

Profile:

Entrepreneurial professional offers accomplishments in sales/ marketing of business-to-business sales. A proven sales record, successful in developing new markets, and capable of achieving strategic goals. Accomplished success in cold calling, presenting, negotiating, and closing sales. Hard working, enjoys a challenge, strives for success mentality.
______________________________________________________________________________________Experience:

Inside Sales – OES Equipment/DPR Construction – Phoenix, AZ – May 2007 – Present
Process orders and up sell customers. Facilitate completion of order from phone call to order delivery. Provide data management of inventory. Order from vendors and verify purchase orders.

Sales Representative – Great Northern Equipment – Rogers, MN – July 2006 – April 2007
Established new accounts by direct selling to the potential customer, negotiated, and persuaded them to change vendors. Managed an account base of approximately 45 clients. Responsible for managing their accounts and making sure their needs were met.

Branch Sales Manager – Fastenal Company – Stuart/Delray Beach FL – May 2003 – June 2006 Established new accounts by direct selling to the potential customer, negotiated, and persuaded them to change vendors. Other responsibilities included managing all business aspects of the branch, and employees. Decision makers targeted were plant managers and purchasers. Sales territories included, Delray Beach/Boca Raton/Boynton Beach/Deerfield Beach/Stuart, Florida.
• In May 2003 I took over responsibilities as Branch Manager. June of 2003 I had growth of 160%
• In July 2003 I took over an account and increased the sales by $192,000 per year
• In October 2005 I opened a new branch in Stuart, FL
• In December 2005, at the Orlando Trade Show, I was recognized for my achievements in Delray Beach for exceeding yearly sales goals, and yearly margin goals

Owner / Manager – Extreme Wireless – Wellington, FL – September 2001 – April 2003
Managed all aspects of business and grew the locations sales year after year. Handled operations, which included, staffing, banking, auditing, competitive analysis, store sales, inventory and merchandising.
• In 2001 I purchased the store, and dramatically increased the sales by 74% the first year.

Customer Service Representative – Wenonah Canoe Inc. – Winona, MN – June 1999- August 2001
In charge of customer service related issues for entire customer base. Processed orders and up-sold products. Cold called, researched new customers, and developed sales strategies. Attended trade shows and met with vendors.
______________________________________________________________________________________
Education:

Northern State University, Winona State University, Aberdeen SD, Winona, MN – 1997 – 2000
Major: Marketing – Emphasis in Sales, and Business Management.
Fastenal School of Business. Executive Sales Training & Leadership/Business Ethics – 2004 – 2006

John answers:

Okay well first of all the best way to get a job is by going to the person of the company and asking for the job because e-mails and phone calls do not work. People that go to the person in charge of the whole business have a better chance of getting a job. My brother he was looking for a job and he kept calling and emailing people and it didn’t work so he got so stressed out he tried going the people and the second or third time and he got a job.

James asks…

Was this sent to the wrong person?

I gotten an email that landed in my junk mail. Read below

Special Situation Report?
From: karina montesinos olivares (karina_cool_9@hotmail.com)
You may not know this sender.Mark as safe|Mark as safe
Sent:October 19, 2009 6:07:49 AM
To:dancin_dan@hotmail.co.uk
Successful companies aren’t born, they’re made – and they have to work their way from humble beginnings and through the ranks just like everyone else. When it comes to our microcap stock investing, I’m in it to win and win big ? and that means the goal is never to hit less than a few 10-baggers in every microcap bull cycle. This week we’ve identified one microcap stock that is on its way to changing the game in its respective market, The Wyncrest Group, Inc. (Pink Sheets: WNCG – News), an innovative a niche insurance consortium. The company has six planned acquisitions that could catapult the company?s revenues to

$50,000,000.00 in 2010! The stock is currently trading at $0.05 and our near term target is $0.43. Load up on WNCG before all the trend chasers… and cash out while short traders continue tripping over themselves. Watch for big swings upward and momentum trading in WNCG as the stock continues to gain momentum and trade under the radar of the Wall Street traders.

WNCG is also in negotiations with several acquisition targets developed over an ongoing two-year campaign to find distressed agencies and consolidate contract assets under one lower cost platform. Through its Wyncrest Offshore Services Division, the Company is expanding into the growing offshore insurance and reinsurance market by offering a variety of services and products, including a liability program for helicopter flight training schools and non-owner helicopter pilots, and a line of Warranty Service Policies operating as a controlled foreign corporation. Royalty income is expected from licensing insurance products patented under a new category of business methods, a strategy taken only by a few in a new class of small innovative insurance companies leading the industry! Don?t let this super gem slip through your hands. – BUY

that dancin_dan@hotmail.co.uk isnt my email but is close to mine (dancin_danny@hotmail.com) so my question is, why was this sent to me? I sent the other dan guy an email and never said it was not delivered (failure email never came up as it usually does when the email address is wrong so this email does exist.)

John answers:

It is an OLD SCAMMERs trick.

They hope it will “excite” you enough to do whatever they ask.

They deliberately SPAM millions of people.

They don’t need many to fall for it to keep doing it.

Please report them as SPAM and to the FCC.

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