Your Questions About Successful Trading System

George asks…

Is Rich Dads Stock Market Education a Scam?

Has anyone experienced rich dads stock success system? Can you tell me if it is worth it and if you have made any money from it.

I just recently attended an information seminar on stocks hosted by Robert Kiyosaki’s Rich Dad Eduction Institute. I was given the option to purchase this program for $495 but being scammed so many times before I am skeptical, therefore I want to approach this opportunity with an educated outlook.

If there is anyone reading this that has attended the three day seminar please let me know if it is a good investment.

John answers:

I like Robert Kiyosaki, but don’t spend $450 dollars on this unless you are “all in” and it doesn’t seem like it otherwise, you wouldn’t be asking this question.

2 of my cousins work on Wall Street proffessionally, one of them has guided me very well, and advised me to get a monthly subscription to Investors.com and their paper (Investors Business Daily) you can get both for less than $30/ month together and to read William J O’neill’s “How to Make Money in Stocks” my results changed immediately!

When the market tanked this year in Oct-Nov, I had already taken my money out in AUGUST after closing out on a couple successful trades, and I’m no genius but they really give you insight on how to interpret market strength and weakness, and how to spot stocks that are about to soar, and it’s ALL based on actuality, not an opinionated trader with his own method, just supply and demand laws!

So if you have the money, understand it’s best to start cheap, wait until you’re gains are enough that you can afford these expensive seminars without tapping you’re bank account for them!

I hope I’ve been a little help

Mark asks…

Can it be beneficial for a country to stay outside of the WTO?

Why would that be? Are there some countries in which the laws are set-up (like in the Cayman Islands) to be in favor of staying outside of the system?

Thanks!

John answers:

Its a new scenario that none might have thought of.
However in an increased-ly inter-connected, ‘imploding’ world, World bodies are inescapable starting with the UN.
What makes one to think in terms of being free or isolated from these bodies, is a peculiar mind-set born in the immediate past history. In the immediate past some countries of a certain geographical region enjoyed bounties at the expense of the larger areas outside that. Now that the global equilibrium is setting in to correct those imbalances it becomes irksome for those countries to take it in their strde & put up a cool face. The resulting petulance often finds expression in such things like keeping out of UN, WTO etc.
No doubt these bodies are not perfect. They are evolving & a lot of work is needed to make them imperfection free. But these bodies were imbued with the collective expectations & joint aspirations of all the nations of the world. That is their strength & that is unshakable.
A country if it says outside WTO might have a brief period of ‘Freedom’. But then it has to deal with all other countries abiding by the norms set by WTO. It (the country in question) can’t deal with them on its terms nor can have its way. Trade is an interaction between two parties and not a unilateral activity. The country had to tow the line set by other countries while being denied the right to protest or protect its interests that a forum like WTO can offer. In a contest or a dispute one becomes the loser. If the loser sulks it will lose further & can’t blame anyone for its discomfiture. There is no point in pointing fingers and blaming in a pique & short-sighted stance (most probably proved that it is patently wrong). Co-operation can’t be replaced with roguery. Narcissism has its limitations, as no children ever get born in a gay community.
Other alternative is to launch a counter organisation with provisions to do away with what have been ‘pricking’ in WTO. Enough countries might even join in. But in no time it would be proved that these new-fangled measures are unworkable as all short-sighted measures do. Even if successful for a while and the two different ideologies evolve, but a larger proportion of global nations would be confused as to whom to join or follow. They will be wooed by leaders of these ideologies, cajoled & coaxed. We have gone through all that once in the later half of the last century; and came out of it.

Linda asks…

Questions about Germany? What is the medical care system like? How is it paid for?

What is the medical care system like? Quality? How is it paid for?
How do people exercise and stay fit?
How big is the drug trade in Germany? What is the relationship between it and the government?

John answers:

Germany has had socialized medicine since Bismarck (1880s). The quality today is excellent, in fact the son of someone I know is in Bremen right now getting treatment he felt would be superior to any in the USA. There is a tax on employers and employees to pay for it.
Some Germans are big on hiking
drugs are a problem everywhere, but the German police are fairly successful

James asks…

How many investment newsletters do I need?

I have one written by someone with a deep-value style. It usually takes a few months for his picks to turn around. It might be that nothing much is happening in this market anyway. This letter might be what I need because of the low turnover. But I wonder if I need to find another letter with a different style of investing.

John answers:

None. IMHO, you should start by learning how to invest, determining WHAT to buy through Fundamental Analysis and determining WHEN to buy with Technical Analysis.

IMO, newsletters only make narrow recomendations based on their system of analysis and investment strategies, and often they are compensated heavily for their recomendations and therefore dangerously biased. I firmly believe that to get a clear picture about any stock, and to determine whether you’re actually going to invest in it, it’s best to do your own research and adapt a system that meets your investment needs, style and risk level. There are many stocks ripe for the picking just about at any time if you know how and where to look.

Start with Investors.com, it’s William O’Neil’s online version of Investors Business Daily. The How To Invest section is the best place to start learning the importance of Fundamentals and the basics of Technical Analysis. The site has the IBD 100, a cross index list of the market leaders, the Stock Checkup, a great tool for checking fundamentals on any stock, and articles and analysis of stocks and general market conditions. They also run various screens every day which in addition to the other lists, (IBD100, New America, stocks under $10, CANSLIM select, ect) are very helpful for finding investment ideas with solid Fundementals that are ready to move. The CANSLIM method alone is a very successful and popular trading system, but I prefer to use a combination of Fund & Tech Analysis, rather that just the rating system alone.

From there you can move on to more detailed study of Technical Analysis.

Start with StockCharts.com, they have an excellent free Chart School which helpfully explains various chart patterns and Technical Indicators and overlays. Pay particular attention to the Chart Patterns section, and make sure you learn about Zig Zag patterns, Bollinger Bands, Moving Average, Volume, RSI, the MACD (Mac-D), The Williams %er, Stochastics, and the Chaikin Money Flow. Sounds complicated, but when you start chart reading you’ll want about a half a dozen or so of these overlays and indicators. I personally rely heavily on the ZIG-ZAG, MACD, Chaikin Money Flow, Volume, Moving Average and RSI.

StockTA.com is also an excellent Technical Analysis site, with charted Fibonacci resistance and support lines and will tell you if the stock is bullish or bearish in the short, medium and long run. The site also has an extensive Candle Pattern Glossary and a fantastic technical screener.

The above sites do have premium services, but all the services I mentioned are free. After you’ve absorbed some of the Technical information, do some reading on Fibonacci numbers and Elliot Wave theory, there are good links in the “School” section of StockTA.com. I’ve been using Elliot Wave and Fibonacci’s to help refine my in and out points. StockCharts.com’s “ZigZag” overlay helps me plot and count the waves and that helps determine where I am in the overall pattern.

So basically I’ll find interesting stocks through the screens on Investors.com or StockTA.com, run them through the Stock Checkup at Investors.com, if they measure up I’ll run them through the Analyisis & Fib Analysis at StockTA.com and do an extensive chart study, examining the 2 yr, 1 yr, 6 mth, 3 mth, 1 mth & 5 day. I’ll also do my due dilligence, studying the profile, key statistics, headlines, etc. Through Yahoo Finance and web searches. If it all measures up and the stock is in a base or in a pull back and it’s starting a wave 1 or wave 3, it’s time to buy.

Remember, always protect your downside with a stop loss or a trailing stop loss. Once you have absorbed a few of the things I’ve mentioned, the fog will begin to lift and you’ll start seeing which stocks should be bought or sold and you’ll be able to do your own analysis on any stock, no matter where the recomendation comes from, be it a newsletter, a hot tip or God himself.

Wish someone would’ve told me this stuff 20 years ago…lol

Good luck, hope it helps.

Thomas asks…

Which Stock Option Trading Systems Should I Use For My First Trades?

I just learned about iron condors and double calendars but which one should I use since I am just starting out?

John answers:

To be successful at trading options in the stock market, you’ll need practice. The best way to get practice is through paper trading, that’s where you follow a stock and pretend you are actually putting trades in and then taking them out, hopefully for a profit.

You can also find books on the subject, like on amazon or barnes and noble. You’ll need a good foundation on the basics. There are also different strategies when it comes to trading options so you’ll need to learn those first as well.

For more advanced ways on how to trade options, there are sites that offer guidance. The advantage with these sites is that they will take you beyond the basics and offer you a better chance at higher returns on your trades.

I’ve listed some sites below that you can check out, they are for information purposes only and not a recommendation. However, you will learn a little more than what you can get from reading books.

Http://www.stockoptiontradingsystems.com
http://optionsexpress.stockoptiontradingsystems.com
http://tradeking.stockoptiontradingsystems.com

I think if you start your learning this way, you will be able to succeed in trading options. Others have done it so there’s no reason why you can’t learn how to do it too.

Hope that helps and good luck!

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