Stockmarketdouble's  Instablog

Before I start on today's analysis; I want to address the holier than though attitude of Wall Street traders, financial advisers, etc. regarding low priced stocks. It is hilarious that through one side of their mouth they criticize those who buy penny stocks and then 15 minutes later go out and trade 10,000,000 shares of SIRI or 20,000,000 of Citibank when it was $1.00. It was ok then?

Do you think that a young Warren Buffet would shy away from buying a stock for $1, if it were worth $3?
Did you know that John Templeton of Templeton Funds made his fortune on Wall Street by buying penny stocks in 1939?
Take a look at The Motley Fools, who built their entire reputation on small caps, do you think they would hesitate to buy a little gem that will triple? Certainly http://www.stockmarketdouble.com wouldn't hesitate to do so.

Please.... when are we going to get some unbiased advice from financial companies and advisers? What they should say is that...although it is a bit treacherous, if you pick the right low priced stock, it could easily double. Just make sure you buy one that is making profits and will continue to do so.

OK! On to the good stuff. I am really excited about Tengasco (TGC). The stock looks like it could make a 40% move higher in the next month/sooner. It broke over a dollar today, smashing through 150 day moving average. The technical indicators are really strong on this one. There was big resistance at $1, stock had been struggling to break through for nearly a year. Volume today was 1200% (1,700,000 shares traded yesterday) over the norm.

And as always, I have done my due diligence and this baby's fundamentals are strong enough to support a 40% move. This stock however doesn't fit all of the criteria to be put into the Stock Market Double Portfolio but I do like it as a short term trade with $1.00 being support and $1.50 being resistance. I also like the risk/reward probability. Good luck with your trading today!

When it comes to the market, there is no such thing as risk free investing. If you are not a little concerned before buying a stock, you have not done enough homework. You should make it a rule-that if you haven't found something to be concerned about, you should not buy.

To be a great investor, you must be able to recognize what the risks are. Investing is all about probability. What is the risk/reward quotient?

Here's an example: You own 10 stocks, in each case you bought $10k worth.
If 7 of the stocks go up 20% and 3 go down 20% over a one year period
Your return on investment is 8%

That is easy to understand right? So the bottom line is that if you want a greater return on your investment than 8%, you better be right 80% of the time.

Before I finish, I want to emphasize that it is important to find at least one thing that could go wrong with a stock before you invest in it. This one rule will save you thousands. Hey! It may even make you a million some day!
http://stockmarketdouble.blogspot.com/

Everywhere you turn today there seems to be so much information about stock options. Most of it telling you the virtues of investing in options and how you can make a lot of money risking very little. This article will focus on the risk involved and what you need to understand before you invest in options.

Options are a complicated investment. MOST of the time you will lose ALL of your money. Go ahead google it, you will find that most investors lose all of their money when they trade options.

What you need to know and they ain't telling you:

If you own options, you may not be able to sell it if there is not enough trading volume as it approaches expiration. The result: you lose all your money.

You can own call options and the stock goes higher, that's exactly what you want right? Not necessarily, if it doesn't go high enough, you lose all your money.

You own put options and the stock price goes lower-great right? Not necessarily , if it doesn't go low enough, you again lose all your money.

Here's a another head scratcher (apparently this is not a word). Generally speaking, options that trade enough contracts everyday for you to safely go in and out of are for stocks that have low volatility. The irony is that you need volatility to effectively trade options.

Let us look at what happens when you buy a stock for a second. Say you invest $10,000, the following may occur:
1. it goes up 5%, you have $10,500
2. it goes down 5%, you have $9,500
3. it stays the same, you have $10,000
4. it goes down 10%, you have $9,000.
5. it goes up 10%, you have $11,000.

With all things being equal, if you were to buy a call option and you reached your expiration date using the example above, you would most likely lose 100% of your money in the first 4 examples. Scary right? But that is how it really works.