The Best Investment Advice You Will Never Get
Back in 2004, as Google’s IPO was approaching, investment advisors from major financial institutions were circling Google Headquarters to be the first to offer their investment schemes to hundreds of young employees who would soon become millionaires. Google hired well known financial professionals to give workshops to their employees to educate them before allowing the vulture’s access. These financial professionals, such as John Bogle (Vanguard), Burton Malkiel, and Bill Sharpe gave surprising advice. "Don’t try to beat the market." Invest in mutual fund indexes.
There’s an article in San Fran Magazine that reports on this story and about the exorbitant fees that managed mutual funds charge which could cost you 50% of what you would have made in a 36-year period. The best investment advice is to put your money in a low-fee index fund, thereby maximizing your return. The article is about two years old but definitely worth the read.
The best investment advice you’ll never get
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Channel Trading Failed Today
I put in 3 trades today during the US session after the Housing Report release that were Anti-dollar but all of them failed to push towards my target. I managed to recoup some of the losses with another trade placed when the price fell back into the channel so I'm not too disappointed. It could have been much worst but I wound up losing about 45 pips today. I'm even for the week.
On another note, I was reading about fibonacci and stumbled upon a site that includes some fibonacci tricks. Some of these tricks really only apply to stocks because they relate to gap trading but I found the parabola hunt interesting.
http://www.tradingday.com/c/tatuto/fivefibonaccitricks.html
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Day traders find new outlet in foreign exchange wagers
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I am posting this article from last year because this is the actual article I read back in July 2005 that first exposed me to the unknown world of Forex and actually drove me to the bookstore within an hour to find out more. It was originally published in the Wall Street Journal and I'm happy to have found it.
By Craig Karmin and Michael R. Sesit, The Wall Street Journal
At an hour past midnight, when he gets home after working as a disc
jockey for a New York City classic-rock station, Marc Coppola checks
the market and starts trading.
Having lost $750,000 trading stocks after the technology-stock bubble
burst in 2000, his appetite for shares is greatly diminished. Instead,
he is joining thousands of other individual investors by betting on the
global currency markets.
Mr. Coppola, brother of actor Nicolas Cage and nephew of movie director
Francis Ford Coppola, earlier this year pocketed about $1,400 on a
$60,000 bet that the euro would rise against the dollar. In March, he
reversed course, betting $40,000 that the euro would fall. Once it
slipped to $1.30 from $1.31, he cashed in half of his investment, then
soon after closed out the rest.
"I got scared out of the trade," Mr. Coppola says regretfully. "I
should have said, 'the euro is going lower' and rode it down to the
$1.20 area."
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March Issue of Stocks & Commodities
I picked up a copy of the March Issue of Stocks & Commodities magazine this weekend.
There is an article that explains the use of candlesticks and moving average crossover as a strategy. This is yet another setup strategy that I like for its simplicity. As long as you can chart 2 moving averages and identify candlestick patterns, you can use it.
The simple idea is that as moving averages crossover, the candlestick that forms during that crossover can be used to identify the possible direction of the market.
You can read a snippet of the article at http://www.traders.com/Documentation/FEEDbk_docs/ForexFocus/FOREXfocus.html
To read the full article, you need to buy the latest issue of Stocks & Commodities.
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