Best Buy Trade

Today we salute Best Buy (BBY). It's been trucking along ever since $47 per share, nailed earnings on September 12th, 2006. It's made a high of $58.50 on October 16th, 2006, and has pulled back nicely to a support area of $54 a share today. It glided down today in a very calm and smooth manner surpassing the $54 area, and breifly touching $53.68, and quickly began an uptrend to $54, and closed at $54.53.

My entry was at the $54 mark, and looking to hold until we go higher. I'll be looking for some Fib extensions for my exit.

Let's take a look:

GOOG Call Options

On 10/9/2006, I purchased the GOOG $450 Calls for $13.50. As of yesterday's closing price they're now up to $36.90, a gain of 176.33% in 10 trading days.

I may hold these options as they're expiration is 11/18/2006, so I still have a bit of time left. If tommorow's price action is good, and the stock drifts higher, I may go ahead and take some profits. I believe in taking partial profits off the table, and leaving the rest to run. I've read many opinions on this topic as many tend to disagree and don't see a point. Also there are many advocates, such as Jim Cramer who encourage taking partial profits.

Check out 1Option as he has many insights to trading options and even an article on taking profits as well.

I really wonder how high this market can go, I mean we do have an imporant FOMC meeting this week, so we could potentially go higher or bust from bad news of inflation. Yea yea, we're all saying here on our blogs, 50/50 chance, that's the magic number, either go long or short.

Check out one guy who is really short in the market, and quite frankly I feel sorry for him considering he's been short in the past oh let's say 1000+ points or so in the DOW? Tim Knight.

That's all for now,
Caltrader

Other Great Stock Trading Blogs

check out:
This guy made 198% in 3 trading days through a real money options trading championship, check him out, it's a real interview. He's currently being flown to Chicago for winning the contest.

Lots of good Links and Investing Info here

Personal Fav on Market Updates and Opinions

You're one stop for Wall Street Gossip.

Thank to my buddy over at Wall St. Warrior, he's informed me of a new TV Series about Wall Street workers, and all that the job entails to include: greed, money, trading, rich sports (polo), oh and did I mention greed & money? cha ching! New Tv Series INHD.

That's it for now. More Great and informative blogs and sites coming!
-Trader Cal

Apple Away!

Well after mentioning Apple earlier this week, and purchasing a position before earnings, it's paid off quite well in the near term, and the broader prospect of the future looks very promising as well. Apple reported earnings on $4.84 billion in income with profit rising 27% to $546 million. Gross margins were up 1.1% from mostly Macbook laptops, and the total units sold were up as well.

% Change Since Mention Earlier This Week:
Apple Computer - 6.5%
Level 3 Comm. - 17.6%

More Trades Coming..

Upcoming Week's Outlook

Let's keep on our feet this week as the DOW is still testing that 12,000 point. The Nasdaq and S & P, seemingly played catchup with the DOW on Friday as they both remained positive and the DOW was just trying to figure out how it wanted to digest the GE earnings. This week will be big as we have earnings coming out from some major companies for leadership. They are: Motorola, Office Depot, Yahoo, IBM, United Technologies, AMD, Ebay, Samsung, Broadcom, Bank of America, Citigroup, Peabody Energy, Google, SanDisk, Caterpillar, & 3M.
For more companies who are reporting earnings this week, visit (CNBC Earnings Calender).

Small but profitable Trade

No day trades in the early morning as I just watch the news and follow the NASD, and the S & P play catch up with the DOW. I was just going through some charts and I was keeping my eye on (LVLT). Around 11:25am this stock printed a NRB (Narrow Range Bar) after bottoming on it's support level of $5.00, and quickly bounced right up to $5.32 shortly thereafter. If you were actively watching this stock, as it is very liquid and trades on average around 30 million shares each day, you would have had 3 seperate but equal chances to buy the stock at an entry price of $5.00 per share, and ending the day on an exit near $5.25 - $5.32. Let's take a look at the entry, which tagged $5.00, three times on a 15 minute chart.

Trades & Thoughts

When I first started trading I thought, "Man, I'll make thousands each day, and be able to buy anything I want." Well, the first month of trading I found that not to be true, and I've realized every trade is a fight. People ask me all the time, "Well where does all that money go when you lose it? And that proposes a good question, but the answer is in someone else's pocket, because for every buyer there is a seller, so when you're in the red, Billy Bob is sitting in the green. You must learn to protect capital in order to advance to a higher level of trading, only then will you remain consistently profitable, given that you're trading nice setups poised to breakout in the first place. BTW, what is a Breakout?


Yesterday I found a nice little company called Ingen Technologies, it develops and markets cutting-edge medical technologies designed to increase accuracy of medical care and prevent unnecessary medical costs.

They released a new medical device OxyView(tm) which helps your respiratory system maintain good oxygen levels in asthma patients.

This stock is treading HIGH RSI levels (90), high volume, and crossing above (200) MDA, and is up 350% in the past 3 days.
Thanks to good research and quick execution I was able to capture:
Entry: $0.096
Current: $0.17
Gain: 77%

Update: Apple (AAPL) is up 3%, after bottoming on yesterday's purchase price of $72.99-$73.10 a share. Nice bottom pick.

Update: I will be holding my Level 3 Comm. (LVLT) shares until earnings. Entry price was at $4.88

Long Term Buy, Apple Computer (AAPL)

Today Apple was downtrending with the Nasdaq, I saw a support level around $72.59, from August 22nd, 2006. Today's low just happened to touch $72.60 for a split second before bouncing off the level of support. Now one thing I have to keep in mind is that we've crossed below the 50 day moving average, so technically we're testing it right now. I picked up 100 shares at $72.99. I believe this will be a great quarter after Christmas and the holiday season as well as upsides for new products being released. Apple is one of the most innovative companies around and is looking to surpass most others through technology as well as branding.


Apple Computer's Chart

Today's Trade, Advanced Mirco Devices (AMD)

Today, AMD gapped up higher in the pre-market session. Yesterday's close was $23.00 and this morning it gapped up slightly to $23.47. I was watching the 10 minute charts on my real-time scottrade screen and saw a low risk entry.

Entry: $23.32
Stop: $23.17
Initial Risk: $0.15 cents per share

Now 5 minutes after buying AMD ran all the way up to $23.73, I failed to move my stop accordingly to the jump in price, and therefore losing quite a bit of possible profits.
Exit: $23.34

Lesson Learned: After setting initial stop, and the Stock Price continues to move higher, move your stop according. If price jumps $0.70 per share, move stop up 33%, or just divide the run up in price since your entry, divide by 3, and tack that amount onto your inital stop.

Check out : Trailing Stop Rules

My First Double Bagger (100% Gain)

I have a huge philosophy on doing your own in depth Research. As I found out being a young investor you must learn the ropes and teach yourself all that you can. Looking at ratio's, rev's, and earnings all equivilate to picking good stocks (usually). More in depth anaylsis would be looking into the news for positive, negative content? Word of mouth in the news is very powerful, for instance GOOG and it's You-Tube talks. It's currently driving the stock higher on good sentiment.

Back to my point.
DOUBLING YOUR MONEY.
Now you could say this was a speculative play, or you could also view the aspect of a low float, good news sentiment, new unique product coming out, steadily increasing volume over 6 month period and a CNBC Press Release coming on September 15th, 2006, 3:00pm EST.
The stock is Conforce International (CFRI)

I'm not the type to hype, but if the stock is ripe...

Entry: $0.34
Current: $0.7
105% Gain in 1 week! (real trading)

(Virtual Trading Acct) 142% Gain

Trade of the Week # 2 (rarely happens)

Acorda Therapeutics Inc.'s volume rose after the biotech drug developer announced a private placement of around 3.2 million newly issued shares of common stock at $9.75 per share, expected to close on Friday. Volume increased to 13 million shares, versus average volume of 1.6 million shares, with the stock climbing $1.32, or 10 percent, to $14.89.

*Purchase price, 1280 shares at $15.27. Sold the whole position near the high of the day for $15.95.*

Net Profit : $873.60
Trading Time : 2 Hours
% Gain : 4.47%

Trade of the Week

Wow what a trade. Very impressive one day return on your money with low risk. I purchased yesterday afternoon at $10.66 per share. Huge bounce off yesterday's closing price.

How did the 2nd Richest man in the World start out?

He bought a pin ball machine at age 12 for $25 and put it in a barber shop. Within 3 months he saved up enough to buy 3 more pin ball machines. This man is Warren Buffet.

As young college students we should all be constantly searching, thinking, and imagining what we would like to do to make money. In my opinion there is a market for anything, you just need to get there first. Beanie Babies, baseball cards, even putting old things on ebay are good examples of different types of markets. I for example found out that some people were in the market for 3 Letter Screen Names on AOL Instant Messenger. So what did I do? I obtained as many as I could and sold them for Profit. Sounds Crazy? But it worked..$125 per screen name, not bad eh?

I have many more insights, thoughts, and investing blogs on the way...

I appreciate any comments..


"We simply attempt to be fearful when others are greedy, and to be greedy only when others are fearful."
-Warren Buffet (2nd Richest Person in the World)

Are you tired of working for an employer, or making minimal amounts of money?

I am here to help my friends. I am tired of standing on the sidelines, listening to friends complain about how little money they make, how they're struggling to pay bills and college tuition.

I am starting this blog to help students, friends and others learn how to make money in the stock market, and secure their future. Long term investing, 401k's, day trading, you name it. I'm going to cover it.

If I can make $1,000 in one day, so can you.
Over and Out,
Caleb Williams

*How To Make $1,000's in Cash on Your Stocks without Selling Them*

How to Get Started with Investing

1.) First I would recommend you just start reading about how the market operates and what drives everything in the stock market.
A recommended book would be: Trade Your Way to Financial Freedom by Van K. Tharp


2.) Next, I would recommend testing some strategies that you've learned from the reading material before you put any real money into the market. It's always beneficial to learn through experience, and when it's virtual money, you only have knowledge to gain
I recommend Virtual Stock Exchange:


A simulated stock market game to test strategies.

That's all for now, but I've got more to come with blogs of successful traders and how they make $$ thousands of dollars each day due to studying the market and using clear indicators of what could happen, always using protective stops of course.

*Remember*
“There is no such thing as Luck, only Success, and it is what happens when preparation meets opportunity.”

Today

Today I drove home, tried to avoid cops, succeeded and finally arrived 2 hours and 20 minutes later. It started raining but nothing really that bad. Good to see family on Fall Break. Monday, September 9th, 2006 is Columbus day, and the markets will be closed. I'll be trading from home on Tuesday the 10th. This is where I first started to trade. My trading started out very poorly, and lacked methodolgy and rules. I guess you could have called it rogue trading.