Seeking Alpha

marketHEIST's  Instablog

marketHEIST
Send Message
We are an interactive educational resources for investors & traders of all skill levels. We're all about practical intuitive investing and trading, helping you understand things in a simpler, safer, and smarter way. Interactive, entertaining and educational resources for investors &... More
My company:
marketHEIST - The People's Guide to Trading & Investing.
My blog:
marketHEIST.com - The People's Guide to Trading and Investing.
View marketHEIST's Instablogs on:
  • "Sell In May, Go Away" - Investing Cliche Or Effective Strategy?

    Is "Sell in May, Go Away" just a cliche in the stock market or is there some statistical significance behind this saying? More importantly, how does an investor use this knowledge to his or her advantage? If you sell in may, when should you buy it back?

    Frank Perry just posted a series of charts showing the significant stock market dips and declines in the month of May, from 2008-2012. These, as we all know, are considered "unusual" market conditions with the financial crisis. However, similar trends have occurred from 1990-2009 and in fact, Frank included a long term chart spanning 59 years for the S&P 500. This chart shows the best and worst months in the stock market. Want to guess which season did the worst?

    Although any single year, including this year, could be an outlier where the market doesn't behave according to historical average data, investors can still strategist around these market seasonalities. Chart and technical analysis can help us identify the low points of weak months where we can "buy (it back) lower" the stocks sold in May. By avoiding the down months, then buying back lower, you can outperform the market significantly and pick up several more percentages of gains.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Tags: SPY, DIA, IWM, QQQ
    Jun 04 1:43 PM | Link | Comment!
  • An Investing Roadmap Showing The Big Picture

    I'm afraid that most people invest and trade without ever seeing the whole picture of

    1. How the markets work
    2. Ways to be profit from the market (i.e. ways to play the game)

    Part of the problem is there are countless ways to make money in the market (once you understand some basics about how the market works). What are the unspoken rules of the game? Who are you playing against? What moves can you make to reach your objectives? 99.9% of the analysis, comments, and even education skip properly addressing these questions.

    The experts, because they are experts, have learned the basics of how the markets work to some degree. They've also become specialized in one technique, analysis, or investment idea that they are good at. So what you hear on TV or read on investment websites and publications are a very limited view of the market. With each expert talking about slightly different "pixels" of the market, what you get by listening to dozens of different experts is dozens of scattered pixels. However, this is a very incomplete picture of the market and the opportunities you should have. This is why it's so confusing for most people to understand the investing and trading, but it just comes down to incomplete information. It's anecdotal investing.

    Even financial advisors suggesting mutual funds and annuities are only focused on a tiny corner of the market. If that's all you've had the chance to learn about, your opportunities are very tiny compared to what's available. More importantly, these limited opportunities you've been exposed to may not be the best for your personal situation. Again, experts and financial advisors are great at what they do, but they're great because they're speaking from their point of view on what they know, not what you need.

    For this purpose, we have started this series: "Fresh Start: Stock Market in 100 Days." We'll go through the 100 essential things to know about the stock market. It doesn't matter whether you're a investor or trader it doesn't matter, we're all playing on the same field called the market. By the end of this series, you'll have a basic, but complete view of the market that'll allow you to make informed decisions about growing your wealth.

    May 01 10:50 PM | Link | Comment!
  • MarketHEIST Review Newsletter: Issue 5 - Truth About Traders (+10 more)
    Special Video: Truth About Traders

    Over time, amateurs who use the stock market to gamble have given professional traders a bad name. Get to know the real passion and inspiration of traders who work hard everyday to make a honest living. Read & Watch »

    exclusive expert lessons How Well do You Know Support & Resistance?

    [Skill] The concept of support and resistance is easy to grasp, but successfully applying support and resistance intricacies in trading profitably trips up many traders. Here are some tips from Indicator Warehouse's Adam Halpern. Read More »

     

    How To Quick Scan For Day Trade Ideas

    [Strategy + Video] Time is a major commodity when Day Trading. The quicker you can accomplish any given task, the better. Scanning for trades is among the most important tasks throughout the day, and the faster you scan the better your odds of finding something worth trading. Read More »

    Be Smarter Than the Black Box (Software) Analysis

    [Skill + Video] Even the best stock market software can have glitches and errors even in the analysis of a simple covered call option with stock. The Risk Doctor, thinkorswim co-founder Charles Cottle gives some tips. Read More »

    Order Types and How to Use Them

    [Skill + Video] Since the electronic markets make up over 70% of all futures trading we are going to limit our discussion here to the three main types of orders accepted and most frequently used on electronic markets. Read More »

     

    MUST READ: Intermarket Analysis (John Murphy)

    John Murphy dissects the global relationships between equities, bonds, currencies, and commodities like no one else can, and lays out an irrefutable case for intermarket analysis in plain English Check it out »

     

    SUBSCRIBER BENEFITS
    Free Portfolio Management Tools from Morningstar

    Thousands of detailed reports by our 150-plus analyst team, full-featured portfolio tools, Morningstar Ratings™, stocks and fund news & data, screening tools, management Stewardship Grades, etc. Check it out »

    MarketHEIST Originals

    Infographic: Debt Ceiling (How it Affects You)

     

    RECORDED SEMINAR: Making Futures Make Sense with Jack Bouroudjian

    thinkorswim Trader's Lounge with Special Guest CNBC's Jack Bouroudjian to discuss and explain Futures. Watch »

    Jun 08 7:35 PM | Link | Comment!
Full index of posts »
Latest Followers

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.