Stock Trading 101: It’s All About the Process

I’ve come to learn that stock trading is all about process. That is: you must have a process, you must stick to your process, and, most importantly, you must have a passion for your process. If you view trading as a continuous process, it becomes much easier to recognize what the market is telling you.

Best selling stock market books with titles like Beating the Street imply that the stock market is a game to be won. But what they don’t tell you is this: your lifelong understanding of games prevents you from intuitively understanding the stock market. Continue reading “Stock Trading 101: It’s All About the Process”

A Solution to the Identity Crisis @Twitter

I’m on a bit of a Twitter (TWTR) rant lately. That is to say that Twitter has been on my mind both as an investment and as a platform I use daily. I find tremendous value in Twitter and this has caused me to give a great deal of consideration to its documented failings. Twitter the stock has been obliterated due to an inability to grow the monthly active user base while Twitter the company has been chastised for allowing anonymous accounts to post hateful and abusive messages and otherwise harass users whose opinions differ from their own. All of this is happening while Twitter is in the midst of an identity crisis, not because new users expect it to be more like Facebook (FB) but because those who are not using Twitter are wondering why they would need another Facebook.  Continue reading “A Solution to the Identity Crisis @Twitter”

What’s Missing at @Twitter?

Let me start this post out by stating that I believe in the long term prospects of Twitter (TWTR)  I’m an investor in the stock and a Monthly Active User (MAU) of the platform. In fact, to the dismay of all my friends on the technical side, I’ve remained long the stock despite the obvious and very painful downtrend. So the question I’m about to ask comes from the perspective of an avid user who holds a (not as large as it once was) investment in the stock. If, after reading this, you  still question my belief in the potential of Twitter, read this article I wrote in March, 2015.  Continue reading “What’s Missing at @Twitter?”

Stock Trading 101: Five Lessons Learned in 2015

If there is one thing the markets have taught me over the years, it’s this: becoming proficient in markets is a continuous process and continuous processes deliver lessons continuously. Here are five lessons I learned (or relearned) in 2015:  Continue reading “Stock Trading 101: Five Lessons Learned in 2015”

Stock Trading 101: Learn to Manage Risk with Position Sizing

“If you learn why people lose and thereby control losses, profits will follow” 

 

The above quote comes from the book:  What I Learned Losing a Million Dollars by Jim Paul. The premise of the book is that while there are many ways that people win in the stock market, there are only a few ways that people lose, therefore, rather than study all the disparate “winning systems,” we should seek to understand the small number of ways that market participants lose money and avoid repeating them. It’s a great book and it got me thinking about all the conversations I’ve had with retail traders and investors and how so very few of them talk about their trading plan and how they manage risk…. Guess what! Having no plan and not understanding how to manage risk are two of the ways in which market participants lose money!  Continue reading “Stock Trading 101: Learn to Manage Risk with Position Sizing”

Revisiting the 4 Small Cap #Stocks to Watch for 2015 – 1st QTR = +11.54%

On January 1st, I outlined four small-cap stocks with the potential to be winners in 2015. You can find the article here. In an effort to track how the four stocks perform in 2015, I will publish the quarterly stock performance at the end of each quarter. I will also provide commentary on any changes with the companies that might affect the investment thesis.

Overall performance of the 4 small cap stocks for Q1 = +11.54%  Continue reading “Revisiting the 4 Small Cap #Stocks to Watch for 2015 – 1st QTR = +11.54%”

Methode Electronics Continued Margin Expansion Could Send Shares Higher $MEI

Methode Electronics (MEI) reported Q3 earnings this morning and missed revenue expectations of $209.7 million, posting a $206 million top line number but posted a very strong earnings per share (EPS) beat of .68 cents per share vs. consensus estimates of .49 cents per share.

But the story here for investors lies in the margin expansion. When Methode reported a top and bottom line beat in Q2, shares sold off. This happened because analysts reported their belief that margin expansion was slowing – Methode reported margin expansion in Q2 from 21.7% to 26.2% – a 20.7% improvement quarter over quarter.  Continue reading “Methode Electronics Continued Margin Expansion Could Send Shares Higher $MEI”