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| Date | % Drop |
|---|---|
| October 28/29, 1929 | -25.2% |
| October 19, 1987 | -22.6% |
| October 27, 1997 | -7.2% |
| August 31, 1998 | -6.4% |
| August 27, 1998 | -4.2% |
| September 11, 2001 | -14.3% |
| 3rd Quarter, 2002 | -17.9% |
The biggest one-day drops on the DJIA historically happened in August,
September, and October — the worst six months (WSM).
The best months for stock market gains has historically been in November through March — the best 6 months (BSM).
Back-testing has found that
selling all stocks to cash before the MACD signal crossing after April 30
and buying them again on the MACD signal crossing after October 31st
tripled returns while reducing risk (since money is at risk only 49% of the time).
Traders for large institutions sometimes attempt to kill a stock price at the end of the day in order to make themselves look better with VWAP (pronounced vee-wop) numbers — the Value Weighted Average Price at which the greatest volume of the stock was traded that day.
To protect profits, put limit orders to automatically sell a stock when prices drop to a pre-specified price (such as at 4% below).
A "stop order" is a fixed-activation price order that becomes an active market order
when the price reaches a specified "stop" price.
A "buy stop" becomes an active market buy order when the stock rises to the stop price.
A "sell stop" becomes an active market order when the stock declines to the stop price.
Better yet, participate in the derivatives market to collar positions.
New issues (IPO shares) can't be shorted during the first 30 days of public trading.
Stocks below $5 can't be shorted.
To prevent a "snowball or "dogpile" in a downward market,
shorts can't be excuted on a downtick when a bid price is lower than the previous price.
Shorts can only be executed on individual stocks after an uptick.
This is why NASDAQ Level II quotes are necessary to see demand drying up.
On the NYSE, "size" -- the number of shares attempting to be bought at the current price, is shown only on brokerage office screens.
However, stock futures SPY and QQQ are are not subject to the "uptick" rule. This makes shorting SPY and QQQ just as easy as going long — a factor critical to short term traders.
Charting techniques use historical patterns and statistical analysis to identify predictive indicators of the most likely outcome.
Investorama
Fool.com by brothers presents insights with a dose of fun.
Its chatroom is organized by individual stock.
TheStreet by bitchy James J. Cramer -- Harvard graduate, hedge fund manager.
Briefing.com frequently updates market commentaries and summarizes brokerage splits, upgrades, downgrades, and "coverage(s) initiated" each day.
Rapid reSearch provides stock screening and selection tools with customized or "stock" searches.
Silicon Investor claims to be the world's largest financial discussion site.
Motley Fool
Quicken.com
Yahoo Finance
Wall Street Journal
CBS Marketwatch
Suite101 moderated by
Kirk Lindstrom
Yeald Research Network
Day Traders of Orange County investment club.
Join investment clubs under the auspices of the non-profit National Assn. of Investors Corp.. The Amer. Assn. of Individual Investors at 800.428-2244 provides literature and meetings for a fee.
Optionetics charges $4000 for seminars.
CyberInvest provides education and a glossary.
Proverbs 21:5
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investor Temperament = Portfolio type |
Bond Funds | US Stock Funds | Non-US stocks |
Commoditites | ||||
|---|---|---|---|---|---|---|---|---|
| Treasury bills |
Intermediate | Long -term |
Large-cap | Mid & Small-cap |
||||
| Very conservative | 80% | 10% | 2% | 3% | 3% | 2% | ||
| Conservative | 50% | 20% | 5% | 10% | 10% | 5% | ||
| Passive | 25% | 30% | 5% | 15% | 15% | 10% | ||
| Balanced | 15% | 30% | 5% | 20% | 20% | 10% | ||
| Active | 10% | 20% | 10% | 25% | 25% | 10% | ||
| Aggressive | 5% | 15% | 10% | 30% | 30% | 10% | ||
| Very aggressive | 0% | 5% | 10% | 30% | 40% | 15% | ||
Put some money (10%) into Pre-IPO Emerging Growth Stocks,
where one spectacular gain can change your lifestyle.
Get one with a preferred cash return, with a bonus at redemption.
This is the reason by investment bankers such as Goldman Sachs make $500,000 a year to start.
When interest rates rise, bond prices drop because new bonds now pay more.
John Murphy also wrote |
PerfChart illustrates the current status of
his highly recommended 
Intermarket Technical Analysis
John Bollinger's school of Rational Analysis uses both Technical and Fundamental analysis.
Fundamental Analysis (FA) aims to determine the actual value/price of a company — the price which reflects theoretical worth. This is useful to know because this price acts like a magnet to the market price, pulling it back from extremes of overvalue and undervalue.
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Technicians use charts and graphs to identify buy and sell signals. A buyer is "paid up" in a stock if he bought it late in the rally (and will try to get out at a price to avoid losing money). | 
The New Investment Superstars : 13 Great Investors and Their Strategies for Superior Returns
by Lois Peltz (New York: John Wiley, 2001)
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Independent Stock Rating Agencies |
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Only 5% of timers beat the S&P500 during the upward 1999 market.
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NewslettersFor $69, Select Information Exchange enables you to get 5 months of 4 newsletters from a list of 169, of which 37 focus on market timing.The Hulbert Financial Digest tracks 165 investment newsletters CBS Marketwatch Directory of Newsletters
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National Association of fee-only Personal Financial Advisors
Google Directory on Personal Finance MSN on Personal Financial Planning
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Investing Money - Strategies
Jim Schmidt's 
