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Showing posts from May 11, 2008

The Trend is your Friend and your Enemy!

Yes, the trend is always your friend my fellow investors, but it can also be your enemy. Knowing when the trend has turned into some sort of market bubble will help you prevent huge losses to your portfolio and other financial assets. The two industries in focus right now are the financial and the oil and gas indutry . Which group is a potential bubble, a bubble about to burst, or a bubble that has already burst is the million dollar question of the day. In previous articles, I spoke of building a long-term bank portfolio because I believed that many bank and financial stocks were beaten down sufficiently enough to take another look at the sector. We started with BBT Corporation ( BBT :$32.73), iShares Trust- Dow Jones US Fin Sec ( IYF : $81.70) and JP Morgan ( JPM : $42.32). Our fledgling bank portfolio of three stocks was up by 3.01% as of 5/11/2008 but is now down over the last trading week of 5/19/2008 by about -2.64% . Do we continue building our bank portfolio or do we tak

Building your bank!

Wow, what a horrible week! I lost $742 dollars in the currency markets or 33% of my original investment. I consider myself lucky though, I had only invested $ 2,250 . Still, I could not get it right. Luckily I have a secret weapon to handle all of this insanity. Meet the newest member of the family. It's Pepe at 3 weeks! Wow-e-e. Isn't he sweet! My insanity cure all! Trading on the Forex can be ver-r-ry tough. For example, I tried trading the EUR/USD pair, but that position completely reversed on me after a few days; of course, I reversed my positions but the pair stabilized and went the other way. I tried the USD/JPY pair as the dollar was showing some good strength against other currencies based on the Feds interest rate cut a few weeks ago, but that position just ended up stalling for three days. I tried the EUR/JPY pair, but nothing there. That pair again just stalled then went south after three days of flip flopping around. In the meantime I just kept losing money. By