Thursday, June 11, 2020
Google Searches For "Day Trading" And "Call Options" Explode To Record Highs
We have extensively discussed the topic of retail daytraders flooding the market in recent months, but the following chart summarizes everything we have said clearly and succinctly: it shows that google trends for "day trading" and "call options" have exploded in recent weeks, surging to never before seen levels. (more)
Super-performance Stocks: By Richard Love
Super-performance Stocks By Richard Love An Investment Strategy for Individual Investors based on 4 year political cycle.
As the subtitle of the book indicates part of the book is based on the 4 year Political cycle. The author's contention is that because there is a Presidential election every four years, the economy is managed in such a way that two years prior to election there is a boom and most of the problem in economy surface after election. I do not necessarily agree with that reasoning and so the first part I will skip and look at rest of the book.
- First consideration in buying stock is safety.
- Safety is derived more from the good timing of purchase and less from the financial strength of the company.
- The biggest stocks and growth stocks also decline during bear market. Even income stocks (stocks with high dividends) decline during bear market or periods of high inflation
- Most stocks are price cyclical
- Buying stocks as the market rebounds from bear market lows. It is the safest time and it offers the best opportunity for large capital gains.
- The best time to buy most stocks is when market looks like a disaster. It is then that the risk is lowest and potential rewards are highestBuy for large capital gains
I believe that the investor should look for stocks that are capable of tripling in value within two years. Since it is unlikely that the investor will buy the stock at lowest price and sell it at highest, it is more likely that he will double his investment rather than triple it.
Stocks should not be purchased unless there is a good chance of a big move.
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