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CCME, RINO, TRIT
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| Quoting ricster3 | Hey guys,
I thought I'd come here and ask for advice.
I only have cash to buy in one company right now (I'm tied up with other (red) investments, waiting for them to rebound a bit before taking the losses).
I'm looking for a solid long pick, can't afford a loser right now, so I'm looking at these 3. (CCME, RINO, TRIT)
All of them have good balance sheets.
At the moment, TRIT & RINO are trading at 30-40% less than their highest price.
TRIT is gonna have to do a secondary soon, so I guess it's not a good idea to get in now..
I put a buy order at 11.50 for CCME late today but it didn't drop that far.
So my question is, which one you would prefer at today's levels?
Also, will the selloff of china stocks end soon in your opinion?
Thanks ! :)
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Reply: tricky business as china or the etf $fxi has broken all support...china has been known to do that though because of the volatility...china had a 20% correction in august. everyone thought they were entering a bear market. there is no best stock....you have to decide which market you want to invest in then go towards the sector. Trit and RINO are both in the watertreatment business as china govt is funding a lot of money towards tehre. pollution sucks in china and they will have water problems soon. CCME is more of an advertising company. this company is tricky as they are a SPAC which means they are a blank check company that is buying up chinese assets.....the reason i like ccme is that VISN and FMCN are both in their space and carry huge mulitples compared to CCME. sometimes when i cant figure out what is the best play i spread my risk and take partial positions in multiple companies. but the big thing with that is these are all chinese companies so if their market goes down they all go down.
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Learn How To read Level II Tapes for making buy decisions.
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| Quoting CSquaredTrading | Tools to add to your collection! When you trade there are several tools that you want to use. To list a few: Streamers, Charts, Fibonacci Retracements lines, Trendlines, Candles, Bollinger Bands, live news, and your broker account. One thing that many people don’t use, or know how to use is a Level II Tape reader, this is a tool used to help you see the buyers and sellers in a different equities, it shows the Bid Ask Prices on whatever equity you enter into the space given. If you pull up a level II tool and you see on the left, Bids, and on the right, Asks, and it is showing the number of shares on either side you can therefore see the buyers and sellers! Level Two allows you to make a better buying or selling decision when you are trading or investing in the US Stock Market. This Link will lead you to free Level two quotes and you can even view them on several exchanges. When you view the Level Two, on the left are the Bids, and when those outnumber the Asks which are on the right, that means that the buyers are coming in and the price is getting ready to move up. The opposite is true when the Asks out number the Bids, the price is typically getting ready to move down. Occasionally the trader will hide his shares and show that he is only buying or selling a 100 share lot or even 200 whatever he wants to put in, when in reality he may have 10,000 for sale or 10,000 to buy. This keeps the price from moving beyond his sell price or buy price and causes resistance until everybody buys out or sells at his price. Once those ten thousand shares are gone and if the Bids still outnumber the Asks then the price will continue to move up or vice versa. Buying decision: As the stock is falling you can see where to buy as the sellers on the Ask side start to shrink then the Bids increase and that is where you want to push the buy button to go up, or short button if everything is opposite and true and you are expecting the price to go down. This is an especially powerful tool in todays market and takes some getting used to, but when you have mastered it, it is only one tool out of many to utilize to earn a fantastic income. This tool has been a satisfactory to add to everyones trading strategies and books and collections and once mastered can make you tens of thousands.
Any thoughts? Or clarifications?
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Reply: P.s. i liked this post because it was well written and technically correct if Level 2 wasnt fake and a complete farce.
Level 2 give you NO edge in trading. Every broker offers it for free now for their traders or for five dollars or so. You ask why would they all offer Level 2????????????????????? easy it makes bullshit traders think they have an "edge" yet every retail trader has access to it. It enduces joe sixpack and his delusions of grandeur that he has a way to beat other traders to the best price. It enduces active trading why fattens the banks accounts of ameriturd, etrade, etc. I see it everyday...traders in my booom room feel selfimpowered by the more data they have...everything has to have 10 reasons of validations 5 justifications...the more data people see the more they feel they have an edge like putting all the data together gives you a magic potion of stock success. Trading off level 2 is just another form of gambling. MOst people who you it will lose. There is a whole another world out there where hedgies, funds, big brokers, rich investors, pension funds meet and they buy and sell outside of the major exchnages the places where your buys and sells get listed on Level 2. Wallstreets deep dark secret: dark pools, private exchanges.........................Level 3.
What is level 2 ????????? Level two is a booking system that fake tries to display individual buy
and sell orders.It supposedly displays all quote data on who the buyers and sellers are at a particual price point allong with the size aka # of shares being offered to sell (aks) or buy (bids). When i place an order with ameriturde a market maker will get my order listed on the level 2 if there is no match right away or if not removing liquidity from the market . Think of it as a listing system where all market participants come in and place the plays on 1 platform then the data gets aggregated in a way to make buyers and sellers marry.
Overtrading is one of the main reasons that 95% of traders will go bust within 1-2 years. I have heard dozens of stories from people i have met on twitter who are almost nearly bust. 2 main reason...they cant use proper risk management and Overtrading. Level 2 is one of the main reasons that retail traders overtrade. Think about this? how much edge can you really get if you read the level 2 right? maybe 2-5 pennies right? So now if your adding in trades to your account just to make a few extra pennies. YOu will mostly surely be eating out of garbage cans within a year or 2.
__________________________________________________________________________________ Why its bullshit. When you play cards in a casino like blackjack over the course of time............is there any way you can beat the house??? So do you think you really could in the stockmarket. the casino floor isnt a level playing field and neither is the stock market. All the participants dont hang out and participate in the same rooms or the same levels. There is a separate order book which houses the true information. The one that collects the whole of whole orders. That is Level 3. That is where the true order flow is from all the exchanges, pools, transactions. The thing is that only a small subset of the population has access to that. The who's of who of america. Hedgies, Big funds, market makers, large wealthy investors, etc. This is where the true flow of who is buying what at what price gets listed including the large iceberg orders that are hidden away from the level 2 but yet you feel them stealing your shares. These people can display OR mask their orders wherever and whenver they choose for whatever motive they may have. Depending on their motive, mood, whatever they can flash their true orders on Level 2 or mask them without any consistency. The purpose of course is mask their true intension as every participant is looking for an "edge"
Think about how much high frequency trading is going on right now by these mammoth supercomputers. Some reports say that between 50-80% of trading right now is with these high frequency traders. These computers move markets and stocks by just a few pennies here and their to make their profits. the whole design of what they do is to buy up shares of a stock faster than a regular market participant and then sell the stock back to the much slower traders for a few pennies higher. With their programs they will issue and cancel thousands of orders in 1 SECOND via FLash Orders....to fool the slower traders into paying a higher price. This essentially renders level 2 on many stocks useless.
Google HFT or high frequency trading. What you read will tell how essentially all Level 2 is useless
The great thing about smallcaps is that High Frequency trading is pretty much useless in this market due to the volume and illiquidity. Most funds, hedgies, pensions dont trade in the realm either. And as in any war there is a certain advantage and certain strategies that can be taken to fool your larger more well equipted enemy. There is still things you can do with the human brain and emotion that can take advantage of the speed and brainpower of a computer. Being nimble and smart, and small still has a couple advantages. but the key is knowing that what you see is what somebody wants you to see on Level 2. Knowing that its part false can give you an advantage and also can help you take advantage of the people that are on the other playing field.
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Boom Factory Suggestions
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| Quoting JBTrades |
| I am new to BOWS and have a suggestion about the bullpen. Perhaps there should be a section only for members...or gold and black separately that couldn't be accessed by the outside community. Then we could ask all our questions re specific trades or trading styles in general. Like what Leigh is doing on her help for gold members blog but it would be questions for Kuna, Ryno and SG as well. This way there would be a central place for members to ask their questions. Just a thought. |
Reply: No problem: can u clarify what it is exactly you need and where. I wasnt aware of a help section: do you want me to put one on the blogger?
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Boom Factory Suggestions
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| Quoting crabrieker | adding to last: after just seeing more confusion in the Black BF room just now, I'm reiterating about a search function in the BF rooms by $ticker, or even have the active tickers listed on the right instead of active room members. I like you all but I'd rather see what we're trading than your smiling twitpics. |
Reply: Great suggestions, i think this would save me some time too...sometimes im answering questions but i dont even know what stock im talking about anymore so many others pop up... i think once we move our blogs to a different for ie wordpress some of the blog search functions will taken care of...we are constantly updating the boom factory....all this will be in play in the coming weeks/months
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Software / Set-UP
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Good analysis eric. i think people get so focused on the actual dollar for dollar comission rate they forget about calculating the freebies that certain brokerages give. there are many brokers who throw out specials for free trades...if you dont trade actively or daytrade they can really add up
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@copperstl Questions on how to trade set-ups
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| Quoting twitbond007 | Ok, I am baffled by my many gafs with a DNN trade I entered. I want to learn from my mistake, so I will weather the humiliation of sharing my error. Background - I am an engineer with limited access to trading at work. I got started trading a small portion of my IRA when I was off work during the first quarter following @kunal00.
I jumped in with 400 shares on Oct 13th @ 1.88. At the start of the next week, I was down a little but did not see the cliff coming at the end of the week. The candle on the 20th is the biggest sign I see. Should I have foreseen much more oh wise one?
To make matters worse, I held finally selling ¾ on Dec 18th at 1.13. I saw nothing indicating that this was getting ready to come back up 25%. Did I miss another telltale or just in the wrong place at the right time?
Thanks for all you do Leigh.
BTW - I am putting the 100 shares left in a drawer for my kids to deal with someday. |
Reply: what was the basis of ur trade?? also the set up that you saw?? It seems to me that you bought right at the top. If your going to buy high you want to buy on the breakout. That would have been above 2.10 area. At 1.88 your in no mans land which means you are destined to lose. Your not buying at support or on a bottom or on a breakout which means your are going to lose no matter what unless you get lucky. 2nd mistake was that there was no risk management on the trade. There is no reason to take 40% losses unless you plan on holding it for life (which there is no reason to for a penny stock usually) Now if your taking big loss on a stock and plan on holding it for life then there is no reason to sell right on its bottom. a 25% pop can happen in these type of stocks since it had a reached a level of oversold where a squeeze could come anyday.
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Boom Factory Suggestions
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| Quoting VaamYob | | Can you change the Boom Factory to auto-size both height and width to accomodate tall/wide monitors? I hate having to scroll or read multi-line text. |
Reply you just want the box to be bigger??? to accomodate more text?
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$AMZN Trading at HIGH PE now. What is compelling enough to justify the current price? Long term, Short term
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| Quoting mhughey64 | I sold my position in AMZN for 2 reasons: 1) I thought I had too much money at risk for what might be small gains. And 2) thought I should take the profits and use some of that money tied up in AMZN and invest in less priced, lower PE stocks that might have just as good appreciation. During the process of making that decision I struggled with the opportunity to make more off AMZN position and in the end decided the risk / reward was not there and I'd sleep better at night no matter what "experts" say about the stock moving to $150 - $170.00.
Can anyone help me understand why experts think this stock can continue it's climb with a PE of nearly 82 and price of $140.00 so I can evaluate.
Also - where does AMZN fit in the larger scheme of things -depending on how you look at it, AMZN competes against WMT, BKS, BGP, and EBAY. (maybe I've answered my own question!) Your thoughts?
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Reply: hey there. amzn does a few things to justify it. first for a multibillion dollar company they stillhave good growth. 2. in these times the scale that they operate in lets them grow their business in the most trying of times. 3. business model- this company is setup for success from the way that the company is setup, they can compete with anybody on price and they are taking advanatage of numerous consumer trends. 4. most importantly the company is well run. It is safe to say that Jeff Bezos is one of the top 5 CEO's in the world and the best in the retail industry. People always talk about "best of breed" well amzn is definatley the number one retailer in the world right now. The PE is stretched but so is the market! Over the course of years and years yes PE matters but it is totally irrevelant in what makes a stock run during the course of a month or even 6 months.
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How to read a balance sheet
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Kevin this shows the tale between two companies on differnt paths. what does the balance sheet tell you. 1. synm is in better shape financially. they have little debt. 2. rtk is a much more established company they have cash, plants, revenues and debt. 3. synm is valued similiarly to rtk even though it has almost no revenues why? synm has a plant opening the market is already counting the future revenues in price.
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Margin acount to avoid free riding
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| Quoting slychin | This is my situation: I have over 25k currently in a cash account. I want to avoid free riding (waiting for 3 day settlement on sales/purchases). I heard if you open a Margin Account you can buy a stock, sell it - then buy it again and sell it using the same funds. The only thing to be aware of is the Pattern Day Trading rule (you can not make more than 3-4 round trips in 5 days or it has to be less than 6% of your overall trades).
An example: My total capital used for trading is 1,000 dollars. I buy 100 shares of xyz for 10 dollars at 1 pm. xyz's stock price goes up to 11 dollars in one hour. I sell 100 shares of xyz for 11 dollars at 2 pm. I want to buy and sell again, but unsettled funds are in my account. If I had a margin account, I could make another round trip correct?
I am aware of the risks of using margin and I plan not to touch it at all. I want to only use the capital I initially put in. Have heard many horror stories concerning margin calls. Would it be better to be designated a pattern day trader? Then I could make as many round trips as I want? But, you have to keep 25k present in that account at all times. I am willing to. My future trading style would be to trade for income.
Is there anything else I have to be aware of? Any advice would be appreciated.
- chinchilla
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Reply: Just enable yourself for margin then you dont have to have the settlement times. As long as you dont go over your actual capital you should be good to go and not get yourself in any trouble. Its very hard to actively trade if you have to wait 3 days for everything to settle thats why margin is necessary. that doesnt mean buy 50k worth of stocks on your 25k account. but you use it so that you dont have to wait for settlement
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Portfolio Money Management
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| Quoting phylliskerseg | I saw a tweet from you re making $1000/$3000 per day etc. I have many ?'s on portfolio management but want to start with how do you monitor these daily gains. The market is very volatile (DUH) so the expectation, especially for a new trader, to see a set amount everyday is unrealistic, at least I think so. Do you monitor it weekly, monthly etc. So if you have 20 trading days in a month and you want, for easy math, $500 per day that would mean from the 1st day of the month to the next 1st day you would increase by $10,000.
I do see tweets from traders stating they made $ today so do they have accts they monitor daily that are specific to this strategy of money management?
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Reply:Your accounts will state daily gains. My ameritrade and mbtrading tell me live how much my portfolio has gone up that day. Also if your a daytrader or trade on shortime frames then it is logical to have a daily goal in terms of how much money you want to make since your going home in call cash mostly anyways. So then you build your daytrading strategy around the amount of money you need to make everyday
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Ask Copperstl - any question! here!
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| Quoting DazeTrader | Hey Leigh! Before you "pull the trigger" and buy a stock; what kind of criteria must the stock meet? eg. volume, moving average crossover, break of resistance... etc.
Thanks! @dazetrader
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Reply: thats an open ended question daze. there is NO set criteria, it depends on what type of trader you are. Breakout traders buy breaks of resistance. True swingtraders buy at support and sell right at resistance often pennies before a breakouttrader buys. Volume also can be seperated by timeframes. If your daytrading your volume criteria is much different than if your swingtrading. Often scalpers or guys that by breaks will disregard volume if the rest of their setup is intact.
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Alerts
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| Quoting JBTrades | Hi, I was wondering what alert systens people use. I would like one that text messaages to my iphone. The only one I have come across is Yahoo finance and with quotes delayed 20 min, it is useless. Any ideas? Thanks.
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Reply:I got the answer for you dude! http://freestockcharts.com Not only do they have kick ass charting. But you can set alerts on price levels but also technically significant areas!!!! they will email you everytime the criteria is hit!
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How To Do Fundamental Analysis
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| Quoting ankit_patel | I am trying to learn how to analyze companies based on Fundamentals and how to look at the balance sheet and determine whether the company is great long term or not. What criteria's are most important? and for those criteria, how do you read the numbers and determine if it's good or bad? I think it would be nice if we could go through examples of good and bad companies and do a step by step analysis....
May I even suggest a possible free web seminar on fundamental analysis?
Thx in advance... |
Reply:Ask Todd Sullivan!!! haaaaaaaaaaaaaaa fundamental analysis sucks man...it really does. Every company looks good to somebody. it doesnt give you an edge. Shit look at me I thought $rodm fundamentally looked cheap at 4 bucks and it went all the way to three dollars. Yet there is a reason its so low...nobody else must think so. Then why do I! Here are a couple things to weed out the Bad ones. Big cash burn rate, with low cash, high debt. This is why i kept telling everybody that $dptr needed to go bankrupt. It had 100k cash 2 billion in debt and high expenses. On the other side say if your looking at a small cap stock. Its prospects are unknown but they have an interesting technology. I feel much better buying this stock when it has a huge amt of cash relative to market cap. Like $simg tons of cash. 0 debt. Sure the company doesnt make money yet but they have time to get their. Then I whip out the chart and see if its in a spot where it can move.
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