Investing 101 » Stock Trading Strategies

2010 Review of Investments: Silver is Big Winner

admin — Sun, 02 Jan 2011 19:27:09 +0000

2010 Investment Performance

Dow Jones Industrial Average: up 11%
S&P 500: up 13%
NASDAQ: up 16%
Oil: down 1%
Gold: up 29%
Silver: up 89%

What should you buy in 2011? Based upon the performance in 2010, Silver is the clear winner.

There are many ways to invest in Silver:

Silver coins and bullion. Open an account at Bullion Vault to have them buy and store silver bullion for you.
Silver ETF (NYSE ticker symbol: SLV) claims to hold Silver and tracks the price of bullion
Central Fund of Canada is audited to contain about 45% of its assets in silver (NYSE ticker symbol: CEF). The rest is in gold bullion.
Silver mining stocks (NYSE ticker symbols: HL, SVM, CDE) which provide good leverage to the price of silver

Review of Investments in 2010: Dow up 11%, S&P 500 up 13%, NASDAQ up 16%, Oil down 1%, Gold up 29%, Silver up 89%

Using Trend Lines and Gold

admin — Thu, 17 Jun 2010 14:35:31 +0000

Using trend lines can help you time entry and exits on your positions.

Take a look at the below chart of gold. As you can see, prices are behaving in an orderly, upwards trend.

The rising trend line acts as support and the top line is resistance. Project these trend lines out about 30 days and they will converge. What happens then or before then?

In my opinion, prices will break out higher to $1300 at least. What to do if you’re sitting in cash? you have two options: 1) Don’t take a chance and buy now at $1243, 2) wait until prices again test this lower support line around $1220, maybe $1210 if you’re lucky.

If you want to learn more about Trend Lines and the science of Technical Analysis, then download our Investing 101 eBook which contains an entire chapter on Technical Analysis filled with more examples and charts like the one above.

Use Position Trading to Your Advantage

admin — Fri, 18 Dec 2009 20:15:35 +0000

Position trading is one of the three primary strategies (along with day trading and swing trading) in the category of short term investing, the opposite of a true buy and hold investing strategy. The longest term of these strategies, position trading involves typically holding stocks for a few days up to around six months.

For example, you decide to focus on renewable energy investing, don’t have the interest or time to be a day or swing trader, and reject a true buy and hold strategy for personal reasons. Position trading might be your preferred option.

You still need to perform useful research by following the trends and ratios of the companies you prefer. Yet, unlike a day trader, you needn’t analyze numerous reporting results for many hours each day. Since your position is longer than 24 to 48 hours, you can do your research quickly each day to track shorter-term trends and make your buy/sell decisions easier.

Playing a good stock simulation game and learning position trading techniques from good teachers, like WallStreetSurvivor.com, will help you become comfortable with position trading. Learning the difference between bull and bear market strategies for position trading further enhances your knowledge base. With this strategy, you combine the excitement of short-term trading with some of the wisdom of buy and hold investing.