Catching Fire
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Winning is grabbing momentum, profiting from it and then releasing it
A winner must be willing to embrace change and welcome challenge. The biggest “fear,” if there is one, is not of the unknown, but of becoming complacent and stagnant. An environment of change and even uncertainty can energize a mentally strong person and bring out their best.
Winning is grabbing momentum, profiting from it and then releasing itA winner must be willing to embrace change and welcome challenge. The biggest “fear,” if there is one, is not of the unknown, but of becoming complacent and stagnant. An environment of change and even uncertainty can energize a mentally strong person and bring out their best.
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The Daily Log
The Daily Log
Tuesday, 12/31/13
12:52pm Sold EMC, small profit.
Monday leftovers
12:52pm Sold EMC, small profit.
Monday leftovers
Journey to One Million has been postpone indefinitely due to technical reasons. The automated process used to keep tracks of stocks doesn't recognize stock options. Options were to be a big part of Journey-to-one-Million. It would be too difficult and time-consuming to keep track of it manually , especially with maintaining the Catching Fire portfolio. I will relate from time to time the trade plays I will be doing in regard to Journey-to-one-million but will not keep a portfolio of the trades on this site. I will also
note trades in that regard on Stock Twits.
On another note, the option trades I noted on here Friday are now updated on the portfolio. These will be updated at the end of each daily session.
leftovers
Changes for month two: Plan is to hedge the portfolio with insurance plays such as
protective puts and reverse etf's. (Insurance plays are those you hope to lose so that your stocks that are long continue to pace forward but if they don't you are somewhat protective).
10:51 at print 10:45am cst did combo options on FB and TWTR, in both case, bought 1 option each of write call jan 03 and buy put jan 03 for FB and 2 options each for Twtr. Our google drive spreadsheet program does not recognize option symbols so will manually add those at the end of the session tonight. FB jan3 write 59 call at .29 and FB jan3 buy put 56 at .59. TWTR jan 3 write 71.50 call at 1.95 and TWTR jan3 buy 65.50 put at 2.25.
The options above are now listed on the spreadsheet scorecard.
WC stands for writing a call and what follows is the amount I got for it
P is purchased Put and what follows is what I paid for it and then what is it worth now
10:51 at print 10:45am cst did combo options on FB and TWTR, in both case, bought 1 option each of write call jan 03 and buy put jan 03 for FB and 2 options each for Twtr. Our google drive spreadsheet program does not recognize option symbols so will manually add those at the end of the session tonight. FB jan3 write 59 call at .29 and FB jan3 buy put 56 at .59. TWTR jan 3 write 71.50 call at 1.95 and TWTR jan3 buy 65.50 put at 2.25.
The options above are now listed on the spreadsheet scorecard.
WC stands for writing a call and what follows is the amount I got for it
P is purchased Put and what follows is what I paid for it and then what is it worth now
Since this is a cash account, I can only write calls per the amount of stock I have. Since I hold 200 shares of TWTR, I can only write 2 Calls.
Thursday leftovers
How to determine which hot stocks to buy that some considered over-priced and over-valued
The current run-up in newbie IPO Twitter (TWTR) follows a pattern of certain stocks that greatly exceed a share price used by wall street analysts to determine the value of a stock.
The well-established fundamental metrics used by wall street doesn't appear to work on certain stocks. As such, the term 'irrational' or 'over-valued' is the usual depictation to categorized these types of stocks.
Along the way, stocks such as CRM (salesforce) and AMZN (amazon) exhibit these traits (greatly over-priced, over-valued, over-bought). These stocks, on the surface, appeared to be irrationally over-priced. CRM was at the forefrount of cloud computing which now is at the beginning stage of going mainstream by overtaking the former means of loading software.
The problem, of course, is that these stocks continued to appreciate in share 'value' year in and year out. Investors that have purchased these 'over-valued' stocks have been very well rewarded over the years.
Now mind you. I am not being critical of a investor putting a value on share price based on fundamental metric factors. There are many investors that have created wealth for themselves by applying fundamental factors in their investing.
What I am indicating is that there are some stocks that defy the fundamental logic and if one can identify these stocks, they can be rewarded very handsomely. In fact, they can hit 'home runs' to used that term to stocks.
Take Google (GOOG) for example. GOOG was already a successful profitable company when it went with it's IPO in 2004. However the 'valuation' right after IPO was such that most wall street mouthpieces were denoting how 'over priced' and how 'over valued ' and how it's capitalization exceeded many other companies with a long history of profitability. For years, mainstream publications such as Barron's would write negative articles on GOOG and each year GOOG revenues would just increase and increase.
The thing one should realize is: A good many investor are focusing on the future and focusing on which companies will DOMINATE in the future. They are focusing on the newer industries that are revolutionarily changing the dynamics of how we live and what we spend our money on. They are not concerned with current valuations. They are concerned with selecting future winners that can control that particular industry and be rewarded in the process.
Identifying the new industries is key. Identifying the companies in those new industries that are considered the best for growth in that industry. Identifying those companies with the best management, the best innovative and creative ideas, and understanding how their products can be successful are key.
Investors in these companies are not looking for immediate profit. They are primarily interested in how these companies take control and growth in respect to revenue, market share, and continued innovation.
In today's world, one example is 3D printers. The key companies at the moment are DDD, XONE, SSYS.
GOOGLE was one of the first. The industry was the internet using ad revenue for expansion and growth.
AAPL. Innovative with a multitude of devices that changed how we listen to music for example. The industry of tablets (ipad) and getting in with 'smarter' smart phones, along with google's android, that wiped out for all intent and purposes, the leader at the time - Blackberry.
NFLX. Interested in growth over current profit. NFLX (Netflix) changed the way one watched movies at home and still evolving.
Digital Media Advertising growth industry. Social media industry goes mainstream. IPO's Twitter (TWTR) and Facebook (FB) and LNLK.
TLSA All-electric auto industry. In the extreme early stages of using all-electric auto in lieu of auto needing fossil fuels.
AMZN. Online retailer. Amazon wants to be the leader in online retailing at the current expense of forgoing current profit. Amazon wants to sell everything to everybody everywhere.
So... the KEYS are as follows:
Getting invested in a ...... 'new' industry..... with a company that has a good CEO and good management and good insight into the future wants of all of us .... and invest in those companies totally based on Growth potential (which relates to revenue and earnings growth at some later date).
Many of the 'Catching Fire' stock members are considered in this class - companies likely to dominate and continue to grow in the future.
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Thursday Morning
My Catching Fire stock portfolio has had a very good run up. It's time to protect the gains. I will do that with some hedging such as buying protective puts. Please note that the spreadsheet product I use does not recognize stock options. Hence I can only add and calculate those manually. I will do that at the end of the day howeve I will note the transactions on this site.
If conditions are right on Thursday, I will do a combo option play...will sell a Jan Call and buy a Jan Put. Will note the actual details here when it happens.
Thursday Morning
My Catching Fire stock portfolio has had a very good run up. It's time to protect the gains. I will do that with some hedging such as buying protective puts. Please note that the spreadsheet product I use does not recognize stock options. Hence I can only add and calculate those manually. I will do that at the end of the day howeve I will note the transactions on this site.
If conditions are right on Thursday, I will do a combo option play...will sell a Jan Call and buy a Jan Put. Will note the actual details here when it happens.
One of the mistakes made by those in the stock market is to be concerned over how many stock picks one gets right. That however is not your purpose. Your overall purpose is to make an overall profit within your portfolio of stocks. When one manages a portfolio, one matriculates the various entities in the portfolio to end up with a strong portfolio and overall gain. Hence, by weeding out the weaken performers, one might have a poor percentage of getting stock picks right but still have a winning and strong portfolio with the remaining picks.
The key for winning in the market place is to managed your portfolio by matriculating your portfolio and not be overly concerned with individual stocks picks. Those who keep score on their stock picks are just 'playing games'.
Regarding the Catching Fire portfolio. My real account in part mimics most but not all of the same stocks at different buying prices and different quantities. I will say this, NFLX, TSLA, and of course AAPL are definitely three of the stocks in my real account.
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,
Are you going after the big fish?
This site isn't all about the stock market. However, with the daily updating of the stock market, it took most of my time. I am still going to discuss the stock market but also going to relate more to other parts of this site - such as the paintings, my hobbies such as estate sale treasure hunting, movies, autos, etc.
I have developed a good following if the Blogger statistics I get are correct. It will be interesting to see how they change in the coming months. As stated, I will start a new public stock market portfolio. There's so technical issues to work out. One being displaying Options.
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Come on, have a peek at the eye-candy section
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Always be in the lookout for companies in new and exciting industries
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...In case you would like to follow our stock trades up to the very minute. I try to 'print' the trade within a minute or seconds on 'Stock Twits' (STOCKTWITS.COM) before I update them on here. You can follow me on stock twits by going to stocktwits.com and signing in (it's free). Then follow ROBMARKETBLIND.
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Painting section. Under construction---------------------------------------------------------------------------------------------------------
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Elke Sommer
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