Graphical Stock Analyzer

A visual representation of information is much better than plain data.  A picture is worth a thousand words.   During my recent trading experience, I’ve found that many of the factors that affects the stock price are not captured by the technical indicators.   To improve my trading, I decided to make my own indicators that makes sense to me, and put them in a graphical presentation.        The program is available at:  http://www.blogmybrain.com/stock_apps/stockGA/analysis.php       You are free to use […]

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Some thoughts on trading

I have been trading for 5 weeks already.   It is very easy to experience the battle between emotion and reason.  And many times I have given in to my emotions.   Since the stock market is fractal, I believe that the following adage by warren buffet works in both short term and long term investing: “Be Fearful When Others Are Greedy and Greedy When Others Are Fearful.” Easily said than done, a great deal self-control and courage is required.  In addition, it […]

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The Short Squeeze Stocks

Recently as I am trading undervalue stocks, I notice that significant gain can be triggered by positive news on these stocks. Fundamentally strong stocks with beaten down prices and high levels of short interests can easily fall into a phenomenon called “Short Squeeze”. Short Squeezes happen when a bearish stock turns around, creating elevated prices that forces the shorts to buy to cover, which in turn takes the price even higher. In a way, it is basically a bearish “bubble”. […]

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Notes on the Black Swan

Just finished reading the book The Black Swan: The Impact of the Highly Improbable.   Several important points to take away:       1.  A black swan is a random and yet highly improbable, highly impactful event that exists in reality.       2.  Black swans are produced in the platonic fold, in which the gap between what you know and what you think you know becomes is dangerously wide.  This often happens in areas where the unknown unknowns plays a huge role […]

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Value Investing

I am reading the Intelligent Investor, and I feel like writing down some notes about companies I should avoid buying for future reference:       1. Extensive Acquisitions 2. A lot of debt or financing activities 3. One or few customers 4. Lack of durable competitive advantage 5. Unstable or unsustainably fast earning growth 6. Too little or too much R&D Spending 7. A huge salary for CEO means the company is run by managers for managers 8. Options dilutes […]

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