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The “Mortgage Delinquencies” number is coming out tomorrow at 7AM (PST). Make sure you check the results before placing any major trades. Although it’s generally viewed as a lagging indicator, the number of delinquencies can be an important signal of the housing market’s health because it’s correlated with home inventories. Lower inventories will spur homebuilders to start new construction. Recently I was asked the question regarding potential earnings from trading the first year….this is my response: Disciplined is KEY….and over 90% of people in general severely lack discipline. For example, look at all the overweight people who struggle to get in shape….know what to do, but do NOT have the discipline to do anything about it. Trading is no different. It takes at least 5-6 years of serious studying of the markets, investing in structured classes, hiring a mentor, and trading with real money to learn and master successful trading strategies and develop your “own” system. MOST people will tell you they want to be successful in trading….but just like getting physically fit – over 90% of the people are NOT willing to sacrifice and do the work.
The first 5-6 years of trading should NOT be about making money, but like any other profession, it should be about learning, practicing under the guidance of someone who is already trading successfully, and going through the self-discovery process of what type of a trader or investor are you…..no two people trade the same.
Trading for a living is extremely rewarding – but it requires an incredible amount of investment in time, money, and education. Just like getting physically fit, it is not easy….but it is very rewarding for those that stay the course. If you are just getting started, think of it as entering your first year of college in a 5 – 6 year Master program. You are spending your time learning – not getting a job in your chosen profession to make money – once you “graduate”, then you can focus on earning a living from the markets.
It is not what most people want to hear – but for those that truly have the desire, passion, and discipline, the rewards are just around the corner.
Trade Well, Dinger June 28, 2011 What happens if Greece defaults on their Debt? The markets have been trading up and down lately due to many factors affecting the global economy. One of the biggest single factors is the Greece Debt and how it will play out. Greece has borrowed from European banks to pay down their debt and remain solvent at the same time. Now they must implement severe austerity measures so that European banks will lend them more money to pay down their debt. A sizable but peaceful demonstration was held in Greece’s second city Thessaloniki — the country’s lawmakers are preparing for their second day of debate over the austerity measures. The package and an additional implementation law must be passed so the European Union and the International Monetary Fund release the next installment of Greece’s euro110 billion ($156 billion) bailout loan. Without that euro12 billion ($17 billion) installment, Greece faces the prospect of a default next month — a potentially disastrous event that could drag down European banks and hurt other financially troubled European countries. But even lawmakers from the governing Socialists have been upset over the latest measures and Prime Minister George Papandreou has struggled to contain an internal party revolt. He reshuffled his cabinet earlier this month to try to ensure his party’s support for this vote, but the Socialists still only have a 5-seat majority in the 300-member Parliament. Papandreou urged lawmakers Monday to fulfill a “patriotic duty” by voting in favor of the new measures, but two of his own lawmakers have suggested they won’t. European officials have also been pressuring Greece’s the main conservative opposition party to back the austerity bill. The latest austerity measures must pass in two parliamentary votes Wednesday and Thursday if Greece is to receive another batch of bailout funds to see it beyond the middle of next month. If the votes don’t pass, Greece could become the first eurozone nation to default on its debts, sending shock waves through the global economy. Even with the new austerity measures and a second bailout, many investors still think Greece is heading for some sort of default because its overall euro340 debt burden is too great. Oil climbed more than 2 percent Tuesday ahead of a vote in Greece to approve tough new financial reforms that would shore up its beleaguered economy. On its own, Greece’s financial trouble wouldn’t normally move world oil prices. But analysts say that if the country fails to pay its bills, its problems could spread to neighboring countries and undercut the European Union’s economy. How this will effect Wall street is uncertain but there will be some impact to U.S. Stock Markets and could push them lower if Greece cannot resolve their financial problems. For the beginner investor, its important keep track of current events an how they impact your investment portfolio. The last couple weeks have been crazy volatile in the markets. Talking heads on TV are taking both positions – SELL – BUY! This can be confusing for the beginning stock market investor. Our goal is to continue to provide our members the ability to make their own decisions. We believe that it is always best to follow the foot prints of the elephants (the big institutional investors). So how do we know what the big institutional money managers are doing in the market? We turn to the charts – the language of the stock market. After over 6 weeks of downward movement in the market, the major indexes are showing strength at key support areas and beginning to bounce to the positive side. A clear example is on the S&P 500; the support level of 1250 has held nicely by the bulls and now we are seeing a climb back up. If the S&P 500 breaks and holds above 1280, this will be a good sign for the bulls. The next level of resistance for the bulls to break through is the psychological level of 1300. The current market levels could make for a nice entry to the upside. A beginning investor that uses proper money management techniques may have a great opportunity to grow their stock market portfolio. Keep your ear on the news and your eye on the charts – Trade Well. Dinger |