Investing
Investing
is a bit like learning to swim. One usually begins by going
into the shallow end of the pool, so that drowning can be
avoided simply by letting your legs touch the bottom, as you
get better you slowly venture out further and further.
Finally you are a pro and you don’t need to swim in an
area where the water only is waist high, now you can swim in
the deep end where you have several feet of water without
any fear.
Why then do
most investors instead of slowly taking the time to learn
what investing is about, feel that after they read one book
they have what it takes to dive into the depths of the
market only to get killed. If one could graphically depict
this process in terms of people get beheaded, you would
witness a massacre taking place every month.
I am going
to suggest a few little strategies one can implement.
First go to
our tools page and familiarize yourself with Technical
Analysis. A good place to begin is our site,
go the to section titled tools for better investing http://tacticalinvestor.com/page17.html
www.incrediblecharts.com
make sure you read the sections on the psychology of the
markets. Then download the free charting programs; the links
are on our site. Spend
30-60 minutes a week learning and fully understanding the
basic concepts of TA. Understand the premise behind trend
lines and also make sure you drill the trend is your friend
concept into your head.
If you
spend enough time going through the links on our tools for
better trading I can assure you, you will be a better
investor than you were before you took the time to educate
yourself. For those of you looking for a system without
having to do any work, John Tyler from the info gnome has
come up with some very unique systems, I have actually
looked at them all and can honestly say they do work,
however you must put in a little time. http://tacticalinvestor.com/tacticaltoppicks.html
Of course
if you are prepared to do some work you can do just as well
by spending time on our site using the free tools, the above
books and courses are for those of you who are to lazy or
just don’t have the time.
One
important factor to note if you are paying some advisory
service, is to make sure that they don't quote their gains
as annualized gains, the difference between actual gains and
those that are annualized are extremely huge, this is
very deceptive and sneaky. Example say they invested in a
stock its up 30% for the month, instead of saying its up 30%
they chose to state those figures as 360% or so. See
the difference. Services that have to use deceptive
means to lure customers in usually have something to hide
and should be avoided like the plague.
The point I
am trying to make is education is always good. It never
hurts to learn new concepts, in addition would you not like
to be able to spot a good or a bad service immediately.
Empowering oneself is the key to successful living and
investing.
Taking a
look at the geo political scene we see that the war in Iraq
has gone from a victory to a screaming tragedy, as every
aspect of the military operations have been mishandled, the
sad part is that poor young innocent American soldiers are
getting killed like flies. Many of them have far different
opinions on the war, but their opinions matter little. With
the way this administration is spending money like its water
we can expect the costs to keep rising higher and higher.
This off course will be very bullish for Gold and all
commodities. I am currently looking at oil very closely with
my close and trusted Associate John Tyler and if the pattern
we envision unfolds then the cost of a barrel will be
heading of towards the 48-50 range in the not to distant
future. Off course we cannot reveal all our plays here as
our paying subscribers would string us up to the nearest
pole if we were to do so, however we can give you the macro
view of what is going on and reserve the micro for our
paying subscribers. In addition we will mention sectors
which we think will start performing well and every know and
then we will drop some specific company names.
On a
different note it was rather surprising and offers the
appearance of nobility, I am referring to Bush’s trip to
Iraq. Lets hope he was truly sincere and this is not just
some politically planned event.
Whatever the reason the public will take this as a
positive and it should have positive effect on the markets.
Currently
the natural gas, oil service sector, natural gas exploration
and drilling sectors are pretty much extremely oversold and
from a contrarian perspective offer the opportunity for
better returns in the next 2-4 months then other sectors.
For the more aggressive I see the biotech sector is oversold
and close to putting in a short-term bottom, if this bottom
holds there could be a very large rally in the works. Many
of the stocks that we were and still are bullish on have
should some incredible gains since we took positions in
them. We still think the oil service sector is extremely
oversold and still think there is very significant up ward
potential left in the natural gas and independent oil
exploration sectors.
Today we
are going to mention some stocks in the above sectors
that we think have great potential, however we recommend
that you do your own research and talk to your financial
advisor before taking positions in these stocks.
WEL, seems
positioned to benefit tremendously should the oil and
oil service sector take off. they are coming out of a nice
base.
DYOLF they
are a natural gas and independent oil producing and
exploration company their revenues doubled this quarter and
profits increased by 87%
TLM also
looks very strong if you can buy shares in the 50-51 range
you should be rewarded nicely in the future.
CHK is
another very good play that has great long term prospects.