Long signal on 04/18
Break out above resistance on 04/19
dinsdag 25 april 2017
zaterdag 1 augustus 2015
5 Best Brokerages
I hear this question a lot:
What is the best brokerage?
Here's a short selection:
1) Interactive brokers
www.interactivebrokers.com
Commission to buy 100 shares of a U.S. stock: $1
2) Fidelity
www.fidelity.com
Commission to buy 100 shares of a U.S. stock: $7.95
3)Charles Schwab
www.schwab.com
Commission to buy 100 shares of a U.S. stock: $8.95
4) TD Ameritrade
www.tdameritrade.com
Commission to buy 100 shares of a U.S. stock: $9.99
5)Etrade
www.etrade.com
Commission to buy 100 shares of a U.S. stock: $9.99
PS: Not all brokers are available to European citizens.
What is the best brokerage?
Here's a short selection:
1) Interactive brokers
www.interactivebrokers.com
Commission to buy 100 shares of a U.S. stock: $1
2) Fidelity
www.fidelity.com
Commission to buy 100 shares of a U.S. stock: $7.95
3)Charles Schwab
www.schwab.com
Commission to buy 100 shares of a U.S. stock: $8.95
4) TD Ameritrade
www.tdameritrade.com
Commission to buy 100 shares of a U.S. stock: $9.99
5)Etrade
www.etrade.com
Commission to buy 100 shares of a U.S. stock: $9.99
PS: Not all brokers are available to European citizens.
maandag 26 mei 2014
10 problems with investments in 2014
1) Stocks: people buy stocks when they see a lot of profit is made (high)
And sell when they fear they will sink lower (low)
2) Savings accounts have low yields
3) Funds: there are very few good ones.
4) Bonds: when interests rise, bond prices drop
5) Real estate: not liquid, temptation to use too much leverage. Price?
6) It's subjective to determine the intrinsic value of a company
7) A lot of costs in internal bank funds (commissions, management fee, performance fee, subscription fees)
8) A lot of people are not interested in investments, don't put a lot of time and thought in them and think they are hard
9) There are a lot of greedy people in the investment industry. A salesman rarely holds your best interest
10) Alternatives are hard to find and to evaluate. (good performing funds, good advisors)
Next post: Solutions
And sell when they fear they will sink lower (low)
2) Savings accounts have low yields
3) Funds: there are very few good ones.
4) Bonds: when interests rise, bond prices drop
5) Real estate: not liquid, temptation to use too much leverage. Price?
6) It's subjective to determine the intrinsic value of a company
7) A lot of costs in internal bank funds (commissions, management fee, performance fee, subscription fees)
8) A lot of people are not interested in investments, don't put a lot of time and thought in them and think they are hard
9) There are a lot of greedy people in the investment industry. A salesman rarely holds your best interest
10) Alternatives are hard to find and to evaluate. (good performing funds, good advisors)
Next post: Solutions
zondag 16 maart 2014
What 20 years of investing taught me.
This year marks the 20th anniversary of my first investment transaction.
We always remember the losers better. Because thousands of years ago, when we saw a pretty flower and a lion, we tended to focus more on the lion for obvious reasons. How cruel nature really is, making us focus on the bad; A recipe for unhappiness.
Thousands and thousands of transactions later, these are the most important things I have learned:
If you find yourself worrying about your positions in the middle of the night: get out in the morning. At any price. This is important. You are either using too much size (too big a position for your portfolio or your mental state) Or your subconscious doesn't agree with your position.
Remember: you can always get back in!
A stock is never trading too high to buy or too low to sell. It can always go lower or higher.
When a journalist complimented Paul Tudor Jones, one of the best performing investors of all times, how he bought the exact low in the S&P 500 somewhere in the nineties. He replied: Thanks, I finally got it right on my eight try.
We always remember the losers better. Because thousands of years ago, when we saw a pretty flower and a lion, we tended to focus more on the lion for obvious reasons. How cruel nature really is, making us focus on the bad; A recipe for unhappiness.
Thousands and thousands of transactions later, these are the most important things I have learned:
If you find yourself worrying about your positions in the middle of the night: get out in the morning. At any price. This is important. You are either using too much size (too big a position for your portfolio or your mental state) Or your subconscious doesn't agree with your position.
Remember: you can always get back in!
A stock is never trading too high to buy or too low to sell. It can always go lower or higher.
When a journalist complimented Paul Tudor Jones, one of the best performing investors of all times, how he bought the exact low in the S&P 500 somewhere in the nineties. He replied: Thanks, I finally got it right on my eight try.
dinsdag 13 augustus 2013
How to lose a million euros and 93 years of work in a single day.
It's 1987. My father had just sold his pallet manufacturing factory.
His grandfather had started making wooden tomato boxes in his shed in 1895, his son and grandson proceeded over the years to make wooden herring and oyster barrels, and taking on more staff.
In the end it was a well oiled modern factory manufacturing pallets for multinationals such as Schlumberger, employing 200 people. My father sold it in 1986 for about a million euro. Note that a brand new VW Golf cost 7500 Euro, an appartment 40.000 euro and a liter of gas cost 0,6 euro back then. So he went with his money to ABN Amro where they put the most of it in various bonds. But 'actively' traded with 10% of it, mostly in options. As so in the week from 11 till 16 october 1987. He was short long dated puts and long the shorter dated puts as a hedge. His hedge: the long puts, expired friday the 16th, so he called his advisor, who said, we'll buy them back cheaper on monday.
But monday became know in the history books as 'Black Monday' the stock markets crashed. So the short put position, which is like a written insurance policy against market losses, had huge losses. So ABN AMRO sold the 'safe' investment in bonds, just so they wouldn't have any losses.
The sweat of 3 generations wiped out in a single day.
That father sat in tears in his Jaguar V12 that morning as he dropped me off at school and the only thing he said was: 'Pay good attention in school today, because an education is the only thing I can give you.' I was fifteen years old. And so the journey started.
His grandfather had started making wooden tomato boxes in his shed in 1895, his son and grandson proceeded over the years to make wooden herring and oyster barrels, and taking on more staff.
In the end it was a well oiled modern factory manufacturing pallets for multinationals such as Schlumberger, employing 200 people. My father sold it in 1986 for about a million euro. Note that a brand new VW Golf cost 7500 Euro, an appartment 40.000 euro and a liter of gas cost 0,6 euro back then. So he went with his money to ABN Amro where they put the most of it in various bonds. But 'actively' traded with 10% of it, mostly in options. As so in the week from 11 till 16 october 1987. He was short long dated puts and long the shorter dated puts as a hedge. His hedge: the long puts, expired friday the 16th, so he called his advisor, who said, we'll buy them back cheaper on monday.
But monday became know in the history books as 'Black Monday' the stock markets crashed. So the short put position, which is like a written insurance policy against market losses, had huge losses. So ABN AMRO sold the 'safe' investment in bonds, just so they wouldn't have any losses.
The sweat of 3 generations wiped out in a single day.
That father sat in tears in his Jaguar V12 that morning as he dropped me off at school and the only thing he said was: 'Pay good attention in school today, because an education is the only thing I can give you.' I was fifteen years old. And so the journey started.
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