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STOCK MARKET SOLUTION and the STOCK MARKET TRADERS TEST

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STOCK MARKET SOLUTION and the STOCK MARKET TRADERS TEST Copyright © 2006-2017 theHyperDream.com STOCK MARKET SOLUTION and THE STOCK MARKET TRADERS TEST Over 400 Rules and Techniques You Need to Know to Profit at Trading Stocks! by David H Potschka INTRODUCTION It is good to spread stuff out so that your brain doesn't get bored but does get refreshed. I suggest you read the table of contents a few times before you read the book as it will help to prime your memory circuits. Then skim through the entire book without paying much attention to the things you don't understand. Then read the table of contents again a few more times, repeat. Eventually you will have to spend time figuring stuff out but if you pump and prime a few times first it will be easier. Spend a week skimming (like our bankers) so your brain can work on the stuff while you are sleeping at night. I tried to keep the book as short as possible so you could read it in under 5 hours. CONTENTS NOTE: If you can fill in all the "..." then you know the rules pretty good, and are ready to play the game! THE STOCK MARKET TRADERS TEST (and table of contents) Chapter 1; The Banks Are Criminal, we are aware Rule 1: The strength of the economy determines how high or low the market will go. Chapter 2; Back Cover, About Me Chapter 3; What Constitutes The Market Rule 2: The market is made up of some truth and some fiction... Chapter 4; Enterprise Multiple 1 (EM) and Journal Example 1 Rule 3: So a beaten down company with some legs and a good divy is one really good way to go. Chapter 5; Hyped Up or Depressed Emotions and Compound Interest Formula Rule 4: Manage your emotions in good and bad markets so you don't lose perspective on what your indicators are telling you. Chapter 6; Options, shorting, advanced programming, dream trading and other ramblings, private placement Rule 5: When these people start covering their short position the market will be near the top... Rule: 6 If virtually all options expire worthless then I should be a net seller of options all the time. Rule: 7 When indexes start to line up you better watch out, it can go both ways... Rule 8: Resource estimates affect the stock's price. Chapter 7; World Economics Rule 9: If all I know is all the mega trends, I will be way ahead. Rule 10: The beige book is the FEDs business survey, pay attention to it; it will affect world economics and currencies. Chapter 8; Oil Love God Math Rule 11: Don't short the oil industry. Rule 12: Different seasons and different world growth rates cause different moves in the price of oil. Chapter 9; Small Cap, Mid Cap Rule 13: Small and mid cap stocks are where the small investor can get rich the fastest. Rule 14: Study the Jan 06 attributes of a stock called ati, this was the insider (large wall street brokers etc.) buy-in for Jan/06... Rule 15: Just track stocks no one else is playing (small cap and micro cap)... Rule 16: Don't play stocks you are not sure about or whose balance sheet is too difficult to understand. Chapter 10; Market Capitalization (mc) Chapter 11; Management, Beta, Dividend Date, Earnings Date, Dow Stocks, Futures Rule 17: Subscribe to TheStreet.com or Fool.com or some of the other sites which give you quality recommendations... Rule 18: Only bet on things you know for a fact. Don't play everything you find unless all applicable indicators are positive... Rule 19: Follow the 30 stocks which make up the Dow Jones industrial average. When their volume and price patterns start... Rule 20: Earnings dates must also be checked with the companies web page... Rule 21: The pros use the sp500 futures quotes (ticker \es) to track... Chapter 12; Hype, Tips, Limits, Rolling earnings, Footprints, Peaks, Shorts, Second tear Rule 24: Use limit orders only and wait for the price you want... Rule 25: Perceived changes in a company's growth rate is the most important metric. Rule 26: It is usually better to wait for the earnings to come out before you buy. Rule 27: Most people will hold a stock for only 6 to 18 months... Rule 28: Only buy the underdog company if its pe (price per share divided by earnings per share) is overly crushed. Rule 29: If a second tear company falls in price far enough it can become a take over target... Chapter 13; News, Metrics, Rates, Debt, ceo, Monopolies Rule 30: All quarterly reports for any company are available from the SECs web site... Rule 31: What is the metric you use to compare revenue for a company compared to its competitors... Rule 32: Interest rates affect everything but they have little sway over... Rule 33: Stay away from companies that seem to have way too much debt compared to their competition no matter how fast... Rule 34: Stable management is a bonus. Make sure there isn't any recent turn over in upper management... Rule 35: Is there room for any growth in the industry. Let's face it some industries are completely saturated... Chapter 14; Good Player, Screener, Easing Rates, Cyclical Trend, Discounting, Programmed, Window Rule 36: Even though some stocks which Wall Street isn't aware of are sometimes undervalued; some are over valued. This rule is obsolete... Rule 37: When the fed eases interest rates, the economy will expand thus earnings estimates will go up for some stocks... Rule 38: If everyone is playing the cyclical stocks in a cyclical manner then they will be out of sync... Rule: 39 If the market doesn't react to the news then the news has already been discounted by the market. Rule 40: The pros have a computer programmed to filter through all the data. Programmed trading gets more intelligent... Rule 41: You know when a small stock has run its course when: volume increases, more stock is issued, insiders start selling... Rule 42: If the ceo or the cfo leaves the company unexpectedly then there may be something wrong with the company... Chapter 15; Patience, Insiders, Long Term, Short Funds Which Short, Keep a Journal, Targets Rule 43: Don't rush in to buy a stock that is down because the company is giving lowered guidance. Wait a while... Rule 44: Often company insiders issue stock to themselves in the form of options and as private placements... Rule 45: Stocks which always go up are in sectors with long term trend patterns. Like oil and gas, health and medicine... Rule 46: Short funds which are shorting stocks, this is a mega trend you should play in a bull market. Chapter 16; 15 Minute chart, Divy, Speculation, Retail Co, Ranking, Media, Outflows, Dow Port, Vix, Money Line Rule 47: Sometimes the 10 day chart will be a giving false volume. For the spy... Rule 48: Stocks with a dividend yield of 2.5% or higher are good bets. They tend to be close... Rule 49: For speculating you can buy a basket of stocks, all from the same sector, which are all beaten down to death... Rule 50: Retail companies which have saturated a local market and are about to go national can be very profitable... Rule 51: Create a ranking system for your stocks. Like... Rule 52: When all the large media players are saying the stock market is the worst place to be right now because it has declined... Rule 53: Consistent outflows of money from the mutual funds is going to create a bottom. Rule 54: My mock portfolio with the 30 Dow stocks started with $100,000 and an even amount... Rule 55: The volatility index VIX is a measure of "puts" vs "calls" (options to buy/sell a stock within a certain time period... Rule 56: The Money Line = The point at which the billionaires start to dollar cost average in. You must estimate where that line is. Chapter 17; Capitulation, My Margin Calls, January Effect Rule 57: When the number of stocks closing down for the day far out-ways the number of stocks closing up for the day you may be close... Rule 58: My margin calls always happen at the same time as yours, 3 hours into the trading day or less... Rule 59: The revision of earnings estimates is one of the most powerful influences on stock prices... Chapter 18; The Income Statement Rule 60: Compare your companies income statement with its peers income statements. Rule 61: Increasing margins are a good thing. And I am not talking about money you borrow (bad margin) to play stocks. Chapter 19; The Balance Sheet Rule 62: Some companies grow by buying other companies, if they stay in their field and acquire stuff smaller than them... Rule 63: Wall street is a popularity game. Everybody knows everybody. If they don't like you... Rule 64: A company with high profit margins but low inventory turnover may not be as good as... Chapter 20; Cash Flow Statement Rule 65: Look for a low multiple (pe ratio) to free cash. pe divided by free cash. Rule 66: Sales and earnings should be increasing faster than inventory levels and accounts receivable... Rule 67: A good company should have no less than 1.5 times as much cash as total debt. Or it gets risky. Rule 68: Cash from operations is a reality while net income may be some what fictional.
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