US Stock Smart Investor

Below are some of the points which I took from one of the book.

According to the Author, the first thing we need to learn from any Stock Market is "Learn not to loss money". Then the second thing only come "Learn how to make Money".

There always be at least 3 step of leveraging:
1. Select the opportunities
2. Determine the direction
3. Leverage --> Reduce the risk versus Increase the return (here we talk about using Stock Option which trade at CBOE)

The Author suggest to use basket of stock which contain 25 stocks. However try to avoid 2 industries, Airline and Pharmaceutical sectors. The sector he recommended are Retail, IT, Energy, Finance, Home Builder and Gaming.

So how to find the direction:
Go to  http://money.msn.com/  --> Input stock name or stock code in the field "GET QUOTE"
Find the rating from STOCKSCOUTER:  
(8 to 10 stock have the tendency to go up, whereas 1 to 6 have the tendency to go down)


Certain days should not trade:
1. FOMC (8 date per year)
2. Unemployment date (every Thursday)
3. Non- Farm Payroll (1st Friday of every month)
4. GDP (once every 3 months)


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