Fundamentals vs. Technicals

Visit the new Investor's Money Journal extension website and feel the difference... just click Investors Money Journal . See, watch, and listen to the market strategies, tips, and advices of different investment and financial experts.

Every once in a while, I like to flip the TV channels and watch Jim Cramer on CNBC. It's not that I think that Jim Cramer is a spectacular trader, I just think he is a talented and amusing guy. The last time I tuned on the tube, CNBC's Jim Cramer was naming his top five picks to get you through these recessionary times.
So with pencil in hand, I quickly scribbled down his top five stock picks on a piece of paper and shoved it into my pocket. I actually forgot about Mr. Cramer's picks until today when I found this crumpled piece of paper with my handwriting on it. This paper listed the five stocks that Mr. Cramer picked on the close of business on January 8.



So here are Mr Cramer's top 5 picks and where they closed on 1/08/09:

To watch the video click here

Caterpillar: (NYSE_CAT) - Closed @ 44.08
Home Depot: (NYSE_HD) - Closed @ 24.38
Johnson and Johnson: (NYSE_JNJ ) - Closed @ 59.02
Hewlett - Packard Company: (NYSE_HPQ) - Closed @ 37.61
Verizon Communications: (NYSE_VZ) - Closed @ 32.42

So I decided to put MarketClub's "Trade Triangle" technology right next to Jim Cramer's picks to compare how we both have done for the past few weeks. The one thing that struck me as odd with Mr. Cramer's trading, is that he never seems to implement a stop loss technique. He talks about money management, but never about the use of stops. He just seems to let his positions run. For example, in the case of Caterpillar (NYSE_CAT), Mr Cramer's first pick is down 25% from the date it was recommended. I don't know about you, but a 25% loss in any market is enough to give me the heebie jeebies.

Admittedly that's extreme, but if your only looking for a 25% upmove and the stock is down 25% you really have to make 50% just to get back to even. It's the type of trading I just don't understand. I learned a long time ago that trying to pick bottoms and tops in the markets is a loser's game and a futile exercise that can be very expensive.

So, if Mr. Cramer is long all the stocks listed above, what positions is MarketClub's "Trade Triangle" technology suggesting for those stocks ... are we long or are we short? Well, it turns out we are short all of the above stocks and we see the trend in those stocks as still being negative.

So what's an investor to do? You can be entertained by Jim Cramer or you can use the "Trade Triangles" to scientifically make money in the markets. The great thing about MarketClub's "Trade Triangle" technology is that there is no emotion in the signals, it is purely a mathematical algorithm that keeps you on the side with the better odds.

A systematic market proven program approach has flaws like anything else. However, if one follows an approach like this you will make money over time. It also allows you to sleep much better at night when using a systematic program to buy and sell stocks, futures, precious metals and the forex markets.

So while Mr. Cramer is enormously popular and entertaining, I'm not sure that I would want to put my money with this type of approach. I would much rather approach the market in a systematic, scientific way knowing that the odds are in my favor.

We will follow up on these trades when we receive a buy signal or an exit-short position signal and we'll see exactly how our "Trade Triangle" technology is working vis-a-vis Mr. Cramer.

Please feel free to make comments on this post and if Mr. Cramer decides to cover his positions and you hear about it first let us know and we will make any adjustments necessary. Thanks.

I look forward to hearing from you.

How to consistently conquer the Forex markets ( EUR vs. USD

Visit the new Investor's Money Journal extension website and feel the difference... just click here Investors Money Journal . See, watch, and listen to the market strategies, tips, and advices of different investment and financial experts.


Today, we are dissecting and examining one of my favorite markets ... the Forex market. The Forex market is the biggest in the world and is traded on a 24/7 basis.

What makes these markets so exciting is the fact that they have a very strong tendency to trend, that is, once they get started in one direction they tend to continue in that direction for some time.

I learned how to trade Forex in the trading pits of Chicago where I was a member of the IMM, a division of the Chicago Mercantile exchange. The CME has grown dramatically over the years, and I have many fond memories of trading in the old exchange in Chicago. Today, you can trade the stock of the CME (NASDAQ_CME). That's a good idea for our next video, let us know if you would like to see a video on trading the stock of the CME.

I digress to today's video. To watch the video, click here ( EURO vs. USD )

Today we are exploring the relationship between the Euro and the Dollar (EURUSD). In this short video, which we are making available without cost or registration, you'll catch a glimpse of a conservative way to trade the Forex markets. This approach will detach you from your computer screen and show you how to enjoy your free time without having to worry about the markets.

I would not recommend this movie if you are risk adverse. Trading in Forex, the futures markets, and in any market for that matter always has an element of risk.

I hope you enjoy this educational Forex trading video and that you're able to see the value in this approach.

Every success in the markets.

FOREX: The Biggest Market in the world

Visit the new Investor's Money Journal extension website and feel the difference... just click Investors Money Journal . See, watch, and listen to the market strategies, tips, and advices of different investment and financial experts.


Click here to watch video and for bigger profit, join us now... :-)

In this week's video, we will be exploring the world of foreign exchange. It is also commonly known as the forex market to industry professionals.
The forex market is the biggest market in the world with trillions of dollars changing hands everyday. This truly is the most fluid and liquid marketplace on earth. This market trades 24 hours a day, 6 1/2 days a week and it is traded by every major bank in the world.



One of the cool things about forex is the fact that markets tend to trend very well and therefore they are very suitable for technical analysis and the use of trend following techniques such as MarketClub's "Trade Triangle."

Today, we will be focusing in on the EUR/USD exchange rate. As of right now, the dollar continues to be gaining for the year against the Euro. However, we still have about another week left to trade in 2008 and we could see the USD end up being flat for the year.

This gets back to a point I have made before... never buy-and-hold a security or a currency as events are constantly changing in the financial arena.

My new video runs about seven minutes. In the online video, which you can view with my compliments, I will show you step-by-step exactly how we approach both trends and market timing in the forex markets.