Archive for January, 2013

Trading Tip #1

As today’s action on yesterdays VMware pick shows us, always do a check for upcoming earnings dates for stocks you trade. I failed to check for that myself yesterday before recommending from how the charts were looking. Trading can be very volatile before and after the earnings date, as it was this morning with an over 19% drop as I am writing this.

If you are going to buy something going into earnings, you may want to look at purchasing a put option to go with it for downside protection. Having that piece of mind can be helpful and keep you from losing much. If the stock price goes up very much, you’ve only lost the put premium. If the price goes down a great deal, that put can help offset the loss you had in the shares.

Keeping a close eye on details like upcoming earnings can save you a lot of heartache later.

Stock Pick 1-28-13 – VMWare – VMW

A second stock pick for 1-28-13 is VMware – VMW. The current price is $98.39.

VMW_1-28-13

The past few sessions has seen the stock in a uptrend although a bit down for Monday morning so far. The stock is in a Pennant Bullish Pattern and is looking to breakout to the upside. The range I am looking for is between $102.20 and $106.75 over the next couple of months. This would bring an upside gain of 3.7% to 7.8%. Certainly better gains than a savings account in a bank.

Phase 2 F/E score is very good at 3.38 and the price pattern score is a very respectable 2.25. This certainly signals a good buy at this point.

Over the last 6 months, insiders have purchased a net gain of over 950,000 shares. That is very good to see as the insiders believe in the company to put their own money on the line.

 

Stock Pick 1-28-13 – Dollar Tree – DLTR

My stock pick for 1-28-13 is Dollar Tree. The current price is $41.25.

DLTR_1-28-13

The stock is currently in a triangle bullish pattern. It has been in a uptrend the past few sessions and it is looking to breakout. The range I am looking for using my tools on TD Ameritrade is between $43.50 and $47.00 over the next five months. That would be a gain of between 5.2% and 12.3%

The Phase 2 F/E score is excellent right now at 3.38. The price pattern score isn’t exactly where we want to be seeing it down at 1.75 at the moment. However, I think this is a good opportunity to get in.

Several of the directors made stock purchases at market prices at the end of December, so that’s a good sign to see for ongoing prospects for the company.

Stock Pick 1-22-13 – Buckle Inc. – BKE

My first stock pick for 1-22-13 is Buckle Inc. – BKE. The current price is $45.26.

BKE Chart for 1-22-13

BKE Chart for 1-22-13

Currently the stock is in a bullish pennant pattern. Using TD Ameritrade’s ThinkorSwim platform and utilizing the Prophet Chart tool, the predicted price range between now and 4-20-13 is between $48.64 and $54.09. This would be a gain of anywhere from 6.9% to 16.3% if it comes to fruition over the next 3 months.

The Phase 2 F/E and Price Pattern scores look good at 2.75 and 2.25 respectively, so it looks to be right by the buying range.

An alternative method of buying the stock outright would be to purchase a March Call at the 45.50 strike price. Currently it is at a $1.80 price point. That would get you in the game with plenty of time and keep your costs much lower.

Greetings

Welcome to my site, Stocks For Main Street. In most of the posts, I plan on providing stock and options trading ideas. As always, use these trading ideas at your own risk. I plan on posting the chart of the stock I suggest and what I expect out of the stock at the time.

I will also share various resources I have found useful, whether it be on a website, trading platform or book. I hope by sharing these along the way, it will help you to become a better trader so you can do your own research.

From time to time, I may share some thoughts on trading in general based on my experiences as well.

I have been trading stocks and options in my free time ever since I graduated from college back in 1997 and joined the real world. I like to think I’ve had a pretty good knack for trading as friends, family and colleagues have  asked me for advice over the years.

The biggest thing I’ve learned over the years is try to keep my losing trades to a minimum, and when they do happen, keep the percentage lost to a minimum. I learned the hard way early on that hanging on to losers, hoping they would recover was foolish. Sometimes things just don’t go your way. Move on from the trade and look elsewhere to recover from it.

I hope you will find my ongoing thoughts useful and helpful as you get out there and trade with your own money.

Welcome!