We beat the S&P 500 Index again by my reckoning. We were up 14% for the year while the S&P 500 Index was up 12.8% for the year. (And for those naughty Club members who didn't sell out of the C Fund, you are up even more since August 25, 2010!)
We should all be pleased and happy. We avoided the Flash Crash in May. We waited patiently until the end of August when the decline in the market was unsustainable. We pulled the trigger and rode most of the uptrend. And we displayed flexibility on December 1. Great investing and trading means reacting to what the market is doing in real time. You must have the courage to put aside your best laid plans if the market is saying "Going Up!" The ability to recognize on a dime when the market is going up has taken me years of trial and error to develop. I'm glad that I have the confidence to size up these opportunities in real time. The market will not wait if it is going up! You must follow along. I am also pleased that I followed my rules. Sure, we could have done better than 14% but at what risk? I would rather beat the S&P 500 Index and keep my money than overreach and lose my money.
UP 2100% THIS MONTH IN MY PERSONAL ACCOUNT
I called my broker an hour ago. I confirmed that I was up 2100% for the month of December in my personal account. All praise goes out to countless years of study, homework and research. On Wednesday, December 22, I saw that REE was poised to go alot higher than 14. Mind you, REE was barely trading above 10 at the time. But I knew that it was a fast money stock. I saw the MACD Histogram turning positive and the MACD lines about to cross up above the 0 line. The stochastic lines were pointed upwards. The time of the year was right. And the stock was in a strong up trend that reminded me of my Yahoo/Juniper Networks days.
There was no interest in the January 14 calls on Wednesday, December 22. Only 2 contracts had traded at 0.10. But I knew that this stock was going up. It had spent two months correcting and formed a nice Bull Flag. Higher prices were ahead! I bought my January 14 calls for 0.10 and waited for the inevitable. Thursday, December 23, was a down day. But my experience said that this was a buying opportunity, not cause for fear or panic. The price of the January 14 calls remained unchanged @ 0.10.
This week, things started to happen as I thought they would. When a stock behaves as it should, it is a good feeling. By Wednesday, REE was the talk of the CNBC crowd and the trading community. Thousands of contracts were being traded. I had company/smile. Yesterday, I decided that 2.30 was a fair price for my January 14 calls.
Even though this blog is about the TSP Retirement Account, I wanted my readers to see how an experienced trader can scope out an exceptional opportunity in real time. It is possible to beat the S&P 500 Index by a mile. You just have to do your home work, recognize the signs, trust your signals, feel good when the stock is behaving as it should, and bank your profits. Pigs get slaughtered.
Am I Looking At Other Opportunities for My Personal Account?
Yes, I am but I am reluctant to go into much detail because I don't want this blog to become a stock pickers blog. My goal is to help educate the average investor so that crashes can be avoided and opportunities seized. Mastering general market conditions is a better way to accomplish this goal than cherry picking 23 to 1 market returns.
So, that's all I will say about options.
Please have good cheer in your hearts this evening!We had a great year, a splendid year
Happy New Year!!!
Wink
Standard Disclaimers
1. This blog is for educational purposes only.
2. None of the individuals associated with the Las Vegas TSP Investment Club are registered financial advisors.
3. This blog is not an offer to the public to buy or sell any stocks, options, commodities or futures.
4. You are encouraged to do your own due diligence and to consult with a professional financial advisor before making any investment decision.
5. This blog cannot take responsibility for the results of your investment and trading decisions.
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