Comments on Crash Market Stocks - Financial Tips On Making Money In The Stock Market: Making Money From Rising Interest Rates

James, Hindsight is great, and yes much of what I ...

2010-03-10T11:21:21.179-08:00

James,
Hindsight is great, and yes much of what I felt was going to transpire the past 12 months, has not, but by no means does that mean that the bad days are behind us. First of all, when trading it is always to wise to trade with stop losses, especially in very volatile times. From this, I was able to minimize my losses and patiently wait for better entry times. Well, that waiting has been extended much longer than I orginially anticipated.

The government changed the game entirely. Im not saying they fixed the problems, they have done a great job of concealing them at this point. I am still very much on my toes and am still expecting another leg down. Sure, I have had a mediocre 8 months, but I had an amazing 3 years prior to that. I haven't even come close to eating into those gains.

It is never my intention or goal of this site to influence your own trading decisions. I present my personal belief and my personal moves in my own portfolio. If you feel strongly about something happening, then go with it. I don't always disagree with Cramer. He just has the fortune of being able to shoot his shows a day later then he says. Exciting things are to come with this market...stay tuned.

Correction the gains would respectively be +151% ...

2010-03-10T04:11:28.839-08:00

Correction
the gains would respectively be
+151%
+51%
+81%
+1035%
+250%
+163%
But yeah one gets the point. hindsight is a bitch but it’s a bigger slap in the face when knowing that doing nothing by just keeping the stocks I owned would have sealed my fate into those gains. I followed everyone who was a critic of Cramer at that time calling him crazy. But Cramer was right, the market did rebound, and he was right that fateful October monday when he said the markets would lose 22% that week and they did. From now on, any time he comes on national TV for an announcement, I’m going to listen

Here it is, 1 year later From Mar 10 2009... And ...

2010-03-10T03:54:32.752-08:00

Here it is, 1 year later From Mar 10 2009...
And looking at what the stock picks that day are worth today:

SRS- Low 7’s
FAZ-Low 17’s which is actually $1.70 before the inverse 1/10 split
EEV-Low 10’s
QID-High 18’s
SDS-30s

If anyone stuck with these stocks they would need 100-2500% return just to break even. I’m worried about that newbie jumping in SRS at $40... sure hope he didn’t. I’m not mocking anyone here- I’m just saying this was the worst advice FF had ever given. I will admit from October to March5th FF was godlike. He was right 9 out of 10 times when it came to market situations. Then when an obvious rally was taking place he announced NOT to take the reins and ride the profit wave. In the beginning the only thing that was evident was a market rally and thats all I wanted to capitalize on... My long term trades were suppose to be AAPL, BRK.B, GOOG, LVS once a bottom was established, which I was a strong believer anything below 7000 was bottom enough for me. My beliefs were skewed by everyone else’s negative sentiment. I even wanted to invest in BAC and C short term when Meredith Whitney was saying banks will have a good strong quarter. All my thinking resulted in head shaking and laughter because those decisions I wanted to make were more than foolish apparently they were hysterical.
The problem is that no matter what happens in the future, these predictions will still be 100% wrong because of one major thing. They lose value over time. Buying 1 or 2 year puts on these puppies are anyones best bet on making an honest buck as long as the puts aren’t priced too high.

My picks on march 10 would be worth this today:
AAPL- 88.62/208.85 135% Gain
BRK.B- 55/81 47% Gain
GOOG- 308/541 76% Gain
LVS- 1.66/17.11 933% Gain!
BAC- 4.79/16.46 243% Gain
C- 1.45/3.40 134% Gain

Bottom line the only person I can blame is myself. To be honest I actually owned shares of BAC, C, AAPL, and LVS in early March but after reading FF’s comments and other doomsday scenarios I couldn’t sleep at night. I kept telling myself that when the market breaks 7000 (or basically erases 10 years worth of gains) there can’t be a better sign to get in. My own voice was overshadowed by hundreds of others, most with PHDs in finance and have been in the market for years shouting from every corner not to listen to the government talking heads and that we are nowhere near the bottom. We must remember that our government is here to help us and try with all its might to avoid catastrophe. If disaster in the market hits some time 1 or 5 years in the future at least I would have already made my profits and used them to purchase several undervalued properties around the world that would be appreciating in value. But that is just the sound of me venting, losing 50% during the largest market rally in recent times instead of nearly 200%. I’m sure there are many in my boat...