Your Questions About Trading Strategies Momentum
Monday, October 31st, 2011
Thomas asks…
Large Cap Vs Mid Cap Stocks Momentum Trading. Any paper references to this strategy please?
I am trying to implement a long short model on world market indices. Any references to studies with regards to Large cap vs Mid Cap Long/Short Strategy employed by Hedge funds would be helpful!
admin answers:
You might want to give this web site a shot.

Susan asks…
Was this sent to the wrong person?
I gotten an email that landed in my junk mail. Read below
Special Situation Report?
From: karina montesinos olivares (karina_cool_9@hotmail.com)
You may not know this sender.Mark as safe|Mark as safe
Sent:October 19, 2009 6:07:49 AM
To:dancin_dan@hotmail.co.uk
Successful companies aren’t born, they’re made – and they have to work their way from humble beginnings and through the ranks just like everyone else. When it comes to our microcap stock investing, I’m in it to win and win big ? and that means the goal is never to hit less than a few 10-baggers in every microcap bull cycle. This week we’ve identified one microcap stock that is on its way to changing the game in its respective market, The Wyncrest Group, Inc. (Pink Sheets: WNCG – News), an innovative a niche insurance consortium. The company has six planned acquisitions that could catapult the company?s revenues to
$50,000,000.00 in 2010! The stock is currently trading at $0.05 and our near term target is $0.43. Load up on WNCG before all the trend chasers… and cash out while short traders continue tripping over themselves. Watch for big swings upward and momentum trading in WNCG as the stock continues to gain momentum and trade under the radar of the Wall Street traders.
WNCG is also in negotiations with several acquisition targets developed over an ongoing two-year campaign to find distressed agencies and consolidate contract assets under one lower cost platform. Through its Wyncrest Offshore Services Division, the Company is expanding into the growing offshore insurance and reinsurance market by offering a variety of services and products, including a liability program for helicopter flight training schools and non-owner helicopter pilots, and a line of Warranty Service Policies operating as a controlled foreign corporation. Royalty income is expected from licensing insurance products patented under a new category of business methods, a strategy taken only by a few in a new class of small innovative insurance companies leading the industry! Don?t let this super gem slip through your hands. – BUY
that dancin_dan@hotmail.co.uk isnt my email but is close to mine (dancin_danny@hotmail.com) so my question is, why was this sent to me? I sent the other dan guy an email and never said it was not delivered (failure email never came up as it usually does when the email address is wrong so this email does exist.)
admin answers:
It is an OLD SCAMMERs trick.
They hope it will “excite” you enough to do whatever they ask.
They deliberately SPAM millions of people.
They don’t need many to fall for it to keep doing it.
Please report them as SPAM and to the FCC.

Steven asks…
Investors / Traders that have been in the market for 10+ years?
Hi
My personal experience has been very bad, in spite of paying a lot of money and learning dozens of different strategies.
If you fit into the criteria listed (i.e. you’ve been trading / investing successfully for over a decade), i would like to ask if your ROI has exceeded the ^DJI over that time frame.
If it has, what kind of returns have you been making?
Honest answers please. Too many crooked salesman are out there making trading sound like a breeze. I’ve done a crap-ton of financial modelling, dcf, fcff, fcfe, momentum and trend trading strats and at the end, i realize now that it may all have been for naught.
I would know enough to conduct a seminar on financial modelling and technical analysis, but in the end, i would not believe in a word myself.
admin answers:
The 2000′s have certainly been a tough decade. My portfolio, is up some 50% for that time period. Not a ‘barn burner’, but considering the two brutal bear markets we went thru that decade, I am not too displeased. I pick the occasional stock(s), but for the most part, I am a mutual fund investor.
If you can not pick good stocks, use mutual funds. And then wait for the market (in general) to take you up.

Betty asks…
investing in premarket volume leaders?
Do alot of you use the strategy of looking for volume leaders in pre-market trading that have positive news developments and upward moving momentum.. getting in at a low price and setting a limit order to sell it when the price rises before or at the opening of the bell?
I’m curious as to how many investors use this strategy to make small profits.. One of my relatives made millions during the rise of tech stocks, but I have friends who have had losses as well.. so what do you pros do?
-RK
admin answers:
The relative who made millions in tech stocks had nothing to do with volume changes I’m guessing.
There are tons of different strategies, but the overall way that people make money swing trading is with a good plan and sticking to it and not letting emotions get the best of you. That is what matters more than the exact microstrategy.
Jeff
http://www.best-stock-trading-systems.com/trading_stocks_online.html

Nancy asks…
Your view on “Contrarian Investor Sees Economic Crash in China” (factual analysis appreciated)?
Following article extracted from NY Times, written by David Barboza, Friday, January 8, 2010,
James S. Chanos built one of the largest fortunes on Wall Street by foreseeing the collapse of Enron and other highflying companies whose stories were too good to be true.
Now Mr. Chanos, a wealthy hedge fund investor, is working to bust the myth of the biggest conglomerate of all: China Inc.
As most of the world bets on China to help lift the global economy out of recession, Mr. Chanos is warning that China’s hyperstimulated economy is headed for a crash, rather than the sustained boom that most economists predict. Its surging real estate sector, buoyed by a flood of speculative capital, looks like “Dubai times 1,000 — or worse,” he frets. He even suspects that Beijing is cooking its books, faking, among other things, its eye-popping growth rates of more than 8 percent.
“Bubbles are best identified by credit excesses, not valuation excesses,” he said in a recent appearance on CNBC. “And there’s no bigger credit excess than in China.” He is planning a speech later this month at the University of Oxford to drive home his point.
As America’s pre-eminent short-seller — he bets big money that companies’ strategies will fail — Mr. Chanos’s narrative runs counter to the prevailing wisdom on China. Most economists and governments expect Chinese growth momentum to continue this year, buoyed by what remains of a $586 billion government stimulus program that began last year, meant to lift exports and consumption among Chinese consumers.
Still, betting against China will not be easy. Because foreigners are restricted from investing in stocks listed inside China, Mr. Chanos has said he is searching for other ways to make his bets, including focusing on construction- and infrastructure-related companies that sell cement, coal, steel and iron ore.
Mr. Chanos, 51, whose hedge fund, Kynikos Associates, based in New York, has $6 billion under management, is hardly the only skeptic on China. But he is certainly the most prominent and vocal.
For all his record of prescience — in addition to predicting Enron’s demise, he also spotted the looming problems of Tyco International, the Boston Market restaurant chain and, more recently, home builders and some of the world’s biggest banks — his detractors say that he knows little or nothing about China or its economy and that his bearish calls should be ignored.
“I find it interesting that people who couldn’t spell China 10 years ago are now experts on China,” said Jim Rogers, who co-founded the Quantum Fund with George Soros and now lives in Singapore. “China is not in a bubble.”
Colleagues acknowledge that Mr. Chanos began studying China’s economy in earnest only last summer and sent out e-mail messages seeking expert opinion.
But he is tagging along with the bears, who see mounting evidence that China’s stimulus package and aggressive bank lending are creating artificial demand, raising the risk of a wave of nonperforming loans.
“In China, he seems to see the excesses, to the third and fourth power, that he’s been tilting against all these decades,” said Jim Grant, a longtime friend and the editor of Grant’s Interest Rate Observer, who is also bearish on China. “He homes in on the excesses of the markets and profits from them. That’s been his stock and trade.”
Mr. Chanos declined to be interviewed, citing his continuing research on China. But he has already been spreading the view that the China miracle is blinding investors to the risk that the country is producing far too much.
“The Chinese,” he warned in an interview in November with Politico.com, “are in danger of producing huge quantities of goods and products that they will be unable to sell.”
In December, he appeared on CNBC to discuss how he had already begun taking short positions, hoping to profit from a China collapse.
In recent months, a growing number of analysts, and some Chinese officials, have also warned that asset bubbles might emerge in China.
The nation’s huge stimulus program and record bank lending, estimated to have doubled last year from 2008, pumped billions of dollars into the economy, reigniting growth.
But many analysts now say that money, along with huge foreign inflows of “speculative capital,” has been funneled into the stock and real estate markets.
A result, they say, has been soaring prices and a resumption of the building boom that was under way in early 2008 — one that Mr. Chanos and others have called wasteful and overdone.
“It’s going to be a bust,” said Gordon G. Chang, whose book, “The Coming Collapse of China” (Random House), warned in 2001 of such a crash.
Friends and colleagues say Mr. Chanos is comfortable betting against the crowd — even if that crowd includes the likes of Warren E. Buffett and Wilbur L. Ross Jr., two other towering figures of the investment world.
Hi Cutie, good thoughts. Shouldnt all fortune tellers give a time frame of predictions ie telling that someone would become a billionaire in 2010 or in 20100?
Longlive, thanks for the valuable contribution, as always.
Mr Hex Vision, good points, cant agree with you more, adding to everything mentioned information and news are not so easily accessible by the locals which hindered local investors’ decisions wisely. Bottome line, when will the burst?
admin answers:
I love carnival fortune tellers. They are so marvelously entertaining with their predictions of the future. They read your palm or look into a crystal ball and make up an entertaining story. Most carnival fortune tellers charge $10, but this man hopes to make much more. Many people are excited about investing in China, while others are jealous of China’s success, so this man sensed an opportunity to make money by fabricating a fortune telling story about China.
No one can foretell the future. Anyone who claims they can see into the future is either an entertainer (fortune teller), financial opportunist (stock manipulator), or insane. Since this man is a hedge fund operator, isn’t it obvious that he is trying to spread negative rumors about China in an effort to briefly create a buying opportunity for himself in Chinese stocks? Because he actually believes China has a great economic future?
Your article says this man lives in New York, but he predicts the future of a distant country that he knows nothing about. That’s like my voodoo worshiping maid who has claimed for 22 years that the Moon will split in half. Her name is Bong Bong, but her friends call her Bong. She foresees the future all of the time, but none of her predictions ever come true.
Sorry to burst your bubble of naivete, but when someone on Wall Street opens their mouth it is for the sole purpose of enriching themself. People lie all of the time. No one can foresee the future. In other words, this fortune telling man is a fraud.
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I have been learning about currency trading for a couple years now. I plan on investing in the short term, but I'm afraid of currency trading can be regarded as sugar or anything that could be regarded as sinful. I know Christians who trade or something that is included in the trade, but I do not think I should do as they do simply because they are Christians and therefore right. I can not offend God. I hope I can get serious answers. Thank you in advance for your help. May God bless you all. I think I found an answer. My parents are very strict, fundamentalist Christians and the foreign exchange trading. . If they do something, I guarantee not a sin, or they'd be undone now. . Trust me.






