In this episode we speak to Reg Ogden of Canaccord Wealth Management about trading stocks of gold producing companies, the importance of choosing the right advisor and on finding the most important information to make a trading decision. Enjoy!
Trader’s Lens Episode 4: Investing Tips With Jim Letourneau
In this episode we speak to Jim Letourneau of the Big Picture Speculator about getting the most out of investment conferences, researching stocks and avoiding getting slaughtered in the market. Enjoy!
Trader’s Lens Episode 3: 8 Tips to Successful Trading for Beginners by Danielle Park
In this episode we speak to Danielle Park of Venable Park Investment Counsel and jugglingdynamite.com about some of the hazards of starting out in the markets, important trading rules and spotting and avoiding bad investment advisors. Enjoy!
The 2012 World Outlook Financial Conference
When: Friday February 10th (5PM to 9PM) and Saturday February 11th (9AM to 5PM)
Where: Westin Bayshore Hotel, Vancouver BC
How Much: $25 for Students (with valid Student ID); $119 General Admission
Description:
The 2012 World Outlook Financial Conference is another in a series of regular events hosted by Michael Campbell, a well known figure in the Canadian investment world, most notably for hosting the radio show Money Talks. This conference will feature some popular analysts giving their opinions and perspectives on market conditions and investing ideas. To find out more information or to register online go to:http://moneytalks.net/2012-world-outlook-financial-conference.html
Trader’s Lens Episode 2: Trading Tips From Tyler Bollhorn
In this episode, Tyler Bollhorn, founder of stockscores.com, offers beginner traders some great insights as to why trading is so difficult, how to choose a great trading coach and also the difference between good traders and great traders. Enjoy!
3 Tips On Getting The Most Out Of An Investment Conference
Sepi from Sparx Trading gives 3 tips on how to get the most out of an investment conference.
Trader’s Lens Episode 1: 10 Tips for Beginner Investors From Ian Campbell
Listen as Ian Campbell, founder of stockresearchportal.com gives 10 important tips for beginner investors to think about before entering the stock market.
Sugar and Spice, and Everything Price, That’s What Markets are Made of
Most people know of a co-worker, a friend or even a family member who is actively involved in the stock market – maybe that person “made a killing” or “lost their shirt”. The greatest feature of the stock market is also its greatest hazard: namely that anyone with capital can participate. One of the biggest advantages that great traders have over beginners is that great traders understand that a market is actually an arena of opinions and beliefs.
In this article, we want to expand upon the idea of markets as competitive arenas. Specifically we want to show you that when thinking about trading, it is very important to understand that price is just a reflection of beliefs about a particular stock.
Pick a price, any price
In one of our previous articles, we described the market as a “price discovery mechanism” – that is, through the actions of buyers and sellers of a good (in this case a stock), the market price of that good can be established. In the highly complex world that we now find ourselves in, money – or more accurately purchasing power, is critical to keeping the world going. Having a mechanism to ensure we know how much ‘things’ are worth is absolutely essential to allow people to exchange the right amount of money for those things.
When you see a price quoted for a stock, it is actually slightly misleading in the sense that it leads you to believe that a stock has only one price, when in fact the price for a stock could be one of three prices. In stock trading language, the price a buyer wants to buy at is known as the “bid price”; the price a seller wants to sell at is known as the “ask price” and the price they ultimately settle on is known as the “last price”. It is the “last price” that is often quoted as the “market price”.
Vancouver Resource Investment Conference 2012
What: Vancouver Resource Investment Conference
When: January 22nd – 23rd 2012 7:30am – 6pm
Where: Vancouver Convention Centre West, 1055 Canada Place, Vancouver, BC
How Much: Free (if you preregister otherwise $20 at the door)
The Vancouver Resource Investment Conference, hosted by Cambridge House International, is a great event to attend to learn about mining and resource sector focused companies. It is one of the larger resource oriented conferences in Canada so there are usually numerous mining companies of all sizes in attendance as well as other resource sector and investment oriented companies. In addition to all of the different companies, there is a great lineup of very interesting speakers and panelists who will be discussing their opinions on a wide variety of important economic and investment issues. A new addition to the conference this year will be a free “Investor College” aimed towards beginner or novice investors. Hope to see you there!
To find out more and to register, you can click on this link: http://cambridgehouse.com/conference-details/vancouver-resource-investment-conference-2012/54
You can also click on the video below to see a great little commercial they’ve prepared for the event.
A falling knife in real time
Today was a great opportunity to witness the raw power of stampede for the exit on a stock. Focus Media Holding was at the centre of a report released by controversial investment firm Muddy Waters alleging fraudulent business practices. This is the same company that has made headlines in the past by obliterating stock prices of the companies they feature. Because Muddy Waters usually sells short (e.g. they take a bet that a stock is going to fall in price) many of the names they feature, if the stock drops they stand to profit.
While not illegal, it is controversial. Muddy Waters has exposed several cases of improper or fraudulent activity from Chinese companies listed on American and Canadian stock exchanges (such as Sino-Forest – to read more click here). While some of these claims have turned out to be true, others have been refuted. Regardless, what happened today with a stock price losing over 50% of it’s price in less than 30 mins in the middle of the trading day is not something you typically get a chance to see.
Even though the video does not have sound you can see how quickly the prices fall (this video catches the sell off into the day low) and that anyone trying to get a “bargain” at $12 ends up having to ride this stock well down underneath $10 and not really knowing how much further things will go. This kind of falling stock is usually called a “falling knife” because even though the price is dropping, trying to catch it on the way down can be very dangerous. One of the scariest moments if you own/trade a stock is when the stock exchange intervenes and halts trading activity because it’s really anybody’s guess as to what happens next. Luckily for FMCN shareholders this halt was lifted and trading resumed about 10 minutes later only to be halted another time as the price rose dramatically from the day low.
The take home lesson: even if you do your homework on a stock, there are opinions out there that can move the perception on what something is worth. When opinions go negative though, the results are often dramatic, emotionally driven drops in price and stampedes for the exit. Markets always try to “price in” (i.e. factor in the ‘cost’ ) certain scenarios and this video shows you how fast and volatile that process can be. Enjoy!