High Heeled Traders
  • Contact email: charmel@highheeledtraders.com

Girl Power Trading

Long-term investing is popular, but does it work? When I started to invest, my primary objective is to get out of the “rat race” — waking up, going to work, eating, sleeping and do it all over again. I had a very good job in IT back then, but we have to work long hours, often having to meet deadlines (like, yesterday!) so the stress has affected my health, I couldn’t fall pregnant for 4 years! That clear objective helped to shape my strategy thus I avoided “long-term investing” and instead went for income investing where I make sure I have money coming in monthly, make sure that I grow my capital and skillset steadily, which lets me invest more and increase that income! The best part, with the skillset, you can even get to use “other people’s money” — yes the banks or brokers let you invest with “margin or a loan”. The goal has always been to replace my income from my job and have more time to raise my children and other projects I want for myself.

You see, it all starts with desire. What do you want in your life, most brokers or “stock investing education” neglect this part of investing education because well, they just don’t have to. It’s beyond what makes money for them … AHA!!! (All they have to do is make you buy or sell and they make money either way — they don’t have to bother!). Yes, sadly …. this is why I share about goal-setting, which is the reason why you are investing in the first place. Oh yes, sounds simple ,,, but no! Done haphazardly, it’s not going to get you anywhere. “I want to make a lot of money” is not only vague but after a while, it does not motivate you anymore.

GOAL-SETTING is discussed in my workshop. “Low-Risk High-Reward Investing Workshop”
happening on April 25. For many, vague goals are stopping them from making more profits, they can be “psychological barriers” that you may not even be aware of, so join our workshop to get clarity on this!

Here it is again “Low-Risk High-Reward Investing Workshop”
There will be webinar version of this for people who can’t make it to the site. Keep posted and email me at charmel@highheeledtraders.com for details.

In goal-setting – we start by doing an inventory.
> Where are you right now — assess your current financial standing : assets, income, debts
> How much capital do you have available, a portion of that for risking eg, 100,000 total capital to be spent but 20,000 only for risking (amount you can afford to lose)
> What are your skills? Are you computer literate, good in math, what industry do you understand or are you interested in? (technology, finance, industrial, mining etc)
> How much time do you have for studying, creating your business plan, timeframe you want to invest, monitoring your investments
> What is your temperament – are you action-oriented, do you like to think and ponder about things, take things slow.

The beauty of investing is that it can be done in a way that suits you. In the book “Market Wizards” all these traders cite different strategie but the singular thing that works is that “they invest as it fits them”

Goal-setting is your compass, your GPS (and soon to be Apple Watch! :) ) , it basically gives you direction on your trading. Avoiding the wrong path so to speak. Make sure you make the right moves. Without the goal/s you will be led by anything that, suggested frequently enough will make you think that is the norm or only way to do things. Your goal is ultimately what you want in your life that makes you happy and productive. So think long and hard about that. Get into the details ,,, what you can see in your future, taste and smell!

Meantime, here’s my video on my take on Long-term Investing. Enjoy!

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That popular stock or even AAPL you bought may have been sagging with the market last week. How are you feeling? I wasn’t happy about it but thank goodness I was busy last weekend with a class reunion and a road trip with my kids, I come into the week with a fresh perspective… looking at my investing at a different angle. One of the keys to investing is to know when you are WRONG about the trade or the investment, meaning the investment is not working out. Yes, one of the pitfalls of investors is to insist upon the market what they think is right. It’s painful to admit you are wrong, but to take the “pain” away, know that the market will do whatever it wants to do, and it’s best to just get out if your maximum allowable loss or “stop” is reached.

On my side, my different perspective on my investing is to do more of the position-trading style (that I’ve been doing for years) instead of purely day trading which I thought I’d do since it’s summer vacation from school. I’ve been much more successful with the short-term (2days to 1 month) timeframe and definitely fits my lifestyle as a mom. So AAPL sagged last week, if I was day-trading I would have to cut the loss on it several times, but with position trading which has a wider stop, it’s more relaxed, I slept while the stock was down and woke up at an advantage.

Volatility is definitely in season, so keep in tune with the market and know how to manage your risks to make a better investment decision. Many point to the Europe distress over Greece however the market has started getting Earnings reports in the US and many read it as positive in the wake of banking stocks reported better earnings. The economic reports so far point to a not-so-hot-not-so-cold “goldilocks” economy. So there’s definitely the interpretation that there won’t be a rush to raise interest rates. Of course we have no control over how other investors would react, and that is why we need to focus on managing our risk. I will be focusing on this topic in the “Low-Risk High-Reward Investing Workshop” that I will be leading on Saturday April 25. Details here.

I will be holding a webinar version of this since many are moms and it is best where they can learn at their own time and comfort of their homes. So do watch out for that.

I will also be a speaker at an invitation-only event organized by the Philippine Stock Exchange in May, so keep posted I may be able to bring some of you as my guest.

Meanwhile, here again is the link to my workshop “Low- Risk High-Reward Investing Workshop” where you can get cutting-edge market ideas to give you a different angle that produces results.

Get a new perspective

http://www.bloomberg.com/news/articles/2015-04-19/world-braces-for-taper-tantrum-ii-even-as-yellen-soothes-nerves

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Supermodel Gisele Bundchen and me really do have a lot in common :) . We think along the same lines. She did her last catwalk last night and it was great to read about why.

Respect

“I don’t see how to continue (modeling on the catwalk) … and stopping will leave room for other projects I have for myself. Automatically my body tells me if what I do is worth it, and it asked to stop. I respect my body, it’s a privilege to be able to stop,” Bundchen explained in the Folha de Sao Paulo newspaper interview. (Article here) She “has said she wants to spend more time with her family.”

For me, as I’ve been doing more trading in the US markets which is night-time in my side of the world, I was working along the schedule of my children’s schooling. Now that they’re in their summer vacation, I thought it’s time for me to step up and do the “all-nighter” trading that I was envisioning will capture more opportunities, hence more profits. I made it a priority. However, my body had other ideas. Much as I tried to reserve my energy and eat healthily, I just feel that sleepiness catches up with me and I may stay up till 1pm but not successfully making the decisions that need to be done because my mind’s reaction time is just not up to it.

And PLEASE, don’t binge on sugary food, softdrinks and coffee to stay “alert” .., chemically, sugar is glucose, when the glucose level rises in the body too quickly, the pancreas secretes insulin, which then drops the glucose level. This insulin makes the muscles absorb the glucose faster. So excess sugar is absorbed quickly by the muscles, and converted by the liver, leaving no energy source to your brain. Google might not have told you that!

It also meant, I wake up later than my children (and my son is an early riser, fends for himself, eating cereal or bread and plays computer games!) I also get easily cranky. So my soul is suffering, because instead of nurturing them lovingly, there was a lot more “tough love” (LOL). OK so that didn’t go well, and I knew that it was wrong “trading plan” for me, I had to, as Giselle said, respect my body and spend my time with my children, who give me the greatest joy and inspiration. Investing profits were also minimal because I was prone to making mistakes, becoming too stressed out and mentally sluggish. Not happy!

I began to concentrate on the early / opening times for trading which for 2 hours or so provides me enough opportunity and profit anyway to keep on doing this business. The schedule and activities is just a better fit and enables peak performance. As Dr. Van Tharp’s research has proven “trade as it fits you”, so trade with your body and soul in mind.

Happiness and abundance!
Charmel

http://www.reuters.com/article/2015/04/16/us-brazil-fashion-gisele-idUSKBN0N70UO20150416

http://abcnews.go.com/Entertainment/tom-brady-pens-note-gisele-runway/story?id=30360372

http://www.cnn.com/2015/04/16/living/gisele-bundchen-final-runway-walk-feat/index.html

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Hold Me,,, Hold Me

April 10, 2015

Let me see you move! Apple iWatch available for pre-ordering online 12:01 Pacific Time is going to potentially make investors nervous. Or happy, depending on how this day or weekend goes. Analysts have already come out with reviews, most of them pointing out the “wearability” is not so good if you have to give a more vigorous shake of your hand to get something done. Others are concerned about the battery life. The other day, a rare downgrade from Buy to Hold was given which dragged down the stock price a bit. However, investors shook that off yesterday, possibly in anticipation of the pre-ordering. Besides, if AAPL or the Watch is so bad, why is it inspiring much competition? At the end of the day, this is a new product that is revolutionizing the industry (maybe even later on, the world). I would probably be In and Out when there is volatility, but you could do no great damage holding this stock. If you haven’t got it and the price is volatile, wait it out and get a confirmation on the trend up before buying. By the way, as far as value goes, the PE is still at a very desirable 16.92. If stock moves lower, it get’s to be a bargain-hunter’s delight so it’s probably not going to stay down for long. Observe how the stock moves down, AAPL moves around 2-3 days trend and back up it goes. That’s been my experience for a lot of my trades, bearish positions are losing if not offer little profit compared to the bullish positions in this stock.

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Banking on Winners

April 7, 2015

Welcome to a new Earnings season! This week we are low on economic report – just FOMC minutes out on Wed – but heavy on company news with the Earnings season trickling in with Alcoa reporting after the close on the 8th, then some banking stocks follow shortly. Guess what, banks are being reported as big winners this quarter. In layman’s term, the banks it got it so bad already it couldn’t be worse! Dow Jones Newswires reports “The long-term bull case for large U.S. banks is that with the bulk of the major regulatory settlements behind them, the continued growth of the U.S. economy and a brightening picture for net interest margins over the next few years, earnings and valuations may rise big time.”

Also not to forget AAPL will start to take orders by April 10th, and there has been analyst projections that they could sell 1million AAPL Watches by this weekend. That would be news worth watching for.

Which you may or may not believe. As for me, I am keen to believe about the brightening growth and supported by the high level of Consumer Confidence reports, so I would say I would keep with financial stocks like Visa and MasterCard that keep the payments going but don’t fork out money themselves (whoever invented this business is genius!).

On the other hand, AAPL is starting to get orders for AAPL Watch by Apr 10 with 1 million projected for the weekend. Now I’d be watching that!

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I know, the last few days have been volatile and opening minutes of April 1 stocks have been falling, for investors this could be the perfect time for bargain-hunting, BUT given the unsteadiness of the market with the rate rise and we are allowed to question is there there any good investment. If there is anything to pick up, might as well those with “sure money” in the form of dividends right? I’ll have some of that. Here’s a great list from Dow Jones Newswires that mainly discuss Tech stocks — they argue that technology sector “has a solid free cash flow margin of 21.3%, along with an average free cash flow yield of 6%, which he said is significantly higher than the average of 3.6%.

We pared the list to 20 tech stocks with market values of more than $500 million and dividend yields of over 1%, with the highest “headroom” for dividend increases, based on their free cash flow over the past 12 months:

Company Ticker Closing price – March 30 Free cash flow per share – last 12 months Free cash flow yield Annual dividend Dividend yield “Headroom”

Computer Sciences Corp. US:CSC $66.45 $9.07 13.64% $0.920 1.38% 12.26%

InterDigital Inc. US:IDCC $51.26 $6.20 12.10% $0.800 1.56% 10.54%

Seagate Technology PLC US:STX $53.08 $7.21 13.59% $2.160 4.07% 9.52%

Xerox Corp. US:XRX $12.84 $1.46 11.37% $0.280 2.18% 9.19%

Corning Inc. US:GLW $23.24 $2.59 11.15% $0.480 2.07% 9.08%

EMC Corp. US:EMC $25.52 $2.72 10.66% $0.460 1.80% 8.86%

Science Applications International Corp. US:SAIC $55.70 $5.91 10.62% $1.120 2.01% 8.60%

Leidos Holdings Inc. US:LDOS $42.24 $4.89 11.58% $1.280 3.03% 8.55%

Hewlett-Packard Co. US:HPQ $31.57 $3.38 10.70% $0.704 2.23% 8.47%

SanDisk Corp. US:SNDK $64.98 $6.24 9.61% $1.200 1.85% 7.76%

NetApp Inc. US:NTAP $35.38 $3.30 9.33% $0.660 1.87% 7.47%

Insperity Inc. US:NSP $52.80 $4.70 8.90% $0.760 1.44% 7.46%

Lexmark International Inc. Class A US:LXK $43.13 $4.65 10.79% $1.440 3.34% 7.45%

ManTech International Corp. Class A US:MANT $34.01 $3.29 9.66% $0.840 2.47% 7.19%

Marvell Technology Group Ltd. US:MRVL $15.18 $1.28 8.40% $0.240 1.58% 6.82%

Apple Inc. US:AAPL $126.37 $10.26 8.12% $1.880 1.49% 6.63%

L-3 Communications Holdings Inc. US:LLL $126.69 $10.95 8.65% $2.600 2.05% 6.59%

Teradyne Inc. US:TER $19.11 $1.49 7.81% $0.240 1.26% 6.55%

Brocade Communications Systems Inc. US:BRCD $11.79 $0.87 7.42% $0.140 1.19% 6.23%

Western Digital Corp. US:WDC $92.93 $7.78 8.37% $2.000 2.15% 6.22%

Source: FactSet

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And while the markets are falling with some of your holdings, take a deep breath, relax and listen to this!

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Predicted a downtrend a couple of days ago and here it is! Yesterday’s fall was just spectacular my bargainista friends must sure be excited. But hold on to your wallets, it is getting cheap, but could be cheaper! Checked Apple’s PE and it’s standing at 16.62 around the same as Microsoft at 16.73. At this stage in the market, with the quarter just about to end even with US GDP being reported tomorrow we have to consider that there’s about 2 weeks days to go before the Earnings pour in, so expect volatility and it looks like we got a lot more trip down the slides. Apple’s PE was around 13 when they reported their Earnings last quarter so my short and sweet tip for today is that there’s going to be bargains galore but it hasn’t hit the floor…. Wait up for the next quarter earnings to roll in (Around Apr 8) for the first major company Alcoa … before you really go shopping for the bargains. For those who want to get the brainwork that leads to my market predictions, join my webinars and workshops, email at charmel@highheeledtraders.com or keep posted in this blog!

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Going Bananas

March 20, 2015

What a relief! US Fed had been listening to me :) and decided, rightly, that it’s not time to raise rates given the weak inflation and penny-wage growth. Now, understandably a lot of investors are cheering that on (because borrowing money is still cheap and companies / households can borrow cheaply), but as yesterday’s market indicated, not everyone is staying excited with US stocks and if you can take a step back and look wider in the global financial universe, they are saying US is good but Europe is better, and sending funds flowing over there. Why this happens is explained in my Low-Risk High-Reward Investing Workshop and webinar series coming up in April. Email charmel@highheeledtraders.com to signify your interest!

Mainly, they say European stocks are cheap after the hammering they got last year due to low-growth almost recessionary era, but now with massive US-inspired QE unleased by the European Central Bank, everyone is hoping that it will follow that the economies will also grow and there’s that pull of “bargain buying” (just ask women how difficult it is to leave a shoe sale!), plus of course the promise of growing earnings from growing economies. So do have a read on why possibly “Everyone Hates US Stocks”

For me, the stock to beat is Apple, you’ve heard the news of Apple Watch, Apple TV services bundling cable channels, Apple Pay – all new product lines that will usher in earnings. If you like bargain hunting, prepare for the next two-three weeks when we transition to the next earnings season. AAPL now still valued at a fair PE 17.18 but could go lower, so my strategy now is to quickly take profits with any long position, to make sure I’ve got the cash for cheaper prices.

I project that it will be volatile with the tug of war between high valuation, weak data (Housing) and CPI and Friday next week we get the GDP reading in which investors could do the “bad news is good news” routine.

And yes, challenges make life exciting, watch this challenge to Apple Watch:

http://www.bloomberg.com/news/videos/2015-03-19/how-tag-heuer-will-create-a-smartwatch-with-google-intel

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Apple Shake

March 13, 2015

Still buzzing with Apple Watch? No? After the stock plunged to horrible depths so quickly following its launch I won’t blame you if you have second thoughts about the success of Apple (AAPL). But let me just say, if you have observed the wider market, it is going on this volatile period (again!) as we are ending the earnings season and so the love-hate relationship is not just on AAPL. Looking forward, big week with the Federal Reserve Open Market Committee (FOMC) meeting that may or may not talk about raising the interest rates. Jobs are definitely growing in number, but the wages are not. There is also the inflation, retail sales, housing and manufacturing weakening, so FOMC if you’re listening to me, no rate rise yet please. :)

Yesterday, it looked like the market has fallen out of love with AAPL and soon after the open the price dipped early to 121.63. I was wondering at that time if it is worth the risk and with the other major indices being green, it is always wise to confirm that the selloff is already confirmed to reverse, I know this could be tricky to gauge by “how much”, you have to study the volatility of the stock on a very short time periods, my low-risk idea, would be a price recovery above yesterday’s closing, you enter provided that there is still that 2-3R reward that is worth the risk. I show this in my live-trading webinars so I do hope you join the next runs. Email charmel@highheeledtraders.com to sign up.

If there is one thing about AAPL, it is continually growing, BUT it is a VERY profitable company. Just look at the Price / Earnings ratio which at $124.45 yesterday is 16.77 (so at the day’s low it would be around 16.30 or so) — few would boast that kind of value. So for those fearing the worst about AAPL, shake it off! The market may be falling fast but it will be a buying opportunity for those with volatilility-based systems and robust business plan. Today, US consumer sentiment will be reported at 10am, following the inflation-related Wholesale / Producer prices that looks like bad news (not much inflation > but good news for those who want to delay the interest rate hikes) it looks like another swingingly volatile day. Enjoy the ride or if you’re a newbie, stay out of it, paper trade or only put very small positions to get the feel of the market.

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Watch It!

March 10, 2015

To celebrate International Women’s Day I’d like to invite you all to Like my Facebook Page and get the free 100-page preview eBook of “High Heeled Traders” For those who already have the book, send me a message through that Facebook page so I can give you the updated Trading Procedure so you can get started right first time!

As I am writing this, there is a tense wait watching out for the “Apple Watch” launch in San Francisco 10am Pacific — it’s easy to be carried away by the hype or the bashing, but the truth remains that
1) this is an all-new product category (in the world!) that even I, a confessed-non-watch-wearer am excited to wear! It is a feature-rich watch that will help with everyone’s health, help with instant and fun communication
2) The range in the teasers is quite extensive, covers a lot of markets with the external designs, from the gold edition for the parents, to the sporty teener type, down to what looks like a Mickey watch for the kids. Plus it all needs an iPhone, so now all of the family needs to upgrade!
3) Apple Pay will be included as a feature and this is a new revenue stream as well for Apple.

Stock moved up early today, but half down from it’s peak, it’s good for short-term traders to get in again at another entry opportunity.

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