Thursday, January 13, 2011

Diva... Wouldn't Want To Be Ya...


Moola to ya, Professors - and Happy New Year!

I'm blogging from my new apartment, and as usual, there's only one thing on my mind... forex.
Just in case anyone was wondering, over the past few weeks, I showed myself that principle is much bigger than moola and I earned myself some self-respect. To anyone else, quitting my job and moving back to my country (yes, the one that started the global economic fire) might be the worst move for anyone to make. To myself, it was a move I had to make regardless of cost. Now that I can respect myself, I have a feeling things can only get better from here and people won't have to secretly think: Diva, wouldn't want to be ya...

But who would have thought that C would end up being my destiny? C deserves a special mention today. C broke above $5 yesterday and managed to close above $5 for a second day, which is great news. I am starting to ask myself, does this position still make sense? This is one of my biggest (and best) positions. Whilst I didn't catch C at the ultimate all-time low, I did get in at a good enough level. I stocked up at around the $3 to $4 range throughout the crisis and now have a sizable position in C. C is the only major US bank that hasn't broken above double digit pricing yet, so psychologically speaking, it has some more upside. But, it makes up almost half my Roth IRA in value and I'm starting to contemplate selling part of the position - and not to get into penny stocks! I'm going to sleep on it... should I keep riding this?
One thing's for sure... I'm officially putting my penny stock strategy on hold - as in I'm not buying any more until I can prove that it works. I got into another penny stock several days ago and I'm not sure that was my best idea, but let's not be too judgmental, Professors. Even if this one doesn't work out, it taught me an important money management / positioning principle that may be applicable to other markets in which I trade. It may be a bit elementary to the Professors out there, but eureka for this little diva. Anyway, I got into Eastern Asteria (EATR) for $0.0001 per share. And I got into a full 1 million shares. Do the math on my risk. Hahaha... but in my diva opinion, if I end up selling it for a nickel, that's like a 5% profit on a $1 million trade.

Is it likely to happen? No, but could it happen? Anything can happen and the possibility of it going any lower (i.e. going to zero due to ceasing operations, filing bankruptcy, or whatever) is just as likely as it going higher. Here's why:

Based on my understanding, $0.0001 is the lowest possible price for any stock. After a conference call that happened in July 2010, Eastern Asteria stock has been on a steady downtrend. Basically, any possible news announcement from the company at this point would be considered good news - even if it's bad news. It had been selling off due to a lack of transparency and a news announcement is what I'm looking to trade with this stock!

1 Year High = 0.0015
3 Year High = 0.15

Possible price points to watch: 1 year high, breaking above its 1 year high and trying for 50% retracement of its 3 year high. Isn't that compelling?
After a beautiful rally that brought my Roth IRA back in the green, I ended the day:

-2.11% on the SBA
+0.11% on the Roth IRA

The Sultan, BCS, is starting to get alpha again and I'm going to view any pullback as a potential buying opportunity because I have a personal bias for the European banking sector to rebound in 2011. I think what's secretly happening is that money from emerging markets such as China and India will now move back into the US and Europe, but that's just my conjecture and who listens to ForexDiva? LOL.


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