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in the MONEY Magazine - Volume 1 - Issue 8 - June 2015 - Page 1
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From the DESK OF THE CEO
Table of CONTENTS
Don’t Overlook Attitude
Learning how to advance in life
takes the proper attitude. If you attempt to change or transform your
life without taking the proper approach or adopting the correct attitude, you’ll be wasting your time.
When it comes to making changes,
attitude is everything.
Vol. 1, Iss. 9 - Week of June 1st, 2015
Pg. 5................The Outlook is GREAT
Pg. 6................Wanna’ go to VEGAS?
Pg. 10 .............FEATURED ARTICLE:
The Ten Commandments
of Option Trading
What defines a good attitude?
Here are a few things that can make a difference and help you
make the transformation from having a poor attitude to having a good attitude. Look at these ideas and examine yourself.
Do you need to make some changes in your own life and improve your own attitude before you are able to seize the day.
Pg. 16..............Coaches Corner - Setting Goals
Recognize that a change needs to occur. You have to see that
your attitude needs to be improved. Sometimes you don’t even
recognize that your attitude has become poor. Often the slide
occurs over a period of time and can be attributed to many
factors, such as boredom or lack of a challenge. Recognizing
that you need an attitude adjustment is the 1st step on the road
to attaining the proper attitude you need for personal growth.
Pg. 24..............Don’t Be Dazzled
Believe that change is possible. You must believe in your own
self. If you don’t believe in yourself, how can you expect others
to believe in you? Self-assurance and self-belief can be a big
part of helping you learn to take the proper attitude. There’s
an old saying: “If it’s to be, it’s up to me.” You must believe that
changes are possible.
Pg. 36..............Can we Just Be Social?
Forget past failures and negative experiences. Don’t dwell on
your shortcomings or you’ll never have a good attitude. We’ve
all failed, but if you can forget about those instances you’ll be
able to progress faster and have a better attitude. If your mother ever said “Can’t never could,” you’ll understand what she
meant. If you have a negative attitude, you’re already behind
the eight ball before you can even get started.
Monday - Thursday:
8:30 am - 8:30 pm EST
Stop criticizing yourself. This goes back to the previous
point. Don’t beat yourself up, it only serves to worsen your
attitude. Let it go and focus on the positive points. Admit when
you were wrong or made a mistake, but quit harping on it.
Pg. 18..............Explore ESIGNAL
Pg. 21..............Market Trends
Pg. 22..............Sharpen Up Your Networking
Pg. 26..............Pot on the Market?
Pg. 28..............Basic Indicators
Pg. 33..............The Laughing Stock
Pg. 34..............Upcoming Events
Pg. 38..............Earnings Report
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Friday:
8:30 am - 5:00 pm EST
InTheMoneyMagazine.com
Editor: Stan Awtrey
Art Director: Glenn Chandler
Webmaster: Stephen O’Neal
Have a positive vision for the future. Look on the bright side
and see the possibilities. If you have a positive vision, you’ll
be able to adopt a better attitude. It’s easier to get things done
when you embrace the positive. It can help your attitude improve and enable you to be better equipped to succeed.
Happy Trading!
Bill Corcoran
Bill Corcoran
President and CEO, BetterTrades
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in the MONEY Magazine - Volume 1 - Issue 8 - June 2015 - Page 3
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BetterTrades.com/MarketOutlook
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T
he Biblical Ten
Commandments
are intended as
a set of rules
for living
successfully.
If we follow them, we have an
easier life. If we break them, then
things have a tendency to go
wrong, sooner or later.
Hasn’t everyone experienced
what happens when we break the
rules of living?
I’m sure you’ve discovered by
now that there are rules for trading stocks and options, too, and
breaking them may mean serious
losses.
This article aims to focus on
what I feel ought to be the Ten
Commandments of options
trading. You may have read or
heard about most of these before,
but I think it’s useful to have them
all addressed in one place. I want
to discuss them briefly to give you
a better understanding of what it
takes to trade options profitably.
No. 1: Thou shalt have a plan
I have spoken to hundreds of traders and most of them do
not have a real game plan for trading options. I found out early
in my trading career that having a clear and concise game plan
was critical.
As the great New York Yankees catcher Yogi Berra, the king
of the malapropism once said, “If you don’t know where you’re
going, you’ll end up someplace else.”
This is the first commandment when it comes to trading the
stock and options market. If you take care of creating your
gameplan fully and keeping to it, many of the other facets of
trading will take care of themselves.
A solid trading game plan should include things like:
Your goal: This can be expressed in many ways: how many
trades you’ll target per day, week, or month; what percentage
of trades you expect to be profitable (hint: don’t expect 100 percent); target percentage return per trade; and your overall profit goal for a particular time frame (month, quarter, year, etc.).
Often you can work from larger goals to smaller ones, or vice
versa. For example, if you want to make $60,000 this year by
doing five trades per week, you’ll need to average $5,000 per
month and about $240 per trade in 50 weeks of trading (you
deserve a vacation, right?).
Remember to be realistic when you set those goals. Small steps
over the course of time lead to big advances in your knowledge.
You can’t expect to learn everything at once, so don’t force the
issue.
Your trading time frame: How long do you want to be in
trades? Are you more comfortable trading LEAPS that may
take weeks or months to hit your exit price, or monthly covered
calls, or do you watch your trades closely enough to be in and
out in days or sometimes hours?
Whatever your style, factor it into your gameplan. For example, if you do LEAPS, you may not be able to count on five
trades a week as outlined above.
Your exit and entrance points: This is the basic principle
taught at the BetterTrades First Step and Next Step classes, but
emotions will get in the way when you are in the trade.
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in the MONEY Magazine - Volume 1 - Issue 8 - June 2015 - Page 11
It’s too easy to get into a trade without a defined
exit point, saying “I’ll just go for a dollar or two
and get out.” You need to set -- and stick to -hard and fast rules for your exits and entrances.
These rules are never to be broken!
Your risk capital: When you go on vacation
you set a certain amount for your vacation expenses, and you manage that amount so it doesn’t
run out before your vacation is over, right? You
should approach your trading the same way.
It can be tempting to deposit more money
when a deal comes along that you can’t quite afford, but stick to your trading budget. That’s what
paper trading is for. If a deal is indeed too good
to pass up, look at closing another position to
free up capital. Never trade with money you need
for monthly expenses.
Your favorite technical indicators: Don’t try to
track every technical indicator you’ve ever seen.
Try several in paper trades, then choose which
ones support your trading style.
You may find moving averages more useful
than trend lines, or the other way around. Avoid
using so many indicators that you can barely see
the stock price on your charts, but be flexible —
the key trait of successful traders is the ability to
adapt to market changes.
Your stop loss formula and procedures: When
deciding where to cut a non-performing trade,
you need to keep in mind the strategy you are using and your own risk tolerance.
If you have only a few thousand dollars to work
with, you need to be very aware of conserving
your capital. You can’t afford to let losses run, but
you also can’t afford to get stopped out regularly
by the regular swings of a stock.
Study up on stops, paper trade them, and pick
the formula that fits your personal style and
strategy.
Page 12 - in the MONEY Magazine - Volume 1 - Issue 9 - June 2015
2. Thou shalt honor thy money
and manage it well.
Are you trying to be a stock market Mark McGwire? Too many traders try to hit home runs
when we need to get better at the basics of hitting singles. Remember our example above that
made $60,000 per year by averaging just $240
per trade? You don’t have to hit a trade out of the
park to make good money.
One mistake is putting too much of your money into one deal, sector or strategy. If the market
turns against you, you can get wiped out, and you
will probably never return to trade. Ideally you
should never risk more than 5% of your capital
on any one deal. Even if you have to use a higher
percentage because your capital is small, make
sure you spread your risk around with even-dollar-amount trades.
Your risk/reward ratio is another important
factor. When you enter a deal, how much do you
plan to make and how much of a cost (loss) are
you willing to accept? If you want to make $500
on a trade and you are willing to have a $3000
cost on that same trade that would probably not
be considered a good money management technique. You need your reward to be higher than
your risk. Once you’ve decided and opened the
trade, don’t change the rules. Emotion tends to
take over while a position is open, and emotion
makes for bad decisions.
3. Thou shalt locate all the exits.
Let’s suppose the technicals look good on XYZ
Company and the stock is bouncing off of strong
support. You’re thinking about buying a call option for $6.00. But have you located your exits?
You know you need to set your profit target and
your stop loss point, but there’s still one more exit
to plan for. You need to know how long you are
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willing to give the position to move in your direction. Consider XYZ again—$6 buys a near-term
option. If the stock hasn’t moved in your direction after three or four days, do you still want to
stay in this deal? Probably not. If nothing’s happened in a few days, it may be time to get out and
move on to another deal.
4. Thou shalt treat margin
with great respect.
Before the market decline of 2000, a lot of traders had only experienced incredible market expansion and many expected the market to simply
keep going up. These traders got so comfortable
many bet the farm on their positions by being
fully margined. Then the bear market stepped
out of its cave with a 50-pound club and BAM.
Bulls, and most people are bulls even now, held
on and watched their accounts get cut in half.
That meant lots and lots of margin calls, scrambling, anguish, and the loss of hard-won assets.
Margin is a great tool to have in your trading arsenal, but only if it is used wisely. Don’t use margin unless you have the cash to cover your position if necessary and you are willing to do so.
5. Thou shalt not catch a
“falling piano.”
If you own call options and the stock breaks
support you should get out. Sadly, many traders
do the opposite. Not only do they hang onto and
not get out of such losing positions, but they often
buy more as the stock is on the way down. This is
known as “doubling down,” but I prefer to call it
“Catching a Falling Piano.” Something about our
pride will have us stand in the way of that falling
piano, believing that somehow we will not only
survive but we will actually catch the piano and
save it. While this may sometimes happen, it is
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a rare instance and should not be counted on. If
you are in a position that has broken the trend
against you, just get out. Accept the smallest cost
you can and move on to another deal. Don’t let
that falling piano—or your pride —crush you.
6. Thou shalt remain humble.
This commandment ties right in with the previous one regarding pride. When we hit a good
winning streak for a few weeks, it’s easy to become overconfident. I call this the Superman
Complex; we think we are invincible and can’t
make a bad trade. That’s the precise time we get
careless and make a mistake, one that is often
very costly. Overconfidence leads to sloppy trading, sloppy entrances and sloppy exit decisions.
Make sure you set both feet firmly on the ground
when you trade, and keep your head out of the
clouds or you’re likely to get a nasty bump.
7. Thou shalt keep trading in
its proper perspective.
Do you ever feel like you just have to make a
trade, almost any trade? Overtrading comes in
two flavors. First is the feeling that you need to
do a lot of deals to maximize your profits. Second is an emotional need to make a trade (good
or bad), sometimes multiple times a day. Both of
these situations are a problem.
The first scenario is easy to fix when you understand that having fewer deals open at a time let’s
you concentrate and trade better in those positions. It’s not that hard to end up with too many
positions open at a time. With so many balls in
the air we tend to make mistakes.
The second scenario is more of a challenge. To
some, trading can become similar to gambling,
and I am sure we’ve all heard that gambling can
in the MONEY Magazine - Volume 1 - Issue 8 - June 2015 - Page 13
be addictive. If you are in this situation you will
need to figure out how to manage or eliminate
the urge to trade. You may also want to consider
professional help. You should never trade if the
circumstances are not right.
8. Thou shalt cut losses
and let profits run.
You may be thinking that these commandments are simple common sense, but I’ve learned
from interacting with many traders that when
it comes to the market, common sense is hardly
common! Cut losses and let profits run has to
be one of the most obvious statements ever, but
it is much easier to say than do. We are trained
to hope that a position will come back. The flip
side of this problem is when trader holds onto
an unrealized profit until it turns into a realized
loss. Once again hope is the enemy—in this case,
hope that the profits would continue up. It’s been
said many times, but I’ll say it again: Hope is for
dopes. Don’t let it run—or ruin—your trades!
9. Thou shalt consider the source.
Start talking to anyone about trading and all of
a sudden they have the next hot stock tip. Does
this sound familiar? Have you had someone tell
you that “XYZ” stock was a sure thing, poised
to take off? Did you ask who their source was?
In too many cases they heard it from their nextdoor neighbor’s uncle who overheard a woman
who had talked to her hairstylist about a friend
who works for a company that cleans the factory
for “XYZ”. Do you want to rely on this information?
How about your broker? Is it possible that the
broker calls you with the “stock du jour” just to
make a commission? Or could it be that the bro-
Page 14 - in the MONEY Magazine - Volume 1 - Issue 9 - June 2015
kerage firm wants to sell off a particular stock in
their inventory?
I’m not telling you to ignore tips—any of these
could be great information. Just pay attention
and do your homework before investing. The
next time someone gives you a hot tip, stop and
think about it for a minute. Does the person giving you the advice have your best interests at
heart or their own?
10. Thou shalt avoid the
S.T.O.r.M.
The “S.T.O.r.M.” is my name for Short-Term
Out-of-the-Money options. This one habit can
kill option traders, especially newer ones. Why
do people buy S.T.O.r.M. options in the first
place? It’s usually because they look inexpensive.
Well, let’s think about that; why are they so inexpensive? Because there’s little opportunity that
they will ever make money. When you are buying
options, time decay is your enemy, and the closer to expiration the faster the decay. You should
buy as much time as possible for your underlying stock to perform. If you are buying longerterm options, expiring four months out or more,
you can then afford to buy one strike price out of
the money. If you are buying short-term options
however, three months out or less, you should
buy them at least one strike price in the money.
There you have it, my proposal for the
“ten commandments” of option trading.
Start applying them to your trades, both
paper and real, and I think you will find
that not only will you make better
decisions but you may also see your
trading accounts start to grow in value.
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in the MONEY Magazine - Volume 1 - Issue 8 - June 2015 - Page 15
SELLING
By BetterTrades Coach JOHN WHITE
I
remember we had someone come
over the house one time to do some
repairs to our roof. There had been a
lot of storms, including some hail,
and there were numerous houses
in the area that sustained damage to the roof. Ours was one of
them.
I called a couple of roofers who
had been advertising in town
and asked them to come out
and give me an estimate
on the cost. I was hoping
it would only be a minimal cost, but was prepared to receive some
bad news.
I told my dad what
had happened and
that we had some
people
coming
out to take a look
and give us a price.
Then he gave me a
great piece of advice. He said, “Son,
Page 16 - in the MONEY Magazine - Volume 1 - Issue 9 - June 2015
make sure they know that you aren’t going
to pay them a dime until the work has been
completed to your satisfaction.” In other
words, they were going to get paid at the
end of the job.
I took his advice and it paid off. The roofers were professional, did a great job and
I paid them in full when the repairs were
complete.
That’s actually the way most jobs work.
You do the work and then you get paid. It’s
like that for any job where you exchange
time for money.
Having said that, I
admit that I prefer to
teach my students to take
the opposite approach
when they trade the stock
market. I teach them how
to get paid up front –
when they open a
position, rather than
waiting until it is closed.
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PREMIUM
There are several methods that you can use
in order to sell premium: naked puts, naked
calls, credit spreads, covered calls and collars. I would recommend against considering naked calls because of the unlimited risk
involved. The other strategies are perfectly
acceptable methods of selling premium.
Let’s take a look at the collar and see how
that might work.
A collar is a stock position that is insured
by a put. You sell a call to pay for the put
insurance and to provide potential income.
It’s essentially a covered call joined with a
protective put.
HERE’S AN EXAMPLE:
• You purchase the stock
(or use the stock you already own)
for $32.50.
• You buy a 30 put for $1.
capped your maximum loss on the put option at $2.50.
In this example, if the stock goes down to
$30, you’ve got $2.50 per share, but the put
will make up that difference by its increasing value. Your stock loss will be offset by
the put. If the stock price goes up to $35,
you will have to sell your stock position, but
will make a profit on the stock and keep the
premium you captured when you opened
the position.
You can trade collars using bullish and
bearish setups. You can trade them with a
variety of time frames, from short to medium to long-term. Just remember to keep
the trade insured at all times or you could
run into difficulties.
Just keep on selling premium. Get your
money at the beginning of the trade.
• You sell a 35 call for $1.
The put insures the stock at $30. The call
you sold brings in income and leaves you
with an unlimited upside potential. The
collar in this example has capped your
maximum gain on the option at $2.50 and
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in the MONEY Magazine - Volume 1 - Issue 8 - June 2015 - Page 17
eSignal is the NATION
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up to $22.22).
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MARKET
TRENDS
a look at company that’s making news …
Spotlight Stock: EnerNOC
By Benzinga Staff
EnerNOC (ENOC) is a key partner
to Tesla Motors in deployment of its
battery storage units.
The company provides demand response and energy management software to commercial and industrial (C&I) users, according to a Greentech report
from Jeff St. John.
CEO Tim Healy said that EnerNOC’s initial Tesla
battery deployments were at “select customer sites in
California” and he went on to describe EnerNOC’s
energy intelligence software (EIS) as the “information layer” between Tesla’s batteries and customer
sites, allowing customers to “monitor the batteries
and engage in demand-charge management and demand response.”
a cost of $25,000 apiece, or $250 per kilowatt-hour,”
according to the report.
While the above prices may be relatively low for
utility-scale lithium-ion batteries, the report added
that it was unclear how much more costs would be
added “with the addition of bidirectional inverters,
other supporting electronics, and installation costs.”
Over the long-term, software for managing batteries, including Tesla’s Powerpack, have a critical role to
play from Healy’s perspective.
“Batteries are an important piece of the puzzle in
moving from central generation to distributed energy resources and microgrids. And in order for this
transition to work, the industry requires software as
an important part of the information layer,” Healy
concluded.
EnerNOC recently traded at $10.28, down 1.25
percent.
It was unclear, however, when the Tesla business
would become a significant generator of revenue for
EnerNOC as the growth of the market may depend
on Tesla Powerpack units coming in at a low cost to
customers.
“EnerNOC is using Tesla’s 100-kilowatt-hour Powerpack units, capable of discharge over two to four
hours at a time, which Tesla has said will come in at
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in the MONEY Magazine - Volume 1 - Issue 8 - June 2015 - Page 21
H
igh achievers embrace the concept
of networking. By reaching out to
others with a different set of skills,
they are able to enhance and improve their
own abilities by leaning on the attributes of
others.
Many times networking can be performed to
help you become a more complete person or
company. For example, say you’re preparing to
launch a website and you know the mechanics
of how to put a site together and get it up and
running, but have limited skills when it comes
to writing content. You can go through your
network and find someone who may be able to
write the material needed to make the website
come alive. They may even be someone who
wants to contribute to a site, but who has limited technical know-how.
The idea of networking at events has become more and more popular over the years.
Perhaps you attend an event at a large venue
and you find yourself sitting around the same
Page 22 - in the MONEY Magazine - Volume 1 - Issue 9 - June 2015
group of people for the entire day. Rather than
speak only to your friends or rather than keeping mum, the idea is to reach out to other people around you. The person you meet may turn
out to be a key contact, someone who can help
your business and be of personal assistance.
Maybe you’ll become
a source for someone
and can offer to help
them in a business
endeavor.
But even if the person
you meet produces
no benefit, at least
you can say that you’ve
made a new friend.
And no one can
have enough
friends!
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When networking, find out as much as
you can about the other person. Ask questions that require them to reveal themselves.
Don’t ask questions that can be answered
with a simple “yes” or “no.” Make the other
person get engaged in the conversation. Ask
them for advice if you’ve got a problem. Ask
them about any unique problems they’ve
faced and listen when they tell you the answer. Be sure you listen instead of just wait
to talk. By being observant and listening
to other people when you network, you’re
more apt to be tuned in to potential problems and possible solutions.
Networking can really expand your base of
contacts. Many business professionals use a
social networking platform like LinkedIn to
reach out and stay in touch with other people. It offers the opportunity to seize the day
and connect with others who may be offering goods and services you can use. It’s normally preferable to work with someone you
already know and with skilled networking
you’ll know more people.
(Tony Benson is a BetterTrades trading education
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in the MONEY Magazine - Volume 1 - Issue 8 - June 2015 - Page 23
By Amelia
Morrison
D
O DIVIDENDS AND DIVIDEND DISTRIBUTIONS MYSTIFY YOU?
Chances are it’s not the concept of dividends that confuse you; the ex-dividend date and date of
record are the tricky parts. Let’s see if I can shed some light about the dividend payment process and
explain on what date the buyer of the stock gets to keep the dividend.
The decision to distribute a dividend is made by a
company’s board of directors. There is nothing requiring a company to pay a dividend, even if the
company has paid dividends in the past. However,
many investors (particularly fund managers) view a
steady dividend history as an important indicator of
a good investment, so most companies are reluctant
to reduce or stop their dividend payments.
DIVIDENDS CAN BE PAID IN
A VARIETY OF DIFFERENT
FORMS.
Page 24 - in the MONEY Magazine - Volume 1 - Issue 9 - June 2015
1. CASH DIVIDENDS
are the most popular. This is money paid to
stockholders, normally out of the corporation’s
current earnings or accumulated profits.
For example, suppose you own 100 shares of Cory’s
Brewing Company. Cory has made record sales this
year thanks to an unusually high demand for his
unique peach flavored beer. The company therefore decides to share some of this good fortune with
the stockholders and declares a dividend of $0.10
per share. This means that you will receive a check
from Cory’s Brewing Company for $10.00 ($0.10 x
100shares). In practice, companies that pay dividends
usually do on a regular basis of four times a year.
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A one-time dividend such as the one we just described is referred to as an extra dividend.
commission free and at a significant discount to the
current share price.
2. STOCK DIVIDENDS,
the second most common method, pays additional shares of stock rather than cash.
There are FOUR major dates in the process
of a company paying dividends:
Suppose that Cory’s Brewing Company wishes to issue a dividend but doesn’t have the necessary cash
available to pay everyone. He does, however, have
enough Treasury stock to meet the requirements of
the dividend payout. So instead of paying cash, Cory
decides to issue a dividend of 0.05 new shares for
every existing one share. This means that you will
receive five shares of stock for every 100 shares that
you own. If any fractional shares are left over, the
dividend is paid as cash (because stocks do not trade
fractionally).
3. PROPERTY DIVIDENDS
are used rarely. This type of allocation is a
physical transfer of a tangible asset from the
company to the investors.
For instance, if Cory’s Brewing Company was still
insistent on paying out dividends but didn’t have
enough Treasury stock or enough money to pay out
all investors, the company could look for something
physical (property) to distribute. In this case, Cory
might decide that his unique peach beer would be the
best substitute, so he could distribute a couple of sixpacks to all the shareholders.(Do not get too excited
here, after all we are talking about peach flavored
beer!)
4.DRIP=
DIVIDEND REINVESTMENT PLAN
is popular for some investors just starting out..
This is a plan offered by a corporation that allows investors to reinvest their cash dividends by purchasing
additional shares or fractional shares on the dividend
payment date.
1.DECLARATION/ANNOUNCED
DATE -
This is the date on which the board of directors announces to shareholders and the market as a whole
that the company will pay a dividend.
2. EX-DATE OR EX-DIVIDEND DATE -
If you buy a dividend paying stock one day before the
ex-dividend you will still get the dividend, but if you
buy on the ex-dividend date or later, you won’t get
the dividend. Conversely, if you want to sell a stock
and still receive a dividend that has been declared/
announced, you need to sell on (or after) the ex-dividend day. The ex-date is the second business day before the date of record.
3. DATE OF RECORD -
This is the date on which the company looks at its
records to see who the shareholders of the company
are. An investor must be listed as a holder of record
to ensure the right of a dividend payout.
4. DATE OF PAYMENT
(payable date) -
This is the date the company sends the dividend to
the holder of record. This date is generally a week or
more after the date of record so that the company has
sufficient time to ensure that it accurately pays all
those who are entitled.
Dividend stocks are a nice addition to consider for a
portfolio.
(Read more of Amelia Morison’s Blogs at
BetterTrades.com.)
A DRIP is an excellent way to increase the value of
your investment. Most DRIPs allow you to buy shares
Call us at (800) 676-4410
in the MONEY Magazine - Volume 1 - Issue 8 - June 2015 - Page 25
Purchasing
POT
on the
Market?
It COULD
Happen!
L
egalized marijuana has had its
fair share of difficulties over the
past few years. From legal battles
to an ongoing debate over how federal
law hampers innovation, the marijuana
market has been under a lot of pressure.
Page 26 - in the MONEY Magazine - Volume 1 - Issue 9 - June 2015
Call us at (800) 676-4410
H
owever, according to Kindman Cannabis CEO Ryan
Fox, those issues are just the
beginning as the recreational
marijuana market opens up. His Coloradobased wholesale dispensary has seen steadily
increasing demand as the drug becomes more
acceptable to the general public, something
growers haven’t been able to keep up with.
Fox’s business has invested in increasing the
number of growing facilities; he says the industry is only likely to get bigger, and most
dispensaries aren’t prepared to handle any
more growth in demand.
According to Fox, the current market is only
in its infancy and most firms’ long-term
plans are weak at best; but, with recreational use spreading quickly, he says it’s only
a matter of time before other states follow
Colorado’s lead.
The weed industry in Colorado has faced
shortages, especially after days like April
20 and New Year’s when the state’s legislation changed. In other places where
marijuana was recently legalized, like Washington D.C.,
shortages also became a problem, as demand for the drug
surpassed what growers and dispensaries had predicted.
For that reason, Fox said he sees marijuana evolving to trade like
a commodity in the future, once the industry has become more
developed.
Much like corn or coffee, marijuana crops are affected by a wide
range of factors from weather conditions to pest problems, and
as the industry matures, Fox says investors will begin to value the
drug as a tradable commodity.
Call us at (800) 676-4410
in the MONEY Magazine - Volume 1 - Issue 8 - June 2015 - Page 27
BACK to BASICS...
by Stan Awetry
BASIC INDICATORS
the importance of indicators
I
ndicators are an important part of
the trading process because they allow an individual to project which
direction a stock may move. By using indicators, a trader can often confirm
their beliefs about a trade or back away
from entering or exiting a position. There
are more than 100 technical indicators
available for analytical reasons and they
can each be used to identify potential trading opportunities. Indicators are generally
based on either price or volume. Here are
some of the more popular indicators to
consider using in your technical analysis.
Page 28 - in the MONEY Magazine - Volume 1 - Issue 9 - June 2015
• MACD:
The “MACD” is a trend following momentum
indicator that shows the relationship between
two moving averages of prices. To Calculate the
MACD subtract the 26-day EMA from a 12day EMA. A 9-day dotted EMA of the MACD
called the signal line is then plotted on top of the
MACD.
• PARABOLIC SAR:
A technical analysis developed by J. Wells Wilder. The strategy uses a trailing stop and reverse
method (called “SAR” - stop-and-reversal) which
helps determine good exit and entry points for
investing
Call us at (800) 676-4410
• RELATIVE STRENGTH
INDEX:
A technical analysis indicator that compares the
days that a stock finishes up against when it finishes lower. RSI ranges from 0 to 100, but a stock
is considered overbought if it reaches the 70 level
and you should consider selling. When the market is a true bull market then 80 might be a better
level since stocks often trade at higher valuations.
Likewise if the RSI approaches 30 it is a strong
buying indicator and 20 in a strong bear market.
• STOCHASTIC:
The Stochastic Oscillator compares where a security’s price closed relative to its price range over
a given time period. The theory behind this indicator is that in an upwardly trending market,
prices tend to close near their high and during a
downward trending market, prices tend to close
near their low. Stochastics work best when a stock
is channeling and is ineffective when a stock is
trending.
• ADVANCE /DECLINE LINE:
A technical analysis tool representing the total
of differences between advances and declines of
security prices. The advance/decline line is considered the best indicator of market movement
as a whole, stock indices such as the Dow Jones
Industrial Average only tell us the strength of 30
stocks where as the A/D line provides much more
insight.
Remember, too much analysis is a bad thing.
Find the handful of indicators you like and learn
how to use them to your utmost advantage. Don’t
try to learn them all; you’ll spend too much time
in analysis and not enough time making better
trades. Don’t succumb to paralysis by analysis.
You’ll be
HANGING
on our
every
word!
BetterTrades.com/blog
Call us at (800) 676-4410
in the MONEY Magazine - Volume 1 - Issue 8 - June 2015 - Page 29
walk in a trading lamb...WALK OUT A TRADING LION!
The ULTIMATE class from BetterTrades is being offered exclusively to students who are ready to
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by making a series of non-funded paper trades under the watchful eye
of two of the premier stock market educators in the country.
BILL CORCORAN
Bill brings a unique perspective to the
BetterTrades coaching staff. A former
law enforcement officer, he came to
the company as a student, attended classes and learned how
to use the stock market as a
way to achieve his personal
goals. Today his message
resonates with students,
who appreciate and draw
encouragement from his
high-energy presentations. Bill teaches a variety
of strategies and techniques that can be used
with short-term and longerterm positions.
Page 30 - in the MONEY Magazine - Volume 1 - Issue 9 - June 2015
MARKAY LATIMER
Markay is one of the top teachers of technical analysis. She has
taught thousands of students how
to read and understand the
information that is available in
a stock’s price chart. Ironically,
she became a believer in the
importance of charting after
setting out to prove they were
meaningless. She wound up
proving their value! Markay
understands market patterns
and enjoys teaching students
how to identify them and
recognize the trading opportunities they present.
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HERE’S WHAT YOU GET WITH THE
FIVE-DAY TRADER’S INTENSIVE:
• Five days of non-stop “intensive” instruction. You’ll start at 8 a.m. and wind up around
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•
Access to the new purpose-built mock trading room in our Atlanta office. Each desk
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This is a FULL-SERVICE EDUCATIONAL EVENT that is designed to teach you how
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WE HAVE A PHENOMENAL OFFER WAITING FOR YOU...
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in the MONEY Magazine - Volume 1 - Issue 8 - June 2015 - Page 31
SPEND TWO FULL DAYS LEARNING HOW TO USE THE TRADING
TOOLS UNDER LIVE MARKET CONDITIONS.
During this exciting two-day program you’ll be able to get hands-on training on
how to set up and use your trading tools while the market is live.
You’ll be taught how to use the tools through a series of non-funded practice trades
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Join one of our talented trading education coaches for two fast-paced, exciting days.
YOU’LL LEARN SO MUCH MORE… AND SO MUCH FASTER…
by taking your skills & these tools to a level not experienced by the average trader.
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This class was all about mastering the “tools
of the trade”. Whether you aspire to become a
blacksmith, accountant, attorney, or a golf pro…
you can only allow yourself the opportunity to
reach your greatest potential after mastering the
tools of the trade. It’s difficult to know where to
begin using the tools when you are not sure what
the tools are capable of.
BETTERTRADES STUDENT CLAYTON P.
Thank you for providing the Traders Camp course.
WITHOUT EXCEPTION THE MOST COMPLETE
TRAINING I HAVE EVER RECEIVED! The facility
was top shelf and state of the art.
BETTERTRADES STUDENT RIC R. CSM US ARMY(RET)
AS USUAL, ROB OVERDELIVERED!
His tireless efforts, down to earth approach and
thorough explanation of the strategies, facilitated a full understanding and application of the
material taught.Anyone looking to enhance their
trading to get to the NEXT LEVEL, should attend
Traders Camp.
Page 32 - in the MONEY Magazine - Volume 1 - Issue 9 - June 2015
BETTERTRADES STUDENT RICHARD A.
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~ the LAUGHING “STOCK” ~
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in the MONEY Magazine - Volume 1 - Issue 8 - June 2015 - Page 33
Page 34 - in the MONEY Magazine - Volume 1 - Issue 9 - June 2015
Call us at (800) 676-4410
Call us at (800) 676-4410
in the MONEY Magazine - Volume 1 - Issue 8 - June 2015 - Page 35
Page 36 - in the MONEY Magazine - Volume 1 - Issue 9 - June 2015
Call us at (800) 676-4410
Where on the World Wide Web can you find BetterTrades?
EVERYWHERE... THAT’S WHERE!
Facebook, YouTube, Twitter and GooglePlus are just a few of the places yoou can find BetterTrades.
And we have a ton of content, special offers, information, and other great reasons for you to friend us, like us, follow us,
retweet us, etc. So come on and visit us online... WE’RE REAL EASY TO FIND!
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in the MONEY Magazine - Volume 1 - Issue 8 - June 2015 - Page 37
EARNINGS REPORT: JUNE 1st - JUNE 30TH, 2015
TICKER
COMPANY NAME
MONDAY, JUNE 1ST
AIRT.................................................... “Air T, Inc.”
CONN.............................................. “Conn’s, Inc.”
CVGW........................................ Calavo Growers
GWRE....................... “Guidewire Software, Inc.”
KKD................“Krispy Kreme Doughnuts, Inc.”
MLAB...................................... Mesa Laboratories
NDZ..................................................Nordion Inc.
ZQK............................................“Quiksilver, Inc.”
TUESDAY, JUNE 2
ABM.................... ABM Industries Incorporated
AMBA................................................... Ambarella
AMWD............................. American Woodmark
Corporation
ASNA....................... “Ascena Retail Group, Inc.”
DATE................. Jiayuan.com International Ltd.
DG.......................... Dollar General Corporation
FCEL................................ “FuelCell Energy, Inc.”
GIII.........................“G-III Apparel Group, LTD.”
MEAS................“Measurement Specialties, Inc.”
MFRM............................. Mattress Firm Holding
Corp.
MIND....................................Mitcham Industries
MIND....................................Mitcham Industries
PLUS....................................................... Eplus Inc.
RENT................................. Rentrak Corporation
VLGEA................... “Village Super Market, Inc.”
WEDNESDAY, JUNE 3
BF-B....................... Brown Forman Corporation
BV............................................“Bazaarvoice, Inc.”
CYBX....................................... “Cyberonics, Inc.”
FIVE.......................................... “Five Below, Inc.”
GEF.................................Greif Bros. Corporation
HOV......................... Hovnanian Enterprises Inc
IXYS........................................ IXYS Corporation
PVH......................................................PVH Corp.
RLD........................................................RealD Inc
VISN...........................“VisionChina Media, Inc.”
VRNT.....................................Verint Systems Inc.
XNY................................... China Xiniya Fashion
TICKER
COMPANY NAME
THURSDAY, JUNE 4”
GX................................................................ Argan
ALOG.......................................................Analogic
AMSC........................American Superconductor
Corporation
AOI................................................... Alliance One
BRLI......................“Bio-Reference Laboratories,
Inc.”
BZC............................................... Breeze-Eastern
CIEN................................... CIENA Corporation
CMN..................................Cantel Medical Corp.
CMTL.................Comtech Telecommunications
Corp.
COO........................................................... Cooper
CRDS......................... “Crossroads Systems, Inc.”
DMND............................ “Diamond Foods, Inc.”
HOFT................ Hooker Furniture Corporation
JOY........................................................ Joy Global
MCZ............................. Mad Catz Interactive Inc
MTN........................................ “Vail Resorts, Inc.”
MW.................... “Men’s Wearhouse, Inc. (The)”
NAV............Navistar International Corporation
NX.............................Quanex Building Products
Corporation
PAY........................................... VeriFone Systems
RALY......................Rally Software Development
Group
RMCF.....................“Rocky Mountain Chocolate
Factory, Inc.”
SEAC.................“SeaChange International, Inc.”
SJM...................... J.M. Smucker Company (The)
SLTC......................................................... Selectica
THO..................................“Thor Industries, Inc.”
TITN.................................. Titan Machinery Inc.
UTIW................................... UTi Worldwide Inc.
VNCE........................................... Vince Holdings
VRA........................................“Vera Bradley, Inc.”
ZOES................................................Zoe’s Kitchen
FRIDAY, JUNE 5
HURC..................................... Hurco Companies
JOSB...................... “Jos. A. Bank Clothiers, Inc.”
KMG................................“KMG Chemicals, Inc.”
ODC.......................................Oil-Dri of America
PNY.................................“Piedmont Natural Gas
Company, Inc.”
Page 38 - in the MONEY Magazine - Volume 1 - Issue 9 - June 2015
TICKER
COMPANY NAME
QURE.................................................uniQure BV
SHOS..................................Sears Hometown and
Outlet Stores
MONDAY, JUNE 8
EPI......................................... AEP Industries Inc.
BOX...................................................................Box
CASY..................... “Caseys General Stores, Inc.”
CNSI.......................................................Comverse
COOL........... Majesco Entertainment Company
ENZ.................................... “Enzo Biochem, Inc.”
FGP...............................“Ferrellgas Partners, L.P.”
HRB..................................................... H&R Block
IDT............................................ IDT Corporation
KANG...........................iKang Healthcare Group
LMNR.............................................Limoneira Co
MLNK...................................“ModusLink Global
Solutions, Inc”
PBY............................. “Pep Boys-Manny, Moe &
Jack (The)”
SPCB......................................................SuperCom
SURG..............................“Synergetics USA, Inc.”
TA................................TravelCenters of America
TPLM..............Triangle Petroleum Corporation
UBA..................... Urstadt Biddle Properties Inc.
UEC.................................Uranium Energy Corp.
TUESDAY, JUNE 9
BURL.........................................Burlington Stores
CBK.................................... Christopher & Banks
CHKE......................................................Cherokee
ESTE........................................Earthstone Energy
FRAN.................................. Francesca’s Holdings
Corporation
HDS.....................................HD Supply Holdings
JVA............................. “Coffee Holding Co., Inc.”
MFRI..................................................“MFRI, Inc.”
NCS...................................NCI Building Systems
OXM......................................... Oxford Industries
RADA...................... Rada Electronics Industries
Limited
RSH.....................................................RadioShack
SAIC........................................................ SAIC Inc
SPWH.......................... “Sportsman’s Warehouse
Holdings, Inc”
UNFI......................“United Natural Foods, Inc.”
Call us at (800) 676-4410
TICKER
COMPANY NAME
TICKER
COMPANY NAME
TICKER
COMPANY NAME
WEDNESDAY, JUNE 10
WEDNESDAY, JUNE 17
WEDNESDAY, JUNE 24
ALDX................................. Aldeyra Therapeutics
DDC.................................... Dominion Diamond
FRD.............................. Friedman Industries Inc.
OCC................................................ Optical Cable
OCC......................... Optical Cable Corporation
RH.....................................Restoration Hardware
RLOG................................. “Rand Logistics, Inc.”
SIGM.................................. “Sigma Designs, Inc.”
ALDR........................................Alder Biopharma
ATU.....................................Actuant Corporation
CLC............................................................ Clarcor
CO........................................... China Cord Blood
CRWS...............................................Crown Crafts
FDX.............................................................. FedEx
JBL...................................................... Jabil Circuit
TAX..................................................... Liberty Tax
TAX..................................................... Liberty Tax
APOG.................................... Apogee Enterprises
BBBY.....................................Bed Bath & Beyond
BKS................................... “Barnes & Noble, Inc.”
CIDM...............Cinedigm Digital Cinema Corp
FUL.................................... H. B. Fuller Company
LNN.....................................Lindsay Corporation
MLHR................................“Herman Miller, Inc.”
MON......................................................Monsanto
MSN...................... Emerson Radio Corporation
MXC............................................... Mexco Energy
OMN........................... OMNOVA Solutions Inc.
SCS...........................................................Steelcase
THURSDAY, JUNE 10
THURSDAY, JUNE 18
ARIS..................................ARI Network Services
CPST................. Capstone Turbine Corporation
EROS......................................... EROS INTL PLC
FNSR.................................... Finisar Corporation
LAKE......................... “Lakeland Industries, Inc.”
LE.............................................. “Lands’ End, Inc.”
LUB.................................................... “Luby’s, Inc.”
LULU.............................. lululemon athletica inc.
ONVO...................................Organovo Holdings
RFIL...................................... “RF Industries, Ltd.”
FNSR........................................................... Finisar
JRJC.............China Finance Online Co. Limited
KR................................................................ Kroger
ORCL....................................Oracle Corporation
PIR.......................................“Pier 1 Imports, Inc.”
RAD...........................................................Rite Aid
RHT........................................................... Red Hat
SWHC..Smith & Wesson Holding Corporation
WSCI..................................... WSI Industries Inc.
FRIDAY, JUNE 12
FRIDAY, JUNE 19
CFI........................................................“Culp, Inc.”
KUTV............................... “Ku6 Media Co., Ltd.”
LABL........................... Multi-Color Corporation
NATH.........................................Nathan’s Famous
STRM.......................................Streamline Health
DRI........................................Darden Restaurants
KMX.......................................................... CarMax
MONDAY, JUNE 15
ANFI................................... Amira Nature Foods
CPST........................................ Capstone Turbine
KFY............................. Korn/Ferry International
MPAA........... “Motorcar Parts of America, Inc.”
NOBH..........................................Nobility Homes
VIRC........... Virco Manufacturing Corporation
TUESDAY, JUNE 16
ADBE............................................Adobe Systems
DAEG....................................................Daegis Inc
FDS.............................. FactSet Research Systems
ISLE..........................“Isle of Capri Casinos, Inc.”
JW-A...................................... John Wiley & Sons
LZB......................................................... La-Z-Boy
Call us at (800) 676-4410
MONDAY, JUNE 22
ADMP.......................... Adamis Pharmaceuticals
CCL................................... Carnival Corporation
CUB............................................................... Cubic
EBF.....................................................“Ennis, Inc.”
MU.............................“Micron Technology, Inc.”
SONC.............................................................Sonic
TUESDAY, JUNE 23
BBRY....................................................BlackBerry
EEI.................. “Ecology and Environment, Inc.”
EXFO............................................................ EXFO
IHS.................................................................... IHS
KEQU............ Kewaunee Scientific Corporation
WAG.................................................Walgreen Co.
THURSDAY, JUNE 25
ACN.......................................................Accenture
ARTW.......“Art’s-Way Manufacturing Co., Inc.”
AZZ................................................................. AZZ
CMC......................................Commercial Metals
LEN......................................Lennar Corporation
MEI...................................... Methode Electronics
MKC.“McCormick & Company, Incorporated”
NKE......................................................“Nike, Inc.”
PRGS................. Progress Software Corporation
SCHN...............“Schnitzer Steel Industries, Inc.”
SJR...................................Shaw Communications
WBA............................Walgreens Boots Alliance
WGO.....................“Winnebago Industries, Inc.”
WOR.................. “Worthington Industries, Inc.”
FRIDAY, JUNE 26
CJJD................................China Jo-Jo Drugstores
CYAN....................................................Cyanotech
FINL................................. “The Finish Line, Inc.”
KBH........................................................ KB Home
LAS.............................. Lentuo International Inc.
LEI....................................................Lucas Energy
MONDAY, JUNE 29
ANIK..................................... Anika Therapeutics
API..............................“Advanced Photonix, Inc.”
APOL........................... Apollo Education Group
APPS.............................................Digital Turbine
ASX............................. Advanced Semiconductor
AVHI...................................................A V Homes
BCO............................................................. Brink’s
in the MONEY Magazine - Volume 1 - Issue 8 - June 2015 - Page 39
EARNINGS REPORT: JUNE 1st - JUNE 30TH, 2015
TICKER
COMPANY NAME
MONDAY, JUNE 29
CEB.The Corporate Executive Board Company
CTBI.........................Community Trust Bancorp
DGI....................................................DigitalGlobe
DRII...........................................Diamond Resorts
ELLO....................................Ellomay Capital Ltd.
EXAM....................................ExamWorks Group
HELI...................................................CHC Group
HIHO.......................Highway Holdings Limited
HURN............................... Huronnsulting Group
IRET.......................... Investors Real Estate Trust
JAZZ....................................Jazz Pharmaceuticals
KBR................................................................. KBR
PFIE..............................PROFIRE ENERGY INC
ROX................................................. Castle Brands
RTGN...................................................... Ruthigen
SAFT.............................. Safety Insurance Group
SCCO........................................Southern Copper
TUESDAY, JUNE 30
NTH............................ Anthera Pharmaceuticals
AYI............................................Acuity Brands Inc
CAG..............................................ConAgra Foods
CAMP............................................CalAmp Corp.
FC............................... Franklin Covey Company
PAYX..............................................“Paychex, Inc.”
PKE..................................... Park Electrochemical
SBLK.........................................Star Bulk Carriers
SHLM.....................................“A. Schulman, Inc.”
Page 40 - in the MONEY Magazine - Volume 1 - Issue 9 - June 2015
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No! Not that look...
That’s our designer,
he always looks like that...
We’re talking about the
ALL-NEW
BetterTrades.com
Faster, easier to navigate,
and re-designed to work
seamlessly on your computer,
tablet and phone.
Since we’re now a “Better” BetterTrades,
so we thought it was about high time thate we made a “Better”
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in the MONEY Magazine - Volume 1 - Issue 8 - June 2015 - Page 41
• Extreme Charts takes all the data and
information and creates a picture of a
stock’s activity.
• Extreme Charts puts it in a form that makes
it pleasing to the eye and less intimidating
to the student.
• Extreme Charts offers you a visual
opportunity to better understand
what’s going on in the stock market.
• See the patterns develop right in
front of you – from pennants and flags
to wedges and rectangles.
• Identify the patterns that are bullish
and bearish – and implement the
PROPER STRATEGY
• Put your finger on the patterns that show
retracement or consolidation
Extreme Charts is more than
just about showing patterns.
It has many more benefits than the average
charting program. That’s because all the
components that go into Extreme Charts are put
there because they were requested by people
who actually trade the market. During the
development process, BetterTrades went to
stock traders and asked them what they needed
and wanted in a program.
Page 42 - in the MONEY Magazine - Volume 1 - Issue 9 - June 2015
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