Big and Rich's Investment Blog-Week 3

This week, I was somewhat successful in earning back my losses. I am hoping that I will be able to make back all my losses within the next two weeks through the new strategies and aids I have learned this week. The three security investments I will be talking about in this blog is TBRA (Tobira Therapeutics Inc.), JNUG (Direxion Daily Junior Gold Miners Index 3X Bull Shares), and GUSH (Direxion Daily S&P Oil and Gas Exp. & Prod. Bull 3X Shares). By talking about these three investments, I believe that each  reader will be able to obtain a shortened insight into my week in the NYSE. 

First, I would like to talk about Tobira Therapeutics Inc. At the beginning of the week, I planned to develop a strategy that would try and look for smaller gains in companies who had already had a large percentage gain in each morning as I was very busy this week and did not have time to do much research. This is where Tobira comes in. On the morning of Tuesday, September 20th, at around 10:00am, I had realized that Tobira had a huge percentage gain and was hoping to earn some profit by joining in on this upward trend in the company. Due to some complications with orders, I did not buy the stock until it was on a downward trend causing me to lose money. With this outcome, I have decided to be careful with this strategy as looking at the behavior of the stock after it's jump created some volatility in the stock price which can be risky when using this strategy.

Secondly, the stock that gave me the best return this week was JNUG. Throughout this experience, JNUG had been trading at around an average of $19.00-$21.00. Also, I noticed that JNUG went to $24.00 when exceeding a stock price of $21.00 and also goes down to $17.50 when going below the price of $21.00. At the beginning of the week, I noticed that JNUG was slowly going down in price after going below $21.00. By following the stock's previous trends, I decided to wait until the stock reached $18.00 in hope that it would return to the price of $21.00+. Luckily I was right, on Wednesday it returned to the price of approx $22.00 giving me a return of $13,000 profit. Through this investment, I have sparked interest in trends in the company which led me to research different technical analysis charts such as MACD, RSI, CCI, and price movement vs. trading volume. By using this new set of technical analysis skills, I hope that I will be able to create more profit this week.

Lastly, my last investment was GUSH. The rationale behind this investment was the constant talk in the media about plunging oil prices. Because of this occurrence, I decided to short oil in hope of a positive return. Although there was not much thought behind this investment, I am hoping that oil will return to drop to either create a profitable return for myself.

Big and Rich's Investment Blog (Week One)

Welcome to Big and Rich's investment blog. WEEK ONE!! Each week I will be posting blogs on my current investments and some rational behind my investments. Hopefully, you will be able to gain some insight into my investments which can further advance your portfolio's profits.

Investment 1: To begin my week off, one investment that greatly impacted my portfolio was Intrawest Resorts. After learning about the earnings calendar and how it can benefit your decisions when investing decided to take a look and realized that Intrawest Resorts earnings were being released on Tuesday, September 6th. Although I am not a professional analyst of stocks, I knew that this release would either cause the stock to go up or down. I, unfortunately, listened to the analyst's predictions and decided to buy stocks in this company as their stock was anticipated to go up 2%. On their release day, the stock actually ended up going down about 7% causing me to lose about $10,000. So the lesson from this investment, do your own research and develop your own opinion.

Investment 2: Throughout the week, another hot strategy in our finance class was using the bar chart stock signals. After being informed of the huge potential gains possible by looking at this chart, I decided to invest in Finsar corp.. At the time of buying, I was not aware that this stock had already shot up in price. After realizing this I quickly sold and made a small profit of $1,600. This has been a technique that I have been using throughout this experience. I have to honestly say it is not a good strategy as you lose a lot of money in order transactions and it can be very stressful and time-consuming. A lesson I learned from this investment was to look for stocks that are a little bit more of a long time investment.

Investment 3: Lastly, near the end of the week I was looking for a stock that I could invest in to allow growth over the weekend. Because it was Friday this idea made me think GOLD as gold was doing bad that day (!$18.50) and I expected the stock to at least return to it's "normal" price of approx. $21.50.  Also, by looking at its trading volume, the stock had an abnormal high in volume which made me somewhat interested in this stock. The final component that caused me to buy is that by the end of the day, the stock began to rise while increasing in trading volume. I used this signal as a good opportunity to buy and ended up purchasing a large amount of shares in this company. Over the weekend, the stock (JNUG) continued to drop and I ended up selling it at market open this morning. Although I lost around $7,000, I still feel this experience was essential to my learning as I now know to keep my investments shorter when looking at price increase with high trading volume.