Saturday

TheInflationist Weekend Summary: 040409

Post a Comment April 4, 2009 – 8:03 am |   | Permalink |  Print This Post |

Our portfolio is up 79% since January 2009 - with a total value of $71659, including realised profits for the week of $3815: adding to our cash in bank now sitting at $38590. For those who are new to our site, we started TheInflationist Trading Challenge in January 2009 with $40000. Unlike any other stock trading website, we trade publicly LIVE, track our performance transparently, and make actual trades in our personal portfolio (yes, we own every stock and trading position in our portfolio). We stick our necks out on the public chopping board and feel actual pain when our positions are in the red (No, this is not virtual trading for us!)

This phenomenal 79% result is reproducible for all readers as trades are published live at prices available to readers. Applying our own fundamental and technical analyses with our conservative risk management strategies, combined with the views of some of our favourite investment analysts (Jim Rogers, Mr Magik, Tony Caldaro, Brian Shannon, Guy Lerner, Marc Faber and Philip Manduca), we formulate trading plans both short and long term. We do not rely on any one source, and not uncommonly trade contrarion to these technical experts (with all due respect).

However, our primary aim is NOT to be another stock trading blogger. Three reasons:

1. We do not claim to be an expert

2. We are not certain if our trading performance is sustainable

3. We are sure there are greater talents out there

Instead, we aim to revolutionize the current Stock Trading Newsletter market and to introduce a common benchmark and “Stock Trading Expert” Governance. We are seeking public investing talent. For both readers and authors of Seekingalpha, Marketoracle, Alphatrends, and other fantastic sources of articles on the web, TheInflationist aims to translate the wealth of information into quantifiable trades and money in the bank. For example, every trading expert authority are calling the obvious: ie to long Gold, short the USD, etc - but for the average mom or dad investor with little trading experience, what price do we get in, how much do we invest, when should we get out?

We aim to provide a platform for authors to provide actual entry/exit points with a view to quantify their performance. (We understand the lack of support from “experts” who are making a fortune charging for newsletter subscriptions - why risk your reputation trading publicly?) For those subscribing to these financial newsletters, stop paying good money for unproven results. Don’t get us wrong, if you think you have investing talent and feel that your advice is worth $$$, we have absolutely no problems paying for it. We will even market your services openly FREE of charge if your performance is proven. Our platform allows authors to delay their posts and set different levels of access to monetize their posts. Authors could charge a subscription for live posts, whilst providing free delayed trades to encourage our readers to subscribe to your newsletters. But beware, your portfolio value will speak for the quality of your analysis. This protects our readers and will identify only the top investors.  

Referring to “TheInflationist Top Investor” list, we currently rank #1. Whilst the Speculator is sitting respectably at #2, note that this result is NOT reproducible by the public as his trades are often not live (ie prices have moved up significantly by the time it hits the press - I suspect someone in the publication line is making a fortune!) 

Feel free to join us - the first website on the web where you can take a position in anything, long or short! Trading is as easy as writing an email.

1. Register

2. Go to “My Portfolio” (top column of links)

3. Add stocks (search for stock codes using Yahoo here) - for Australian stocks, add (.AX ie dot AX) as an extension (eg: BHP.AX for BHP; WPL.AX for Woodside); enter the purchase price and quantity.

4. For trading indices or commodities, simply click on “Add New” under the “Posts” section in your Author Dashboard (www.theinflationist.com/wp-admin).

www.theinflationist.com

www.theinflationist.com

This weeks extended rally now brings Dow’s 4 week rally the biggest gains since 1933 - up just shy of 21%. Our analysis have been spot on as we were off by 2 days to the actual bottom. The pullback was much smaller than we had expected, failing to give us a chance to load up for this multi month rally which have arrived. Note, even if multimonth rallies we expect some ups and downs. Markets never move up or down in one straight line. Many may think we are overbought, but do not forget the Dow have fallen from the heights of 14000 to 8000. Yes its significantly higher than recent lows at 6480, but its still almost halfway from the top. Many are expecting the worst to be over. You can bet that the worst is still waiting to catch the bulls by surprise. For now, we expect market makers to push the Dow significantly higher (our initial aim for Dow at 10000). It will entice all the moms and dads (ie Dumb Money) to load up, expect headlines to read “The Worst is Over” as more better than expected news make headlines. And then the second cataclysmic decline will hit us by surprise as record unemployment drives earnings lower.

We aim to long on pullbacks and to hold all our longs up. Stops are moved up as markets move up so that we are now risk free. 

www.theinflationist.com Portfolio

www.theinflationist.com Portfolio