Monthly Archives: February 2021

Research and Speculation

There are two ways you can choose to buy a stock. One way is to research the stock and make the best decision by analyzing the company. Public companies have to release their financial statements quarterly. The statements give investors a window into the company’s operations and profit. Making an informed decision requires more than just looking at the financials. One can also read articles and look for new investments or company news that might make the company more attractive to purchase. This is the best way to gain long term growth by investing in a company that is profitable and growing.

The market depends on supply and demand to drive the price of the stock. If a stock is desired, then the stock price could rise rapidly. Another way to choose stocks is to speculate. Speculation is basically a guess that a stock will rise or fall and buy the stock with that in mind. This is usually a short-term gain or loss strategy that is more exciting that doing long term investing. To make speculating even more fun the investor can purchase call or put options. These contracts give the buyer the ability to purchase the stock at a later date that is specific to the contract. Also, the buyer could sell the contract before the expiration date and not purchase the stocks.

In this blog, I plan to focus on the latter and speculate my way to becoming rich. Disclaimer: I do have a 401k and other long-term investments, but those are being managed by someone other than myself. One set of stocks I found interesting is the Canadian cannabis company Sundial Growers $SNDL. It’s a cheaper stock with a price hovering around 1.50 per share. The Biden Administration is moving towards federal legislation that would push legal grower operations in the light. Also, a full legalization would hopefully allow imports from Canada. While this is full speculation, it’s not out of the realm of possibility. I put a call option in for 4 or (400) stock contracts that expire in June of 2021.

I implore anyone reading this blog to let me know the stocks that you would consider and be would be candidate for short term gains! Please use the comment section below or check out my twitter.

The Foundation

The first thing an investor has to figure out is which broker to use. There are many, many brokers that you could create an account with. Robin Hood revolutionized trading for retail investors because they started zero commission stock trading. Lots of other brokers started doing that too. Remember your stocks are not exactly free! Robinhood gets rebates from market markers which pays for the “free” trades. Also, the app has a lot of other features, such as being a gold member and a margin account. I decided to use E*Trade because I already had an open account when I invested in Exchange Traded Funds, or EFTs, back in the day.

E*Trade has a similar structure where most stock trades are free and other trades might cost some commissions like stock options. I linked my E*Trade account to my Wells Fargo account to fund my investing adventure. I decided to move over one thousand dollars from my account to get me started. Usually, it takes a few days for the transfer to post to your investing account. Other ways you can fund your account is through digital check deposit and wire transfer. The wire can post to your account within hours whereas the other funding options can take days to a week.

The practice of buying and selling stocks have been around for a very long time. People used to buy and sell stocks that were actually pieces of paper and now you can jump on a smart phone and move millions of dollars with a touch of the screen. There are several different ways to invest your money, such as stocks, mutual funds, EFTs, bonds, options. I’m going to focus on options trading because it’s less capital intensive and it’s harder to understand. Although, just buying basics stocks is a very easy concept. Buy a stock a specific price and hope that it increases before you want to sell it! That’s the basics with basics stocks.

Introduction!

02.18.2021

Hello Reader! My name is Matthew Kirkland and I intend to share with you my journey becoming a knowledgeable and, hopefully profitable day trader. The stock market is considered by many a place for rich people to get richer. Others consider it a casino that you can gamble away money speculating on specific stocks and options. I have been fascinated with financial markets for a long time a feel this a great way to boost my knowledge and share my experiences along the way.

My experience with the stock market is very limited and mostly with just putting money into my retirement account such as a 401k. Retirement accounts is a very boring way to approach such an exciting life an investor can have! For instance, retail trader Keith Gill aka Roaring Kitty was virtually on Capitol Hill today testifying in front of members of congress on his wild ride investing in Gamestop. He was not invited to testify because he socked money away into his retirement account. Mr. Gill/Kitty analyzed Gamestop stock in June of 2019 and noticed that massive hedge funds were continuously shorting the stock. At one point, the stock started to bubble and Gill’s investment of 50 thousand dollars turned into 48 million. Yep, that’s million with a M!

I understand that Mr. Gill’s experience is not a regular occurrence, but it is not totally out of the realm of possibilities. I would like to expand my knowledge of options trading and noticing trends in stock rises and falls. Also, my ultimate goal is to create diversified investment portfolio to make profit on a regular occurrence. I understand the risks involved in playing in the stock market and the things I write on this blog is my opinion and not financial advice!