20110130

Oracle and Powerwave $ORCL and $PWAV



Last week I posted my humble beginnings as a trader. This will be my way of showing what happens right or wrong.

PWAV

Powerwave Technologies: $PWAV is currently at $3.46. I purchased 7 more  shares at $3.43 on the 26th of January 2011.  This makes my shares and average of $3.55 in cost for 14 shares. If we factor in the two trades at $4.5 each with a total of $9.00 in commission my total value is at a $-10.26 gain.  Ouch! Remember the first goal is to have the trade pay for itself. Since the current value is $3.46 I have in effect reduced my investment. I am still confident in my choice so I have a mental sell should the value drop further: I will sell if it reaches 3.18 or 3.20.  

With a little kind help I have gathered some input on my trade: The ArmoTrader has charted $PWAV on Stocktwits' Chart.ly.  I also have checked into another trader: TheConfidentInvestor who has given this stock a "poor" rating.  His position is clear: He is not confident that this stock is a good place for your money. It is speculative. 

For a small investor who is looking to make money you need to speculate in order to increase the value of your money. I imagine that I am a little VC (Venture Capitalist). I want to make my money work for me so I go after businesses that I think are interesting. This also means that I do not know the end result. I can guess.

ORCL

Oracle Corporation: $ORCL is current at $32.00 I purchased my one skinner lowly share at $30.85.  I am still up, but we have to factor in the trade commission of $4.5 so I am at a $ -3.55 gain. Here I am feeling a bit better because Oracle is a strong company. I do have a sell number if this takes a turn for the worst.  My stop is $27.00.  

Again I have obtained some input from TheArmoTrader: his chart regarding $ORCL. It's great to have feedback for your investments. If you don't share your position then you can not learn anything. This information is not TheArmoTrader's absolute gospel, but it is his share of experience and erudition. By discussing and sharing we can overcome the massive obstacle known as self.

GOALS


  1. Every trade pays for the cost of the trade and sell!
  2. I make $200 in profit and I subtract 1/4 to reduce it to $150.  The balance goes into a static savings.
  3. I make with my $150 up to $400 and I subtract 1/4 to reduce it to $300.  The balance goes into a static savings.
  4. I make with my $300 up to $600 and I subtract 1/4 to reduce it to $400. The balance goes into a static savings.
  5. I make with my $400 up to $800 and I subtract 1/4 to reduce it to $600. The balance goes into a static savings where it has now the value of $1500.
  6. I make with my $600 up to $1200 and I subtract 1/4 to reduce to $900. The balance goes into a static savings.
  7. I hit the $1000 mark with my trades and I now allow the trades to pay for themselves.
  8. Every week I take from regular earnings $20 to $30 to seed my investments.  This positive cash flow will be sufficient until I reach $1000 after my last subtraction.
You get the picture.  Have worked now full-time since 1987 that's 24 years.  24(years)*52(weeks)=1248(weeks)  1248(weeks)*$20=$24,960 That's a lot of money! I wish I could say that that is all I have wasted on crap I did not need, but I am sure that $24,960 is a remote figure to the real waste.  I was basically a conduit for money.  I moved money from one spot to another and I worked hard doing it. 

Thank you for your eyeballs and have a great week.  Till next time. Remember this: Never let someone else's experience limit your ability.



20110126

Healthcare as a Tax Deduction



Let's consider this: I have barely had healthcare since I left college in 1988. For most of my adult life (I am soon to be 41) I have not had any health insurance. Sometimes I have had a job with it.  Most of the time I have had a job without. I was excited when lawmakers were considering healthcare for the masses. Now I understand that it is something idiots like me don't need and can live without. Self insurance is what we really need.  OK.

I would now like to see no healthcare bill. Just can it. What I would like to see is a general tax deduction of healthcare. 

Here is how it will work:


  1. If you buy health insurance it is 100% tax deductible.  You still have to pay for it out of your pocket, so you need to go to work. If you know that you will be reimbursed for your health insurance you can get a policy that  meets your needs based on the deductible you want to leverage risk against.
  2. Your deductible is tax deductible too. You know that if you have to pay for an out of pocket expense you will be reimbursed so you will spend what you need to get healthy and back into the game.
  3. If you join a health club like the YMCA or take yoga classes or sports or whatever keeps you mentally and physically active, then it is also 100% tax deductible. You still have to come up with the money in order to do what you want to do.
  4. If you are dirt cheap poor and you just buy the very basic things you need to be healthy: cough medicine, aspirin, that visit to the local medical-health doctor-mart for that insane illness that appeared unexpectedly and you have to pay $100 to $300 on your credit card or you get a payday loan to live, etc.... that will also be %100 deductible when you do your taxes at the end of the year. It does not matter that you only spent $1 or $10,000.  You will get this money back or you will not have to pay it in the first place when you file your taxes.
  5. This KISS (Keep It Simple Stupid) tax deduction will make it so that ordinary working class and affluent people will have the ability to stay healthy, work and have better lives.
  6. Businesses who pay for the health care of an employee or subsidize an insurance policy will find that what they spend is %100 tax deductible too.
  7. Any person who helps another person or pays for a service will also find this %100 tax deduction. Now the local town doctor can accept chickens, hogs, corn or a tax deduction for his or her service!  If a doctor donates a service it can be tax deductible. If a doctor or hospital can not collect debt by reasonable means it is deductible too. (I can see where this might go wrong, but all channels are still open and the revenuer can chase what he or she wants anyway.)

We don't need mandatory health care.  We don't need hidden government costs to further fleece the regular or affluent worker. We just need a simple way to provide a better capitol value experience for those who contribute to the capitol and growth of the united states.

How would this get maintained?  Simple.  It's tacked onto the existing monolith know as the IRS. Any business who was preparing for the new healthcare law and no does not know what to do can keep all of the work they have put together and get rid of it or keep it.  It is tax deductible too.

Consider this argument I am posing.  There are plenty of smart people out in this world who can see the benefit of such a plan.  This may also eliminate a lot of older tax deductions that are clouded in mystery where only the best liars lawyers can negotiate the principle and the chaff. 

Lastly I think that income tax should be this simple formula: (Cost to get money)-(cost of living)=(Disposable Income).  (Disposable Income)*(Decimal (Percent) of the great mystery number from Uncle Sugar)=(tax owed).  Everyone has to pay something.  Maybe the Fed can say each dollar cost this much to use. If you hold this many dollars it cost this much (of your disposable income!).  Once the money has gone through your fingers then it can not be taxed again until you use it to make more money (Hence it is a cost of making more money in the first place).

If you survived the above rambling then I wish you the very best in life, love and happiness.

Cheers.

20110123

Ubuntu, Gwibber, Twitter, Stocktwits, Zecco and Investing



Redhat $RHT and Linux

In 1999 Redhat became an IPO. I had begun using Linux by reading books with distribution CDs at about this same time. When Redhat $RHT became an IPO millionaires were made.  At it's hight December 1999 RHT was near $137 a share. At it's lowest September 14, 2001 RHT fetched $3.14 a share. I didn't know much about stocks, but I knew Redhat was good.  Why?  Because it was a market for Linux.  Redhat was an customer based software educator business.  

Redhat was training businesses to fend for themselves in software. Software that allowed you to do anything. You did not need to have a proprietary license.  You just needed to have trained people (which you had to have anyway). The remarkable thing was that what was under the hood was a fully and actively developed technology that your people could adapt without legal recourse. It was Open Source.

So Redhat's stock was devalued.  Big deal.  Redhat kept moving with Linux. Linux is everywhere. Your Android phone is a Linux kernel device. Your Apple phone is a Unix/BSD kernel based device.  Linux gave Apple Unix.  Unix made sense for Apple because they wanted to ride the wave too. Linux was created as an open Unix. If you squint your eyes the "L" and the "i" will become a "U".  The previous sentence was rubbish.

November 21, 2008

After puttering along RHT was valued $8.56 on this date.  For 9 years I read stock quotes in the newspaper like some read Astrology.  I thought to myself as I always thought.  "I want to buy this stock." From this date to the present RHT has continued to rise. I was not directly using Redhat because I found that there were other distributions that were friendly to folks like me.

On the other hand I kept paying attention to Redhat and it's customers. I was not a paying customer using Redhat Linux, but I was still in the game and all of us who use Linux benefit from the testing and use by end-users. Bleeding edge is what my friend Scott told me one time.  

So I wanted to buy Redhat but I was using Ubuntu. Ubuntu is a commercial venture that remains free.  The set up of Ubuntu is extremely easy and full featured. It's not a money maker directly, but it has a hell of a lot of advantages and mystical properties. 

Ubuntu Linux, Gwibber, and the Invest 2.30.0 Applet

For about 4 years now I have had steady use of the Ubuntu desktop.  Like other distributions before she always came with a lot of software I had no idea how to use or what it was for.  One product that came out about a year ago was Gwibber. Like many great products I have come to love it was an enigma. I thought: "Gee micro-blogging, what's that." So I got a twitter account and Gwibber did not work.  This is normal on the bleeding edge. I tried everything under the sun, but I could not get it to work.  So I was stuck with a Twitter account.  I started to use it.

6 Months later Canonical released an updated version (as they do on a regular schedule) of Ubuntu and Gwibber was working.  This is normal too.  If you have a broken thing in Linux, eventually someone or you will fix it.

Another tool I found was a little widget that sits on my Gnome desktop.  Gnome is the GUI I use with my Ubuntu distribution. The tool I found was Invest 2.30.0.  This little tool allows you to see stock quotes.  It also allows you to put a value in and track it!  So I started buying virtual stocks about 9 months ago.  I also picked Redhat and put fake money on it.  I was earning.  I thought to myself: "Self, you need to tweet about this.

Twitter, Stocktwits and Zecco

I started to tweet about Redhat. I knew I knew something. I just didn't know what I knew.  I tried to qualifying my statements by linking to smarter resources.  Enter Stocktwits.

Somehow my Redhat rants were observe by the folks at Stocktwits.  Someone contacted me via twitter and asked me to join.  I looked into the stocktwits website and I was impressed. So I joined.  My Bio says "I know nothing about stocks. I do know technology."

As I was plowing through stocktwits.com I noticed the Zecco.com adds. From stocktwits, if I had an account, I could trade based on my interest in a stock.  All of this fell into place.  I could trade.  I could learn how to trade. 

So now I am trading. I started with $50 dollars.  Then I added another $25.  My holdings are pretty small.  Very small. But there were times in my life that $50 meant eating for a week.  

So here is my progress:

I bought $BGP (Borders Books) on a whim that it would be a cheap victory for me for 45 shares @ $0.92.  I sat on it for a day and got nervous because I was not liking what I was reading about the company.  So I sold it the next day. 45 @ $.90.  I also had to pay for each trade $4.5 each time. So I turned $50 into $41.0.

I am still in the game.

I next decided that after looking at my Oracle Subscription to buy ORCL @ 30.85.  Just 1 share.
Again I had to pay my trade commission of $4.5, so my $41.0 turned into $34.95.  But alas my little ORCL is actually making money.  It was Redhat's only sensible competitor.  ORCL has Linux too.  They also have MySQL, JAVA, Open Office and Oracle's own products.  Oracle also has a loyal following and is intensely training based and customer aware.  They also hired Mark Hurd who was fired from HP.  You got to love that!  At this time ORCL is 32.51.  It will soon pay for its trade.

That is the most important thing I have learned is that I have to have my trade paid for.  Lucky for me my little Invest 2.10.0 applet allows me to put what my commission was and I can see if I am in the hole or not very quickly.

After being happy with my Oracle trade I decided to go after a company that I stumbled upon and decided that I liked.  February 1, 2011 they will announce quarterly earnings.  I bought 7 PWAV@$3.67.  I paid the highest price.  If you have to work during the day away from a computer, then the risk is 100% there.  No big deal.  I chose the stock because the company on paper looks lean and mean.  PWAV is $3.56 now.  She is bumping about.  I am going to sit on it and if it goes to $2.00 I will sell it.  I think it will go to $5.00 or even $10.00.  Let's say that I am a guesser.  

Investing:

A friend of mine said that investing is like gambling.  When I heard that I wanted to say something nasty.  I didn't.  He owned a hell of a lot more stock than I did.  I hate that kind of thinking.  I don't understand it. Never let someone else experience limit your own ability.  Before I sold my BGP back I read this: 5 Stock Market Myths from the Nasdaq.com website.  I decided that my stock just might not make it back up.  I also decided that I was right to think of stocks as investing and not gambling. If you are a nihilist, then the stock market is gambling.

So this is my little rant.  I am very proud of myself for starting to trade for real.  My total holdings are valued now at $57.29  That is a $75 dollars, (4 trades at -$18) if you do the math I am actually up $.29!  The trade commissions are necessary so it is the expense needed to do the job.  It's my hammer and nails.

I have no formal training as an investor.  I know nothing. Of course that is what OgFOMK ArTS has always been about. Do it yourself. Thankfully we live in a time where if you don't get overwhelmed you can learn a lot from a lot of people. I have noticed this too:  This is very important! People who really make money are happy to let you know how they do it. 

Eventually I will purchase some RHT.  I like it.  Small investing to big investing.  My goal is to make $1000 a day in trading.  I plan on doing $100,000 a year and in five $10,000,000.  Why?  Why not.  Most of us are conduits for disposable income.  Look at it all and say: "Now I am an investor."