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Student Investment Association
“The path to financial freedom”
Steven Savickas & Panos Grivakis
Announcements:
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Sign in on the attendance sheet
membership (39$) See Kevin
Ordered 30 new books for paid members
NEW Website: ww.msu.edu/~investors
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New forum
Next Meeting Wednesday March 3rd 7:15 pm
119 Eppley – VIDEO TIME!
Sign up in smaller groups 4-5 people.
Survey
Donald's 7 Rules of Success
1.
You have to be born with enough brainpower.
2.
Once you have that, you have to love what you're doing. I've never seen
anyone succeed who didn't love what they were doing.
3.
You cannot stop. If there is a concrete wall in front of you, you have to go
through it. You can never, ever give up or even think in terms of giving up.
4.
Confidence is a very important thing. But confidence isn't something you
just develop by saying "I'm going to do this or that." You really have to
believe it.
5.
I love pitting people against each other. My whole life is based on that. It
brings out the best in people and the worst in people. If the worst comes out,
you don't want them working for you.
6.
You have to remain cool under fire and let criticism roll off you. Good leaders
handle conflict easily and bad ones are eaten up by it.
7.
You must work well with others and be loyal to your team. Disloyalty is the worst of all
traits. I seldom use the words "You're fired!" in business, unless somebody is really
scum and stole from me.
Investing in stocks Caution…
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Your going to be wrong
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Success doesn’t happen over night
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Professional ballplayers aren’t made in five months
and neither are successful investors
“the only difference between
the successful person and
everyone else is determination
and persistence.”
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I
Can sl m
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I = Institutional Sponsorship:
Institutional investors are a major influence on
stock prices, so buy stocks with at least some
institutional ownership, particularly mutual funds
with good performance records.
Volume
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Is the actual number of shares traded
Stocks never go up by accident
There must be large buying, typically
from big investors such as mutual
funds and pension funds
IBD’s “Volume Percent Change column
track the average daily volume of
every stock over the past fifty trading
days shows you how much a stock
traded above or below its average.
Volume
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Can use Accumulation/Distribution
Rating to fine out if stocks are be
brought or sold by big institutional
investors.
www.Investors.com
http://moneycentral.msn.com/investor/f
inder/predefstocks.aspx
Stocks we want to discuss
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Show stocks with high volume
Name a ticker?
Questions so far?
Words of wisdom from Mr. O'Neil?
Stock-picking mistakes investors make
Investors, especially those uninitiated to the ways of the market, make a lot of
mistakes when choosing stocks. William O'Neill of "Investors Business Daily" talks
about some of the common ones (other link)
Importance of Charts
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Strong fundamentals mean only 60%
Charts illustrate the price and volume
movements of a stock
Reflecting demand for it.
They are especially helpful in
pinpointing the exact time to get into a
stock—or when to get out.
Bases: Price Consolidation
Base – The price pattern moves straight
sideways and holds tight for at least
five weeks, normally correcting 8% to
12%
Correction – A pullback or a decline in the
price of the general market or an
individual stock
"The key to big profits is to buy leading
stocks and use charts to spot the right time."
When to buy with a base?
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You want to buy a stock exactly at its “pivot
point” as it breaks out of a sound base with
high volume. Don’t chase it up more than
5% past the pivot.
Key Points To Remember
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Charts give you a snapshot of a stock's behavior over
time. Charts are essential in timing buy and sell
decisions. They also provide signals that would be
missed if you relied on company fundamentals alone.
The study of greatest stocks from 1953 to the present
found stocks were in consolidation periods, that is,
they moved more or less sideways, before they leaped
and began their powerful climbs.
Bases help get rid of weak holders. This gives stocks
the chance to move up significantly when the base is
completed.
Do YOU want to learn more?
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www.investors.com
2.
IBD Learning Center
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Charts
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OR look in the Successful Investor book!
What YOU should do!
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Develop buying selection rules that let you
pick the best stocks, and use charts to
determine the right time to buy.
Have a set of selling rules that tell you when
to sell and nail down a profit, or cut short a
loss to avoid a possible larger loss.
You need a specific method to tell you when
the general market averages are topping and
headed down, and when they’ve finally hit
bottom and turned into a new uptrend.
Why should you join the SIA?
For $39 you get plenty of benefits…
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Free investment book!
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If you sign up 3 of your friends, your membership is free!
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Access to IBD $1000+ professional level research which offers
technical chart and stock analysis
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Investment library of books, Audio CD’s, Cassette Tapes for you
to check out!
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Access to state of the art trading room!
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Learn about investing and the stock market!
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Your own Scottrade online account
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Professional Guest speakers from top firms.
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Great resume builder
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Meet new friends
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Plan your way to financial freedom!
What do YOU want to learn more about?
1.
Survey
What did you like about tonight?
2.
What did you dislike or was unclear?
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3.
What would you like to learn more
about?
NEXT MEETING
WEDNESDAY, March 3rd
7:15 PM 119 EPPLEY
VIDEO! Interview with William O’Neil
by Maria Bartiromo on CNBC
3.1.04 Maria talks with the most noted and respected leaders in
business in this Special Report. She discovers what makes her guests
excel and moves them to reveal more of themselves as private
individuals, separate from their role as public figures. Bartiromo's
guests also discuss the major news of the day in the world of
business and beyond.
Student Inve$tment Association
Steven Savickas & Panos Grivakis
Investor@msu.edu
http://www.msu.edu/~investor