Twitter RSS Feed 
Become a Member

join

Upcoming Events
View full calendar
Wiz Radio™ Oct 30
broadcast2



Oct. 30, Dr. Reaves discusses domestic markets, international markets, insider trading, plus other topics.

Member Login
ATWWI Portfolio Profits

October 27th-31st

AET Profits  
Tue. 46.07% (Nov PUT
Within 24hrs)
AFL Profits  
Wed. 50.50% (Nov CALL
Within 24hrs)
ALLY Profits  
Wed. 31.25% (Nov CALL
Within 24hrs)
AMGN Profits  
Tue. 119.51% (Nov CALL
Within 24hrs)
Wed. 183.25% (Nov CALL)
AMTD Profits  
Tue. 82.93% (Nov CALL
Within 24hrs)
Wed. 150% (Nov CALL)
AN Profits  
Tue. 84% (Nov CALL
Within 24hrs)
Wed. 115.75% (Nov CALL)
APC Profits  
Wed. 59% (Nov CALL
Within 24hrs)
BBW Profits  
Mon. 139% (Nov CALL)
Wed. 197.25% (Nov CALL)
BGFV Profits  
Wed. 81.03% (Nov CALL
Within 24hrs)
BSX Profits  
Mon. 190% (Nov CALL)
Tue. 203% (Nov CALL)
BWLD Profits  
Tue. 162% (Nov CALL
Within 24hrs)
CIT Profits  
Tue. 87% (Nov CALL
Within 6hrs)
Wed. 129.50% (Nov CALL)
CMI Profits  
Tue. 170.27% (Nov CALL
Within 24hrs)
COH Profits  
Tue. 51.35% (Nov PUT
Within 24hrs)
CROX Profits  
Tue. 30% (Nov PUT
Within 24hrs)
DAL Profits  
Mon. 95.50% (Dec CALL)
Tue. 101% (Dec CALL)
DENN Profits  
Tue. 89% (Nov CALL
Within 24hrs)
Wed. 130% (Nov CALL)
DLPH Profits  
Mon. 42.50% (Nov CALL)
Tue. 90% (Nov CALL)
DRC Profits  
Mon. 93% (Nov CALL
Within 24hrs)
EA Profits  
Wed. 69% (Nov CALL
Within 24hrs)
ETN Profits  
Wed. 25.71% (Nov CALL
Within 24hrs)
EXC Profits  
Wed. 21% (Nov PUT
Within 24hrs)
FB Profits  
Wed. 71.50% (Nov PUT
Within 24hrs)
FISV Profits  
Wed. 42% (Nov CALL
Within 24hrs)
FXC Profits  
Tue. 64.50% (Nov PUT
Within 24hrs)
GD Profits  
Mon. 128% (Nov CALL)
Tue. 176.50% (Nov CALL)
Wed. 181.60% (Nov CALL)
GLW Profits  
Tue. 46% (Nov CALL
Within 24hrs)
Wed. 103% (Nov CALL)
GT Profits  
Wed. 44.80% (Nov CALL
Within 24hrs)
H Profits  
Wed. 59.62% (Nov PUT
Within 24hrs)
HD Profits  
Mon. 89% (Nov CALL)
Tue. 116% (Nov CALL)
Wed. 136.50% (Nov CALL)
HES Profits  
Wed. 49.25% (Nov CALL
Within 24hrs)
HIG Profits  
Tue. 55% (Nov CALL
Within 24hrs)
HOT Profits  
Tue. 32.41% (Nov PUT
Within 24hrs)
Wed. 78.50% (Nov PUT)
HSY Profits  
Wed. 37.25% (Nov PUT
Within 24hrs)
KMB Profits  
Mon. 90.75% (Nov CALL)
Wed. 109.50% (Nov CALL)
LVLT Profits  
Tue. 27.50% (Nov CALL
Within 24hrs)
Wed. 65% (Nov CALL)
LYB Profits  
Mon. 188.25% (Nov PUT)
MAS Profits  
Tue. 56% (Nov PUT
Within 24hrs)
MRK Profits  
Mon. 17.36% (Nov PUT
Within 24hrs)
Tue. 142% (Nov PUT)
Wed. 142% (Nov PUT)
MWA Profits  
Wed. 119.25% (Nov CALL
Within 24hrs)
NBL Profits  
Tue. 22.50% (Nov CALL
Within 24hrs)
NCR Profits  
Mon. 60% (Nov CALL)
Tue. 140% (Nov CALL)
Wed. 148% (Nov CALL)
OSTK Profits  
Mon. 143% (Nov CALL)
Tue. 252% (Nov CALL)
Wed. 264% (Nov CALL)
PAG Profits  
Wed. 22.22% (Nov PUT
Within 24hrs)
PCG Profits  
Tue. 25% (Nov CALL
Within 24hrs)
Wed. 111% (Nov CALL)
PCL Profits  
Tue. 48% (Nov PUT
Within 6hrs)
PG Profits  
Mon. 124% (Nov CALL)
Wed. 131% (Nov CALL)
PNRA Profits  
Wed. 60.15% (Nov PUT
Within 24hrs)
PX Profits  
Wed. 36.50% (Nov PUT
Within 6hrs)
RGC Profits  
Tue. 180% (Nov CALL
Within 24hrs)
RL Profits  
Wed. 159.75% (Nov CALL
Within 6hrs)
SAVE Profits  
Tue. 59.75% (Dec CALL
Within 24hrs)
Wed. 83% (Dec CALL)
SO Profits  
Wed. 89% (Nov PUT
Within 24hrs)
SRPT Profits  
Tue. 15.50% (Nov PUT
Within 24hrs)
Wed. 46% (Nov PUT)
TSS Profits  
Wed. 73.33% (Nov CALL
Within 24hrs)
TWTR Profits  
Tue. 78.25% (Nov PUT
Within 24hrs)
UNH Profits  
Mon. 269.50% (Nov CALL)
Tue. 288.50% (Nov CALL)
Wed. 323.25% (Nov CALL)
X Profits  
Wed. 92.75% (Nov CALL
Within 24hrs)
XL Profits  
Tue. 40.19% (Nov CALL
Within 24hrs)
Wed. 50% (Nov CALL)
YHOO Profits  
Mon. 154% (Nov CALL)
Tue. 223.25% (Nov CALL)

Wiz Daily Journal

DON’T MISS TODAY’S OCTOBER 30th, 2014

DON’T MISS TODAY’S ASK THE WIZ RADIO BROADCAST!!!

Today’s (Thursday, October 30th, 2014), ASK THE WIZ radio broadcast from 2-4pm (EST) you don’t want to miss!!! Tune in on any internet enabled device or listen “LIVE” via the internet anywhere in the world at: www.askthewiz.info

“THE WIZ” will be presenting vital information pertaining to the following economic topics: 

During the 1st hour of ASK THE WIZ

* DOMESTIC STOCK MARKET ANALYSIS

* THE “WIZ” WILL REVEAL POSITIONS THAT ARE CURRENTLY (Thursday, October 30th, 2014) GENERATING 22%-287%+ PROFIT(s) FOR THE ASK THE WIZ WEALTH INSTITUTE INVESTMENT PORTFOLIO.

* THE “WIZ” WILL REVEAL NOTEWORTHY “INSIDER TRADING” WHICH OCCURRED TODAY (Thursday, October 30th, 2014).

* THE “WIZ” WILL LIST TODAY’S (Thursday, October 30th, 2014) TOP 10 TRENDING STOCKS.

* THE “WIZ” WILL REVEAL HOW THE U.S. REAL ESTATE MARKET IS BEING SET UP FOR ANOTHER COLLAPSE.

DURING THE 2ND HOUR OF ASK THE WIZ

* INTERNATIONAL STOCK MARKET ANALYSIS

* THE “WIZ” WILL IDENTIFY 3 (Three) BANK POSITIONS THAT WILL GET YOU P.A.I.D. "AFTER" THEIR EARNINGS REPORT(s).

* THE “WIZ” WILL ANALYZE AND EXPLAIN WHY RETIREMENT INCOME NOW COST YOU MORE TO OBTAIN AND MAINTAIN.

We think you will agree, you need to tune in to today’s (Thursday, October 30th, 2014) radio broadcast!!! Like always “THE WIZ” continues to be adamant about providing the community with vital information people need to finance, obtain, and maintain their economic liberation.

REMEMBER: THERE AIN’T NOTHING “FREE” ABOUT FREEDOM!!! YOU MUST PUT YOUR MONEY TO WORK FOR YOU, NO MATTER WHAT THE AMOUNT {$1 or $100,000.00}, 24-7/365 DAYS A YEAR GENERATING REVENUE AND INCOME… 

Don’t miss today’s broadcast of ASK THE WIZ from 2-4pm (EST) “LIVE” via the internet anywhere in the world at: www.askthewiz.info .

NOTE: REBROADCASTS OF ALL ASK THE WIZ RADIO PROGRAMS ARE AVAILABLE ON DEMAND AT OUR WEBSITE: www.askthewiz.info

ATW RADIO BROADCAST DISCLAIMER

The information submitted, during the ASK THE WIZ radio broadcast, is to be utilized for educational purposes ONLY!

Consult your personal financial and/or investment advisor for trading and investing advice.

Thank you for allowing us to be your COMMUNITY SERVANTS!!!

Customer Service Department,

ASK THE WIZ WEALTH INSTITUTE, INC.

ATWWI "Virtual" Trading Room... Cancelled

Greetings Ask The Wiz Wealth Institute Family and Friends,

 

Please be advised the Ask The Wiz Wealth Institute (ATWWI) Virtual Trading Room Session, is cancelled TODAY, Wednesday, October 29, 2014 from 9:30am - 11:30am.

 

Peace and Blessings,

Customer Service
 
ASK THE WIZ WEALTH INSTITUTE, INC.

WIZ ALERT

Virtual Trading Room CANCELLED for Wednesday October 29, 2014

The "BILATERAL THOUGHT" Rule and Shorting Stocks

The “BILATERAL THOUGHT” Rule and Shorting Stocks.

I thought maybe, just possibly, you might benefit from my thoughts on the subject of shorting stocks, and my own creation, the “BILATERAL THOUGHT” rule.

What is the “BILATERAL THOUGHT” rule?

Let me explain...

There are two basic types of stock market portfolio managers (PMs) out there today. Long-only and long-short…  

Long-only means the PM is trying to pick good stocks in his sector or market-cap weighting, to “beat the market.”  In actuality, most long-only funds are thinly veiled index funds.  Think of the Fidelity or American Capital mutual funds.  The biggest bets they make are to be slightly off in their weightings on a stock versus their benchmark.  They charge customers a management fee of 1-2% and that’s it.  If they make great returns by riding out a bull market and picking slightly better weightings than the index, then they benefit by advertising those returns and attracting more assets.  They actually have very little “skin in the game.”  It’s OPM (other people’s money) and they don’t get an incentive fee for doing well.  They DO NOT short stocks.  Their job is kind of easy (now I’m sure somebody reading this is getting offended right now, but you know I’m right.).

So what about equity/long short fund PMs?  They have a whole different game.  They charge a management fee PLUS they get 20% of the gains they make for their customers.  They have much more concentrated positions, and most important, they SHORT STOCKS.  Or at least they are supposed to – a lot of the lazy PMs simply are long-only funds in drag they just short index ETFs against their longs and call it a hedge.

What is so great about shorting stocks?  Let’s think about this for a minute.  If I think I can beat the market through buying stocks that will outperform the general market, why can’t I also, while doing my research, find stocks that will underperform? In EVERY market, even 2013’s bull market, there are stocks that go down.  Industries, especially in technology, are affected by change and fortunes of companies rise and fall.

So isn’t a lot of my research wasted if all I can do when I find a company that will decline is say “well, I just won’t buy that one?”  Also, think about this.  Let’s think about an ideal world in which during my research, I find 10 stocks I really like and 10 stocks that should underperform the market, or even drop.  Imagine how cool it would be to be long 10 and short 10 in equal proportion, so that I would have ZERO exposure to the vagaries of the overall market?  I could wake up blissfully ignorant of the level of the S&P, and just watch as my longs went up and my shorts went down.  What is my return on capital in this perfect scenario?  Almost infinite!!!

Or look at it another way.  Let’s say I have $100 million to invest and I do not want to take on any leverage.  I find my longs and now I’m stuck.  Wait a minute, I can still increase returns!!!  

I can basically short as much as I want.  Any short idea that I find is essentially “Free capital” because it is opposite to my longs and does not give me more (net) exposure to the market.

I typically run 100% long, 35% short, to net out at 65% net long.  So in theory, I have less exposure to the market as a whole, but can make money both ways (BULL/BEAR I don’t care!!!).  And I have!  Even in 2013, stocks like DLR, RAX, and IBM plummeted while the overall tech market went up.
So what’s the catch?

SHORTING STOCKS REQUIRES YOU TO STAY FOCUSED!!!

That’s the catch.  Staying focused!!!

Most people, especially long-only people, do NOT know how to short stocks and are not disciplined enough to “STAY FOCUSED”.

Shorting a stock is not the opposite of finding a good long.  You may want to long a stock with a low P/E but you most definitely cannot only short a stock because the stock has a high P/E.  Just ask investors in TSLA, NFLX, and AMZN how well shorting high P/E (high growth) stocks worked out for them.

A quick guide (10 ideas) on shorting stocks.
1. Don’t short on valuation alone.  

2. Crowded shorts are subject to short squeezes.
3. When a short works, your position gets smaller so you have to press it.
4. When a short goes against you, your position gets bigger so you get punished more and more.
5. Accounting frauds are good shorts, but you still need sangfroid because they can go on for a long time before they blow up.
6. Shady management can do a lot of things to mess with shorts, such as buybacks, puffery, raising the dividends, putting out bogus press releases, and reporting poor quality earnings.
7. Tech obsolescence shorts are great but sometimes take longer to play out than you think.
8. Whenever the market is up big with massive breadth, the long-only guys will buy the heck out of your shorts and you will underperform that day.
9. My favorite shorts are accounting issues, tech secular shifts which cause obsolescence, and bad management.
10. You are always fighting the crowd when you are short because all of Wall Street is set up to make stocks go up and to tout them and to make up reasons why you’re wrong.

So what is this “GREAT” way to get P.A.I.D???

This one is so easy to explain that it will seem logically obvious to you.  You may wonder why everyone isn’t doing it.  So here it is…

“When I fundamentally change my thesis on a stock because of new information, which makes me decide to sell my stock, I should consider shorting it as well.”

Let’s dig further...

Let’s say I own ACME Gadget Co. and I have been making money on the stock. My thesis is that ACME has a great market position and that their new Gadget is going to be obscenely profitable or whatever.  Then, all of sudden comes some facts that prove to me that I’m wrong. This is a key point.  If my thesis is intact and the stock drops, I may have to revisit my thesis, but this is not what I am talking about.  I mean, I have new information which makes me think, gosh, you know, I may be wrong here and I think I’ll sell ACME.  Fine…99.9% of people at this point just sell the stock, book profits and smile.

Then, the next few days when the stock drops, they lean back and smile.  They might even have a glass of champagne or two.  Three months later, when the stock is way down and it is obvious that they were right, they are happier yet.

Now think about this…

If the PM sells ACME because they think it will go down, why didn’t they also short it?  Then they would make money on both sides.  Imagine the annual rate of return if a PM did this at least once in a while.  This is a critical rule for amping up performance.  Why doesn’t everyone do it?

BECAUSE IT’S HARD TO STAY FOCUS AND THINK IN TWO DIFFERENT DIRECTIONS AT THE SAME TIME (BILATERAL THOUGHT), THAT’S WHY.

It’s cognitively difficult to be so cerebrally flexible that no one does it.  A day ago, you loved this stock. You had good feelings about it, nice warm emotions. You know a lot about it. You might like the products. Maybe you met the management and they are a bunch of nice guys. You even made money on ACME and got P.A.I.D.  

“ACME stock sure has been good to me.”

DISASTER!!!  Do you see how emotional you are?

“When the facts change, I change my mind.  What do you do, sir?”: John Maynard Keynes

It is so hard emotionally to do this “BILATERAL THOUGHT” that no one does it.

When I went back and analyzed my trading records during my early years, I would have dramatically improved my performance had I followed the “BILATERAL THOUGHT” rule every time.

Does it always work? Of course, not.  No trading strategy, paradigm, or rule works all the time.   So you still have to follow your trailing stop and stop-loss discipline.  

But know this:  you are not trading/investing to your fullest ability if you don’t follow the “BILATERAL THOUGHT” rule.

Notice how the rule says “consider” shorting?  I don’t always want to do it. Here are some reasons why.  If ACME stock has gone from a 6% to a 12% position because I was lucky and brilliant and got the story right, I will usually cut the position back.  This is not a case of the “BILATERAL THOUGHT” rule. I’m selling even though the thesis is intact, only because of portfolio sizing.

Now sometimes you might say, “Well, I’m just going to a neutral on the stock, so I’ll sell it and leave the money on the sidelines for now.”

First of all, I don’t get along real well with analysts that are “Neutral” on stocks. What are they, Switzerland? This isn’t politics at a tea party.  Do some work and get an opinion.  When people on Wall Street tell me they are “neutral” that is code word for either “They haven’t done the work” or “They have no courage.”  

 

So if I’m long ACME and I’m getting a bit skittish, then I think to myself BEFORE I EVEN SELL IT, should I do engage in and implement the “BILATERAL THOUGHT” rule?  If I answer to myself (I talk to myself a lot, at least in my mind) “No, I wouldn’t short ACME,” then I won’t even sell it.

See the power of this rule?  It not only helps you make money on shorts, but it helps you clarify your sell decisions in the first place.  I strongly believe a BIG MISTAKE is selling winners too early.  For every time I have round tripped a stock, I can name times when I rode a stock to 2, 3, even 5 times gains.  

THE BIG MISTAKE of selling winners too early can be mitigated by following the “BILATERAL THOUGHT” rule.  If I told you that you HAD TO short every stock that you decided you wanted to sell, I guarantee you that you’d hold on to a lot more winners.

If you are not careful trading/investing can turn into a perpetual mind horror full of mental mazes and torrents of emotions.  Even if you use the “BILATERAL THOUGHT” rule, you will find ways to convince yourself that you are really selling a stock for some reason, when the truth is you are selling because the stock is down a lot that day.  It’s a tough thought process.  It’s OK to just say “this ACME is too hard.  I know I’m right but it’s too volatile for me and I can’t handle fighting the crowd on this one.”  In fact, after making a ton of money on Pandora (P) in 2013, I said this very thing and sold it.  I followed the “BILATERAL THOUGHT” rule- however, I DID NOT short it because my thesis had not changed.  I just did not have the constitution to fight everyone that said Pandora was expensive and how everyone else was going to beat them.  The stock went up 35% in the first 2 weeks of 2014 after I sold it. I didn’t feel bad, because I was P.A.I.D.!!!

(By the way, the “BILATERAL THOUGHT” rule also works the other way around- if you are short a stock and cover, you should consider going long.  My best examples of this are NFLX and GME, both of which I was short in 2012 and was long most of 2013.)

PEACE & BLESSINGS

Kenneth Reaves, Ph.D.

DON’T MISS TODAY’S OCTOBER 23rd, 2014

DON’T MISS TODAY’S ASK THE WIZ RADIO BROADCAST!!!

Today’s (Thursday, October 23rd, 2014), ASK THE WIZ radio broadcast from 2-4pm (EST) you don’t want to miss!!! Tune in on any internet enabled device or listen “LIVE” via the internet anywhere in the world at: www.askthewiz.info

“THE WIZ” will be presenting vital information pertaining to the following economic topics: 

During the 1st hour of ASK THE WIZ

* DOMESTIC STOCK MARKET ANALYSIS

* THE “WIZ” WILL REVEAL POSITIONS THAT ARE CURRENTLY (Thursday, October 23rd, 2014) GENERATING 13%-274%+ PROFIT(s) FOR THE ASK THE WIZ WEALTH INSTITUTE INVESTMENT PORTFOLIO.

* THE “WIZ” WILL REVEAL NOTEWORTHY “INSIDER TRADING” WHICH OCCURRED TODAY (Thursday, October 23rd, 2014).

* THE “WIZ” WILL LIST TODAY’S (Thursday, October 23rd, 2014) TOP 10 TRENDING STOCKS.

* THE “WIZ” WILL REVEAL 1 (One) EBOLA POSITION THAT WILL STILL GET YOU P.A.I.D.

DURING THE 2ND HOUR OF ASK THE WIZ

* INTERNATIONAL STOCK MARKET ANALYSIS

* THE “WIZ” WILL IDENTIFY 3 (Three) SMALL BANK POSITIONS THAT WILL GET YOU P.A.I.D.

* THE “WIZ” WILL ANALYZE McDONALD’s AND COKE AND REVEAL 2 (Two) ALTERNATE POSITIONS THAT WILL GET YOU P.A.I.D.

We think you will agree, you need to tune in to today’s (Thursday, October 23rd, 2014) radio broadcast!!! Like always “THE WIZ” continues to be adamant about providing the community with vital information people need to finance, obtain, and maintain their economic liberation.

REMEMBER: THERE AIN’T NOTHING “FREE” ABOUT FREEDOM!!! YOU MUST PUT YOUR MONEY TO WORK FOR YOU, NO MATTER WHAT THE AMOUNT {$1 or $100,000.00}, 24-7/365 DAYS A YEAR GENERATING REVENUE AND INCOME… 

Don’t miss today’s broadcast of ASK THE WIZ from 2-4pm (EST) “LIVE” via the internet anywhere in the world at: www.askthewiz.info .

NOTE: REBROADCASTS OF ALL ASK THE WIZ RADIO PROGRAMS ARE AVAILABLE ON DEMAND AT OUR WEBSITE: www.askthewiz.info

ATW RADIO BROADCAST DISCLAIMER

The information submitted, during the ASK THE WIZ radio broadcast, is to be utilized for educational purposes ONLY!

Consult your personal financial and/or investment advisor for trading and investing advice.

Thank you for allowing us to be your COMMUNITY SERVANTS!!!

Customer Service Department,

ASK THE WIZ WEALTH INSTITUTE, INC.

The Ask The Wiz Wealth Institute is not an investment advisor. We strive to be educational and informative community servants.
 

Profits And Income Daily (P.A.I.D.™)

The Ask The Wiz Wealth Institute's proprietary P.A.I.D.™ indicator system alert allows ATWWI members to maximize profits "REAL TIME" !!!

The ATWWI P.A.I.D.™ indicator system alert notifies ATWWI members via text message, anytime / 24 hours a day / per market conditions, sent directly to their cell phones, indicating both domestic and international market conditions that are monetizable for hefty profits.

Banner
Mortgage Calculator
Loan amount:

(Use "." for Decimals)
Duration:
years
Interest rate:
%
Monthly repayments:
USD
Total to be re-paid:
USD
Help