Stock Market Special Interest

Post Reply New Topic

I think dont use her interest in the stockmarket as a path for connecting with her. Talking is the most destructive activity for stockmarket decision making process. In the words of Nicolas Darvas "MY EARS ARE MY ENIMIES" (yes he used capitals). And Livermore had a no talking rule in his office. So dont discuss any specific stocks or news you have heard. Its very difficult to separate the talk that is social (small talk) with the talk that is informational. So talk about the weather or something else.

I agree with flamingshorts. My suggestion is to pick an area she does not actively follow. The last thing you want to do is compete with her. She is clearly hyper focused on her specific area of interest and it sounds like it is individual stocks. She knows what she is doing and has a methodology that works for her. And do not try to communicate with her while she is engaged in trading.

An example of an area you could begin to look at might be precious metals. there are some ETFs (Exchange Traded Funds) that go up and down with the price of gold GLD and silver SLV. Related to this are the mining stock ETFs. GDX is an aggregate of gold mining stocks and SIL is an aggregate of silver mining stocks. This is my favorite area for trading.

You might also look at biotechnology. this is an area that is poised for incredible growth.

Another possibility is to look at methodology. You have not said what methods your mother uses to choose when to buy and sell. Generally there are two different approaches to investing. 1. Fundamental Analysis (the basic business analytics, profitability balance sheet PE ratios etc.) 2. Technical Analysis (using price fluctuations and chart patterns to predict future price movements)

I personally like using price analysis and look for cyclical patterns in the data. That being said, I want to be in a market that is trending up or down rather than moving sideways. Gold has been moving up for about ten years. The dollar was moving up from learly 2011 until fairly recently and has now been declining and may be at a point where the trend has changed from up to down. If the dollar continues to move downward this would likely be bullish for foreign stocks since you would gain not only from a foreign stocks rise but also piggyback on a currency gain.

Well those are a couple of ideas to ponder.

I had a friend who was very successful at this. He was quite math oriented, and he picked out pattern fluctuations in numbers very easily.

I'd love to discuss this. I trade the futures market - like stocks, but it moves much faster. Same patterns and cycles. I can see the patterns in the markets, but I find it hard to pull out exactly what cycles are running - there seem to be at least 6 different cycles, all running together.