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Wall Street

How to Defeat Wall Street's Secret Weapon

Penny Stocks

For most investors, the relationship between investing and profits seems simple enough. You buy low, sell high, and your portfolio grows - or so goes the story.

In reality, success ultimately comes down to defeating Wall Street's secret weapon: something called "Gambler's Ruin."

Understanding what it is and how to beat it will give you an edge other investors would pay dearly to have. Not one in 250,000 understands it.

The difference between heartache and success comes down to this concept, so here's what you need to know...

Four Tech Stocks to Avoid in 2016

tech stocks

There's a lot more to making money in tech stocks than choosing the right investments. You also have to know which stocks to avoid. After all, no one wants to lose money chasing after overhyped stocks.

If current trends continue, expect to see a lot of hype from Wall Street about great "turnaround" investments. Today I want to peer inside several turnaround prospects the Street is likely to peddle in the coming months.

On paper at least, they appear to be good candidates to come back from recent sell-offs. But they're not...

Why This "Expert" Advice from Wall Street Is Dead Wrong

Wall-Street

In a fitting end to what was a disastrous 2015, The Wall Street Journal ran two articles on its "Opinion" page on the last day of the year that epitomize everything that is wrong with financial journalism in the "Age of Obama."

In short, both articles were an insult to independent thinking that demonstrate how far the mighty Wall Street Journal has fallen under the ownership of Rupert Murdoch.

Here's why these Wall Street "experts" are so far off the mark...

Why the SEC Really Pulled the Plug on Stops – and What You Can Do About It

stop orders

Last month the New York Stock Exchange (NYSE) announced that it would no longer accept stop-loss and good 'till cancelled (GTC) orders. It went on to say that it would cancel existing orders of those types in its books, too.

The policy, subject to Securities and Exchange Commission (SEC) rule filings, goes into effect on February 16, 2016, so there's plenty of time to prepare. Besides, GTC orders usually expire in 90 days, anyway. And of course the brokerages will continue to offer these types of orders. They'll simply trigger in-house and then be sent as limit or market orders for execution.

So, on the surface, this announcement doesn't seem like such a big deal.

But it is a very big deal. Partly for its effect on investors - though I'm going to show you how to get around it - but even more so for what the NYSE and its regulator, the SEC, are telegraphing with this decision: That they're essentially washing their hands of what's about to happen... Full Story

Great News, Wall Street: The Economy Is Coming Unglued

ETFs

Commodity prices are plunging, the dollar is powering higher, Obamacare is collapsing, economies everywhere are faltering and terrorism is spreading across the globe.

That's bad news. Unless you happen to be among the stock market investors who in the U.S. spent the last week bidding up stock prices like there is no tomorrow. They are playing with fire and are likely to get burned.

The Dow Jones Industrial Average rallied 3.5% or 579 points to 17,823.81 while the S&P 500 jumped 3.3% or 66 points back to 2089.17. The Nasdaq Composite Index added 3.6% to reach 5104.92.

Below the surface, however, market internals were horrible with anything energy related getting "schmeissed" in the words of legendary market guru Doug Kass.

And the high yield bond market, which we will get to in a minute, is even worse...

Why Wall Street Is So Desperate for Your Investment Dollars Right Now

Financial News

Now is the time when Wall Street is most dangerous to your financial health.

After being 100% wrong about the market all year, Wall Street's big shot strategists are now telling investors to "get ready for a big fourth quarter rally."

You never hear a discouraging word from these so-called experts.  They all read off the same script - and that script is designed to get John Q. Public to buy as many stocks and bonds as Wall Street can sell them.

Read more...

America Has Become a "Banana Republic Run by Wall Street Criminals"

wall street criminals

Wall Street criminals just won't stop misbehaving.
The latest crime was exposed Wednesday. Five of the biggest names in global finance agreed to pay billions to settle lawsuits alleging they illegally gamed the $5 trillion-a-day foreign exchange market.
"America has become a banana republic run by Wall Street criminals," Money Morning Capital Wave Strategist Shah Gilani said on Wednesday.

Of course, history dictates the fines will have no actual effect on business practices. Not including this week’s, just look at the litany of settlements too-big-to-fail banks have shelled out in the last five years alone…

Desperate "Bubble Thinking" Takes Hold on Wall Street

bear-market

If it looks like a bubble, smells like a bubble and walks like a bubble, it is a bubble.

What we have in the certain stocks today is a bubble every bit as epic as the one that took the NASDAQ Composite to its previous record of 5048 back in 2000.

There are few certainties in this world, but one of them is that bubbles pop.

And like all previous bubbles, this bubble will pop, too...

Five Questions Wall Street Hopes You'll Never Ask

Wall Street

Wall Street would prefer if investors never asked certain questions. But sometimes having the right financial advisor in your corner can mean the difference between huge profits and devastating losses.

How do you find the right professional amongst tens of thousands?

You narrow your options down by asking these five crucial questions...

Why the UBS Dark Pool Fine Is So Absurd

UBS dark pool fine

The UBS dark pool fine announced last week is yet another example of the U.S. Securities and Exchange Commission dropping the ball on one of the biggest schemes staring them right in the face.

The SEC came down on UBS Group AG (NYSE: UBS) for not following the rules and regulations that make markets fair and orderly - and also for not being honest to its clients.

But this "record" fine wasn't really newsworthy - in fact, it was pretty absurd...

D.C.'s New Bosses Start to Pay Back Wall Street

wall street

Wall Street is about to get paid back by D.C.'s new bosses. Because all politicians are snakes. And some of them are rattlesnakes.

On Jan 14, the House of Representatives passed an act providing banks an additional two years to comply with the Volcker Rule. What does this mean?

It means that extra time will make the 1% richer. Here’s how it works…

The Truth About This "Meltdown" Indicator

meltdown indicator

We talk about why you should always be in the stock market (and NOT for the same reasons Wall Street wants you in, either). That's because being in the markets allows you tap into the inevitable growth that comes from capitalism and, by implication, humanity's upside.

Lately, though, people are beginning to doubt the premise behind that Total Wealth tactic.

That's due partly to recent trading action (which is unsettling), and partly due to the hype surrounding various indicators that are almost "guaranteed" to show a looming meltdown (which is unnerving).

Right now the scary indicator making the rounds is record "total margin debt." Chances are you've probably seen the emails, too.

According to the New York Stock Exchange, investors have borrowed more than $457 billion against their brokerage accounts as of November 2014 - a new record. The social meme - the mantra, if you will - is that so much debt is unsustainable, and that it potentially undermines the entire market.

I get that... Debt is a four-letter word after all, especially when it comes to the central bankers and Wall Street fat cats. But this is different.

In fact, I'd even go so far as to chalk this up to another case of "it isn't what it seems."

Here's the truth about this "meltdown" indicator...

JPM Stock Price Hit by Earnings Miss – but Bigger Troubles Ahead

JPM stock price

The JPMorgan Chase & Co. (NYSE: JPM) stock price faltered more than 4% on this morning on an earnings miss.

JPMorgan was hit hard by legal fees. The bank, along with several other big banks across the globe, had to cough up just over $1 billion. Most of that stems from a November settlement tied to shady activity in the foreign exchange market. But legal fees are nothing new.

JPMorgan is facing much bigger problems than the routine settlements...

How Wall Street Wins Its No-Lose Trades

Wall Street

Wall Street manipulators are at it again - they've found a new way to make huge profits from troubled companies.

Imagine everyone in your neighborhood taking fire insurance out on your house. Sooner or later, someone might toss in a lit match your way. That's what the puppet masters are up to.

What's worse? It's 100% legal and the rewards are limitless...

A U.S. Court Practically Declared Insider Trading Legal

insider trading

Wednesday, December 10, 2014, was a great day to be an insider trader.

A three-judge panel of the U.S. Second Circuit Court of Appeals overturned insider trading convictions of former hedge fund managers Todd Newman and Anthony Chiasson.

Not only did the appeals court reverse the much-publicized guilty verdicts against the two traders, its 28-page decision effectively rewrites the meaning of insider trading.

The immediate outcome of the decision not only affects the two hedge fund executives, other traders convicted of insider trading, and charged individuals who pled guilty, it will also change how traders use inside information to their benefit in the future.

The court decision is as surprising as it is profound...