The Tycoon Report

Investors and Students, Must Reads...

Thursday, December 28, 2006 | Chris Rowe

Below, you will find links to six of what I consider to be the best articles that I wrote for The Tycoon Report in 2006.  There were actually better articles, but I only wanted to post the ones that will best benefit you today.  You may have seen them already, but I promise you that reading/reviewing them again is well worth your time.

I organized them in the order that they were published (which is certainly not the order of the level of importance.)  The most important ones are actually at the bottom; however, I suggest reviewing them all.

It is a smart idea to check out The Tycoon Report Archives at www.thetycoonreport.com from time to time to view any and all past articles, as we get tons of positive feedback from our readers who say it's one of the best knowledge and education sources.


ARTICLE #1

"It's simple -- Making money, that is!"
January 19, 2006

Everyone should know how to protect themself from a decline after seeing a position trade much higher.  It can be hard to lock in profits when you think that a position still has more upside.

In this Tycoon Report article, I didn't mention the stock or options that I was talking about (which was Citrix Systems, (NASDAQ: CTXS),) because I felt at the time that it wouldn't be fair to the paying members of The Trend Rider if I revealed one of my open positions.

But I illustrate the sequence of events using a strategy that anyone can use with any stock that trades options.  It turned out that I ended up making 74% on the trade in three and a half months or so as the protective puts that I bought nearly doubled. Read More »


ARTICLE #2

"Want to know what you should invest in right now?"
March 23, 2006

In this article, I talked about why oil stocks were the place to be and why.  I actually wrote another article on February 11, 2006 titled "Energy Stocks Are Being Given Away! when energy stocks were even cheaper, but the March 23, 2006 article is more important, educational and relevant.

Current Importance:

1) Important notes/educational points are made about investor sentiment as a contrary indicator which applies to all markets, especially today's market.  The investor sentiment index shows extreme bullishness today which is also reflected in the CBOE Volatility index (VIX,) which again, is a contrary indicator (usually seen at a market top.)

2) Talks about how to pick the right sectors to be in and why it is so important to focus closely on what sector you are invested in.  It doesn't always pay to be "well diversified" in all different sectors.  (That's almost like going to the roulette table and betting one chip on each number.) Read More »


ARTICLE #3

"Today, we're looking ahead for the next big profits.  Also, a very important note of caution."
April 20, 2006

This article I just had to add to the list of 2006's best articles.  The recent top of the last commodities bull run was in late April.  On April 20th, I tried to warn all of our readers that it was time to rethink the bullish sentiment on commodities for the time being.

The importance of this article is twofold:

1) Because I simply had to brag when I called this so incredibly accurately that I had to pat myself on the back, stroke my own ego, and remind everyone else of how cool a trader I am.

2) Because this is a very important lesson that probably applies to you at least a few times a year.  Yet, it is a classic trap that most people fall into.  I'm glad that I happened to be dead right on the timing, because it illustrates my points better.  But the reality is that my points would have been just as valid even if commodities continued the path higher.

These days I have been illustrating similar points about the general market, and no matter what the next move for the market is, the points are still just as important and valid. Read More »


ARTICLE #4

"How you can see into the stock market's future. Part I"
May 18, 2006

This is part 1 of a 2 part series.  These articles are "must reads."

This article is among the most important articles that I have written and applies to anyone who has any interest in understanding how to buy when the market is at or very close to a bottom.

Notice that I wrote this article right before the lowest point in 2006.  I talk about the fact that the VIX had recently started to jump higher indicating a near-term bottom, and more importantly, I mention that you should wait for a spike even higher in the VIX (above 20) before nibbling at your beaten up favorite stocks.  I said that when it's closer to 25, that is when you should really dive in.

When the VIX hit the level that I mention in this article (over 20 in the week of June 5,) that was the first bottom of the 2006 market. 

When it hit 23.81 in the week of June 12, the market was only slightly lower, but was the absolute lowest point in 2006.

See an excerpt below:

... But you should also notice that the VIX has recently spiked from 11.39 to 15.80 since May 5th.

You should watch the VIX closely now, because the last THREE times that we saw the VIX pop to these levels were in October 2005, April/May of 2005, and at the end of October 2004 (which were the three lowest points of the market prior to this article.)

Those dates coincide with the last three market bottoms (see charts below.)  This time is a bit different, though.  While the market looks attractive after seeing your favorite stocks at levels not seen in months, I would really keep this knowledge that you have on the VIX in your back pocket for the time being.  When the VIX breaks 20 and moves closer to 25, I'd start looking very seriously at taking several new positions.

If you do see an oversold stock that you want to jump into while the VIX is under 20, be sure to take only the first half of your position, and wait for a bigger sell-off. Read More »


ARTICLE #5

"How you can see into the stock market's future. Part II"  
May 25th, 2006

This is part 2 of the VIX article.  Enjoy. Read More »


ARTICLE #6

"6 Key Trading Tips that have Gotten Me to Where I am Today"
October 12, 2006

Here are some basic trading tips that I wrote about a couple of times in 2006.  The reason that I republished this article a few times in 2006 is the same reason that I am adding it to this list:  Because I got so much positive feedback and thank you notes from the readers. Read More »


I hope that you will enjoy these articles, and if you like them, remember to check out past articles at www.thetycoonreport.com.  Our goal is to empower the individual investors out there who deserve to know everything that the pros know about investing.

Happy Holidays!



“Profit from the Trend”

Chris Rowe
Chief Investment Officer
The Trend Rider