Welcome to the “Main Street beats Wall Street”. This blog is for the stock investor/trader with experience in trading options. It can also be helpful for the ones with no experience with options who want to learn how options can be used to pursue your trading goals. As time goes on “Main Street beats Wall Street” will be giving many lessons from “Getting started” to you making your first trade. I also have an e-mail for any questions you might have from a lesson or a trade I posted,coachsjc@gmail.com. On “Main Street beats Wall Street”, I (the Coach) will post every trade I make. In recent years I've had years with over 400 trades. I will not post last years or last month’s trades, or hypothetical trades. ONLY REAL TRADES! I will post a trade when I get into a position and I will post the trade when I get out of that position. Along with my trade I will post my “RISK FACTOR”. The risk of my trade will be rated from 1 to 5, 1 being a low risk trade and 5 being a high risk trade. You will see if I get out making money or get out losing money. No Hoopla. “Main Street beats Wall Street” will show you how the people who live on Main Street throughout this country can be as good as the people who work on Wall Street. This blog is totally free, I am not selling books or tapes. I am only having fun and staying involved in something I love, the stock market. I make my money buying and selling stocks and options. If you put in a little time you too can make money; enough money to change your life forever.

The Coach

Thursday, May 6, 2010

Free Fall Day of May 6th, 2010

What a day! If you are just studying and on the side lines waiting to get into the market when you learn more. Good for you, because everyone lost money today. Today will be a great day to look back on when you buy a stock and wonder if you should buy a put to protect your investment. In today's market you never know when we will get a pull back, correction or a free fall like today. Today was the biggest intra-day drop ever, close to 1000 points. And it happened in 15 or 20 minutes. Then it was the biggest intra-day rebound ever of 650 points in 20 to 25 minutes. As you know we ended the day down 347 points. Very scary! If you are only in stocks you have to hope and wait for the market to rebound. If you are in stocks and options you might have a bigger problem or an opportunity to bring in more premiums. There is still two weeks to expiration so there still might be a chance to get a decent premium if we get a full bounce back in the next few days. Here is what I am going to look to do. If in the morning we get a continued pull back I am going to look to buy back some of my options I sold, if the stock is much lower then when I sold the option. Then on a bounce back, if that happens, resell the options for another premium or maybe roll it out to June for a bigger premium. If the stocks stay low I just have to wait for them to come back and keep the whole premium from my original option sale by waiting for expiration......Wall street is tough but Main Street will win. Please remember to buy some puts (insurance) on your investments. Look back at my Kodak deal. And good luck on this rollercoaster because I don't think the ride is over yet.

The Coach

P.S. Thank you for the e-mails today because misery loves company.
Posted by The Coach at 5:30 PM

Monday, May 3, 2010

When Warren Buffett talks, people listen

Warren Buffett, does he have some pull or what? He was on CNBC this morning and he moved the markets. He said some positive things about the economy and some positive things about Goldman Sachs and we were off and running all day. He said the economy was strengthening faster then he originally thought. He also said he felt Goldman did nothing wrong and Lloyd Blankfein (Goldman's CEO) was doing a great job. The Dow ended up 143 points and it is a good start to the week, maybe it can continue. We will see tomorrow! A few of my stocks have been hurting with a few down days last week. Even with an up day some of my stocks went down. Not to worry. This is why it is important to be in quality companies. Today SNDK up $3.48, U.S. Steel started off down $2 but ended up a little. I really like the way U.S. Steel looks on the candlestick chart. It looks like it hammered out a bottom. Lets watch it for the rest of the week, I own 2000 shares. Also AK Steel showed some improvement today. Lets watch this one also. In my last post I spoke about selling a naked call on PUDA. I ended up buying it on Friday with my "buy stop order". If the stock went down I would have continued in the naked position but the stock went up and my buy order went into effect. I got in at 9.95 and today it hit 10.30. If PUDA stays above $10 until expiration I have the stock to deliver.....Come on Warren, give us some more positive comments in the morning.

The Coach
Posted by The Coach at 8:13 PM
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