I Chose E*TRADE Over Scottrade

A couple months ago I moved my accounts from Scottrade to E*TRADE. I have a margin account plus two IRA accounts. I was being charged 7.5% for my margin money*, and paid 0.10% for cash [in my IRAs], and paying $7 for each trade.

Since the interest rate is near zero, and I’m being charged 7.5%, I called up Scottrade asking for a lower margin rate. They didn’t seem too favorable to changing it up, and in fact, told me to call them back on Monday, but in the end, they said they’d lower the margin rate by 1%.

In the meantime, I called up E*TRADE, which just happened to be the first company to pop into my head. The guy immediately said that he’s VERY confident he can get me $6 trades and 4% margin interest. So…I went with E*TRADE.

I’m unsure what interest rate I’m getting on cash in my IRAs, but the amount is 10 – 20 times more than what I got at Scottrade! NOT a lot, but it’s more than the 12 cents that I was getting at Scottrade.

AND once I got used to their system/website, I like it much better than Scottrade’s.

LESSON LEARNED: it pays to call around and negotiate.

* The interest charged on margin money depends upon how much money you have on margin. The MORE money on margin, the LESS the interest rate is. Thus, one is encouraged to use as much margin money as possible.

Leave a Comment

BOOK: Trading Secrets. REMINDER: Friday January 13th

20 Hard and Fast Rules to Help You Beat the Stock Market
By Simon Thompson.

Friday the 13th – applies only to Germany, Ireland, Italy, Holland, Japan, Spain, Norway, Sweden and UK (Unsure why in just these countries and not others).

Historically, Fridays produce better returns than any other day of the week. Studies have shown that for the markets in the above countries, returns on Fridays on the 13th were significantly higher compared to other Fridays (in some cases, 10 times greater).

No one can come up with a good explanation, but the data samples have been substantial and cover a long period of time (going back to 1935).

The play? Buy an index fund shortly before the close of trading on Thursday and sell before close on Friday.

Even though this doesn’t seem to apply to the US markets, we just have one in 2011, and we just had it – May 13th.
Next are January, April and July 2012.

Leave a Comment

BOOK: Trading Secrets. REMINDER-Q1 House Builder Effect


20 Hard and Fast Rules to Help You Beat the Stock Market
By Simon Thompson.

Q1 House Builder Effect [the author is in the UK].
At the beginning of the year, buy a selection of the UK’s largest house builders and hold them 3 months. Sell at the end of March. For the past 29 years, you would have made a profit 24 times (82%). The average gain is 10.7% which includes the down years!

The author states that as investors become aware of this phenomenon, they jump the gun and start buying in December to get even more gains.  This has been very profitable, too.

Unfortunately, the author doesn’t list the names/symbols of the largest house builders.

Leave a Comment

Book Review: Is Everyone Hanging Out Without Me?

By Mindy Kaling.

I didn’t know who Kaling was, but read that the book was funny. Come to find out, Kaling is a writer and some time actor on The Office, which I’ve seen maybe 10 minutes of.

In the Introduction she jokes that Aunts will buy this book for their nieces.

After reading the book, it would be a good book to buy a younger – high school or university – woman.

Kaling is smart and nerdy. After graduating from Dartmouth, she lived in a dinky apt in NYC where she shared a bed with her room mate. Worked 2 full time jobs, while interviewing to be a comedy writer on a tv show. She carved out one hour a day to work on a comedic play.

She entered that play into a contest. It won. It then played off off broadway.  The head writer of The Office saw the play, and hired her to write for his show.

It was a quick read of a cute, funny book. Get it for your niece.

Leave a Comment

BOOK: Trading Secrets. REMINDER-Playing Footsie

20 Hard and Fast Rules to Help You Beat the Stock Market
By Simon Thompson.

Playing Footsie. (NOTE: this is a bull market phenomenon)

In the UK, the FTSE 100 is a listing of the top 100 companies in the UK, based on market value. The companies that make up the 100 changes each quarter.

The list is reviewed on the 2nd Wednesday of March, June, September, and December and companies are dropped on the 3rd Friday of those months. During those 7 trading days, funds that only invest in the 100 companies are forced to sell, thus lowering the price so that investors in the know, can buy these shares on the cheap.

All you have to do is buy shares of the companies that are being dropped from the 100 and hold for 3 months. Then do the same all over again by reinvesting the proceeds into the next companies being booted from the 100.

Ave quarterly gain has been 13.6%.
To find out the changes: Www.ftse.com/indices

Leave a Comment

Be Prepared to Laugh

This video of two little ones in a Taekwondo “fight” is really cute.

 

 

 

Leave a Comment

BOOK: Trading Secrets. REMINDER: Buy on The Santa Claus Rally

20 Hard and Fast Rules to Help You Beat the Stock Market
By Simon Thompson.

The Santa Claus Rally
Buy on December 11th and hold until January 5th. Over the last 28 years, the market has gone up 85% of the time, with an ave return of 2.47%.

Leave a Comment

Bend – Expected to be the #1 Housing Market For the Next 5 Years

According to this Business Insider article, Bend is the #1 best housing markets for the next five years!

“Annualized growth from 2011 – 2016: +11.9%

Home prices in Bend are 45.2% off their peak in Q1 2007, which could make it good time to invest. Bend’s median family income is close to the national average of $61,600, but unemployment is high at 12.6%.”

Data from Case Shiller.

#1 Bend, Oregon
#2 Medford, Oregon
#3 Madera, California
#4 Napa, California
#5 Flagstaff, Arizona
#6 Carson City, Nevada
#7 (tie) Panama City, Florida
#7 (tie) Bremerton, Washington
#9 Ocala, Florida
#10 Lakeland, Florida
#11 Santa Fe, New Mexico
#12 Eugene, Oregon
#13 Bakersfield, California
#14 Mobile, Alabama
#15 Punta Gorda, Florida

Leave a Comment

Max King Does It Again!

For the 4th year in a row, King won the World XTERRA Trail Run Championship. Ran the 13.6 mile course in 1 hour and 21 minutes.

Leave a Comment

Book Review: Steve Jobs

By Walter Isaacson.  Fascinating read.  Highly recommend.

“This is shit!” “This sucks!”

These are Jobs’ 2 favorite saying his entire life.

“Jobs has an “almost willful lack of tact”. It was more than just an inability to hide his opinions when others said something he thought dumb: it was a conscious readiness, even a perverse eagerness, to put people down, humiliate them, to show he was smarter.”

Steve Jobs is a VERY unlikeable man. So unlikeable that I would/will think twice before I decide to buy an Apple product.

When I was about a third of the way thru the book [when Jobs got ousted from Apple], and all I could think about is how I hoped Jobs fails. Fails at whatever he is going to do next. Then…I realize, I know the outcome. And I’m disappointed. I’m bummed that such a HUGE prick ended up being financially successful and he has all these devoted followers.

That said, I’m also shocked that he commissioned this book. However, like many politicians and other “celebrities”, he must have had illusions of grandeur. I guess he was unaware of what a jerk he is, and unaware how knowing more about him is NOT a good thing for his adoring masses.

After this book came out, I read a commentary [on the below mentioned blog] about calling him an asshole vs jerk. The commentator said that an asshole was a jerk with class. Thus, Jobs was a jerk.

I wonder where prick falls on this description gauge. I’m thinking a prick is worse than a jerk.

Asshole – - – - > Jerk – - – - > Prick

If so, then Jobs is a prick.

I hardly knew anything about Jobs, but in February I read “10 Unusual Things I Didn’t Know About Steve Jobs” by James Altucher, my fav blogger.

And then after he passed there were a ton of articles about him, a 2 part “60 minutes” interview with Isaacson and other promo’s re this book.

I’ll assume most people have read/seen these and are familiar with what is now “common knowledge” about him.

The below are other tidbits I found interesting.

* Mannn, is he a cry baby. He is hugely rude, guised under being brutally honest. However, there is a severely mean way to be honest and a nicer way to be honest. Jobs is severely mean. Yet…he seems to cry at the drop of a hat. I worked for years in a tough, Corporate America work environment. I can’t imagine the response should someone in a high position be seen to cry once, let alone all the time. What a bully and a wimp.

* Jobs is working at Atari. Out of the blue, he walks into the CEO’s office to tell him he’s quitting to go find his guru. CEO’s quick and funny response? “No shit, that’s super. Write me!”

Then Jobs asks him to help pay. “Bullshit” was the response.

* Apple originally started with Jobs, Steve Wozniak and Ron Wayne [with 10% ownership]. Then Wayne got cold feet and backed out. Had he stayed in, he would have been worth $2.6 billion by the end of 2010.

* I’ve read stories where Bill Gates would code all night and go to a big meeting/presentation/lecture unkempt and smelly, but I haven’t read that that was his usual way of life. Could be, I just don’t really know.  Jobs, on the other hand, had the mistaken belief that since he only ate fruit, he only needed to bathe once a week. He had to work the night shift at Atari cuz NO one wanted him around during regular working hours. Around the time Apple had their IPO was when he started bathing daily.

* Jobs thought rules didn’t apply to him. Such as, he never put a license plate on his car, and he always parked in the handicapped parking spots.

* Jobs looked at 2,000 shades of beige for the Macintosh, but didn’t like any of them.

* “Real artists sign their work”.  When the design for the Macintosh was locked in, Jobs held a ceremony where he had the design team sign a piece of paper with a sharpie. These signatures were engraved inside each computer.

* When Jobs was ousted from Apple, he sold all but 1 of his 6.5 million shares for $100 million.

* After the Pixar IPO, Jobs was worth$1.2 billion.

* At Apple the 2nd time, Jobs is known for making $1 a year. Less known is that when he came back his hand-picked board bought him a jet that he personally designed, and then offered him 14 million options. Jobs took the jet and then demanded 20 million options! A few years later when these options were out of the money, he demanded more options at a lower price [he did give the original options back].

* Why don’t Apple products use Adobe Flash? Because back in 1999, Jobs wanted Adobe to make new Mac versions of Adobe Premier and Photoshop, which was popular on Windows computers. Adobe turned him down, which stunned Jobs. Adobe said there weren’t enough users to make it worthwhile. Jobs was furious and felt betrayed. He held a grudge and never forgave Adobe.

* Dylan was Jobs favorite music artist. His fav Dylan song? One Too Many Mornings.

* After he launched the iPad, he received about 800 emails in 24 hours. Most of them complaining. He wrote people back “Your parents would be so proud of how you turned out.” So, he can tell any and every one “This is crap”, but if someone said it to him, he’s insulted and needs to insult the giver. Can dish it out, but can’t take it. Again…he’s a bully and a wimp.

* When Jobs finds out he has a tumor on his pancreas, he refuses to have it removed. Everyone begged and pleaded, but he thinks that his diet will make it go away. 9 months later the tumor had grown and spread, he then decides to have it removed.

* He doted over his oldest son, Reed, and ignored his 2 daughters, Erin and Eve [and REALLY ignored and abandoned his first daughter, Lisa]. He “lights up” when Reed walks into the room [NOT when his wife enters]. When diagnosed with cancer, the 1 goal he had was to be alive to watch Reed graduate from high school. That kept him going. If his wife tried to get him to do something, and usually he wouldn’t [he's a rebel, after all], she would enlist Reed for help.

* In November 2010, he wasn’t eating, and had to be fed via an IV. He was down to 115 pounds. At thanksgiving in Hawaii [each year they visited over the holidays], they were staying at a place where everyone ate in a communal dining room. Jobs was there looking emaciated, rocked and moaned in pain during the meals, and didn’t touch his food. Amazingly, this never leaked out.

Comments (2)