Author Archives: admin

About admin

Richard Cheng, M.D., Ph.D., is an avid Wall Street investor with 20+ years of investing experience. He is specially adept at observing the world to find the patterns and then design strategies to win his battle. Most, if not all, happenings in the world, follow certain patterns. These patterns may be complex, multi-factorial, not so intuitive at the first glance, or even may appear chaotic. However, even chaos has its own patterns. If you pay attention and be patient, you'll find them and then you will gain an upper hand in your battle. Using this blog space, he documents his trades and his thoughts as they happen. He uses this blog as a a notebook to help him better refine his strategies. Hopefully this will help you as well. Good luck in your trading.

5 Bad Attitudes to Avoid

Posted on August 14, 2011 by admin

I am a student pilot.  In today’s lesson on Aerodynamic Decision Making (ADM), the textbook described 5 bad attitudes (listed below along with their remedies) that pilots should avoid.  I found these 5 bad attitudes actually apply everywhere in our … Continue reading →

Posted in Daily Journal | 1 Comment

Market Condition:

Posted on August 13, 2011 by admin

Schaeffersresearch.com: bullish.  Major indexes held the support levels (SPX above 1100 and 40 month moving average), RUT above 650.  VIX is of special interest.  Since 1996, VIX at its peaks always represented great buying opportunities (Did you hear news reports … Continue reading →

Posted in Market Condition | Leave a comment

Market Condition: short term (1-2 months) volatile and bearish; long term (>2 months): bullish

Posted on August 7, 2011 by admin

ChartAdvisor.com advises investors to be cautious.  It believes there is a chance of near term bounce and the stocks are cheap in long term views.  But the markets will take some time to stabilize. Schaeffersresearch.com: The 2nd part of this post … Continue reading →

Posted in Market Condition | 2 Comments

Taking advantage of this capitulation: I added more to my LVS and SLW holdings.

Posted on August 4, 2011 by admin

Covered call of LVS, option strike 47, exp. Aug 12.  Cost: $44.5 SLW: Cost $34.  Call strike: 36, exp: Aug 12th. Expecting a rebound from such dramatic downfall.

Posted in Today's Trade | 1 Comment

The current markets are a gold opportunity.

Posted on August 4, 2011 by admin

To most average investors, the current markets may be scary.  One word comes to my mind that many investment authors may use to describe the current market condition: “capitulation”.  Capitulation basically described the knee jerk reaction that most average investors … Continue reading →

Posted in Educational, Market Condition | Leave a comment

Market condition: pending debt resolution or the lack thereof.

Posted on July 31, 2011 by admin

Schaeffersresearch.com: debt ceiling resolution or the lack thereof is the trigger now.  The problem is that the market has not factored in the possibility of a default or a downgrade of US credit rating.  Should a default or credit rating … Continue reading →

Posted in Market Condition | 1 Comment

Lesson of FFIV

Posted on July 24, 2011 by admin

FFIV share prices recently dived from ~118 to ~100 after earnings report.  I am no saint and couldn’t predict this, but I was hedged.  FFIV fall in prices benefits me greatly.  I am net short of FFIV (I am net … Continue reading →

Posted in Uncategorized | Leave a comment

Market Condition: near term: volatile, long term: bullish

Posted on July 24, 2011 by admin

Schaeffersresearch.com: very bullish long term.  They are predicting a year end rally. Chartadvisor.com: none available for this week. Vix: 17.52. Risk factors: obviously the debt ceiling issue is going to affect the market this week.  With both parties caring more … Continue reading →

Posted in Market Condition | 2 Comments

Market Condition: cautious -> bullish

Posted on July 15, 2011 by admin

ChartAdvisor.com thinks the markets are uncertain now.  It may continue upward to eventually break out or go downward to breakdown the June lows.  It asks for patience and caution. Schaefferesearch.com is, however, more bullish.  SP500 support 1295-1305.  Resistance: 1333-1340.  A higher … Continue reading →

Posted in Market Condition | 4 Comments

Roll up my FFIV calls.

Posted on July 13, 2011 by admin

I was short FFIV calls (in a covered call) expiring this Friday at strikes of $97.5 and $100.  With FFIV advancing to above $110, I have 2 choices: 1. to buy back to cover those short calls; 2.  to buy … Continue reading →

Posted in Today's Trade, Trading Strategy | 6 Comments