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Wednesday, November 25, 2015

VDM Trading Contest 2016 now open!

The VDM Trading contest on MarketWatch 2016 has begun! How well will you fare in the stock market in 2016? If you haven't participated in a stock trading simulation before than this is a great opportunity to learn more about the financial markets and trading without risking your own money. Joining is completely free and you're able to join at any time between now and November 24th, when the competition closes. The rules this year are as follows (a slight modification this year, all portfolios are private):

Portfolio Options for VDM Trading 2016
Starting balance for participants: $100,000.00
Commission level: $10.00
Credit interest rate: 3.00%
Debt interest rate for leverage: 6.00%
Minimum stock price: $1.00
Maximum stock price: $500,000.00
Trade volume Limitaion: 1.00%
Short Selling Enabled
Margin Selling: Enabled
Limit Orders: Enabled
Stop Loss: Enabled
Partial Shares Enabled

Again, joining is free and easy and can be done by clicking here or clicking the join button below. Hope to see you soon!!

Tuesday, September 29, 2015

Volkswagen stock sinks below $100, how bad is emissions scandal really?

VW logo courtesy of Wikipedia
The world's largest automaker is in trouble. Obviously in big trouble given the fact that today Volkswagen's stock price now trades below $100 due to the emissions scandal. The car manufacturer's stock is very volatile at the moment, and yes, no one really knows where it's heading. Is it cheap enough to buy, or should we all sell short? I'm going for the latter. With so many claims and lawsuits I highly doubt that they will be able to get out of this mess. Especially in such a competitive market as the auto industry. How low will it go? It's hard to tell since there are still buyers of this stock (don't ask what possesses them to do so). I'll be very surprised if Volkswagen can crawl back up to over $100 a share again. This emissions scandal is huge, and is definitely a big deal that will certainly reflect on its stock price.

Tuesday, March 24, 2015

Fed's keeping it cool!

After the last meeting it seems that a rate hike is clearly inevitable. Only the pace of the interest rate hike will be significantly lower than the financial markets initially presumed. This means that it will take some time before the rate in the US is hitting 'normal' levels. For now it's still possible to borrow with these low rates, but due to the stronger dollar it'll probably occur at a much slower pace.

Monday, March 23, 2015

Is the Apple watch a smart move by Apple?

Soon you'll be able to pre-order the Apple watch. This overpriced gadget is supposed to be the 'most personal product' Apple's ever made, because... you can wear it (as quoted from their own website). Is it worth shelling out $400 (for the basic model) and up for a watch that carries the Apple logo, can interact with your iPhone etc? My thoughts...

Sunday, March 22, 2015

Facebook's stock ready for new records?

Facebook's stock hasn't done much over the past few months. From October last year the stock has been moving sideways within a narrow bandwidth, but something has changed last trading week. The old top of $82.16 has been breached and it now follows a strong uptrend. Facebook is hot, and hot for a reason.

Technically speaking it'll be very well possible that a march to $90 and beyond is feasible in the upcoming weeks. Facebook is one of the strongest trending funds on the stock market, and popular among various traders and investors for that reason. The average is nicely going up, and even the technical indicators confirm a positive trend on my screen. The overall market sentiment on Stocktwits (one of the valuable investment resources I use quite often to come to a trading decision), stands on 87% bullish!


Facebook's stock has potential, and there's definitely room for growth. I don't think Facebook is overbought, in fact triple digits are on my radar this year. If you are thinking about adding a tech stock to your portfolio, here's your chance to a solid stock. I personally substituted Apple (AAPL) with Facebook in my portfolio actually, due to the fact of Apple's horrible Apple watch, which is a very bad move in my opinion (too much competition/overpriced gimmick). I believe Facebook is fundamentally a bit stronger at the moment (and a little cheaper too). The technical side definitely confirms it.

Good luck trading!

+John van der Munnik

Thursday, March 5, 2015

Time to buy the EUR/USD after it hit 11 year low?

Time to buy the Euro for a change?? Those who have been following my trading style know that I'm usually (really) bearish on the EUR/USD. Rarely has there been a situation where I'm actually 'optimistic' about this currency pair. This is one of those rare scenarios. The EUR/USD dropped too rapidly over a short amount of time in my opinion. Already traders are speculating that it could be trading around 1.10 and below very soon, well guess what happened, after the news and blog wrote about that price point the currency pair was already trading around 1.10 it dropped so quickly!

Let's take a look at where the pair stands as of right now:

This time of writing the EUR/USD is hovering around 1.1022. As you can see, from a technical standpoint, the pair gained momentum around 12:30 (on the chart) and then it fell back to a price point we haven't seen in 11 years. The thing is, like I said before, it too quick of a drop and a recovery is bound to happen very soon. Just like that spike at 13:30, it likely to happen again. Buying the EUR/USD at 1.10 was unthinkable not that long ago. I guess if it breaks under 1.09 all bets are off the table for me, then we'll see when this downtrend is going to end. But as long as it's trading around 1.10 I'm preparing for an upswing to 1.11 and beyond. 

In the game

As of right now I'm bullish, with a target of 1.11 and SL of 1.0990.
It's going to be interesting to see what happens in the upcoming days with the EUR/USD, I'm keeping a close eye on this that's for sure!

Monday, November 24, 2014

Chinese stock exchanges open their doors to the world = huge opportunities!

Invest in China!
Basically there are two exchanges in China where stocks can be traded: Shanghai on the east coast and Shenzhen in the south. Then there's also an exchange in Hong Kong, but though it's in Chinese hands since 1997, there are different rules than China's main land exchanges.

There are various types of stocks available. For instance, A-shares are only available to Chinese traders and are traded with the Renminbi currency. Since 2002, these stocks are also available to a very limited number of foreign and institutional investors. Aside from that there are B-shares, intended for foreign investors. These are quoted in US dollars in Shanghai, and in Hong Kong dollars in Shenzhen. Then there are H-shares. These are the listed Chinese companies in Hong Kong. For the enthusiasts among us: N-shares are Chinese stocks listed in New York and L-shares are the ones in London.

Anyway, since November 17, China has opened its doors to foreign investors. Thanks to the Shanghai-Hong Kong stock exchange connection, the stock market of the Chinese mainland is within reach of non-Chinese for the first time ever! Investors can trade in Shanghai 560's listed stocks, with a maximum trading volume of 2 billion US dollars per day. It's seen as a first step of the liberalization of the Chinese market. According to Goldman Sachs, Chinese equities will soon become a staple.



All opinions expressed, trade recommendations/advice on this website are solely of John van der Munnik and are not affiliated with any investment firm or any other organization. You should not make an investment only based using this website VDM Trading for your trading needs without seeking help from your own financial advisor.