Blog For On-Line Store Promotion & Stock Trading Strategy Development

The purpose of setting up this blog is to promote the on-line retail store and to track and record the process in an effort to develop a strategy for speculative stock trading.

The viewing traffic of the web-site is low since first implementation in 1998. In the following years, there is tremendous improvement in web-hosting technology. Users can select from a wide variety of convenient tools to build their web-site. The hosting company of the on-line store has since then grown from a garage startup to a company that is hosting for hundreds of thousands of small enterprises and individuals. The increase in the number of web-sites on the Internet means more competition from others. Although there is enough confidence in the quality of the merchandise, the marketing and sales strategy is inferior to competitors. As a result, the on-line store is struggling to survive. Efforts to improve the operating condition continues.

The first attempt to take risk in stock market trading dated back to 2005. The first stock purchase was held for over a year to wait to recover loss. But it was finally liquidated with loss. In the year 2007, the stock market became bullish and the idea of stock trading came back. This time profit was made along with luck. At the peak of profit taken, it amounted to significant double digit gain in initial investment. Evidently this may drive many amateur traders for more greed. The collapse of the financial market starting in late 2007 reverted the profit and finally led to significant loss, much more than the peak of vanished profit.

In early 2009, the stock market miraculously turned back from falling. In a desperate effort, some loss were hoped to be recovered. It was successful in terms of percentage gain but from the perspective of absolute monetary value, only a minor amount of previous loss was recovered. The portfolio value at the trough was merely a few percent of the portfolio at the peak.

In order to fully recover the loss in the initial investment, the portfolio have to grow by an order. This appears difficult but the reverse has already happened in 2008, i.e. shrank by an order (actually larger because a small portion of loss has already been recovered). The leverage and thus greed played an important role in the fast deterioration of portfolio value in a downturn market and the difficulty for catchup in an upturn market. The stock market mechanism has changed from wild swing to a tug-of-war among market participants. Swift profit or loss will occur less frequently.

In the coming posts, it will be discussed the attitude and strategy towards stock trading from the perspective of an individual speculative trader thriving to make profit to recover loss and to compete with the counter parties that have defeated many others in the game.