Housing compared to JAPAN

http://www.doctorhousingbubble.com/japanese-asset-bubble-lessons-from-the-economic-asset-bubble-of-japan-the-heisei-boom-what-parallels-exist-between-the-japanese-asset-bubble-and-our-current-financial-environment/

Price Vs Renting index

http://info.trulia.com/index.php?s=43&item=129

Ratio of 15 and under is good for buying and Ratio of 20 and over is good for renting. 

Orange county Housing

http://www.doctorhousingbubble.com/the-orange-housing-bubble-orange-county-income-real-estate-bubbble-5-charts/

Irvine housing

http://lansner.ocregister.com/2011/04/21/analyst-why-irvine-new-home-sales-are-booming/107489/

Housing

http://www.bloomberg.com/news/2011-08-24/u-s-home-prices-fell-5-9-in-second-quarter-as-foreclosures-depress-value.html

http://www.fhfa.gov/Default.aspx?Page=215&Type=summary

http://www.npr.org/2011/06/08/137029194/for-many-its-still-a-good-time-to-buy-a-home

Confidence and Patience

One needs to have confidence in oneself. It is easy to lose it and panic and sell off before things get realized. Even though one may be correct in analysis and the trend of the stock one may sell it too soon when there is no confidence and fear of losing in the very short term instead of waiting for the analysis to realize.

This is very important quality for a trader. Confidence and patience. Knowledge of trend is essential but one has to be confident. One should not be overconfident and go against the rules of trend analysis. That is dangerous but if one is sticking to the rules, then one should be confident.

Money comes to the confident, knowledgeable and the patient. Wow! 

Options pricing and Volatility

1. Use option calculator to always find the option price.

2. when volatility is high it is time to sell. Use stop loss to sell. what if the market opens rally low or high??

3. That is a good question. The best thing is to buy when there is low volatility or when the stock rallies in the opposite direction of the overall long run 1 year 30 day moving average.

4. Got the idea. Take good profits and get out.

5. Volatility is the most important factor and also the trend of the underlying stock. The option pricing is most dependent on volatility. This is an important point to remember.