stock trading tips revealed with market expert seth golden! mr. golden has authored numerous articles on talkmarkets.com and seekingalpha.com ... contact seth at seth.golden@coolinxit.com for more information ... and find him on twitter and stocktwits. // volatility investing, retail sector trading, stock market experts, stock market interview, stock market volatility lessons for better trading, uvxy vxx tvix trading options 101, vix trading, vix index, vix volatility, uvxy trading, uvxy stock, uvxy options, uvxy explained, uvxy technical analysis, market volatility, stock market volatility, stock volatility, vix trading strategies, trading vix options, trading vix futures, trading the vix, tvix stock, tvix explained, vxx trading, vxx stock, vxx etf, vxx options, vxx explained, xiv stock, options volatility, options volatility trading, options implied volatility, market volatility explained, shorting the vix alright welcome to looking at the markets with david moadel today we have a special guest his name is mr. seth gold and he is a
apple current stock price per share, former chief market strategist at capital ladders advisory group and has authored numerous articles for talk markets and seeking alpha among others
he is also a must follow in my humble opinion on stocktwits and twitter and has graciously offered to share his market expertise with us today thank you so much set for speaking with me today my pleasure david thank you for having me absolutely i've been no reading you're special you're seeking alpha and talk
markets articles pretty religiously and i always enjoy them so let's start out with it from the beginning what is your background in stocks and finance in general well i started probably in 2000-2001 just after the.com bubble oddly enough you know is my grandmother who experienced a you know sharp decline in
her portfolio back then and didn't know what to do so she opened it up to me and all i kept scene was you know her account balances dwindling and that's kind of what introduced me to stocks portfolios and and what me what you need to do as a you know as an individual to you know pretty much secure retirement around and so that's how i got into it i
worked for i was am a runner at goldman sachs playback in 2007-2008 and the analysts covering by 2009 i was a junior research analysts which is nothing more than a glorified coffee coffee together if you will write and the readhead research analyst for handsets and hardware you know your mobile equipment providers research in motion was the
biggest going back then and he was leaving and he said to me you know if you really want to make a name for yourself start covering this company and you offer us you know what your insights are and talking about six months and i delivered a report that was very much in contrast to what goldman was it was rating on research in motion
back then and my wound up leaving the firm i have it sell rating on research in motion they were losing way too much market share to apple was introduced you know it growing in the market by 2010 and i just saw a very a very you know how very hard times coming for research in motion and right obviously we all know how that that
story ended sure absolutely okay so while that's that's a pretty impressive background and so what let's come to you know modern times i want you to tell me about the projects that you're working on currently so after leaving a you know goldman sas a started capital adders advisory group
with a a couple of partners and we built that business over a five-year period to where it was acquired in october of 2015 we had a very strong client list it was strictly institutional research we did some retail investor work as well but once that was acquired i basically you know became a consultant my specialty my areas of expertise are in the retail and
consumer good space and so i was consulting i've been consulting for the last several years for the various different retailers whether it be target jcpenney walmart.com beyond job as well as you know just providing analytics for these companies as well or i should say for investors who are invested in these companies i've done analytics and
research on a lot of the consumer goods a keurig green mountain for the who was you know acquired coca-cola pepsi sodastream and the like more most recently fit so that you know too hey i still do a lot of consulting work and i i really enjoy putting my analytics together and publishing them freely like it as you came across them
on seeking alpha and top markets right right absolutely and what will will touch upon the retail sector momentarily if you don't mind but their first you're known for trading pics products such as right yeah you vxy tvix and so on what is your approach to treating these these fix etfs i'm firstly i should cavy
it on this by saying and they're not for everybody fix leveraged instruments you know it most of them are designed with a dk in in the product so that over time they they will fall in price i'm so you're essentially your best positioning is from the short side however as we all know you know
positioning short comes with a host of different variables variables that you need to consider i've been investing in these products since 2012 and i've learned you know a a set of core principles to utilize when participate participating in these products long-term so for instance uvx why is the one that i started with in 2012 right
i've maintained for position in that instrument since then which is generated for myself for friends for clients a great amount of wealth i mean if you simply go to the chart you see it starts in the upper left-hand corner and does nothing but go down to the lower right-hand corner for the design of the instrument prob but
essentially in order to take advantage of that you have to follow a set set of guidelines or best practices if you will and i outlined those in my various articles on seeking alpha and talk markets dot-com right okay and there might be an element of luck and as well because there has been a bull market so because imagine if you had
adopted that strategy of shorting of x product you know let's say in 2007 okay it could i could have gone very wrong so you know what what what how do you have to you stop losses how do you protect against that no one of the best practices so taking for example that 2007 financial crisis and using a fixed product so fix product essentially is
not bound to the market itself it's bound to fix the volatility so a market can actually go down and yet the vics will remain you know may go up a little bit or remain flat and a perfect example of that is actually the brexit event ama upon the first day of breads it you had a strong spike in the vics which elicited a strong spike in the uv xy
product or the tvix product which are very similar however even though the market went down another on the dow another 250 points the next day the vics actually went down and so did you v xy so did t vic's and like instruments so the theory that you know in a 2007 type event you can cut you know get blown out of the waters
with these instruments if you're short it doesn't really hold up as a one-to-one correlation ok i'm so hedging is not really optimal what you want to do in order to protect yourself to some degree and tighten these types of events is to make sure you have enough liquidity so let's say you're you have a portfolio of a hundred
thousand dollars and you decide to short fix products you don't want to short a hundred thousand dollars your total capital we want to have a small position and make sure if that goes up if it goes against you let's say a hundred percent which is possible right arm you have enough liquidity there so that your you don't achieve a
margin call or get your shares called in right ok ok that makes sense okay i know that was a lot of lot to take in which is it's easier when you read it on paper ya know but that actually makes sense and so have enough liquidity and just having the iron stomach to write it out i'm correct because you will see in
those type of event you know your your account you know starting to you know illicit those those uh those losses right but optimally if the shares are available to short in those types of vics events you want to add you want to be adding positions in increasing value this way when it does return to its normal trend which is to dk these great
products their normal trend is to dk and price do you have positioned yourself to take advantage of that okay okay wow okay very good that's you know that's a total opposite approach of what i think most people would do intuitively but it actually makes sense when you explained it that's great that's great right and then that's
one of the reasons why i write these articles because i know there's a lot of misconception on how to participate with these products yeah okay very good sir now let's let's get back to you retail trading i i i've seen your articles on fit bid and then target i actually have a long position and target
has self-disclosure time ok but died i bought very close to the bottom somehow i i tribute that to complete luck you and i both yeah exactly now you've written on retail companies such as target macys jcpenney and so on is there any reason to have optimism for the retail sector and these stocks in
particular well i'm glad you position the question that way because the the retail operation and the stock should be looked at a separately from the retail operation for any of the name retailers that you mentioned i would say there's not a lot of reason to be optimistic the the trend from consumers is away from
brick-and-mortar it toward online or experiential shopping experiential shopping and none of these retailers are either offering that or have the ability to scale those types of operations quickly enough to offset what is happening in their brick-and-mortar stores so everybody's building out their you know their digital ecommerce sites
everybody's adding new products to them making the functionality more user-friendly and that's what they should be doing however the there's no incremental impact on the total sales results because they're losing so much at brick-and-mortar i'm so from that standpoint there's not a lot of reason to be optimistic from a stock specific
standpoint what i would ask investors to consider is okay whose balance sheets look the best who has steady cash flow even in you know in the event of a greater downturn in the brick-and-mortar business who has the better balance sheet who's giving you a yield a dividend so you know if we'll be looking at macys we're looking at jcpenney we're
looking at target i would say target would be the one to go with because they have a better infrastructure they have a much larger store base they have a huge buyback plan of over five billion dollars now and they give you a three point six percent yield yes now you could argue the fact that macy's has
a good deal but don't know how long standing that is given their current restructuring efforts their lack of free cash flow and the trend in their sales has been down for it's going to be two years now and obviously jc penney's balance sheet is is riddled with with debt they have no dividend to offer it's just it's more suspect if he well
interesting i notice you've only spoken of fundamentals in the company nothing about charts here i've heard about resistance trans yeah no that'sthat's yeah very very observant of you on the problem with you in my opinion i want to preface that in my opinion what i've in what i've experienced over the years is when these
particular stocks go through this sharp depreciation and share price the real term to understand here is that they're being revalued ok they're being revalued based upon their fundamentals and when the stock is being revalued based upon their fundamentals the technical aspects for the the technical analysis carries very little efficacy and that has been
true historically foremost any industry you can imagine so at this at this point in time i realized less on the technicals and more on the fundamentals because i believe very much this this sector and in these you know in stocks in the sector are being revalue have jcpenney go from over ten dollars a share only 60 days ago to
through where it is under seventy dollars a share that's almost forty percent drop in stock price you can't really argue the stock is not being revalue right right well that's my take on it then surely you know it's open to being wrong but i've seen historically that you know this is not a time to really rely on auntie a right okay
when a stock is being revalued like these retail examples that we've covered you know that the trend lines and the the rsi and the bollinger bands it'll just blow right through those correct yeah yeah that's great great point arm one more question or maybe two before we wrap it up why do you think so many traders fail at
it and is this fixable can you be more specific fail at that what ask that at investing in general and you know that the ok the old clichã© is that ninety percent of traders fail alright yeah it is can we can we fix this or is this going to be just the way it is
um yeah it's definitely fixable what i find more often than not and this is you know my experience from running a into you know an institutional level research firm is that not enough retail investors are for folks that are investing on their own or trading on they're not on their own are actually willing to support this aspect of of
going it alone with advanced research and analytics in other words there are reports out there that are easily accessible that give the average trader or the average investor opportunity to look at greater amounts of research information and data and yet they choose to just go by you know what they can get freely in the public and sometimes that
free information is value-added and sometimes it's not just for examples you know widespread but what i would say is the fix is increasing your resource level you know maybe paying for you know if you're investing in an ibm and you know there's free report you know free information out there free articles out there out there but maybe there's
something of greater value that you have to pay 20 40 50 bucks for to get that report that will actually help you to make a better decision problem with that investment so there's definitely a fix and you know it's about finding resources you know it you have to develop your resource base in order to become a better investor going it alone
is is never advisable but if you're if you are willing to go it alone by building resources that's your best probability of success sure absolutely personally i have found your free resources to be highly about value-added for sure thank you thank you are
so yeah been speaking with seth gold set golden and what i'd like to do is put on any and all of your links and contact information in the description of the video but why don't you tell us how people can contact you if they would like more information sure even more than welcome direct email that seth gold seth dot golden at cool
links i t.com seth dot golden col2 coo l inx i t.com up with in the description ok and websites or other links now i we're not running a website at this moment however for all of my free published materials you can go to seeking alpha dot com or talk markets dot-com which is where my published talk markets com is where i publish ninety
percent of my articles yeah after mom yep yep one of my favorites are and if they want to find you on twitter and stock to it's just that at set cl at cl great you know i've subscribed to your twitter and stocked wits and you know i your frequent poster and so people will not be disappointed yeah i try to be the average guy just
you know talking and sharing ideas and information to the degree that i have anything to say well you're very humble but definitely above average in my estimation thank you kind ya seth golden excellent i check out those links in the description contact him if you just you know you you want to take part in his his
knowledge base which is deep and wide as far as i can tell mr. gold thank you so much for joining me today thank you kindly for having me everybody have a great day i appreciate thanks a lot
