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3SOF: What's your age?
Cache00: I'm 31
3SOF: What's your real name?
Cache00: My name is Carlos Alvarado but my friends call me «Cache».
3SOF: Where do you live?
Cache00: I live in Atlanta , GA. I'm originally from Costa Rica.
3SOF: How long have you been trading the stock market?
Cache00: I've been trading since September, 2002.
3SOF: What was your motivation/trigger to get in this business?
Cache00: Well, back in 2002 I had some savings in my Bank account so I thought it was time to put that money to work. After studying different options I came to the conclusion that investing in stocks was the best idea if I was looking for bigger returns, I have always been very ambitious. At that time I had no idea how to trade stocks therefore my first step was to educate myself on it. All of what I have learned about trading stocks came right from my computer (no books, no financial advisors). I did a lot of research online and spent hours reading all type of information. There was a great website called «StocksQuest» that had a lot of information for rookies like me and it also had a stock market simulation game where you were able to practice by creating your own portfolio with fake money and real data, it really helped. Once I had funded my account it took me about two weeks to finally execute my first trade of 100 shares, I have to admit that I was very afraid at first.
3SOF: What's your trading time frame?
Cache00: My time frame goes from one day to two months.
3SOF: Besides Stocks, do you trade anything else?
Cache00: No, I'm all in stocks.
3SOF: Do you trade for a living, or do you have other activities?
Cache00: It's funny because I just got laid off last week from my job due to relocation. I worked for a telecommunications company as a Supervisor of a call center. I was there for almost 5 years and I always worked the night shift so I could have time to trade stocks. Now I have decided to do this for a living.
3SOF: Do you practise any sports, or other leisure activities?
Cache00: I play in a soccer team here in Atlanta every Sunday. I like to run at Chastain Park once a week during the summer time. I'm a big Atlanta Falcons fan. I love going to Vegas. I enjoy watching movies, listen to music and party.
3SOF: Tell us about your strategy on the markets.
Cache00: My strategy before selecting a stock is a combination of the following: I look for stocks that have good fundamentals (EPS, growth, debt, cash), I do a technical analysis, I look at the volume, I look for momentum and trends, I look at inside trading. I only buy stocks that trade in the Nasdaq Stock Market. I do not buy stocks under $1 (that's just my policy). I do not hold more than 5 stocks at the same time. I also do a lot of research (read 10-K, 10-Q, PRs, analyst ratings).
3SOF: How's your trading desk?
Cache00: I have a Dell XPS full loaded and a 19'' flat panel, that's my baby. I turn on the TV early in the morning to hear what's going on in the market while I'm watching the headlines scrolling across my trading platform. I also like playing music while I'm trading.
3SOF: What's your favourite stock market book?
Cache00: To be honest as I said I have never read any stock market books.
3SOF: What's your favourite movie?
Cache00: «Schindler's List»
3SOF: And your favourite websites about the markets?
Cache00: My favourite websites are: barchat.com, briefing.com, investcom.com, nasdaq.com, stockcharts.com, thestreet.com, insider-monitor.com, finance.yahoo.com and of course 3stocksonfire.org.
3SOF: Do you have any inspiration on the stock market?
Cache00: I admire and enjoy watching Mr. Jim Cramer.
3SOF: Congratulations on your stock pick, COGO gave you 45% profit in 1 month, did you actually trade COGO on your real money portfolio?
Cache00: Absolutely! I bought COGO on 01/11/06 . My average buying price was $6.72. I was monitoring COGO since back in December waiting for the stock to move above $6.66 resistance point. I finally sold COGO the day after the contest at $10.03. I was hoping that the stock would move to $11 but it didn't. I had a price target of $10.98 but there were some big selling orders in the pre-market on 02/28/06 that really concerned me so I took this as a signal that it was time for me to sell and move on. This is one of the few stocks that I have held for more than a month. It was a great feeling to make money and win the contest at the same time.
3SOF: Were you afraid of boatguy? He made 38.89% with RNAI ;)
Cache00: I always knew that any of the other participants could have won. RNAI was an excellent pick, it stayed in green territory during the whole contest. I guess I was lucky that it didn't breakout until the end of the contest. Congratulations to boatguy, elinca, magde20 and Scottish Tradder I hope you all made good money with your picks.
3SOF: Tell us about your biggest gain since you start trading?
Cache00: My biggest gain came from BTUI. I bought it at $7.56 and sold it at $14 back in 2005, I still like the stock.
3SOF: And about your worst loss?
Cache00: I hope this never happens to anyone of you. Back in April 16, 2004 I bought 1,200 shares of ABIX in the pre-market at $19.00; the stock was really on fire. Right before the opening bell the Nasdaq Stock Market halted the stock. The biggest mistake I made was to buy on margin. Five days later ABIX resumed trading on the Nasdaq and my broker sold out my position right after it opened at $6.68, do the math. It really hurt but nevertheless I didn't give up and I have been able to make up what I lost after days of trading. It was certainly a learning experience and I can assure you that I have learned a lot from all the many mistakes I have made. There's a class action lawsuit against Abatix that is still in court, hopefully I'll be able to get some of that money back.
3SOF: How did you find 3stocksonfire.org?
Cache00: I found the link posted on one of yahoo message boards.
3SOF: What members have you been applauding recently on 3SOF?
Cache00: I like the work done by eliteG.
3SOF: What would you say or recommend to someone that just started trading the markets?
Cache00: This is what I have learned from my own mistakes. Don't buy on margin. Be very careful when you trade hyped stocks. Don't let the market suck you into gambling trying to catch peaks. Don't be too greedy; sell as you have already planned. Don't sweat the fact that the stock you sold kept rising, it might not take long before you are happy with your sell. If you are a short-term trader do not hold your stock through earnings reports. Learn to be patient with stocks. Patience can be your key to success. I'm still working on the last one.
3SOF: Thanks a lot for this interview; I wish you luck on the next edition!
Cache00: David/Frederick, thank you for the opportunity it has been a real pleasure . 3StocksOnFire rocks!!!
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