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Yes they do, and for those that didn't panic and follow the herd, they've done very well over the years (on their way to achieve their financial goals...)
Most people make their money in selling advice (in day trading) rather than profiting from it.....
heh - definitely. Nobody with any significant footprint has money in the stock market. Real retail investors are long gone as they no longer can compete with the computer algorithms who insta trade very tiny margins. You can see this in action as the market has been consistently having a flash crash almost weekly (stocks lose more then half value in under a second). The circuit breakers aren't even fast enough to catch them. Fortunately for most, the SEC will invalidate certain trades... But, that's not guaranteed to continue so you're taking extreme risk owning any equity.
In the end, there's been 26 weeks of net outflows out of the market - more money has been coming out then going in (by a very wide margin) for the last 6 months straight. The only reason the market appears "green" is becoming of churn (incredibly high volume between the computers) and, most importantly, the Fed is pumping 10s of billions of dollars directly in weekly. This is how they will inject that $600B over the next 6 months that they decided from the recent FOMC meeting. It's so bad, in fact, that many high profile hedge funds are closing up shop and returning money to investors. They have nothing to "hedge" when the market is completely broken and not trading on fundamentals or any reasonable logic anymore. It's The Fed and the computers now.
It is an extremely dangerous time to be trading equities and "day trading" has been a long dead art. You sitting on your computer trying to trade this environment would be like bringing a pencil to a gun fight.
Everyone is mentioning about computers controlling the stock market and these so called flash crashes but this is one of the ways you play the market. I have come to the conclusion that people who are highly educated are the ones who don't do soo well in the markets. Have you guys seen what happens to a stock after it flash crashes on no news? After a few days its right back where it was right before its downfall. You can make alot of money on this pattern especially in penny stocks. It doesn't take alot to beat these market makers at their own game
You can see this in action as the market has been consistently having a flash crash almost weekly (stocks lose more then half value in under a second). The circuit breakers aren't even fast enough to catch them. " Fortunately for most, the SEC will invalidate certain trades... But, that's not guaranteed to continue so you're taking extreme risk owning any equity.
I am not saying you are wrong, but what equities have had a "flash crash" in the past month? Are these larger name issues? I wouldn't count pink sheets and very thinly traded stocks in the "flash" crash category... they were volatile before HFT became dominant.
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"In the end, there's been 26 weeks of net outflows out of the market - more money has been coming out then going in (by a very wide margin) for the last 6 months straight..
I would say this is expected given the recession... older people will exit equities (most likely via mutual funds) as the risk rises and unemployed people (or people helping unemployed family/friends) continue to eat into whatever they had invested.
Quote:
The only reason the market appears "green" is becoming of churn (incredibly high volume between the computers) and, most importantly, the Fed is pumping 10s of billions of dollars directly in weekly. This is how they will inject that $600B over the next 6 months that they decided from the recent FOMC meeting. .
I thought the Fed was done with equity investment (past what was done during the bailouts) and that the 600B was going to be solely for US Treasuries... is there a listing of equity investments the Fed is holding / acquiring? Granted, buying T-Bills will force anyone chasing % return into equities since interest rates will fall across the board.
And -10% return over the last 2.5 years. It's easy to cherry pick dates to get certain results. Nasdaq is still at less than 50% of it's value from 2000. Nobody should be putting money into the stock market unless they know what is going on.
The stock market has fundamentally changed over the last few years. It's now a gambling machine being propped up directly by the Federal Reserve, Treasury and the PPT via the US Taxpayer. They are picking the winners and losers and in effect destroying the confidence. HFT programs are executing 100os of trades/hour and causing flash crashes which can't be explained easily and individuals don't stand a chance. Play there if you like but when they clean you out, you will know why.
This is why retail investors has been cashing OUT of the market for the last 1/2 year and more importantly why insiders have been selling off vs buying at the ration of 1000s to 1. This came out about a year ago. I suggest you start reading from here. Look for the term PPT and Plunge Protection.
I checked out that website and honestly, I'm VERY weary of any site that offers predictions that the market is going to collapse next month......so, I'll pass thank you.
I don't believe in the "this time its different" mantra for the stock market and its definitely benefitted me financially when everyone panicked and pulled money out of the major indexes and missed the bull run over the past 2 years.
Also, many older people lost way too much money because their portfolio was tilited too much toward equities when they should've had a majority of their money in cash/bonds.....now they don't have the time to recover. If you are a younger person and you stay the course, you have the benefit of time on your side...
heh - definitely. Nobody with any significant footprint has money in the stock market. Real retail investors are long gone as they no longer can compete with the computer algorithms who insta trade very tiny margins. You can see this in action as the market has been consistently having a flash crash almost weekly (stocks lose more then half value in under a second). The circuit breakers aren't even fast enough to catch them. Fortunately for most, the SEC will invalidate certain trades... But, that's not guaranteed to continue so you're taking extreme risk owning any equity.
In the end, there's been 26 weeks of net outflows out of the market - more money has been coming out then going in (by a very wide margin) for the last 6 months straight. The only reason the market appears "green" is becoming of churn (incredibly high volume between the computers) and, most importantly, the Fed is pumping 10s of billions of dollars directly in weekly. This is how they will inject that $600B over the next 6 months that they decided from the recent FOMC meeting. It's so bad, in fact, that many high profile hedge funds are closing up shop and returning money to investors. They have nothing to "hedge" when the market is completely broken and not trading on fundamentals or any reasonable logic anymore. It's The Fed and the computers now.
It is an extremely dangerous time to be trading equities and "day trading" has been a long dead art. You sitting on your computer trying to trade this environment would be like bringing a pencil to a gun fight.
MK, I believe there are MAJOR differences between owning mutual funds for your long term retirement goals and day trading.
Many people disagree w/this because they were burnt so bad by the major market downturn 2 yrs ago.
As I said to CherryTwist in an earlier post, I might be on an island but I don't believe "this time its different". I will not overweight in bonds/gold/commodities for the next 20-30 years. I will continue to do what has kept me on tract for my retirement.
I own a ton of Silver that I picked up at 13 and now Silver is trading at 27.64
I'm glad that worked out for you, can you tell me what the price will be for that specific commodity in 10 years?
Investing for the long term w/a proven system is what I'm going with...it may not be "sexy" (its rather boring to dollar cost average and check your investments quarterly)...but it works.
I'm glad that worked out for you, can you tell me what the price will be for that specific commodity in 10 years?
Don't know what it will do 10 years from now but I wouldn't be surprised to see Silver @ 100 dollars an ounce within the next 18 months. Silver is currently in blue sky territory so the sky is the limit(although expect some healthy pullbacks in between). I am also keeping my eye on Crude and if we break here I do think we may see 150 dollar a barrel again.
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