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Any of those "investments" are pure speculative plays unless you've crunched the numbers or have some sort of insider advantage, not simply a gut feeling that a certain commodity or stock will go up. I'll be honest, I don't place much value in technical analysis or momentum investing or other charting/trending techniques. But if it's worked for you, feel free to share your secrets.
As far as taking a page out of BH's success, I think we can all agree that none of us is Warren Buffet. Maybe if you have a background in finance and IB/consulting you could work through variations on CAPM & come up with NPV's to reveal "intrinsic value." But all this depends on good estimations of future cash flows & picking appropriate discount rates, a lot of variables that are beyond the grasp of novice investors.
I have to disagree with not putting much value in technical analysis or charting/trending techniques. That is how I do all of my trades. I pay absolutely no attention to the fundamentals or any annalists.
If the trade is not working I just cut my loses and move on.
As for what the original question is, I would not put any money in one stock if you are not there to babysit it everyday. Because you will probably lose money in the long run. By a mutual fund and forget about it, you won't make a ton of money but you probably won't get hurt.
I have to disagree with not putting much value in technical analysis or charting/trending techniques. That is how I do all of my trades. I pay absolutely no attention to the fundamentals or any annalists.
If the trade is not working I just cut my loses and move on.
As for what the original question is, I would not put any money in one stock if you are not there to babysit it everyday. Because you will probably lose money in the long run. By a mutual fund and forget about it, you won't make a ton of money but you probably won't get hurt.
I'm wondering if this works in all markets, or just the current bull run of 6+ years...
We have a mortgage (only debt), a nice savings account, both have IRA's and a mutual fund.
I want to take $3,000 or possibly $5,000 and invest in one stock. This would not put a huge dip in our savings and if we lost it, it would'nt be the end of the world.
The plan would be to buy low, sell high<>
What do you think?
As Jimmy Durante said, "Everybody wants to get into the act!"
Are your IRAs standard or Roth? How are they invested now? If you are hoping for big gains use the Roth plan and avoid taxes in the end.
I have a Roth that is not diversified and it has done splendidly. It was a suggestion from Motley Fool, backed up with personal experience with the company.
"Just lucky I guess"
I'm wondering if this works in all markets, or just the current bull run of 6+ years...
Nothing works all the time. But over long periods of time, the stock market goes up. If you don't want to be 100% in stocks, you can always buy a balanced fund, which owns a mix of stocks and bonds. Bonds won't totally protect you from losses, but lose a lot less when the stock market crashes, and often will even go up in value when stocks are down. Any of these balanced funds would work well:
Vanguard Balanced Index
Vanguard Wellington
Dodge & Cox Balanced
Fidelity Balanced
Oakmark Equity & Income
Mairs & Power Balanced
There are other good balanced funds, but the above are all fine. I'd pick Vanguard Wellington as my #1 pick. Cheap expenses. Pretty stable (even for a balanced fund). Great long term performance.
Nothing works all the time. But over long periods of time, the stock market goes up.
The comment I spoke to was about ignoring technicals and fundamentals. I suspect that the reason this reckless approach hasn't burned him yet is the momentum of the market.
Let's see how ignoring the numbers works in a downturn.
I am presently a bag holder of many long positions of companies with strong fundamentals like XOM.
However, performing margin trading on uranium, rare earth and other bubble plays, aka day trading, I have made close to 7000 bucks since Nov 1.
If only I had the balls, I'd have made 70K, but not yet
i have been trading in and out of gld ,tlt , a few etf's and oil with my fun money and made over 75k since january .. i have posted my trading statement here a few times as there were those who thought i was not disclosing my losses. 30 trades in gold in gld accounted for almost 27k.
i have been trading in and out of gld ,tlt , a few etf's and oil with my fun money and made over 75k since january .. i have posted my trading statement here a few times as there were those who thought i was not disclosing my losses. 30 trades in gold in gld accounted for almost 27k.
This thread is almost 7 years old people.
It would be interesting to look back and see what all of the stocks were trading at then, versus now.
I see he had RIG (Transocean) on his list and it's trading for about 25% roughly, now, versus back in 2010. He also had BAC on his list and that was a winner.
Last edited by BeerGeek40; 07-23-2017 at 09:27 AM..
i have been trading in and out of gld ,tlt , a few etf's and oil with my fun money and made over 75k since january .. i have posted my trading statement here a few times as there were those who thought i was not disclosing my losses. 30 trades in gold in gld accounted for almost 27k.
Trading individual stocks is my fun money too. But my retirement is doing well with minimum stock allocation, like maybe less than 25/75 AA.
I would ignore some posters sometime. They are like pond scum. They add nothing to the conversation, pretty petty.
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