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LOL! Kid, at your age the only things you can guarantee is 2 minute babies and that in 20 years you'll look back and wonder how didn't die from your stupidity.
As for the rest. Shut up.
Actually, he is correct Traderx..
he is just following this advice.
Quote:
Originally Posted by joejitsu
Buy low and sell high.
but knowing when is low and when is high is difficult
Sort of, but its calculated buy low and sell high. You see, a solid company will only fall so low, my guess is, over the short term, it wont drop much lower then 25% of its 52 week high, and, it probably has just as much chance of getting to 75% of its 52 week high or more. Given the upwards trend of the market, the chances lean to it rising rather then dropping.
This is because stock prices arent based on anything concrete, and as long as a company is still producing, employing tens of thousands, and isnt thinking about bankruptcy, its shares will retain a certain minimal value, because at some point, all these stupid ass magazines that people like TraderX use as the bible, are going to start recommending them as strong buys because the underlying company is perceived as stronger then its share prices, TraderX and other big players are going to dump 10's of thousands in to them and he is going to pull your share prices up. Now, the fact that they are big caps, and trade a whole lot of shares on a daily basis, will ensure that you can unload huge positions for exactly what you want. Why? Because Motley Fool or the Wall Street Journal told TraderX to buy, buy, buy. Even if the margins are razor thin, if you can make .10 on a $10 share in one day, you just made 1% before taxes. You only have to duplicate that 2 or 3 times a month, and keep your losses to a very minimum (which is the whole strategy behind getting the big cap strong companies at less then 50% of their 52 week high), and you are looking at 25%-30% for the year.
In theory, you could employ this strategy on block investments, such as the ING Tuesday auto investment, which is as low as $2 a trade. That would give you four selling days a month, and all you need to do is go in your portfolio, find the one that got that 1% gain, and sell it. Bang. If a few of them dropped, you dont need to worry about it. Unless they are going bankrupt, they will bounce back eventually.
Where people get in trouble is they buy these risky small caps, that trade 10 shares a year, they dump huge money in to high risk/high reward positions (like companies on the verge of bankruptcy, that will give them over 100% return if they win, or clean them out if they lose, such as with Citi, Ford and BOA), or they refuse to hang on to an investment until it bounces back. If they see any pattern of loss, they sell, take the loss on the chin, and move on.
Well I just made more in the last 15 mintues than you'll make this year so I'm bullett proof today bubby. Have at it..rolmao
What does this have to do with anything? This is almost excusively because you have more shirt to put in the game, not because you are some god. Assuming you have this much money in the game, you probably make more on one smallish trade then I even have to put in the market.
However, Im completely missing how that has anything to do with investment strategies.
Why is anyone who talks smugly about index EFTs a moron?
Can you elaborate on this?
I happen to like index ETFs. I invest in them, not so much smugly, but because they seem to have lower fees than mutual funds and less risk than individual stocks.
I happen to like index ETFs. I invest in them, not so much smugly, but because they seem to have lower fees than mutual funds and less risk than individual stocks.
I like ETFs too, but that isn't what I referred to. When people say 'EFTs', they are saying 'exchange-fund-tradeds'. They show that they do not even know what the acronym means, apparently. It's like someone who says 'ETF fund'. An 'exchange-traded-fund-fund'?
As for index ETFs, they're a mainstay of my own investing. I like Vanguard for the low expense ratios. My theory is that since low ERs are a key aspect of the motivation for the ETF play, might as well get it as low as possible.
So, I'm a recent graduate, and I've heard how some people my age do trading and get some nice money back. So I was considering it. Where would I start, hahaha, how much stock should I buy initially, because I don't have that much, and what steps should I take to not get screwed?
I'm thinking about buying some stock in these places, when I get more money in my savings.
Google
Amazon
Apple
Those are some expensive stocks, hope you have a lot of cash to burn! I would recommend some less glamorous stocks that will always be relevant in the long-term like mobile phone makers/carriers (nok, vz), large banks (wfc), and some healthcare-related stocks like HCP. Then put the rest of your money in companies you actually like and care about so that you won't pull the money out the first sign of trouble. Like someone said, this should be money that you should be willing to lose, if you play the game.
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