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Well you trade stocks so thats what 'trading' was.
What do you think of penny stocks that are so volatile?
I have heard that someone turned $10K into $250,000 fast.
1. The content of your portfolio needs to be examined and you need to learn new ways to invest. Your IRA has a lot of funds that contain the type stocks you own, so you do not need those types in your TK account.
2. Yes, Warren is buy and hold because he is one of the richest men in the world and he is paid to hold for years and decades. And he can buy a million shares of stock. Can you?
3. To buy a stock today and to sell the stock in 3 months IS a trade. If you never sell your stock then that is the only way to avoid it being a completed trade. What is wrong with a trade, whether it is the same day, next week, next month, or next year?
4. I recently made a nice trade on Lynas at $1.58 and I own the Jan. 2012 $4 call on Citigroup. In general you should avoid penny stocks because you appear to be fearful of too much. You are afraid, as you admitted, to sell a stock that you were dead wrong about, just because it is a loser.
5. That won't be you if you hold 27 shares of a stock. You need many thousand. I bought 3000 on my Lynas trade. I got a nice 30% profit in a week and sold. I wanted the profit off the table. What the stock did, or does after that, means nothing. My goal was to make a certain dollar amount in a certain time frame.
Well you trade stocks so thats what 'trading' was.
What do you think of penny stocks that are so volatile?
I have heard that someone turned $10K into $250,000 fast.
I have seen ads on the internet about people making millions in penny stocks.
I go listen to their video and at the end it sounds great, then when it is time to hear their secret they want your credit card and you'll get a $199.99 value for only $49.99. If they are millionaires, WHY do they need my $49.99?
You, me, and others can not buy like Warren Buffet.
If his stocks go up $5.00 he makes millions because he bought millions of shares.
You are struggling to sell a $135 loser in BAC.
For you to make $5000 on your BAC the stock needs to go to up to $185.00. We'll all be dead before that happens.
Do what you can do. Any there are no guarantees on the stock market. NONE. You use the investment tools you have to make decisions that give you the best chance of success.
One rule is the double rule. If you buy a stock and it goes up 100%, you sell 50% of it. Now the cost basis for the stock you still own is now zero, and you are then playing with the house's money.
Another good rule:
If your stock goes up alot, quick, like you buy 200 shares of a stock at $23 and it goes to $27.00, go ahead and sell 50 shares, or maybe 100. Why?
If you are right in selling, the stock will go down and you can buy your shares back at a lower price. If you are wrong to sell 50 of your shares, then your other 150 shares will go UP and you will be glad you have some.
If it goes up another $5.00 then sell a little more.
Very off topic, but figured I'd ask here... Does anyone have a brokerage account that is tied to a savings account which they offer interest and instant transfers? I'm still using Sharebuilder do about 5-10 trades a year and am sick of the $10 per trade, plus the obscene amount for trades above 1000 shares
I have seen ads on the internet about people making millions in penny stocks.
I go listen to their video and at the end it sounds great, then when it is time to hear their secret they want your credit card and you'll get a $199.99 value for only $49.99. If they are millionaires, WHY do they need my $49.99?
You, me, and others can not buy like Warren Buffet.
If his stocks go up $5.00 he makes millions because he bought millions of shares.
You are struggling to sell a $135 loser in BAC.
For you to make $5000 on your BAC the stock needs to go to up to $185.00. We'll all be dead before that happens.
Do what you can do. Any there are no guarantees on the stock market. NONE. You use the investment tools you have to make decisions that give you the best chance of success.
One rule is the double rule. If you buy a stock and it goes up 100%, you sell 50% of it. Now the cost basis for the stock you still own is now zero, and you are then playing with the house's money.
Another good rule:
If your stock goes up alot, quick, like you buy 200 shares of a stock at $23 and it goes to $27.00, go ahead and sell 50 shares, or maybe 100. Why?
If you are right in selling, the stock will go down and you can buy your shares back at a lower price. If you are wrong to sell 50 of your shares, then your other 150 shares will go UP and you will be glad you have some.
If it goes up another $5.00 then sell a little more.
heres an important concept you all need to understand fully:
this concept of playing with the houses money.
there is no such thing as the houses money.
that thinking destroys investors and gamblers alike. its all your money .
what your brokerage account is worth is no different than your savings account with interest. no one looks at their bank book and goes its okay i can loose my interest at vegas because its the houses money...
you mean if you buy an issue and make money ,sell that issue and buy something else its no longer the house money that becomes your cost basis but your own money? . but if you only hold on to that one issue and it goes up than its not your money but its the houses money?
after you made many trades over a decade what is the houses money? i have been an investor for 25 years, i cant tell you anymore what the houses money is, there is no such term that even exists anymore. its all my money .
its silly thinking and everyone should get idea of the houses money out of your head. there aint no such thing , its all your money. period!
would you feel the same about the money your boss pays you for working? of course not
you can work for your money or have your money work for you but its all the same.
i once saw a study that showed just how silly folks can reason when it comes to this stuff.
the asked people in vegas " if you won 2,000 bucks in vegas would you bet more,less or the same the next night?" most said they would bet more ,afterall its the houses money
next question was " same scenerio, your in vegas and notice you made a 2,000 error in your check book addition and had 2k more than you thought. would you bet more,less or the same the next night?" most folks said heck i would bet the same,that 2k is my money and they didnt want to loose it.
there are sooooooo many old wives tales and myths that we end up believing and adopting as our beliefs about things that just aint so.
remember its not what we lnow that gets us in trouble
its what we know that aint so that does.
Last edited by mathjak107; 04-11-2011 at 02:36 AM..
heres an important concept you all need to understand fully:
this concept of playing with the houses money.
there is no such thing as the houses money.
that thinking destroys investors and gamblers alike. its all your money .
what your brokerage account is worth is no different than your savings account with interest. no one looks at their bank book and goes its okay i can loose my interest at vegas because its the houses money...
you mean if you buy an issue and make money ,sell that issue and buy something else its no longer the house money that becomes your cost basis but your own money? . but if you only hold on to that one issue and it goes up than its not your money but its the houses money?
after you made many trades over a decade what is the houses money? i have been an investor for 25 years, i cant tell you anymore what the houses money is, there is no such term that even exists anymore. its all my money .
its silly thinking and everyone should get idea of the houses money out of your head. there aint no such thing , its all your money. period!
would you feel the same about the money your boss pays you for working? of course not
you can work for your money or have your money work for you but its all the same.
i once saw a study that showed just how silly folks can reason when it comes to this stuff.
the asked people in vegas " if you won 2,000 bucks in vegas would you bet more,less or the same the next night?" most said they would bet more ,afterall its the houses money
next question was " same scenerio, your in vegas and notice you made a 2,000 error in your check book addition and had 2k more than you thought. would you bet more,less or the same the next night?" most folks said heck i would bet the same,that 2k is my money and they didnt want to loose it.
there are sooooooo many old wives tales and myths that we end up believing and adopting as our beliefs about things that just aint so.
remember its not what we lnow that gets us in trouble
its what we know that aint so that does.
Maybe I did not state it the right way for you.
The advice of "others", is that if you buy a stock and it doubles, sell half of it, so the remaining shares have a cost basis of zero.
That is what it means. Nothing more and it is only for that specific stock or investment that doubled.
Very off topic, but figured I'd ask here... Does anyone have a brokerage account that is tied to a savings account which they offer interest and instant transfers? I'm still using Sharebuilder do about 5-10 trades a year and am sick of the $10 per trade, plus the obscene amount for trades above 1000 shares
Give Charles Schwab a call.
I have an account with them and the cash side is paid a small amount of interest. And they offer checks so you can write checks, and a visa debit card. The interest rate is low, but it does pay a little.
Well Fargo has a brokerage unit (Wells Trade) and they may have one tied to a savings account.
The rest like Etrade, Trade King, etc. are surely broker only.
Good luck.
The advice of "others", is that if you buy a stock and it doubles, sell half of it, so the remaining shares have a cost basis of zero.
That is what it means. Nothing more and it is only for that specific stock or investment that doubled.
still makes little logical sense from a cost basis standpoint. you either sell because you think its loosing its reason for owning it or sell some because you still think it may go higher but arent sure.
regardless of what you think is your cost basis shouldnt matter.
amateur investors get burned all the time because they base sell decisions on what they paid for something rather than the reasons for still owning it or not .
still makes little logical sense from a cost basis standpoint. you either sell because you think its loosing its reason for owning it or sell some because you still think it may go higher but arent sure.
regardless of what you think is your cost basis shouldnt matter.
amateur investors get burned all the time because they base sell decisions on what they paid for something rather than the reasons for still owning it or not .
well, that is a point I am trying to make to Texas User.
He is holding a 27% loser on BAC and does not have the courage to sell it.
He is planning to hold it until it goes from $13.50 back to $18.25, the price at which he paid. And his reason is "only" because he does not want to sell a loser.
I believe, the reasons he bought it, have proven to be wrong or it would not be down 27%.
In my own case, I might own 300 shares of a stock and on a big move up, I'll sell 50-100 shares and take the profits,
and DARE my decision to be declared WRONG by the market.
If the stock market Gods prove me wrong, my other 200 shares are headed higher.
If I was right in selling 100 shares, the stock will go down, and if I still like it for the same reasons I bought it, I may consider buying my 100 shares back.
Oh and I think Penny stocks are terrible. I don't define penny stocks as <$5 like fool either-- I define them as less than $1. There are some good $1 - 5 stocks.
Not always. I bought KERX at $.40 and two years later it's $5 and climbing. I stay away from the OTC stuff though...too much manipulation.
"The best way to think about investments, is to be alone in a room and just think. If that doesn't do it, nothing else will".
Read books about the 1940's or 60's. There are hundreds of companies that are no longer in business anymore. This stock era that we're in, is pretty much a facade. We think it's "different" (we're more sophisticated, smarter, have access to better information, etc). But not really.
There have always been growth industries....railroads, airlines, cars, etc. I think the danger now with the internet and almost unlimited free information....is you can get more evidence to back up your convictions. Just go online, and see 50,000 other people that think the way you do. But industries stall, die, change.
To be a better investor, read history. Not free websites.
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