Is there anybody here into stock market?

[ProDJ26]

It's peeked my interest. So if there's anybody that wants to give me advice I'm all ears.

Send me a PM

 

[Alle_Gory]

So if there's anybody that wants to give me advice I'm all ears.

Advice: Do homework and stop being dependent on other people to make investment decisions for you. If you can't handle the stock market then invest in a managed mutual fund.

Send me a PM

You want the information to come to you instead of doing a little work searching. How incredibly lazy.

 

[Julius_Seizeher]

I am hesitant to recommend companies, but I will give you some general advice.

For starters, you must understand the difference between trading and investing. Trading is the business of holding stocks for a short time and selling them for quick profits, often within a day or two. Professional traders will use technical analysis, stock pumper newsletters, and word of mouth to follow the short-term "momo" of a stock. Investing is buying a stock with the intention to hold it for months or years, based on a strategy that considers macroeconomic factors, viability, and the merit of the company moving forward. I am an investor, I have never bought a stock that I wanted to jump in and out of. I invest based on fundamentals.

One of several reasons that most guys who try to make a go as daytraders fail, is they fail to consider the tax implications of trading stocks. Each transaction is a taxable (or deductable) event, and the taxes are a nightmare. Securities held for less than a year fall under the Short Term Capital Gains rate, which is up to 35%. I think most daytraders get it wrong because they are doing it assbackwards; they are flipping stocks to pay the bills and it just isn't sustainable.

As I said, I do not "trade" stocks, but I am going to take it up. My strategy will be to do all short-term trading inside Roth IRAs, so I will not be hit by the Short Term Cap Gains. Think about it: when you can trade stocks without paying taxes, you can grow your wealth immensely faster. When you sell any stock inside a Roth IRA, you just roll the entire balance into the next investment, without any consideration for taxes. Otherwise, you're getting hit by the STCG tax every time, and who wants that sh!t?

The stocks I hold in my retail account are not inside a Roth IRA, but I intend to hold them for years, so when I do sell, I will only pay the Long Term Cap Gains rate of 15%. I think the best way to build wealth in the stock market is to use both retail accounts and tax shelters (Roth IRA). If you have a 401K at work, by all means take advantage of it, but if you are serious about building wealth you will at least have a Roth IRA outside of work within which you can trade individual stocks and build wealth faster without paying taxes along the way.

I also feel each investor should have a focus on one particular industry. When you educate yourself to know an industry inside and out, you will be in a superior position to ascertain winners from losers within that industry. For me it is the mining industry. When I was first getting into investing, I discovered some junior miners I liked, and I have since become a mining nut. And it's a great time to be buying miners; commodities are booming, the world economy is expanding and miners provide the base materials which societies are built on. I focus on gold, copper, uranium, and potash. I look for startup companies with enormous estimated resources in the ground, because the biggest mining companies in the world (BHP, Vale, Rio Tinto, and Anglo-American) are buying into these high-potential juniors and sending their share prices to the moon. The major will form a Joint Venture with the small company by which the small company gives up a % of the project for funding and the means to make the mine happen. I also follow biotechs, they are more speculative but the winners in biotech can make you a rich man.

 

[synergy1]

Since my financial situation is limited at the time being, my investments are quite small. Being curious either way, I created a fake portfolio a number of years ago and have been watching it a couple of times annually. Since I would have in theory been holding those issues for some time, I don't check as much as a day trader. My overall portfolio is up 18% since 2008 - but the overall market is up as well. My picks are sound, and nothing more.

To elaborate on a point already made, there are two approaches to the stock market. One would be investing which is akin to being a silent partner to a company. You buy shares because you see intrinsic value, and a good buy. Typically, when looking for these kinds of bargain shares, you evaluate the companies books, earnings, and annual reports to get a feel for how they present the numbers. Thus a share price is a multiplier of its earnings, and how the market feels about it. If the market feels bad but still has decent earnings, it could be a good investment. Good long term investors seek 6% annually in growth.

The second approach is day trading, which has been pointed out can be quicksand if you don't know what your doing. Heck, I bet it is even if you do! Some liken it to gambling, as you are looking for profitable price swings in small time periods. From what I understand about trading is that commissions, spreads, and taxes erode your profits greatly. I mean 35% is what you get taxed on if you buy/sell and make a profit? Thats a pretty big deal.

Do your homework. there is a lot of it. If you decide to put in the time, maybe you can be an enterprising investor. if you put in only a few minutes, stick to index funds..

 

[Alle_Gory]

From what I understand about trading is that commissions, spreads, and taxes erode your profits greatly. I mean 35% is what you get taxed on if you buy/sell and make a profit?

You mean up to 35%. It depends on the person's tax bracket. Also, you're only taxed on the gains and you can write off losses to offset the gains. If you're down $5,000 this year and you're up next year $5,000 you don't pay tax. You can carry your losses forward to reduce any taxable gains.

 

[allbeef]

I want to be rich by stocks. Could someone please tell me how.

 

[Akuma]

buy low, sell high

 

[Alle_Gory]

I want to be rich by stocks. Could someone please tell me how.

Grease yourself up with peanut butter and enter a kennel full of dogs.

Trust me, I'm a Marine Biologist.

 

[Poonani Maker]

I am hesitant to recommend companies, but I will give you some general advice.

For starters, you must understand the difference between trading and investing. Trading is the business of holding stocks for a short time and selling them for quick profits, often within a day or two. Professional traders will use technical analysis, stock pumper newsletters, and word of mouth to follow the short-term "momo" of a stock. Investing is buying a stock with the intention to hold it for months or years, based on a strategy that considers macroeconomic factors, viability, and the merit of the company moving forward. I am an investor, I have never bought a stock that I wanted to jump in and out of. I invest based on fundamentals.

One of several reasons that most guys who try to make a go as daytraders fail, is they fail to consider the tax implications of trading stocks. Each transaction is a taxable (or deductable) event, and the taxes are a nightmare. Securities held for less than a year fall under the Short Term Capital Gains rate, which is up to 35%. I think most daytraders get it wrong because they are doing it assbackwards; they are flipping stocks to pay the bills and it just isn't sustainable.

As I said, I do not "trade" stocks, but I am going to take it up. My strategy will be to do all short-term trading inside Roth IRAs, so I will not be hit by the Short Term Cap Gains. Think about it: when you can trade stocks without paying taxes, you can grow your wealth immensely faster. When you sell any stock inside a Roth IRA, you just roll the entire balance into the next investment, without any consideration for taxes. Otherwise, you're getting hit by the STCG tax every time, and who wants that sh!t?

The stocks I hold in my retail account are not inside a Roth IRA, but I intend to hold them for years, so when I do sell, I will only pay the Long Term Cap Gains rate of 15%. I think the best way to build wealth in the stock market is to use both retail accounts and tax shelters (Roth IRA). If you have a 401K at work, by all means take advantage of it, but if you are serious about building wealth you will at least have a Roth IRA outside of work within which you can trade individual stocks and build wealth faster without paying taxes along the way.

I also feel each investor should have a focus on one particular industry. When you educate yourself to know an industry inside and out, you will be in a superior position to ascertain winners from losers within that industry. For me it is the mining industry. When I was first getting into investing, I discovered some junior miners I liked, and I have since become a mining nut. And it's a great time to be buying miners; commodities are booming, the world economy is expanding and miners provide the base materials which societies are built on. I focus on gold, copper, uranium, and potash. I look for startup companies with enormous estimated resources in the ground, because the biggest mining companies in the world (BHP, Vale, Rio Tinto, and Anglo-American) are buying into these high-potential juniors and sending their share prices to the moon. The major will form a Joint Venture with the small company by which the small company gives up a % of the project for funding and the means to make the mine happen. I also follow biotechs, they are more speculative but the winners in biotech can make you a rich man.

What do you think about POTG, a mining stock? I have no interest in it, just curious of your analysis.

I'm kind of a day/week/month/quarter trader. I hardly ever go past 3 months holding something. My usually "hold" is for a week or two. My current holds left in my account are for over a month. They're finally going up. A lot of times I'm thinking, "I just want to get out of this investment, when I can." I care not how risky a security is, I'll dive right in if it's the right time. I currently want to take 3 positions: 3 etfs, one of them UGL (gold), but the timing is just not right, and I may have "missed the bus" when it was lower after the massive gold/silver sell-off a couple of weeks ago.

I try to buy as bottom as I can get and as top as greedily as I am willing to go, but the MAIN aim or trading style for me is getting bargains, and then selling where I've always intended to sell from the get-go. I rarely try to squeak out extra profits by holding on past what I'd originally planned to sell at. Everything happens so fast that it's best to stick with your plan and get out where you'd planned to get out, because your first decision is usually your best and clearest decision.

The 4th quarter should be bullish for the S & P. I may have missed the flight on the ones I want to pull back but aren't pulling back. Something's gotta give. The other 2 etfs are very risky but based on what's in demand right now or forecasted for the end of the year. One of them that I am NOT looking at is tied to the financial sector, because I just can't bring myself to believe in that, no matter how low it's been beaten down.

I have my picks, just waiting for a pull-back. I'm still in the strong dollar so-to-speak sitting on the sidelines, except for the monthly holds I have that are down, but rising quickly due to repositioning of institutional traders, hedge funds, and money market funds etc.

The MAIN thing you MUST be aware of if you are going to enter the stock market is that no matter how much you "analyze" something, the game is Rigged. You MUST be aware of head-fakes, of false flags, false pattens (identified by low volume yet somehow, a price jump out of the blue). What this means is Institutional Traders making a "run on the stops." You see, institutional traders (who trade for the banks) CAN SEEEEEE all of your and my (the average individual trader's) stops (that's stop loss orders, limit buy orders, trailing stop loss orders, etc etc). It's SO wrong that they can see Everybody's positions!!! It should be illegal for them to see our plays. It essentially gives them the green light (because ONLY THEY can see our orders!!! So f'in wrong folks), to manipulate the markets by triggering all our stops clumped together so nicely for them to take advantage of. This "running of the stops" causes a huge price drop or increase however they want it, to sucker unknowing investors in on buying something that "appears" hot or "appears" to be something everybody is trying to get rid of.

It should be illegal, but it's not, for THEM. The game is rigged, so you must be able to identify their head-fakes and false moves by constantly checking the volume. Don't get caught up in the Price!! You'll just be another one of their b!tches. It's not fair but it's just the way it is. Life's not fair. The people in power i.e. the banks, make the rules.

 

[Bible_Belt]

Peeking at this thread piqued my interest, at which point that interest came to a peak.

 

[The Bad Ass Canadian]

I would urge extreme caution in the coming weeks for anyone holding long in the market.

This past rally has been the perfect setup for a dead cat bounce and based on some Elliot Wave theory, there are reasons to believe the rally could/should continue but that doesn't change the intermediate to long term bearishness.

We might break the August high's but we could see a sudden large gap down and sell off/ market capitulation at some point in the near future.

Time frame is unknown (could be weeks or even months) but be cautious. Hedge your accounts if you're long.

Buying some far out of the money put options on the spy or the QQQs that are dated a year out or more can protect your downside risk if things go crazy.

good time to by cheap good companys, though. Earnings are good but guidance had been lowered so it's pretty easy to beat the expectations.

I day trade and swing trade through a tax sheltered account. If you don't know what you're doing, paper trade with fake money and read a lot of books or even consider taking a seminar or a course. There is a lot to it.

Buy low and sell high is so 1990. The real traders are the ones who can make money in the new market, which is basically a casino, these days. Not for the faint of heart.

 

[Poonani Maker]

^^ Still, the S & P is typically (80% of the time) up by end of 4th quarter, except for 2008, an abnormal real estate/derivatives/financial/bubble/crash/scandal/height of ponzi. Tech should go up in this quarter. Semi-conductors are making bank now for those in it. I think that this week will be sharply down. Thereafter end of October/early Nov thru mid-end Dec should be up 20 - 50%. Basic Materials is another play.

But, through it all, I'm holding Gold, and some silver just in case the government decides to try to confiscate our gold in the event of a collapse. They've done it before, they could do it again. And these protests are spreading. It could REALLY get ugly. Currency wars have already started, trade wars as well are coming see US / China. What's next historically when the elites have nowhere else to run? or no more smoke n' mirrors to deceive the ripped off masses? They take us to war, world war III (to escape their own beheadings).

Look at how our media is drumming Iran right now. Our country is one great big ponzi scheme, and it IS a casino, as you say, not like it once was, when our country wasn't a fascist state. Government and wall street are working in cahoots, both masked gunmen/robbers. I guess I'm still playing the market cause I'm still making money, better than I would in a casino. Sooner or later I'm going to have to get out and take my gold and silver and freeze dried food and bunker down, cause I don't think that they'll be able to stop the Euro debt (trillions in Spain, Portugal, of course, Greece NEVER will be able to repay etc), we're talkin 18% of Germany's entire economy to cover the losses of ONE French bank that just collapsed this week. Imagine if all these other big ones start going??? World War III.

They can't stop it. They keep coming up with schemes undreamed of (printing more money to give to their friends). Nothing is being allowed to run it's course, except us little peons, cause the crooks and criminals are in power, never ever doing time because they also own all the police and the entire judicial system. They get away with murder bombing other countries.

 

[blackomen]

I'm a big fan of the Harry Browne portfolio.. it's been up 11% last year when equities were flat and has beaten the vast majority of Hedge Funds. What's elegant about it is it you only invest in 4 different assets, all very liquid: S&P500, Gold, Long-term Treasuries, and Cash.

Buying ETFs from your broker, the allocation is as follows:

25% SPY
25% GLD
25% TLT
25% SHY

It's not without weaknesses either.. usually it'll lag behind stocks during strong bull markets but it will still manage to stay flat or make some minor gains when stocks are in bear markets.

It's gained about 2% in 2008 when most investments lost big. On the contrary, it only gained about 5% in 2009 when many stock indices made a comeback.

More information is found here: http://crawlingroad.com/blog/2008/12/18/the-permanent-portfolio-allocation/

 

[r0cky]

Screw P/e ratios and Stochastics. Just buy AAPL (Apple). Have you seen the new Ipad?? Every zombie, ehm, american consumer, is getting one.

 

[Down Low]

If you go to Yahoo finance, and look at the graphs, you'll notice that the S&P 500 has been following a bouncing ball pattern since 1996. For sure, stocks are headed for a rapid decline in a year or so and will bounce back after hitting maybe 650. This is just a bad time to buy into any stock. Maybe you should do one of those futures bets where you bet that the index will go down in 2013?

 

[OzyBoy]

I have thought about it and even opened up an account but things are a bit unpredictable at the moment. I have built up quite a bit in savings at the moment so maybe i will start thinking of doing something soon.

 

[Tortendieb]

Well does it really go up in summer? I have no idea about this particular stock, but since juice always sells better in summer there shouldn't be a big surprise for the investors, thus there shouldn't be a big increase.

I mean, wintersport companies don't lose value just because it's summer either.

 

[blackomen]

Well does it really go up in summer? I have no idea about this particular stock, but since juice always sells better in summer there shouldn't be a big surprise for the investors, thus there shouldn't be a big increase.

I mean, wintersport companies don't lose value just because it's summer either.

If it were that simple, we'd all be rich. See: http://en.wikipedia.org/wiki/Efficient-market_hypothesis

 

[Bible_Belt]

"Efficient Market Hypothesis" says that no market can ever be predicted, which is baloney. But thinking that stocks always go up and down for reasonable and predictable reasons like the month of the year is just as much baloney. The latter reminds me of Homer Simpson getting wiped out in the pumpkin futures market, because he forget to sell in October:

http://www.snpp.com/other/papers/cm2.paper.html
Homer: This year I invested in pumpkins. They've been going up the whole month of October. And I got a feeling they're gonna peak right around January. Then, Bang! That's when I'll cash in.
(Later)
Broker: Homer you knucklebeak I've told you a hundred times. You gotta sell your pumpkin futures before Halloween, before.

The truth is that most of the time, the market is chaotic and unpredictable. But the chaos is not perfect, as there are occasional moments of predictability. If that were not true, then there would be no such thing as traders making a living off of speculation, and those guys have existed for five or six hundred years, and they still do today. Profitable trading is exceedingly difficult, but that is not the same as being impossible, which is the crux of the Efficient Markets excuse.

 

[Tortendieb]

Yeah, that was actually what I meant to say. Or rather, why would the price of a juice company be lower in winter?

In winter, everybody knows there will be profits later in summer, so the season doesn't actually relate to the quality of the company, or the ANNUAL profits.

My point being, with only the information that sales are good in summer, you can't predict ANYTHING on the company. You'd need better information...