EPTInvesting/Stock Market/etc - Page 4
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xDaunt
United States17988 Posts
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Sm3agol
United States2055 Posts
On April 20 2011 05:35 Wasteweiser wrote: Damnit, missed out on BP oil spill stocks, now missing out on nuclear, damn being a student.. Don't worry, there will be plenty of man-made natural disasters to go around. | ||
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Bacondemon
Sweden149 Posts
More information here: http://en.wikipedia.org/wiki/Contract_For_Difference This kind of trading is not allowed in the U.S, sorry yanks. | ||
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cynical
Canada589 Posts
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FiWiFaKi
Canada9859 Posts
A year ago we bought $400k of Nova gold at $0.63 cents, then sold at $9 dollars maybe four months later. My parents are practically set for life and now they are doing safe investments. You need to be smart with penny stocks, read up a lot on them, and use human phycology against people. Also we keep 90% of all the money they own in gold, as the US dollar is extremely unstable volitile and I expect it to crash within a couple years and gold will become the world currency. As you can't print off gold like mad, unlike the US bills. And so far that's gone well, from $800 per ounce to $1500 is pretty good in such a short timerate, and I recommend for everyone here to invest in gold, much safer and easy profit. News keeps trying to trick people on how the price of gold is as high as it can go now it will plummet. Don't listen to that BS, they are just trying to get you to sell. Don't believe me? Do some research on it. | ||
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FiWiFaKi
Canada9859 Posts
On April 20 2011 07:47 cynical wrote: Does anyone else think that netflix(NFLX) is gonna skyrocket over the next few years other than me? To me, streaming video is the way of the future and they are way ahead of the curve. The only major company doing so very afford-ably($8/month). The stock doubled over a years time and I'm guessing will probably do so again next year as well. Thoughts? Actually the problem with netflix is that it really hasn't gotten out yet, and their profits are very similiar to that what they were a year ago, the reason the price went up is because other investors are hopeful of the same thing as you. I think it would be a good idea to read up on how much does it really appeal to the younger generation, because from what I gather, older people like doing the old-fashioned TV watching... I definitely see a future with it, but it all depends how inflated the price is already. | ||
Kipsate
Netherlands45349 Posts
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stink123
United States241 Posts
http://www.teamliquid.net/forum/viewmessage.php?topic_id=94843 a good read on the basics of investing, it explains a lot more than what any of you have said | ||
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jdseemoreglass
United States3773 Posts
I put most of the money into Bank of America (BAC) when it was trading at $4 and everyone thought the world was ending, sold it when it hit $16. Made a huge profit and put the money into VISGX, Vanguard small-cap index, which has more than doubled the growth of the S&P500 over the past year. Sure, I took quite a big risk, but I was young and confident in my purchases, and I knew I had to act immediately or watch an amazing opportunity slip by. Not sure if there is a moral to this, just wanted to share my success story and maybe say that constant conservatism might not always be best, especially if you are young and can recover from your mistakes. To quote Warren Buffet: "Be fearful when others are greedy and greedy when others are fearful." | ||
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Stoids
United States636 Posts
On April 20 2011 08:05 stink123 wrote: how did no one bring up this thread: http://www.teamliquid.net/forum/viewmessage.php?topic_id=94843 a good read on the basics of investing, it explains a lot more than what any of you have said Couple that with some Graham, Fisher, and Malkiel | ||
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Nqsty
United Kingdom118 Posts
The main mistake people do is randomly picking a stock, speculating on its future value, and buying or not by finding excuses/reasons to do so. The way to do it is the exact opposite. Start macro-wise, what are your expectations for the future world economy ? Boom or recession ? Depending on this your short or long positions will vary. Check consumer confidence indexes, building permits, patent deposits etc, there are also statistics on expectations of leading firms head of purchases. These give you an idea of where things are going, and are extremely good indicators. Next, you need a stream of ideas. Pope allows condoms ? Look into latex. China cut rare earth exports ? Check mining companies. Economy picking up ? Check railway companies. For instance assume you believe the demand for condoms will rise due to Christian's being allowed to use them . Does that mean you have to invest in the biggest Condom company in the US ? No. You probably have over 30 companies to pick from. May they be in Indonesia, Chile, France or Saudi Arabia. Choose the one which suits your beliefs, highest ROI ratio, lowest PE, solid management, very simple concepts. If you wanted, you could also short companies who sell contraceptive pills, or god knows what, to increase your stake in a belief. For the Airline industry for instance, I once looked up to 70 different companies, and pick the one which suits my beliefs the best. This is bar far the best way to invest intelligently. If backed up by serious research, knowledge in statistics, and good intuition on ideas, you can make very good return. I know a lot of people who invest differently however, and who also manage very well. Also, something I like to do a lot is check security trading records for CEO's or major stakeholders, its entirely legal inside information and company buybacks are also great indicators of future stock movements. Finally, dehumanise yourself. Don't cry over losses and don't cheer over gains. The best traders in the world only reach their expectations on 4 out of 10 trades. Why ? Because they cover risk and set strict sell out limits for themselves. The only time you should feel emotion over your investment is at the end of the year when you look at your final return. There are thousands of investment strategies, but I am honestly convinced this is the best way to go. You rely only on yourself, and funnily enough, often end up going against the masses most of the time. Stock -> analysis -> explanation is WRONG Macro analysis -> Idea -> Industry analysis -> Idea -> Stock analysis -> go long/short is RIGHT Anyone here have the same approach ? | ||
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MannerKiss
United States2398 Posts
On April 20 2011 08:18 Stoids wrote: Couple that with some Graham, Fisher, and Malkiel I find that hard to read when he says he doesnt believe anyone can make money off technical analysis. So...this guy is in finance and hasnt heard of prop trading/day trading? Swing/Day traders generally depend much more on technicals than fundamentals because unless your trading broad market instruments / futures news doesnt come out for companies on that regular of a basis. I personally base probably 60% of my trading off pure technicals if not more - I guess i'm insulted when he calls technical analysis a pseudoscience. | ||
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Stoids
United States636 Posts
On April 20 2011 08:51 MannerKiss wrote: I find that hard to read when he says he doesnt believe anyone can make money off technical analysis. So...this guy is in finance and hasnt heard of prop trading/day trading? Swing/Day traders generally depend much more on technicals than fundamentals because unless your trading broad market instruments / futures news doesnt come out for companies on that regular of a basis. I personally base probably 60% of my trading off pure technicals if not more - I guess i'm insulted when he calls technical analysis a pseudoscience. Taking anyone's investing opinion as science will often lead to failure. Having a solid foundation in many approaches to investing will allow you to find your personal comfort zone. Diversity of education is as important in investing as anything else. | ||
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MannerKiss
United States2398 Posts
MUTUAL FUNDS ARE NOT SAFER BY DEFAULT Mutual funds are simply funds that must invest by certain criteria. If you choose a high return fixed income mutual fund for example - they invest in JUNK BONDS. They have substantially higher risk simply because of what style of fund they are. The safety of a mutual fund is all relative to the instruments they invest, and what benchmark they're working against. This is an important thing to bring up whenever these online forums suggest mutual funds to novice investors. If you just pull up a list of mutual funds you'll see higher risk mutual funds at the top of the list, even for 10 yr performance but its not an accurate comparison of mutual funds. You must read the information provided on WHAT they're investing in. | ||
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Glacierz
United States1244 Posts
On April 20 2011 04:06 happyft wrote: If you're going to be investing with that kind of style, I highly recommending reading up on asset allocation strategy books too. (Just read one, they're all the same) Let me save you the time and money -- they all say, the best way to enter and play the market is to invest a fixed amount every month. In other words, if you've got a 401k plan, do it. (That's probably the only useful sentence in all of those books) Let me give you a quick reason why AAPL is actually slightly undervalued. AAPL has $64/shr in cash on its balance sheet alone. Street estimates are at $23.10 for FY11 and $26.70 for FY12 (and Street estimates tend to be conservative on stocks they're bullish on). In other words, AAPL trading at today's price of $335 implies 11.7x FY11 EPS ex-cash. The S&P500 is currently trading at 14.1x forward earnings. So rather than saying AAPL is expensive, you have to either argue that AAPL will grow slower than the overall market (a very poor argument, look at iPhone and iPad sales growth), or that AAPL will see its iPhone margins get cut in half due to price competition from Android or other competitors (which is actually a legit concern in the sense that if this does happen, the stock will take a big hit...but that's a BIG if, very big, and likely very unlikely). Mm...probably a good spot for me to say the usual disclaimer stuff i.e. I'm not recommending nor soliciting anyone to buy or sell any aforementioned securities, data is not intended as factual, investing in the market is risky, etc. etc. Wow. On how much capital? And were you doing true day trading, or what was your average holding time period? And how long have you been following ATVI that you were able to day trade it? And on what basis did you trade? (fundamentals, technicals, weird indicator stuff, quant models?) Have you considered key personnel risk for AAPL that is Steve Jobs? | ||
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Sm3agol
United States2055 Posts
On April 20 2011 09:00 MannerKiss wrote: I also feel like commenting on peoples perception of mutual funds. MUTUAL FUNDS ARE NOT SAFER BY DEFAULT Mutual funds are simply funds that must invest by certain criteria. If you choose a high return fixed income mutual fund for example - they invest in JUNK BONDS. They have substantially higher risk simply because of what style of fund they are. The safety of a mutual fund is all relative to the instruments they invest, and what benchmark they're working against. This is an important thing to bring up whenever these online forums suggest mutual funds to novice investors. If you just pull up a list of mutual funds you'll see higher risk mutual funds at the top of the list, even for 10 yr performance but its not an accurate comparison of mutual funds. You must read the information provided on WHAT they're investing in. Usually though, if you have to choose between investing in companies you don't know enough about and a mutual fund that holds similar companies, the mutual fund will do a better job. And if your going the raw materials/energy/etc big company route, they are pretty rock solid from a risk standpoint. Mutual funds is basically investment for dummies. Do a little research, but there's not much to mutual funds, really.If you manage to fark up your entire portfolio of mainly mutual funds, you are doing something BAD wrong, lol. Also, merely having a really diverse portfolio of funds is basically risk free barring an epic market collapse. I, for example have the minimum amount in 7 different funds right now, only two of which deal with similar companies. | ||
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Almin
United States583 Posts
On April 20 2011 07:49 Skillz_Man wrote: Imo penny stocks are the way to go. You just have to be smart about it. A year ago we bought $400k of Nova gold at $0.63 cents, then sold at $9 dollars maybe four months later. My parents are practically set for life and now they are doing safe investments. You need to be smart with penny stocks, read up a lot on them, and use human phycology against people. Also we keep 90% of all the money they own in gold, as the US dollar is extremely unstable volitile and I expect it to crash within a couple years and gold will become the world currency. As you can't print off gold like mad, unlike the US bills. And so far that's gone well, from $800 per ounce to $1500 is pretty good in such a short timerate, and I recommend for everyone here to invest in gold, much safer and easy profit. News keeps trying to trick people on how the price of gold is as high as it can go now it will plummet. Don't listen to that BS, they are just trying to get you to sell. Don't believe me? Do some research on it. Problem is, US Dollar is the currency of the world, and it's doing better than the Euro LOL. I don't like your fear mongering. Only people who want to sell their gold stock are like "TIME TO BUY GOLD IS NOW, btw buy from me!", quite a scam in my opinion. | ||
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azndsh
United States4447 Posts
if you're interested in trading, here's to hoping that you're lucky. the only way to reliably make money in the long run is to be consistently be smarter than other people, and that's a lot more difficult than being lucky. | ||
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jdseemoreglass
United States3773 Posts
On April 20 2011 07:49 Skillz_Man wrote: Imo penny stocks are the way to go. You just have to be smart about it. A year ago we bought $400k of Nova gold at $0.63 cents, then sold at $9 dollars maybe four months later. My parents are practically set for life and now they are doing safe investments. You need to be smart with penny stocks, read up a lot on them, and use human phycology against people. Also we keep 90% of all the money they own in gold, as the US dollar is extremely unstable volitile and I expect it to crash within a couple years and gold will become the world currency. As you can't print off gold like mad, unlike the US bills. And so far that's gone well, from $800 per ounce to $1500 is pretty good in such a short timerate, and I recommend for everyone here to invest in gold, much safer and easy profit. News keeps trying to trick people on how the price of gold is as high as it can go now it will plummet. Don't listen to that BS, they are just trying to get you to sell. Don't believe me? Do some research on it. Penny stocks are the way to go, put all your eggs in one basket, and gold is undervalued and will become the world currency. Is this guy like a professional troll or what? EDIT: Oh, and by the way.... Nova gold never went from .63 to $9 in maybe four months. Did you mean two years? | ||
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allecto
328 Posts
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