stock trading

[kenetics]

Been researching stocks latley and decided to sign up with Trade King online broker .

What's you're guys experience in trading stocks. The site is well laid out and somewhat easy to understand. How much money did you guys start with? To you guys play individual stocks? I'm thinking I will spread my money across the board to limit loss .

Let me know you're success or failure in the stock market.

 

[Malvo]

In for answers from stockbrahs

 

[John Wang]

If you're really serious about wanting to get into the trading game, i suggest watching a guide called The Wolf of Wall Street.

 

[BisexualMMA]

Can probably save yourself time and effort by buying stock market indexes. If you actually buy stocks in enough individual companies from enough industries and markets to be "diversified" enough to minimize risks, you'll have been spending more time than you probably want following business and finance.

 

[RedRocket44]

Can probably save yourself time and effort by buying stock market indexes. If you actually buy stocks in enough individual companies from enough industries and markets to be "diversified" enough to minimize risks, you'll have been spending more time than you probably want following business and finance.

Ya, I would recommend mutual funds if you're looking to just get into it, before venturing into trading individual stocks.

It certainly minimizes your risk, and requires a lot less micromanaging and knowledge on your part. Somebody who (hopefully) knows what they are doing is managing the fund, and since the bank gets a small % they still want to see the fund do well.

You can always invest in more volatile mutual funds to try and make a bit more money, but putting most of your money (75%+) in low risk money market type funds while playing with the rest is what I've been doing.

 

[Hoof Hearted]

I was considering putting some money into index funds. Does seem a lot less hassle for someone that has no idea about the stock market. Here's a good guide to them for anyone that's interested: http://www.thisismoney.co.uk/money/...915/A-guide-cheapest-index-tracker-funds.html

 

[Fedorgasm]

Stock market is rigged. I remember this interview with these techie genius trader guys who built super computers that trade like a million times per second, taking advantage of the smallest fluctuations and sometimes making only pennies per transaction, but they would add up to millions of dollars. The guys with super computers were even competing with each other, and the computers were so fast that sometimes it came down to literally the length of the wires, i.e. whoever could get their computers closer to the trading floor would win, so they bought buildings next door and filled them with giant computers.

Now, in the stock market nobody can win unless someone loses. The money doesn't come out of thin air, it's taken from other investers. So you put your money in, the guy with a super computer takes it. Unless you also have a super computer you can't compete.

 

[RedRocket44]

Stock market is rigged. I remember this interview with these techie genius trader guys who built super computers that trade like a million times per second, taking advantage of the smallest fluctuations and sometimes making only pennies per transaction, but they would add up to millions of dollars. The guys with super computers were even competing with each other, and the computers were so fast that sometimes it came down to literally the length of the wires, i.e. whoever could get their computers closer to the trading floor would win, so they bought buildings next door and filled them with giant computers.

Now, in the stock market nobody can win unless someone loses. The money doesn't come out of thin air, it's taken from other investers. So you put your money in, the guy with a super computer takes it. Unless you also have a super computer you can't compete.

wat?

If I invest 100k in Apple today, and in a year they come out with a phone or laptop that just obliterates the competition away and their stock price skyrockets, then I win (at the cost of their competitors market share decreasing). So yes, somebody wins (those who invest in Apple in my scenario), and others lose (people who invest in their competitors).

That scenario has nothing to do with supercomputers.

 

[Fedorgasm]

wat?

If I invest 100k in Apple today, and in a year they come out with a phone or laptop that just obliterates the competition away and their stock price skyrockets, then I win (at the cost of their competitors market share decreasing). So yes, somebody wins (those who invest in Apple in my scenario), and others lose (people who invest in their competitors).

That scenario has nothing to do with supercomputers.

You are correct. In that scenario you can still come out ahead. I was talking more about day trading. But if you want to be a long term investor then there is money to be made. That is why I view the stock market as mostly a retirement tool, and don't try to "beat" the market and get rich quick.

 

[RedRocket44]

You are correct. In that scenario you can still come out ahead. I was talking more about day trading. But if you want to be a long term investor then there is money to be made. That is why I view the stock market as mostly a retirement tool, and don't try to "beat" the market and get rich quick.

Ok gotcha...

I don't know the first thing about day trading, but yeah, what you described seems to make more sense. Multiple transactions every hour or even minute on the most minute price fluctuations.

Same as me, it's more of a long term investment / retirement option. Invest what you can weekly / monthly into fairly safe investments with a decent return, and in 20-25 years you're looking pretty good.

 

[dabausplaya]

Wait until the next recession then buy when it looks really bad. The current economic "recovery" is already historically long in the tooth. Statistically, it's the third longest recovery in US history, and the second longest bull market. Combine that with a profits recession (two quarters of negative profit growth) and you have a recipe for disaster. Buy low and sell high is the key to success.

 

[GSP_37]

Don't trade, but invest. Look at Yahoo Finance Key Stats to see which companies actually make a profit and have profit growth and are not overinflated as documented by huge P/E ratio. The bubble will burst sooner or later on these.

 

[herbertderbert]

If you want to day trade then you need 25K minimum and a different broker. If you want to to hold long term then I'd suggest buying low cost mutual funds that track the S&P 500 or some other large, diversified index. No one I know(myself included), consistently beats the market year to year by buying and selecting their own stocks, I doubt most "active funds managers" even beat the market. In my younger years I day traded for a living, but it was a losing game, you're competing with prop traders and big money algorithm/high frequency traders that have access to faster news feeds, better data, faster transaction speeds, more funds, and they are probably way smarter than you and I lol. Now I'm working full time for the govt, put 20% in my 403B(Govt 401K), 20% in my selected mutual funds through Vanguard, and set aside 5-10% for buying more risky, speculative stocks. Just my 2 cents.

 

[kenetics]

So what about being a shareholder for dividents? Recommend anyone ?

 

[Mr Mojo Lane]

I'm smarter than supercomputers. They're a bunch of cans.

 

[Michaelangelo]

just put it all on McDonalds

fatties love Mickey Ds

 

[Me]

Understand what day trading is. You can seriously fuck yourself if you accidentally become one and don't have everything how it's supposed to be.

 

[jmag]

Is it true that even mutual funds take 40% draw downs in these crashes? And this is supposed to be a conservative intelligent place to put money? Do they use stop losses?

 

[kenetics]

Is it true that even mutual funds take 40% draw downs in these crashes? And this is supposed to be a conservative intelligent place to put money? Do they use stop losses?[/QUOTE

I mean most of the time you will make profits and limit losses if you study the companies that are declining or progressing.

Though nothing is certain. I rather risk then just build money slowly.

 

[MASShole]

So what about being a shareholder for dividents? Recommend anyone ?

This is what I do. Div payers and growers only in my individual portfolio.