OT: Stock Market

[Scrutiner]

@Kemba'sYogurt, I agree with most in this thread that I would strongly urge you not to day trade. It will detract from your other job and might effect relationships in ways you wouldn't have thought of beforehand. Having active positions in the market can become all consuming. If you're bound and determined to give it a try I would make a few recommendations. If you want to try trading I would look to expand your time horizon. The trades you enter should have a longer time horizon than a day. Also, do you intend to trade fundamentally or technically? That needs to be figured out because seat of the pants trading is doomed to failure. Will you have fixed price points for entering and exiting trades? Those are a few of the many questions before you begin. Possibly, you should paper trade before you start actual trading(you have honest with yourself on the results). When you do start trading you need to keep your commission fees as low as possible. You need to research that area completely, too. (Take a look at Interactive Brokers for one) Finally, as a futures trader with 25+ years of experience I can't tell you that there is a surefire way make money but I can guarantee how you would lose money. The phrase is called adding to a loser. If you bought XYZ at $10 to sell it at $13 and it goes to $8 DON'T buy more. This strategy make work on occasion but I've seen many a good trader go belly up because they got stubborn with adding to a position. Many of your best trades will be trades that cover a losing position.

Great comment about adding to losers. A lawyer friend was getting advice from a neighbor whose son-in-law was a hedge fund manager in NY during the tech boom of the late 90's. The neighbor got tips from his son-in-law and would take positions at say $5, they would quickly go to $10 or $15 and then he'd tell my friend how great the stock is. My friend would buy it and it would go to $20 and then drop to $15 and he'd buy more and then it would go to $10 and he'd buy more. This happened multiple times over a couple years when the tech stocks were going wild without earnings or other evidence of value and he ended up losing much of his then $500,000 401K account.

 

[Hoophound]

Great comment about adding to losers. A lawyer friend was getting advice from a neighbor whose son-in-law was a hedge fund manager in NY during the tech boom of the late 90's. The neighbor got tips from his son-in-law and would take positions at say $5, they would quickly go to $10 or $15 and then he'd tell my friend how great the stock is. My friend would buy it and it would go to $20 and then drop to $15 and he'd buy more and then it would go to $10 and he'd buy more. This happened multiple times over a couple years when the tech stocks were going wild without earnings or other evidence of value and he ended up losing much of his then $500,000 401K account.

All I got out of that entire post was that you know a lawyer that actually listens to other people. I’ve never met one.

 

[Drame]

Anyone familiar with trading? Interested in starting day trading as a second source of income. If anyone does this or is familiar with it please PM me. Trying to learn the ropes. Opened an E-Trade account and funded it a little, but haven't made any trades yet.

Thanks.

Dont day trade now. Keep funding your account and listen to Marc Cuban about the market right now. In 1-2 years there will be a recession and everything will be on sale. The market will be super volatile until then, esp with Trump in office. If you want to buy something now, buy apple. They're maxing on iphones but AR and self driving are coming.

 

[jibsey]

Dont day trade now. Keep funding your account and listen to Marc Cuban about the market right now. In 1-2 years there will be a recession and everything will be on sale. The market will be super volatile until then, esp with Trump in office. If you want to buy something now, buy apple. They're maxing on iphones but AR and self driving are coming.

I agree with this and it’s really tough to do because the market edges up and you feel like you’re losing out if you are not in. . I’d rather buy when it’s 20-30% less.

 

[Caronimo]

TD Ameritrade is really good. I was a Scottrade customer and they got bought by TD and I am glad they did. Apple has been a good stock. Usually the advice is go with something "safe" with a dividend as your first trade and be patient or you could get pummeled.

 

[intlzncster]

Dont day trade now. Keep funding your account and listen to Marc Cuban about the market right now. In 1-2 years there will be a recession and everything will be on sale. The market will be super volatile until then, esp with Trump in office. If you want to buy something now, buy apple. They're maxing on iphones but AR and self driving are coming.

No offense intended, but I wouldn't go with Apple if you are entering now. You're ROI wouldn't be great. It's a terrible risk/reward at this point. You're buying close to a top in the market. In other words, odds of Apple's stock doubling (or whatever) from here over the next few years? Less than 3% I reckon. And importantly, during a downturn, they are going to lose like everyone else. jmo

If you must, must buy a stock now, buy something boring like a utility.

 

[the Q]

TD Ameritrade is really good. I was a Scottrade customer and they got bought by TD and I am glad they did. Apple has been a good stock. Usually the advice is go with something "safe" with a dividend as your first trade and be patient or you could get pummeled.

The nice thing about dividend investing is you can basically build a second income stream and/or pension depending on how you build it.

 

[intlzncster]

All I got out of that entire post was that you know a lawyer that actually listens to other people. I’ve never met one.

↑ definitely spends time on the Pool.

 

[GiladKatzDeli]

Day trading is speculating, don't confuse it with investing. There are few bargains in the market these days and we're long overdue for a correction. Interest rate hikes, trade wars, and overextended multiples. The majority of investors would be better off just buying an index fund and forgetting about it.

 

[Ewekon]

Day trading is speculating, don't confuse it with investing. There are few bargains in the market these days and we're long overdue for a correction. Interest rate hikes, trade wars, and overextended multiples. The majority of investors would be better off just buying an index fund and forgetting about it.

I posted earlier that I like a DRIP strategy for a good part of a portfolio and I would add especially in the current market. I am not a trader by any stretch but have never been shy about short positions. They make money just as well as long and when it is all said and done it is always about being on the correct side of a stock or trend.

In the current market environment I will remind of one absolute truth. No one has ever lost money on an investment they didn't make.

Imo cash isn't bad right now.

 

[DaveHuskiesFan]

I posted earlier that I like a DRIP strategy for a good part of a portfolio and I would add especially in the current market. I am not a trader by any stretch but have never been shy about short positions. They make money just as well as long and when it is all said and done it is always about being on the correct side of a stock or trend.

In the current market environment I will remind of one absolute truth. No one has ever lost money on an investment they didn't make.

Imo cash isn't bad right now.

Sure have. It's inflation. If you're not investing your money it's worth less today than it was yesterday.

 

[Ewekon]

Sure have. It's inflation. If you're not investing your money it's worth less today than it was yesterday.

Point taken and in the long haul you are 100% right.

I was more referencing folks that didn't buy brand X stock that went up and feel like they lost money which is a common feeling

Lost opportunity? Sure. Lost money? No.

Just on the side of people here saying cash accumulation right now can be used opportunistically in the not so far future.

 

[the Q]

Point taken and in the long haul you are 100% right.

I was more referencing folks that didn't buy brand X stock that went up and feel like they lost money which is a common feeling

Lost opportunity? Sure. Lost money? No.

Just on the side of people here saying cash accumulation right now can be used opportunistically in the not so far future.

Indeed. Bank of America stock was at 7 bucks like 10 years ago.

It’s over 30 now. Plenty of opportunities like that will come during the next recession.