**OFFICIAL** Trading and Investing Thread- Part -IV-

[aberry33]

Thinking about buying some BAC.

[BENNAYBOY]

Thinking about buying some BAC.

Miscers have been buying BAC since it was 20+ dollars. Genius calls like those are just pure talent.


Reality is nobody understands the business, economics or why the market is pricing it the way it is. Buying BAC is trying to catch a falling knife.

[Summering]

Thanks for the responses about the EMH on the previous page.

The way I understand it, price is simply a function of what people believe the price should be as there isn't some objective way of pricing the stock

So (the way I understand it), the primary way of getting profit is either having private information which others don't have (illegal) or having INSIGHT which others don't have, which is not illegal.

So does it just boil down to insight and the way you understand it? Those who understand the stock wrong (situation x in the previous page) will lose money and those who understand the stock correctly (Situation y in the previous page) will make money.

Is this correct reasoning or not (which is compatible with the weak EMH)?

Sorry if I sound clueless... just learning this stuff lately so I might not understand it like you guys do

[aberry33]

Miscers have been buying BAC since it was 20+ dollars. Genius calls like those are just pure talent.


Reality is nobody understands the business, economics or why the market is pricing it the way it is. Buying BAC is trying to catch a falling knife.

I hear ya. I've had my 401k for about 5 years now and HOPE that will be my safe play in the long run. I opened an account through Sharebuilder and am just now getting started in any sort of investing other than my 401k. I plan on being much more risky with this which is why I'm thinking about going with BAC and S. I'm doing pretty small amounts that would otherwise be blown on completely usless stuff (maybe like BAC ha) and it won't hurt me to lose this money. That's my current very inexperienced thought process.

[Valjean]

I hear ya. I've had my 401k for about 5 years now and HOPE that will be my safe play in the long run. I opened an account through Sharebuilder and am just now getting started in any sort of investing other than my 401k. I plan on being much more risky with this which is why I'm thinking about going with BAC and S. I'm doing pretty small amounts that would otherwise be blown on completely usless stuff (maybe like BAC ha) and it won't hurt me to lose this money. That's my current very inexperienced thought process.

...small amounts per trade + 1-2% commissions one way = a losing strategy. You'd be better off doing some sort of long covered call or short naked put.

Actually, you'd probably be better off using that money to buy a 5 dollar footlong and a small coke.

Then again, there is a tiny tiny chance you may catch a falling knife.

[mcichocki]

I wouldn't touch BAC personally. People thought Lehman was "too big to fail" and look at what happened to them. The toxic assets BAC is holding, and the amount of them is kinda dangerous IMO. There is a reason they are around $5 per share. GS is in bed with our government to an alarming level. IF IF IF I wanted to buy a banking stock it would have to be GS, for that reason alone.

The reason I won't invest in any bank stock is I don't agree with the model. They are treated as private corporations yet they make nothing to sell consumers. Their "product" is our national currency, US Dollars and debt valued in US Dollars. I have a HUGE issue with shares being sold to the public by what I consider a UTILITY, not a corporation. Some will argue that they offer a service which is true, but again, they service using our national currency. Something of that magnitude and fragility should be handled with regulation and via a utility, not a for profit corporation.

My 2 cents anyhow.

[johnsonb90436]

I wouldn't touch BAC personally. People thought Lehman was "too big to fail" and look at what happened to them. The toxic assets BAC is holding, and the amount of them is kinda dangerous IMO. There is a reason they are around $5 per share. GS is in bed with our government to an alarming level. IF IF IF I wanted to buy a banking stock it would have to be GS, for that reason alone.

The reason I won't invest in any bank stock is I don't agree with the model. They are treated as private corporations yet they make nothing to sell consumers. Their "product" is our national currency, US Dollars and debt valued in US Dollars. I have a HUGE issue with shares being sold to the public by what I consider a UTILITY, not a corporation. Some will argue that they offer a service which is true, but again, they service using our national currency. Something of that magnitude and fragility should be handled with regulation and via a utility, not a for profit corporation.

My 2 cents anyhow.

well i agree with you. who knows the disasters we could have avoided if it was treated as a utility

[mcichocki]

well i agree with you. who knows the disasters we could have avoided if it was treated as a utility

Then I would suggest you think twice about investing in the system, if you don't agree with how they do things.
You're young and it won't break you to throw some in BAC, it might pay off even. Just food for thought is all.

[johnsonb90436]

Then I would suggest you think twice about investing in the system, if you don't agree with how they do things.
You're young and it won't break you to throw some in BAC, it might pay off even. Just food for thought is all.

oh i never planned on investing in them. as a FA guy, i don't fully understand how to evaluate financial companies. (well i've yet to try them anyways)

[Tekkendo]

I hear ya. I've had my 401k for about 5 years now and HOPE that will be my safe play in the long run. I opened an account through Sharebuilder and am just now getting started in any sort of investing other than my 401k. I plan on being much more risky with this which is why I'm thinking about going with BAC and S. I'm doing pretty small amounts that would otherwise be blown on completely usless stuff (maybe like BAC ha) and it won't hurt me to lose this money. That's my current very inexperienced thought process.

What flexibility do you have in choosing what to invest in the 401K? If you are allowed to choose the funds, you may want to focus on a mutual fund switching method, instead of wasting time on screwing around with $40-$50 stuff.

[Tekkendo]

Re BAC. It is worth a trade b/c is there anyone who is not in coma, not aware of the bad news surrounding this POS? So it is probably due for a dead cat bounce IF the market holds up well. Buy a small position and set a trailing stop. Why pull your hair out over one position, especially over a POS? Who the f knows how this POS will turn out?

[Valjean]

^or a covered call

[aberry33]

What flexibility do you have in choosing what to invest in the 401K? If you are allowed to choose the funds, you may want to focus on a mutual fund switching method, instead of wasting time on screwing around with $40-$50 stuff.

I *think* there is a decent amount of flexibility. I'm browsing around on their site now and it seems like I have quite a few options. I set it up about 5 years ago after I got out of school and haven't really touched it since. I'm 30 and have 94% setup in two target series retirement funds. 23% of that 94% is in a 2040 fund and the other 71% is in a 2045 fund. The other 6% is in our company stock.

My main issue with only adding to the 401k is that I obviously don't want to touch it for a long time. It comes out of my check every two weeks and is pretty much out of sight out of mind. Which is why (In addition to not really having a bunch of play money sitting around) I haven't really done anything else with any sort of investing since I started it.

I know this could easily flop and bomb on me, but in additon to the 401k I wanted to get into something that is new, difficult and held my interest. Also, I want the ability to be able to do things with any money I save/make going this route and not have to wait another 30+ years to touch it. I don't feel like that's really an option with the 401k only. Lastly, the wife is on target to finish her degree in 2 more years and after that our financial situation should start looking much better at that point. My thought process was to dabble and learn during that timeframe and then once we get to a better point financially maybe I'll have half a clue about what I'm doing.

[NiR]

I *think* there is a decent amount of flexibility. I'm browsing around on their site now and it seems like I have quite a few options. I set it up about 5 years ago after I got out of school and haven't really touched it since. I'm 30 and have 94% setup in two target series retirement funds. 23% of that 94% is in a 2040 fund and the other 71% is in a 2045 fund. The other 6% is in our company stock.

My main issue with only adding to the 401k is that I obviously don't want to touch it for a long time. It comes out of my check every two weeks and is pretty much out of sight out of mind. Which is why (In addition to not really having a bunch of play money sitting around) I haven't really done anything else with any sort of investing since I started it.

I know this could easily flop and bomb on me, but in additon to the 401k I wanted to get into something that is new, difficult and held my interest. Also, I want the ability to be able to do things with any money I save/make going this route and not have to wait another 30+ years to touch it. I don't feel like that's really an option with the 401k only. Lastly, the wife is on target to finish her degree in 2 more years and after that our financial situation should start looking much better at that point. My thought process was to dabble and learn during that timeframe and then once we get to a better point financially maybe I'll have half a clue about what I'm doing.

Honestly why don't you just buy and hold brk b long? Just buy it and forget about it. Meanwhile start reading books to further your knowledge on evaluating value of companies. This would be a lot better IMO.

[Valjean]

Looks like my 1277 target is going to be hit tomorrow...
Then as Marc says, angela merkel will fart on stage and the market will drop 8% in minutes.

Andherewego.jpg

Also, can someone rep me so I can get to this post please? I know, rep beg

Thanks for the rep johnson <3

[Burtle005]

I'd really like to get started into investing. Althought I don't have much money. Where should I start? I'm talking 200-300 to start is all I'd have. Maybe I could throw around 30-40 per month into as time goes on.

[Valjean]

^VFINX. Set up a class A or B account and start putting that little money in the fund. That'll be best for commissions and will not require active management.

Call them and talk to them and you should also avoid further commissions

[NiR]

I'd really like to get started into investing. Althought I don't have much money. Where should I start? I'm talking 200-300 to start is all I'd have. Maybe I could throw around 30-40 per month into as time goes on.

just wait till you have a little bit more maybe 1-2k and then open a personal fund somewhere. and go with a buy and hold strategy on a good company. if your unsure then just put it on brk.b or a index fund such as spy. but only enter on a bad day.

[CyborgManiac]

the trading fees from the broker would alone make the trade's profits more strained, I'd suggest at least 1-2k

[aster100]

(This doesn't apply to me, just curious)

If someone wins the lottery / gets some fatass inheritance / somehow gets a load of money (and they don't have the skills or desire to actively manage investments), what would you suggest they do with their money?

Is it safe to just leave all of that money with an investment manager? I remember reading something about putting it all in an index fund because some people believe it's not possible to beat the market consistently (is that what emh means?), is that a good idea?

Just wondering what you'd recommend to a person who somehow got lucky / rich, but doesn't want to leave it rotting in a savings account

[Nikhiln25]

(This doesn't apply to me, just curious)

If someone wins the lottery / gets some fatass inheritance / somehow gets a load of money (and they don't have the skills or desire to actively manage investments), what would you suggest they do with their money?

Is it safe to just leave all of that money with an investment manager? I remember reading something about putting it all in an index fund because some people believe it's not possible to beat the market consistently (is that what emh means?), is that a good idea?

Just wondering what you'd recommend to a person who somehow got lucky / rich, but doesn't want to leave it rotting in a savings account

You can find a successful investment manager (you wouldn't want to look at an FA) and leave the money with them until you educate yourself. There is nothing wrong with investment managers, you just have to understand what they're goals are and if they align with yours. Ultimately, you don't want to be with a manager who is paid on a transaction basis rather than sharing a piece of the profit for you (or at least in my opinion. You would want to educate yourself though because even if going forward you don't want to manage the money yourself, you will have at least a clue to what your manager is doing

[johnsonb90436]

what pisses me off is that in the morning i look like i somewhat have abs but come 5pm i look all puffy and shyt. wtf man /rant

[Nikhiln25]

Oh yeah rally yeah

/PaulyD voice

[Universialbrah]

Will this thread make all of my dreams come true, regardless in.

Any advice on how to best, how much time, and generally in what to invest a few hundred to try and make a few thousand?

[Nikhiln25]

Will this thread make all of my dreams come true, regardless in.

Any advice on how to best, how much time, and generally in what to invest a few hundred to try and make a few thousand?

Yes,


Don't do it. Save up. Be patient. If you can't have enough patience to wait until you have some kind of savings, you won't be patient enough to make money investing. Some people say 1-2k to start..I think anything less than 5k is pointless

[Universialbrah]

Yes,


Don't do it. Save up. Be patient. If you can't have enough patience to wait until you have some kind of savings, you won't be patient enough to make money investing. Some people say 1-2k to start..I think anything less than 5k is pointless

I could have 5k in a year or so. Will the stock market theory still be the same then, Invest low pull out high if you want to profit? Is that what most people do or what?

[Barn01]

Yes,


Don't do it. Save up. Be patient. If you can't have enough patience to wait until you have some kind of savings, you won't be patient enough to make money investing. Some people say 1-2k to start..I think anything less than 5k is pointless

I agree. <5K and you're just playing a game with hopes to hit a double up ++. You don't get lucky like that very often so if you do when you're first starting out it's actually harmful to most because then you go off thinking you'll always pick 2 and 3 baggers (THEN YOU LOSE). So if you do play the small money then use it as a learning experience and don't worry too much if you suffer losses from commish.

VSR
ARCI
MBND
STC
CBM

Those are my plays for the day/wk/mth (subject to change without notice)

[ChadMG]

I'd really like to get started into investing. Althought I don't have much money. Where should I start? I'm talking 200-300 to start is all I'd have. Maybe I could throw around 30-40 per month into as time goes on.

Will this thread make all of my dreams come true, regardless in.

Any advice on how to best, how much time, and generally in what to invest a few hundred to try and make a few thousand?

Annaly Capital Management, Inc. (NLY) - Ive been talking about this beauty for a few months now. If your lookin for a safe bet with high dividends this is the way to go. I pulled all my money out of other REIT and banking firms to put in this over the past year. Price has only fluctuated $2 over the past 2+ years, with it being near the low currently(div just paid). Itll jump back up a $1-1.20 within the next few weeks. Steady dividend pay over 5 years around 15%...

[johnsonb90436]

Annaly Capital Management, Inc. (NLY) - Ive been talking about this beauty for a few months now. If your lookin for a safe bet with high dividends this is the way to go. I pulled all my money out of other REIT and banking firms to put in this over the past year. Price has only fluctuated $2 over the past 2+ years, with it being near the low currently(div just paid). Itll jump back up a $1-1.20 within the next few weeks. Steady dividend pay over 5 years around 15%...

mmmmm sounds sexy. me like anything over 8%

[marcFE]

Was wondering why part 3 wasn't in subscriptions last few days, makes sense now