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

[.aeterna]

I've been trading / investing since the mid 1990s and I keep it simple. Buy good quality growth stocks in up trends in a rising market, keep your gains and keep your losses small. If you want to learn study the CAN SLIM system, theirs no reason for excess mental masterbation.

strong join date

and strong advice. completely agree but then again, my risk tolerance is low

[thetrebel]

feeling like a long here

choppy af though cuz

[xRedStaRx]

Could any idiot just get lucky by buying low and selling high and hope for the best? Is it as simple as that?

We all want to buy low and sell high, but first we must develop confidence in the sustainability of a business in order to arrive at a sound judgment about what constitutes a "low" or "high, before we take advantage of the depressive-manic nature of the market.

[paranoiDmisc]

I've been trading / investing since the mid 1990s and I keep it simple. Buy good quality growth stocks in up trends in a rising market, keep your gains and keep your losses small. If you want to learn study the CAN SLIM system, theirs no reason for excess mental masterbation.

Thanks for replying to my post + for the advice.

Where can I begin, period? I'm new to this whole thing, but I'm VERY interested in it. Maybe even a little obsessed. I feel "lost" and don't know where/what exactly I should start off with. There's a few websites + investopedia that I will definitely look into.

I know this may sound really stupid, at the moment, I feel "lost"... I'm not gonna go in, buy a random stock and hope for the best, but I definitely do want to try playing around with the stock market in the future.... I'm planning to open an account on scotstrade (I heard it's a good trading site for beginners, in your opinion, is it?) with only $500 and see how that goes.

Now this question may sound silly, there's so many companies on the stock market... how do you find a list of all companies (small and big) in the stock market?

We all want to buy low and sell high, but first we must develop confidence in the sustainability of a business in order to arrive at a sound judgment about what constitutes a "low" or "high, before we take advantage of the depressive-manic nature of the market.

A few questions for everyone, again, maybe another silly question, but to this day, are there actually people becoming millionaire's, or is that thing of the past?

What do you guys think about "the intelligent investor" book?

Apparently there's people who are so good at playing with the stock market, they make so much money, that it's their job. No one can predict if a stock will go high or low for sure, so how are some people this good? Is there skill involved, or is it all luck?

Also, I heard that in general, it's best to invest in certain area's like technology and natural resources, is that true?

Again, sorry for the noob questions.

Thanks guys, sorry for the noob questions.

EDIT: One more question, when say do your research about a company, are we talking about looking at graphs and articles of the company?

[xRedStaRx]

A few questions for everyone, again, maybe another silly question, but to this day, are there actually people becoming millionaire's, or is that thing of the past?

What do you guys think about "the intelligent investor" book?

Apparently there's people who are so good at playing with the stock market, they make so much money, that it's their job. No one can predict if a stock will go high or low for sure, so how are some people this good? Is there skill involved, or is it all luck?

Also, I heard that in general, it's best to invest in certain area's like technology and natural resources, is that true?

Again, sorry for the noob questions.

Thanks guys, sorry for the noob questions.

EDIT: One more question, when say do your research about a company, are we talking about looking at graphs and articles of the company?

I'm sure people get rich from proper investing. But you need to understand that you need money to make money. It's exponentially harder to make a $100k/year income from investing with only $200k capital as opposed to $1M. With that notion, it's the law of the land for the rich to get richer, while the average person has it tough. Assuming your interest is purely monetary.

Very good book, but not that applicable in today's markets, especially in the US. The key points to know from the book are:

1- Only invest in undervalued stocks (below intrinsic value), to offset the risk of common stock seniority and volatility.
2- Following on the first point, invest in companies that are both sustainable and prosperous.
3- Always invest with a wide margin of safety to reduce losses in case you are wrong, or unlucky. This ties with the point of sustainability. How difficult is it to bring the company down? Are the competitors fiery?
4- Invest in companies with room to grow in the future. Check the margins, are the profit margins growing? Are the cost margins shrinking? Is operating cash flow trending? Is the industry saturated, or is there more room for innovation? Does management care about shareholder value, or getting their fat paychecks? What are their plans for the future?
5- The future value of every investment is a function of its present price. The higher the price you pay, the lower your return will be. This ties with margin of safety.
6- Finally, the market is irrational, there will always be periods of over optimism and over pessimism, use that to your advantage. Go against the tide, buy low, sell high. Buy fear, sell greed. The hard part is correctly deciding when has the market really topped or dipped. Is this the most of where it falls? Can the market rally more? Is this a good place to sell?

The intelligent investor is strictly for the value investor on the long term. You need to decide whether this fits your style or not. But there are good lessons to be learned in any case.

Experience trumps everything when it comes to trading, with a dash of money management on the side. The ones who usually make a lot of money are either day trading or swing trading using a lot of leverage. It's a mixture of technical analysis, fundamental analysis, unique sources of information, behavioural and crowd psychology, good decision making, and apathy.

That's what they said back in the 2000 tech bubble. If you're an amateur investor, and heard that this or that stock is the best to invest in, chances are it isn't. Don't listen to wall street. They make money out of spreading rumors to people like you.

Commodities and metals may be the more safe investments at the moment, since you're physically getting inventory that is actually usable. Unlike buying business shares. But in general, it's not necessarily better or worse.

Researching a company is reading the form 10-ks for the past 5 years or so. Then quickly skimming the same forms for competitor companies in the industry. Then evaluating the business from a business owner's perspective. Then studying the industry as a whole. Finally looking at price charts for good entry orders.

[thetrebel]

hnnnnnng





brb ta jizz

dat divergence

dat resistance

dat wedge

8/10 would short



to tha moon if it breaks the highs though

[jackedguy87]

latest marc faber interviews cnbc

http://www.cnbc.com/id/101489535

[paranoiDmisc]

Really appreciate your response and advise, thanks man. I have a few more questions if you don't mind:

1) How can I get an annual/quarter report of how a company is progressing? Is it possible to get one without being a shareholder?
2)I believe I already asked this, but let's say for instance, if you wanted to a list of all the drilling companies in the stock market, is it possible to do so? I can only imagine that there is A LOT of companies in the stock market, so how do people speculate/find information about the unknown/small companies that go up in the stock market (ie. their stocks explode/go up)? Does that make sense? Sorry, hard to put it into words.
3) Is there any books that are applicable to today's markets? What exactly should beginners do?

I'm not 100% sure yet, but I think I'll play around with penny stocks with $800... some time in the future when I understand something and learn a little about the stock market.

Once again, thanks for the advice.

I'm sure people get rich from proper investing. But you need to understand that you need money to make money. It's exponentially harder to make a $100k/year income from investing with only $200k capital as opposed to $1M. With that notion, it's the law of the land for the rich to get richer, while the average person has it tough. Assuming your interest is purely monetary.

Very good book, but not that applicable in today's markets, especially in the US. The key points to know from the book are:

1- Only invest in undervalued stocks (below intrinsic value), to offset the risk of common stock seniority and volatility.
2- Following on the first point, invest in companies that are both sustainable and prosperous.
3- Always invest with a wide margin of safety to reduce losses in case you are wrong, or unlucky. This ties with the point of sustainability. How difficult is it to bring the company down? Are the competitors fiery?
4- Invest in companies with room to grow in the future. Check the margins, are the profit margins growing? Are the cost margins shrinking? Is operating cash flow trending? Is the industry saturated, or is there more room for innovation? Does management care about shareholder value, or getting their fat paychecks? What are their plans for the future?
5- The future value of every investment is a function of its present price. The higher the price you pay, the lower your return will be. This ties with margin of safety.
6- Finally, the market is irrational, there will always be periods of over optimism and over pessimism, use that to your advantage. Go against the tide, buy low, sell high. Buy fear, sell greed. The hard part is correctly deciding when has the market really topped or dipped. Is this the most of where it falls? Can the market rally more? Is this a good place to sell?

The intelligent investor is strictly for the value investor on the long term. You need to decide whether this fits your style or not. But there are good lessons to be learned in any case.

Experience trumps everything when it comes to trading, with a dash of money management on the side. The ones who usually make a lot of money are either day trading or swing trading using a lot of leverage. It's a mixture of technical analysis, fundamental analysis, unique sources of information, behavioural and crowd psychology, good decision making, and apathy.

That's what they said back in the 2000 tech bubble. If you're an amateur investor, and heard that this or that stock is the best to invest in, chances are it isn't. Don't listen to wall street. They make money out of spreading rumors to people like you.

Commodities and metals may be the more safe investments at the moment, since you're physically getting inventory that is actually usable. Unlike buying business shares. But in general, it's not necessarily better or worse.

Researching a company is reading the form 10-ks for the past 5 years or so. Then quickly skimming the same forms for competitor companies in the industry. Then evaluating the business from a business owner's perspective. Then studying the industry as a whole. Finally looking at price charts for good entry orders.

[White-Belt]

latest marc faber interviews cnbc

http://www.cnbc.com/id/101489535

can't listen to this guy

[blinkers88]

JASO sweet earnings wow

[xRedStaRx]

Really appreciate your response and advise, thanks man. I have a few more questions if you don't mind:

1) How can I get an annual/quarter report of how a company is progressing? Is it possible to get one without being a shareholder?
2)I believe I already asked this, but let's say for instance, if you wanted to a list of all the drilling companies in the stock market, is it possible to do so? I can only imagine that there is A LOT of companies in the stock market, so how do people speculate/find information about the unknown/small companies that go up in the stock market (ie. their stocks explode/go up)? Does that make sense? Sorry, hard to put it into words.
3) Is there any books that are applicable to today's markets? What exactly should beginners do?

I'm not 100% sure yet, but I think I'll play around with penny stocks with $800... some time in the future when I understand something and learn a little about the stock market.

Once again, thanks for the advice.

I'm not an investor, so I might not be the best person to ask for advice, but I can tell you what I do know.

1) Sure. check the SEC filings at http://www.sec.gov/, it has all the financial reports of comapnies listed on NYSE, NASDAQ too I imagine but I'm not positive.

2) It' a little more complicated than that. Well first you have to pick an industry you know by heart, or at least interested in. Then you screen for stocks in that industry using filters.

http://screener.finance.yahoo.com/stocks.html
http://www.google.com/finance?ei=muQ...#stockscreener

It looks like you are looking for stocks that have potential for capital appreciation. In this case, you should read Fisher's Common Stocks and Uncommon Profits, Lynch's One up on wall street, and O'neil's How to Make Money in Stocks. All of these will be useful in picking winners on the short run. But you need a good portfolio plan, control your risk and don't put all your money on growth stocks. Quantitatively, you should should be looking for low or absent dividend yields, low market caps, low price and p/e ratio, solid interest coverage, trending operating cash flows, volume and revenues.

3) Beginners should learn how the stock market works, study the history of the stock market, both bullish and bearish markets and see what the drivers were, learn from past mistakes and good opportunities. Learn money and portfolio management, learn to read financial statements, mainly balance sheet, income statement, and cash flow statement. Learn to evaluate business qualities, this is a business managerial skill, it would help if you're an MBA or run your own business, but simple general guidelines that can be applied to almost all businesses should be enough. And finally, learn to control your emotions and let your research do it's job. Read staple books like security analysis (skim through it), an overall risk averse investing mindset like the intelligent investor or Margin of Safety, an accounting textbook (I found the 3rd volume of the CFAI on FR&A very helpful, you can skip the 9th study session entirely), equity valuations/financial modeling (Equity Valuation for Analysts and Investors by Jim Kelleher), you should know at least some basic technical analysis and price charting so Trade Like a Stock Wizard should be good.

Avoid penny stocks at the moment, they are a good way to get rich fast, but will not be helpful to a beginner. Mostly scammers and pump/dump schemes. It needs good trading skills and a third eye for stock picks. Foreign Exchange is a much better option for OTC trading as it is less volatile and less susceptible to manipulation. It has the least fundamental cataclysm so it should challenge your trading and technical analysis the most.

[thetrebel]

Really appreciate your response and advise, thanks man. I have a few more questions if you don't mind:

1) How can I get an annual/quarter report of how a company is progressing? Is it possible to get one without being a shareholder?

Yes just google it

2)I believe I already asked this, but let's say for instance, if you wanted to a list of all the drilling companies in the stock market, is it possible to do so? I can only imagine that there is A LOT of companies in the stock market, so how do people speculate/find information about the unknown/small companies that go up in the stock market (ie. their stocks explode/go up)? Does that make sense? Sorry, hard to put it into words.

Yes, you cant either google for it , or most TA software has a scanner that you can use.

As far as finding stocks that "explode" you can see that on a chart. A period of consoladation followed by a break of the highs (or lows )



3) Is there any books that are applicable to today's markets? What exactly should beginners do?

I'm not 100% sure yet, but I think I'll play around with penny stocks with $800... some time in the future when I understand something and learn a little about the stock market.
Stay away from penny stocks for now. I speak from experience penny stocks can be great..............or they will wreck u kunt

800 is to small of amount to be playing with equities.The commish will eat up your gains, and you can't spread your risk around. If you have the trade bug trade FX, hop on the demo for a bit , and then open up a small live account, with a portion of your bankroll.

See bold cuzz

[thetrebel]

Back on dat day trading time can't help my self

been long on usd/jpy since 6 am and finally went to liquidate for a 3% gain

then my laptop frezzzzzed up

by the time I liquidated only a 0.83% gain

#nojewtoday
#thestruggleisrealmane

lol woke up 5 hours before work for this chit

swing wise

im long eur/usd & short cad/jpy

stopped out of gbp/aud long

[GabrielNovar]

Back on dat day trading time can't help my self

been long on usd/jpy since 6 am and finally went to liquidate for a 3% gain

then my laptop frezzzzzed up

by the time I liquidated only a 0.83% gain

#nojewtoday
#thestruggleisrealmane

lol woke up 5 hours before work for this chit

swing wise

im long eur/usd & short cad/jpy

stopped out of gbp/aud long

I might risk 10-30k on a week lotto this year. When the time is right. My form of gambling lol

edit: bought spy puts for today and those are toast...good news i am still bullish. Hedging has not worked once for me lol

[cannadian]

Hey jacked guy, let me guess, this suggests the US economy is imploding right?

http://mobile.reuters.com/article/id...40317?irpc=932

[GabrielNovar]

Hey jacked guy, let me guess, this suggests the US economy is imploding right?

http://mobile.reuters.com/article/id...40317?irpc=932

that feel just coming back from miami and nearly every 20 year old with a 400k car. FML at least let them be 60 years old!

[cake123]

Cannadian / num3n how do you guys feel about TGL take over?

[jackedguy87]

Hey jacked guy, let me guess, this suggests the US economy is imploding right?

http://mobile.reuters.com/article/id...40317?irpc=932

lol now read this article on the same thing...its all in how you spin it....read both and you decide


http://www.zerohedge.com/news/2014-0...h-month-last-8


btw, you should go back and look at the uber bullish econ data of 2007. the u.s. has a slowdown every 4-6 years, this tepid recovery will run out of steam especially with the fed pulling back



btw, alexco is at 2.45 today I said late last week at around 2.05 it was due for a rally....still waiting on wildcat

[HotBiscuits]

lol now read this article on the same thing...its all in how you spin it....read both and you decide


http://www.zerohedge.com/news/2014-0...h-month-last-8


btw, you should go back and look at the uber bullish econ data of 2007. the u.s. has a slowdown every 4-6 years, this tepid recovery will run out of steam especially with the fed pulling back



btw, alexco is at 2.45 today I said late last week at around 2.05 it was due for a rally....still waiting on wildcat

source: zerohedge.com
description: predicted the last 157 out of 3 crashes!
status: disregarded

[thetrebel]

I might risk 10-30k on a week lotto this year. When the time is right. My form of gambling lol

edit: bought spy puts for today and those are toast...good news i am still bullish. Hedging has not worked once for me lol

U have betrayed the to da moon gods. Hedges are for possays


dat feel when Gabriel's gambles are bigger than all you accounts hehe gl m8

[xRedStaRx]

lol now read this article on the same thing...its all in how you spin it....read both and you decide


http://www.zerohedge.com/news/2014-0...h-month-last-8


btw, you should go back and look at the uber bullish econ data of 2007. the u.s. has a slowdown every 4-6 years, this tepid recovery will run out of steam especially with the fed pulling back



btw, alexco is at 2.45 today I said late last week at around 2.05 it was due for a rally....still waiting on wildcat

Slowdowns are natural in a capitalist economic cycle, debt has to be repaid. This time it's different, the economy is floating on a hot air balloon sponsored by the fed. We should have been in depression at the moment, and slowly coming out. Now they've decided to delay it in exchange for an even bigger crash than the one that could have been in 2008. What I mean is, there is no economic timeline in progress at the moment. The economy will crash when the fed decides that running in circles will make an aftermath that much uglier.

[blinkers88]

source: zerohedge.com
description: predicted the last 157 out of 3 crashes!
status: disregarded

this cmon man post a better source than zerohedge all they do is post doom porn

[jackedguy87]

this cmon man post a better source than zerohedge all they do is post doom porn

everything they post is facts, they are not like the onion. btw, all the mainstream media does is post goldilocks bs they purposely mislead and sugarcoat. I don;t see how you can criticize zerohedge its very easy to stay blissfully ignorant. It's important to be well rounded with your news sources and then form an opinion. also, a bad economy doesnt mean lower stock prices, it means more cheap money from the fed more inflation I think you guys get confused about that, thinking bad news means a deflationary crash so when stocks rise you disregard sites like zerohedge. zerohedge does post good news when it happens they are not biased.

btw, guy is ripe for the picking

[cstill123]

Update:

added another 300k shares of MINE to my position this morning. Looking for another 400% from these levels
Currently own 2.3 million now.

Took an 80% profit on MINE, GREAT CALL!

[cannadian]

lol now read this article on the same thing...its all in how you spin it....read both and you decide


http://www.zerohedge.com/news/2014-0...h-month-last-8


btw, you should go back and look at the uber bullish econ data of 2007. the u.s. has a slowdown every 4-6 years, this tepid recovery will run out of steam especially with the fed pulling back



btw, alexco is at 2.45 today I said late last week at around 2.05 it was due for a rally....still waiting on wildcat

Your ability to interpret data, no matter how positive or negative it intrinsically may be, in exactly the same light, always impresses me

[White-Belt]

A quote from Hank Paulson

"When Fannie Mae and Freddie Mac started to become unglued, and you know there were $5.4tn of securities relating to Fannie and Freddie, $1.7tn outside of the US. The Chinese were the biggest external investor holding Fannie and Freddie securities, so the Chinese were very, very concerned.

And so when I went to Congress and asked for these emergency powers [to stabilise Fannie and Freddie], and I was getting the living daylights beaten out of me by our Congress publicly, I needed to call the Chinese regularly to explain to the Central Bank, 'listen this is our political system, this is political theatre, we will get this done'. And I didn't have quite that much certainty myself but I sure did everything I could to reassure them.

Here I'm not going to name the senior person, but I was meeting with someone… This person told me that the Chinese had received a message from the Russians which was, 'Hey let's join together and sell Fannie and Freddie securities on the market.' The Chinese weren't going to do that but again, it just, it just drove home to me how vulnerable I felt until we had put Fannie and Freddie into conservatorship"

[cannadian]

A quote from Hank Paulson

It sucks thinking about how much power these countries are beginning to wield over the West.

Our days of being the only bully in town appear to be coming to an end.

[woodbarry]

Soooo...Time to buy more Fannie??

[xRedStaRx]

Any idea why GUY dropped 16% today? Didn't see any negative news.

Looks like a purely technical move. Horizontal resistance was hit, along with getting closer to a upper trendline, and oversold conditions on high volume.

I'd wait and see where it goes from ~2.45, where it will most likely land shortly. Sentiment should be decided then.

[White-Belt]

Soooo...Time to buy more Fannie??

not until the courts say shareholders have rights.