Can Someone Educate Me On Stocks...?

Discussion in 'Bad Dog Cafe' started by Torren61, May 30, 2019.

  1. ricknbaker

    ricknbaker Tele-Afflicted

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    Well, ive worked in the City a long time. I wouldn't contemplate day trading without a Bloomberg terminal. That costs £20,000 a year.
    Sure, sometimes you might get lucky, but long term you'll lose. Get a good financial advisor and listen to him.
     
  2. chris m.

    chris m. Poster Extraordinaire

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    Even worse than an S&P500 mutual fund beating a hedge fund investor's returns-- I think WSJ did some tests where
    they picked stocks by having monkeys throwing darts at a dartboard and the monkeys did just as well....or better.


    This article explains why:

    https://www.forbes.com/sites/rickferri/2012/12/20/any-monkey-can-beat-the-market/#435dc830630a

    The answer: average return is higher with higher risk. If you are getting a higher return for a particular investment, chances are
    this is because it is higher risk. For example, there's firm risk-- the risk associated with putting all your eggs in one basket with
    one company. If all you bought was Apple then you could have gotten lucky and done amazingly better than the market. But
    if you had bought Gateway computers you could have taken a bath. Buying a basket of computer tech stocks would have reduced
    your firm risk although you would still have sector risk. So your average return would have been lower overall but positive.

    If you are buying single stocks over the short term you can have wildly fluctuating returns. You can get really high returns, but
    you can also take a bath. Just don't buy on margin (leveraging). Leveraging is great when you are winning, but kills you when
    you lose. Some people gamble on the market, but the smart money invests for the long term....
     
  3. die Fliege

    die Fliege TDPRI Member

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    There are an infinite number of reasons why the stock would fluctuate in this manner. It could be anything from stock manipulation (someone, most likely a hedge fund, buying large quantities thus creating artificial demand to drive up the price, selling high, then dumping the stock) to a trading system quirk. How long have you noticed this pattern? A week? A month? Keep in mind that retirement plans most like don't allow intra-day trading, so if you have held the stock for less than the allotted timeframe (30 days, 60 days, etc.) you may not be able to sell as it would be considered short selling.
     
  4. Solrac Kai

    Solrac Kai Tele-Holic

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    Bought a **** load of SCE stock 2001 during the electric company deregulation. It had dropped to around 6$. Sold a couple of years ago at around 25$. My point is u bought it and left it alone, day trading will make you lose money and go crazy
     
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