SHort term gains = ordinary rates = shitty.
So what advice would you give a young man trying to make what little money he has grow?
[quote]Phoenix44e wrote:
[quote]Derek542 wrote:
Bring this up in the other place also V[/quote]
OK I’ve seen this referenced in a couple of different threads now…soo what do i have to do to become a member of the “other place”
I promise I wont interfere or troll any forums or discussions.
TBO I’d be perfectly happy being a fly on the wall.
From what I gather there a a few intelligent posters over there and it never hurts to get some intelligent informative opinions without the trolls/hatas[/quote]
The first rule about fight club…
[quote]kakno wrote:
So what advice would you give a young man trying to make what little money he has grow?[/quote]
Put at least 10% of your earnings in a 401k/IRA, another 3-5% in a rainy day fund, money market type, pay down your debt and work your ass off…
I trade for a living.
My personal opinion is it sounds like a plan to flush your money down the toilet. Another fool and his money, essentially.
Advice for someone who wants to actively trade… buy time.
[quote]countingbeans wrote:
Not a hobby loss. Capital losses, just short term. [/quote]
Ahh, see that is why I usually keep my trap shut!
[quote]LankyMofo wrote:
Say you put in $1000 and every stock you pick gets a 5% bounce (very unlikely), you just made $50. Spread that out over 10 stocks, $40 trade fees to buy, $40 trade fees to sell and don’t you wind up in the red? Say you put in $5k, are you that confident your stocks will average a 5% bounce?
I don’t invest all that often outside of my 401k. I’m just thinking logically about this. [/quote]
with the leverage of options trading, you can put $1000 into a trade and collect $300-500 within minutes, if you know what youre doing, of course.
[quote]kakno wrote:
So what advice would you give a young man trying to make what little money he has grow?[/quote]
read books on price action and learn how the market works and why it does what it does.
[quote]Hold Up wrote:
I trade for a living.
[/quote]
what do you trade? equities, commodities, futures, forex?
im always interested in talking to guys that do this for a living, as its something i want to do when im finished school.
[quote]LankyMofo wrote:
[quote]Phoenix44e wrote:
[quote]Derek542 wrote:
Bring this up in the other place also V[/quote]
OK I’ve seen this referenced in a couple of different threads now…soo what do i have to do to become a member of the “other place”
I promise I wont interfere or troll any forums or discussions.
TBO I’d be perfectly happy being a fly on the wall.
From what I gather there a a few intelligent posters over there and it never hurts to get some intelligent informative opinions without the trolls/hatas[/quote]
The first rule about fight club…[/quote]
Yeah exactly…but he talked about it and I inquired about it…So doesn’t that mean I’m like supposed to fight everyone to show my worth?
[quote]countingbeans wrote:
[quote]kakno wrote:
So what advice would you give a young man trying to make what little money he has grow?[/quote]
Put at least 10% of your earnings in a 401k/IRA, another 3-5% in a rainy day fund, money market type, pay down your debt and work your ass off…
[/quote]
10-4. Honestly, I wouldn’t be surprised if the majority of retirement funds are made up of principle (distinct from interest/returns) after 2007/2008.
Like I mentioned, I’ll be compiling about 2-3 months of actual data before I put my money on the line. $1000 isn’t going to break me by any means, but I certainly don’t want to flush it. I’ll put it towards another project if this won’t work.
The only reason why I think it might work is because it is specifically taking advantage of stupid people and their emotions. We all know that Cramer gets very high television ratings, and it has been studied and shown that the stock prices of the stocks he mentions (even some of the sells) get a bounce after he does the mentioning. It’s pretty simple math and has nothing to do with the market and all to do with celebrity. Like if you had a crystal ball and knew Jeremy Linn was going to blow up. You could have shelled 1000 on MSG network stock and cashed in after 2 weeks of “Linn sanity” for a hefty 10% gain.
The key for a strategy like this is to not get greedy, stick to a formula and cash out every time in the same time frame even if you are losing on that particular trade. The goal is to average around 5%, not get 5% on every trade. Some will be 10, some will be nothing and you will lose you $8 in transactions fees.
Also for the suggestion that you would spend $80 in transaction fees to potentially gain $50 obviously, with a 1,000 starting point, you would have to start with less trades, like one or two stocks, until you could diversify it further. So say week one you did only one stock he suggested, Maybe you get lucky and it’s over 5% gain, maybe it’s 3%, either way, you spend 8 to make 30-70 or 80 or whatever it is. I mean if it’s an average of 5% you would have to have pretty bad luck to just lose lose lose right out of the gate. Even still, you should eventually start winning enough to get your pool of money up to the 5 K range. Once you are playing with that much money, you can easily absorb 3-4 sets of trades per round.
Like I said, I’ll get the data first, but I don’t see why it can’t work. People game systems all the time to make a buck.
V
[quote]Phoenix44e wrote:
[quote]LankyMofo wrote:
[quote]Phoenix44e wrote:
[quote]Derek542 wrote:
Bring this up in the other place also V[/quote]
OK I’ve seen this referenced in a couple of different threads now…soo what do i have to do to become a member of the “other place”
I promise I wont interfere or troll any forums or discussions.
TBO I’d be perfectly happy being a fly on the wall.
From what I gather there a a few intelligent posters over there and it never hurts to get some intelligent informative opinions without the trolls/hatas[/quote]
The first rule about fight club…[/quote]
Yeah exactly…but he talked about it and I inquired about it…So doesn’t that mean I’m like supposed to fight everyone to show my worth?[/quote]
You’ve actually got to do a strip tease for everyone and pleasure IH in ways you can’t even imagine. It gets weird. I’m talking 2 dragons.
[quote]wannabebig250 wrote:
[quote]kakno wrote:
So what advice would you give a young man trying to make what little money he has grow?[/quote]
read books on price action and learn how the market works and why it does what it does. [/quote]
…and then read the next book that tells you something completely different 
[quote]Vegita wrote:
Like I said, I’ll get the data first, but I don’t see why it can’t work. People game systems all the time to make a buck.
V[/quote]
Lots more people try to game the system and get gamed. I know a grand won’t break you in half, but you’re more likely to lose it than not. Either way, let us know how it works out.
[quote]LankyMofo wrote:
[quote]Vegita wrote:
Like I said, I’ll get the data first, but I don’t see why it can’t work. People game systems all the time to make a buck.
V[/quote]
Lots more people try to game the system and get gamed. I know a grand won’t break you in half, but you’re more likely to lose it than not. Either way, let us know how it works out. [/quote]
to be fair … the higher risk the higher the (expected) reward
I, however, agree with you Lanky; he’ll most likely lose than gain
[quote]polo77j wrote:
[quote]LankyMofo wrote:
[quote]Vegita wrote:
Like I said, I’ll get the data first, but I don’t see why it can’t work. People game systems all the time to make a buck.
V[/quote]
Lots more people try to game the system and get gamed. I know a grand won’t break you in half, but you’re more likely to lose it than not. Either way, let us know how it works out. [/quote]
to be fair … the higher risk the higher the (expected) reward
I, however, agree with you Lanky; he’ll most likely lose than gain[/quote]
Not really because there’s nothing risky about this, it’s just dumb. Investing in an IPO is risky, following some behavioural finance strategy grounded on a weak argument doesn’t follow that law.
But hey, it’s not my money I actually want to see how this works out IRL.
It’s not going to work. Efficient markets will make sure that it doesn’t work. And just from a practical standpoint, how many people in Cramer’s camp have heard the recommendations before the viewing audience? His analysts and researchers, the other staff, the producers, writers, etc…
Now, there was a case of a group of people years ago, who infiltrated the company that printed BusinessWeek, and they found out what stocks one of the columnists recommended and did profit by it. I forgot the columnists name, I think it was Gene and he was Hawaiian?
Anyways, there are tens of thousands of quants designing trading algos to make sure that this opportunity does not exist, that it is arbitraged away before the retail investor could even dream of profiting by it.
<----- Professional trader.
Cramer has a service that he sells where he tells everyone what he’s buying/selling before he actually does it. My guess is if you collect the data on your strategy prior to investing you’ll probably see it win some and lose some. Try it and let us know what your return is.
There are so many investing strategies out there it will make your head spin. Currently, I’m just into buying a chunk of dividend stocks whenever I can and holding. But the best performing strategy that I’ve employed, by far, over the years is contrarian strategy.
Generally, this is when you buy the stock of a relatively solid company that is taking a bath for some reason. You think that they’re strong/resilient enought to weather the storm and are just going through a tough spot. It helps to get the ‘buy low’ part of the successful trade done off the bat.
A few examples…Chrysler and LILCO when they were claiming they could go bankrupt, and AIG and Ford during the financial crisis. Those have been my most profitable trades by a long shot. I even subscribed to a contrarian newletter one time, but I never even heard of the companies being recommended so I never really traded their recommendations. The problem with this strategy? You’ll do a lot of waiting.
First wait for clear opportunity to pop in the media, then you’ll wait for the price to steadily sink and level out, buy in, then hold and wait months and months for the price to recover. You’ll want another strategy(s) to fill in the time.
[quote]Vegita wrote:
Like I mentioned, I’ll be compiling about 2-3 months of actual data before I put my money on the line. $1000 isn’t going to break me by any means, but I certainly don’t want to flush it. I’ll put it towards another project if this won’t work.
The only reason why I think it might work is because it is specifically taking advantage of stupid people and their emotions. We all know that Cramer gets very high television ratings, and it has been studied and shown that the stock prices of the stocks he mentions (even some of the sells) get a bounce after he does the mentioning. It’s pretty simple math and has nothing to do with the market and all to do with celebrity. Like if you had a crystal ball and knew Jeremy Linn was going to blow up. You could have shelled 1000 on MSG network stock and cashed in after 2 weeks of “Linn sanity” for a hefty 10% gain.
The key for a strategy like this is to not get greedy, stick to a formula and cash out every time in the same time frame even if you are losing on that particular trade. The goal is to average around 5%, not get 5% on every trade. Some will be 10, some will be nothing and you will lose you $8 in transactions fees.
Also for the suggestion that you would spend $80 in transaction fees to potentially gain $50 obviously, with a 1,000 starting point, you would have to start with less trades, like one or two stocks, until you could diversify it further. So say week one you did only one stock he suggested, Maybe you get lucky and it’s over 5% gain, maybe it’s 3%, either way, you spend 8 to make 30-70 or 80 or whatever it is. I mean if it’s an average of 5% you would have to have pretty bad luck to just lose lose lose right out of the gate. Even still, you should eventually start winning enough to get your pool of money up to the 5 K range. Once you are playing with that much money, you can easily absorb 3-4 sets of trades per round.
Like I said, I’ll get the data first, but I don’t see why it can’t work. People game systems all the time to make a buck.
V[/quote]
There is correlation, but I’m not sure if I buy causation. Cramer is somewhat of an insider (to what degree with what stocks, I can’t say…but the man is going to have connections inherent with his position in life).