who here plays the stock market?

[scarolina 10+ year member]

I was wondering, because all delta has to do is rebound up to january prices, which was over 3.00, and if you put 500 in now thats like 40000 shares. Or am i missing something, i think i am

 

[dragnix 5,000+ posts]

flip, u need to educate me on this stock thing. Sounds interesting, but i don't even know where to start //content.invisioncic.com/y282845/emoticons/frown.gif.a3531fa0534503350665a1e957861287.gif

 

[Flipx99 5,000+ posts]

Just post what you would like. But I am prolly about to get pwned by RMSanger.

 

[Rmsanger 10+ year member]

Remember any news you hear about a company is already included in the stock price..

You are an amateur; whereas, the pros in this biz get the scoop way in advance of the public and profit off of the technicals.

Also say no to transactions costs, volatility, and penny stocks.

If I were you I would keep it simple. Invest based upon fundamentals and look at long-term value.

I have most of my money if no load mutals and ETFs but for single stocks I own:

DNA

GE

FPL

CL

KIM

ZMH

JNJ

C

NBR

EEM

CHS

I also use TradeStation during periods of high volatility for GARCH and momentum strategies. The VIX is one of the most valuable tools in the business for speculation on both options and futures. If I had more time I could make a fortune on it.

Good luck!

 

[Flipx99 5,000+ posts]

Not a big fan of VIX...I still think there is more too it than volume.

As for ETFs.

I like the XLE/XLY tandem combo. The run out of sync with each other just enough.

But I see we have an EMH fan. Sometimes speculators get it right...

Also looks like too many blue chips, ruins the fun of "finding the next MicroSoft".

 

[kool-aid 10+ year member]

google doesnt really do anything, so i dont see why it is any good

you just wait! i only say it because i saw a thing about them being interested in starting a free cellular service paid for completely by advertising

 

[Rmsanger 10+ year member]

Not a big fan of VIX...I still think there is more too it than volume.

As for ETFs.

I like the XLE/XLY tandem combo. The run out of sync with each other just enough.

But I see we have an EMH fan. Sometimes speculators get it right...

There is enough data out there to show that markets are at least weak form.. More informed speculators do get it right more often than not. If you have the time and the stomach for it then highly levered positions can make you a very rich man or very broke.

 

[Flipx99 5,000+ posts]

There is enough data out there to show that markets are at least weak form.. More informed speculators do get it right more often than not. If you have the time and the stomach for it then highly levered positions can make you a very rich man or very broke.

As I already posted, I only trade options in the short term. I have enough "book knowledge" to know my postions. Not enough experience to know what the market is really doing. I just keep going at it though.

It is not for the squirmish and if you don't trade good volume, 10% of sale will go to transaction costs.

It is important to max out IRAs before even thinking about playing. I usually have 800-1200 in options at a time. It isn't really enough. Most books I read said to start out with $10k.

 

[scarolina 10+ year member]

GTI, im thinking about putting a couple hundred in with them, but i think they peaked, so im going to let them go back down some. Then put some in, because there history has alot of rise and fall, but all in all is steady going up. I made 6000 off them in the past like month.

 

[Flipx99 5,000+ posts]

GTI, im thinking about putting a couple hundred in with them, but i think they peaked, so im going to let them go back down some. Then put some in, because there history has alot of rise and fall, but all in all is steady going up. I made 6000 off them in the past like month.

You could hedge your position by purchasing some puts. That way, if it goes down you are insured.

I don't see the trends I like for this stock LT though. Seems to be a hit and miss kind of company.

If you think they peaked the 12.50put may be a good play. Let's but it like this....since the ask it .25, if it drops below 12.50 by 18 may, you will be in parity.

Say you had $500. (and 14.95+1/contract transaction costs)

You could buy 18 puts for a total of $482.95

The price is currently $13.45. When the price drops to 12.25 you are in parity (not 12.50 because you did pay something for the put).

Say it drops to $10.00 then your puts would be worth 2.25 each (excluding any IV)

2.25x100x18=$4,050 - transaction costs = $4,017.05

If the price doesn't get to 12.25

You get zero.

 

[Rmsanger 10+ year member]

Also one strategy we used in Grad school was too look at market deficiencies. One strategy that I found that actually works is using the current day's S&P performance (futures) to straddle the CME Nikkei...

http://www.cme.com/trading/prd/equity/nikkei225dollar.html

There is about a 15-20 minute delay in price adjustment when this market opens (night time EST)

 

[HitManSE 10+ year member]

Good info.

Few questions though. You two seem to be quite on top of your game, so instead of asking random questions about stocks ill ask this one. What direction could you point those of us that want to learn to?

Most would love to learn this on their own (myself included) and ask questions when necessary. What sites, books, ect. would be best to learn from? (other then what has been said already)

As flip mentioned earlier, due diligence needs to be put in, and thats fine. However personally im still not too sure what/where to look to put time into researching.

 

[bigbirney420 10+ year member]

There are many books. Investing for Dummies. Many newbies learn a lot from Jim Cramer, he is a little unorthodox but has a lot of knowledge. I learned the hard way by studying for the Series 7. There are many websites. Options express, CBOE.com for options. I dont recommend options unless you are a pretty educated investor, but to each his own. For a beginner, ETF's like XLE and a few others are good, but I also like Mutual funds. Many pay really good returns without as much of a risk. Nobody is going to get rich the way the market is today, unless you already have money.

 

[dantheman8328 10+ year member]

alright so im a freshman business admin major and this summer i wanted to get a head start on some of this, if you guys could pick one book to start off with for me to read this summer what would you recommend? Investing for Dummies?

ive been playing cnbc's million dollar portfolio too and in the last like month ive had an 8percent return(not after todays close though prob lol), i know the way to trade for this competition is with short term trades but ive been using it to just try some long term options, how would you rate an 8 percent return so far if i was in it for the long run?

 

[bigbirney420 10+ year member]

Investing for Dummies is a good one for a beginner. Ther are a few editions for online etc. The is also an idiots guide to Investing. Mainly you need to learn terminology you might not understand, and they also break down specific investments, stocks, bonds, CD's, Mutual Funds, Options. They tell the pros and cons of each. Mad Money by Jim Cramer is a favorite of mine as well. You can also go to some of the online Broker sites. TDAmeritrade.com and such anjd take a tutorial without signing up for anything.