Any stock market investors here?
if investing in individual companies, you need to do your homework. Look at the balance sheet. For instance, if there is a big asset sell off, watch out.
I do the buy and hold method. My ex elder, non practicing over 30 years FIL day trades but it is a HUGE time investment to do so. He has a group of interested friends that formed an investment group that meets each week to discuss the market and the investments. He has done quite well with his trading. ( be careful about the short term trades becaus you can have big tax liabilitiest that might offset your gains) Personally, I don't have the stomach for it. It would twist my nerves to death. My neighbor both long termhold and day trades, and invests in companies she studies. Also her husband and son are in the technology feild so she listens to what they like and buys there. It has been a great method for her.
I am not so savvy but I have friends who are in one field or another and I ask them what they are investing in. Overall speaking I have not lost money in the crash, but I also didn't make much. Some companies were huge successes, some not so much.
I learned something about inesting and the market while in grad school but not enough to feel very confident. I remember bitds and pieces, like in a depressed economy , historically companies like Jack Daniels, or Health and Beauty industries usually do well. But also in the market you can't always just trust "historically" because the economic enviornment can change enough to make that type of investment not so good.
It's basically educated gambling.
Be careful - invest for the long-term. Day trading is extremely risky and do not invest based on market gossip - there is a lot misinformation. You need a good understanding of markets and finance. You need to be able to read the company's accounts to understand its performance and its prospects. You should diversify - that is invest in investments whose performance are not closely related - that way if one goes bad the others are still okay - don't put your eggs in one basket. Learn about the business cycle and which industires are likely to perform well in this part of the business cycle - markets are strong now so blue chips including banks may be good. Learn about the business strategy and leadership. Do they have a coherent plan and do they have a track record of delivering what they promise? The other thing to look out for is sound companies who have just been subject to some bad news - they can be oversold so that they become good value. But you need to know enough to recognise whether the company is sound.
My main source of income is daytrading. PM me if you have questions.
I invested a lot before we went to a war econmy under George Bush.
It was hard to make any money in the market when Bush was president.
Obama is the best economic president ever according to Forbes and my portfolio is humming.
I have stocks that I bought and held for the past 20 years like Coke, proctor and gamble, First energy, General Electric
Ford, General Foods, Duke energy.
I don't even think about them I know they will be in my estate when I pass on.
In the 90's I invested in mutual funds on a 30 week average. When the market was above the 30 week average I bought and held.
When the market went below the 30 week I was out that day.
That worked from Regan through Clinton for me.
It was bad during the first george Bush but he made some great buying opportunites under Clinton.
The final year of Clintons presidency my total portfolio returned 40% and I captured it exiting under Bush
when it droped below the 30 week average.
For me there was no money to be made under Bush the dumber and little under the father.
I would caution you to make your money now under Obama and hopefully a democrat sucessor.
Because the stock market during my lifetime does not historically do well under republicans.
That is why I am so against republican presiedents.
I vote my pocket book.
The market does not do well under republicans.
If the republicans get the presidency you might want to try to buy stocks that profit off of war.
Like Hallburton. But I found it hard to make money under the republicans.
They are about war not bussiness.
When its a bull market you can throw a dart at the stock page and hit a winner.
When its a bear market it is hard to make money unless you short.
Which I am not into.
I like to buy and hold stocks
and play mutuals on a 30 day average.
You might want to tweak your average to 20 weeks for tech stock funds or other volitile select
groups that do not represent the broad market.
When Bush became president people with money got out of the market because they
could watch Bush walk and talk and chew gum and they wanted to protect their money,
So they went to real estate which made a bubble when all the stock market money went
to it and then it poped.
Bublbles always break or pop. That is why you need to monitor the market with a 30 week average.
If you are going to buy a stock below its 30 week average, in my opinion you neeed some special
I don't know how you get that.
And I think it is either illegal or a gamble.
If your employer has a 401(k) max out your contribution and/or buy into good mutual funds. Ask around and find a broker that will take on new, small investors for minimal fees. Some brokers want to take on new accounts to provide for future growth. Trying to pick Market winners and day trading are probably worse than taking your money to a casino.
I don't know any web sites.
You just add up the closing price for the past 30 weeks and divide it by 30.
If its above that you buy and hold if its below that you get out.
If I were going to try it now in the new millenium.
I would run some numbers and make some charts to test it.
It wouldnt have worked while Bush was president because the market went side ways.
I don't do it any more because I am retired.
The idea is to make money you have to buy low and sell high.
Following the 30 week average helps you to do that.
You buy when its low but rising and sell when its high but falling.
I would keep a 30 week average on all 3 indexes the dow, sp500 and nasdaq.
then apply the proper index to my investment.
I agree with Buffets methodology of buying good companies and holding.
Which I have done.
I used the 30 week average to make money in risky sectors of the stock maket,
technology, biotech. communications any sector for that matter.
Thank you all very much for the great ideas and advice. I'm looking over and considering all of it. THanks again.
I was a professional daytrader for 7+ years. I say, "was", because for the last few years it's been a one way market and easy money to just buy and hold. Plus, trading is a young mans game, imo.
In my experience, most daytraders blow up their account. I was lucky. I had two friends who traded at hedge funds before venturing out on their own and they taught me everything I know. Without that type of mentorship I can't imagine anyone being successful. I will say there are very few ways to make money at the rate a successful trader can pull it down. I've had many, many 30-50K days in my life and even a few 100K ones. NOTHING beats that adrenaline rush. I've also lost 155K in one day too and 312K in one month. There is no lower low. I still trade a bit if I see a perfect set up, but I wouldn't wish the stress of trading fulltime on anyone. Just writing this I can feel my heart beat pick up.
I would STRONGLY advise you to not trade period. You would need at 25K to even try in order to avoid the pattern daytrader rule and chances are you will lose it all. If you must try, then I can't stress enough that the money is in shorting low priced, junk stocks. You will NEVER in a million years make money trading AAPl, GE, V, or any other big cap stock. EVER!
Beware - it is all part of a cycle - anyone can make money in a bull market and that's what we have now after the huge crash of 2007/08. The trick is to know when to get out. The two things that drive financial markets are greed and fear - greed is winning at the moment but it doesn't take much for fear to turn things around. Once investors think they can't lose then a crash is not too far away. The old saying is 'when the taxi driver starts to give you stock tips then sell". I don't know whether you could recoin that as "when people on JWN start talking about day trading as a way to earn a living, sell." Good luck but avoid the bane of financial markets: "Irrational Exuberance".