Investing...your thoughts?

[collegiateLifter]

If they ARE god companies like you say... Then while you`re saving your money the price of the companies will grow FASTER than your CD or savings account.

hmmm. It is true that their intrinsic value may grow while i'm sitting out, but that doesn't neccessarily mean the market value will always work against me. That is I wait till the market under values the company and boom pick up some stocks. Still working on evaluating the companies though.

 

[gonelifting]

hmmm. It is true that their intrinsic value may grow while i'm sitting out, but that doesn't neccessarily mean the market value will always work against me. That is I wait till the market under values the company and boom pick up some stocks. Still working on evaluating the companies though.

I understand. While we`re talking about value... I think the market does`nt have that much upside left in it. Approx 10% or so. So the risk/reward ratio at this time is not huge.

 

[Heahy Minister]

im interested in investing, but not at all in day trading. Buy and hold... and work on the side to raise money as i need it

Dollar cost averaging like Gonelifting said. In the LONG-RUN you'll yield way more than a regular savings account can ever match.

I don't know the right term for this method of trading (I think it might be called technical analysis) but it is based on investing by looking at, not the actual intrinsic value of the company, but by analyzing the flow of the share price.

Basically every stock gains a high and low everyday. The point of investing this way is to analyze the daily price fluctuations, so it involves a lot of mathmatical formulas and charts and whatnot. You basically don't look at the company value at all.

Purpose of this method is to buy at the low trading point in the day and and sell at the trading high.

 

[collegiateLifter]

You basically don't look at the company value at all.

Purpose of this method is to buy at the low trading point in the day and and sell at the trading high.

This is NOT something that interests me. Nor do I think that it's a very sound way to invest-- just my young humble opinion. However, if you can over time make good money doin this, more power to you.

 

[OMGWTFBBQ]

This is NOT something that interests me. Nor do I think that it's a very sound way to invest-- just my young humble opinion. However, if you can over time make good money doin this, more power to you.

Then dollar cost average.

 

[OXANDRIN]

OTC scares me - I traded it a lot in 1999/2000 and with the lower regulation on it there are a lot of scams (boiler room style).

OTC just means the dealers are the market makers (aka specialists) in a true OTC market there should be much tighter bid/ask spreads because of competition.

NYSE specialists are the scammers.

 

[gonelifting]

Buy a mutual fund and also diversify.

 

[2EZ2BRICH]

Check out the Charts ! !


the charts tell a story in itself. IMO the fundamentals can't measure the emotions of the market as well as the Charts.

become more familiar with terms like: resistance, support, trendline, Moving averages, MACD, Vix Charts...etc !

I can suggest a good book to start if you like. but don't just read one. there are many available...as you may know.


Bottom line, Daytrading, swing trading or any other form of trading is easy to learn, yet difficult and very time consuming to master.