I had promised that I was going to start my own thread regarding stock investments and the markets. So many things have happened since last time I was here and I really do not feel like sharing my knowledge. But a promise is a promise and there have been few people that have emailed me and supported me.
This thread will deal with investing in the stock markets. I will not discuss individual stocks but discuss ETFs like SPY, DIA, IWM and QQQQ. The one good thing about trading ETFs compared to individual stocks is the the ETFs provide instant diversification among similar companies within the same sector.
I will post more as we go along, regarding entry-price, profit-target and stop-losses. I do not think that any ETF is good or bad. It is good only if I'm making money and bad if I'm losig money.
If you have not been in the market so far, please read this as an information piece only rather than my recommendations. There is risk involved and you should know how much risk to take on any position.
Any suggestations, comments and criticisms are welcome as long as it is market related. If this thread gets out of hand and we start discussing off-topics, I'll stop posting.
Have a happy new year!!!! May 2007 bring you and your family lots of joys and riches.
Derivatives, i.e. options and futures (or if they're a private contract- forwards), all need a "performance bond" or a margin account. The reason being the same. While you don't technically need margin to buy hese things- chances are, due to the sheer size of the contracts and costs, youll need a lot of leverage to make a small profit. So if a broker allows you to trade derivative instruments without a margin account- I'd back off. Something's fishy there. Heck, it's illegal so there wont be any brokers like that.
As far as my analysis, yes they are technical but they are also fundamentally moved. And I think you mean, the market is "overbought" and to be honest with you, there is no criteria for "overbought" and "oversold". Historically (if we use present day ideas on overbought and oversold estimates such as P/E ratios and so forth), the market has been extemely oversold- why? cuz the DOW and the SPY have always been up since their inception. It would be rather silly to say market is oversold and overbought- that way you are trying to time the market and thats dangerous.
Just follow the trend. I don't know if stocks are oversold or overbought. If they're making money, have an EPS better than the industry or P/E that is high, I buy them too- but you're right, I'm more aligned to slight technical analysis since as a small retail investor, I have more chance of bigger returns that way.
That being said, I use nothing more than SMAs and support and resistance. Anyting else I dont even bother, other than MACD (which i use say 10% of the time)- which is an extension of the moving averages.
And I dont read analyst estimates, expectations etc.
BEAV seems good but then again, it gos against your idea of overbought. It's P/E is higher than it's industry average, it's ROI and ROE are lower. But it makes "stuff" for aircrafts and thatis much better than running an airliner. It has also been making money steadily for the past years.
I'd be long in this for a long term horizon. But I'd do some thorough research, wait a while like you said and then buy it.
It doesn't take me more than 5 mins to skim thru the fundamentals- ah the benefits of internet.
of course, that's not all to fundamentals but ive never had to go into detail like they teach at business schools.
Heck, Mohnish Pabrai doesn't do much of that, neither does his idol Warrenn Buffett.
If you have to do a whole whack of excel spreadheet analysis, chances it's not worth it. If the company's record and business model say this is a sexy buy, I buy it.
For example, my intention to buy INTC is purely fundamental as I was telling Bri last week. But my entry prices are determined by technicals to maximize profits.
As Bri says- BEST!!! and be careful with the shorts.
CPI numbers come out tomorrow and housing starts the day after.
I suspect it's not gonna be good and we will most likely see a rise in interest rates in the next fed meeting.
The yen is losing ground too. We might see some consolidation here so it's better to be extra safe right now. I might liquidate my position too.
Have a good day!
Oh and sorry about your match Bri. I don't think I read your post properly before. Well, a couple ducks are like the markets these days. li ali set back huncha. Don;t worry- youll hit them chakkas and chaukas to get to your hundred again!
TT bhai, well said on margin bets. Well, it shows why you did not choose to head to IL. *smile*...
if you have little capital and you want high-frequency action, then going margin betting is advised. But you need to have a big heart to take the momentum swings.
I kinda assume now why "Emini." It refers to CBOE I guess. am I right, Emini ji?
ani, TT , I too feel there could be minor corrections to be seen. It is rather a cautious market. I know I am fully vested at this point. Let us see how it goes.
Regarding cricket, it is hard for me to understand, why I got out on the same shot for the last 3 innings. Looks like weakness has crept into my leg side shot, I shall have to work hard to unlearn it. Will do TT bhai for you. And the next big bang will be wholesomely celebrated.
And core CPI was just a tad bit up. The market's in an indecision right now. I don't like how briefing.com states it looks like we're overbought.
Who cares?
The prudent investor is ready for any market move. He/she can jump in on an uptrend and go cash just as easily with signs of market moving downwards. Picking tops and bottoms are for reporters and reporters only.
Well, the only problem is, I've been breaking even the past few days. Which is good considering the market's been in the gutter last few sessions.
I still ehdl on to Q today, but I know i'll be dealing with it tomorrow and most lilkely get rid of it.
Here's few picks: DYN buy above today's high SWIR buy above today's high PAL buy above 12.00
remember, always have your watchlist ready. my trading platform messed up a week ago and i missed out a lot of opportunities cuz my watchlists were wiped out. Then I had to try and remember all of the stocks I had in them- all 40 or so!!!
Anyways, I think we can take some relief here. The worse is behind us- no more "important news". MArket's absorbed most of it till now so the remainder of the week should be good.
the QQQQ has hit an important support today. So we should still be careful.
Otherwse, enjoy: funny video about money!! old one, Bri, you should remember this one!
there. hope emini doesn't mnd a lil deviation every once in a while.:D
I think this week will be mixed. The NASDAQ is barely able to make some new solid highs. I'll hold on to my position/ ideas. I'm glad I havent lost money so far- alwasy breaking even- good test of my resilience.
Here's a pick: CYCL : buy above this week's high.
Hope everybody's been doing fine.
Tip from my experience: Always use a loose stop on stocks u feel will rally but have pulled back a bit. Small shakeouts can scare you off. But nevertheless. you should use stops since there will be better opportunities.
TT , moi still here man!.., Howdy ni? Lang tame no see. hahaha..
my tech stocks showed a little sign of life yesterday. I think DOW mite juss start going further south, as Nasdaq moves up little towards the North. Let us see.
I am amazed to realize what Emini's fren had to predict for S&P 500 and 1500 plus score. I guess that group has some market knowledge.
ani like you, I am hollering hey please show us one glimpse. *wink* *wink*.
I've had some terrible losses in the past few weeks. But surprise surprise, it's all riskless capital so I can fool around quite a bit. I'm stayin behind for a while now.
Several of my picks have done very well and should continue to do so:
I think this market is showing some signs of a top formation. I am expecting a decline of about 8-10%. Not sure when that will happen but I think it will be sometimes in the next two weeks. Don't get too greedy here. Get rid of stocks that have not been able to rally recently and protect profits if you have.
We are in a long-term bull market so this market will rebound but I'm not sure which sector will lead the way.
The market's been acting kinda weird. But I thnk we are still in an uptred, just some minor corrections occuring frequently instead of a large one all of a sudden.
Funny that, Ameritrade had issues with its display yesterday. My account value was far too less than my gains/losses from day before. I called them. They fixed it this morning.
Minor corrections on the anvil. Yes! I am thinking about gettting into cash by early next week.
I hold:
CMGI, STEC, SUNW, NFLX, and MRVC.
NFLX, I am getting rid of. CMGI is for coming week's financial results. STEC is good to hold for a while. SUNW is a long term, but I might get rid of. MRVC I will hold.
Any tips you guys have?
TT bhai, Q is doing okay for now.
la ta!
Best~!
-B
ps Emini, any confirmation on heading to DC like you said last?
and it begins - on Day 1 Trump will begin operations to deport millions of undocumented immigrants
To Sajha admin
Travel Document for TPS (approved)
All the Qatar ailines from Nepal canceled to USA
MAGA मार्का कुरा पढेर दिमाग नखपाउनुस !
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