There are 2 kinds of investors. Those who ride their winners and cut their losers. And then there are sheep.
i usually don't think in terms of days. however, here's what i said about apple earlier in this thread when it was at 120. i think it still holds true until it gets down to around 70's. http://bbs.clutchfans.net/showpost.php?p=3904909&postcount=179 don't know about DIG
Put me down as number 2. I have good ideas, but not enough experience/time to have learned day trading well enough to execute my ideas. With the volatility in the market, it easy to loose or gain a big. For instance, after Mondays huge gain I bought SDS near then end of the day, thinking there would be a sell off to consolidate gains. I panicked and sold it Tuesday for a slight loss. Now its 10 points up from where I bought it. My idea was right, but I lacked the confidence/experience to execute it. One thing I did do right was to have a large cash position while the market was declining. I have bought a lot of stocks since the crash. Since, I seem to suck at day trading, I'm just going to sit on them and not panic through the huge downturns like today.
if you understood things as well as you believe then you would likely be out of the market. p/e's are likely not going to recover for years and the 'e' in p/e is declining. also i am curious what stocks you are talking about. i can tell you if they are as good of a value as you believe. not trying to sound like a stuck up jerk but i can help and i don't wanna see people get run over in things they think are good even though they may actually not be that great.
take your time. keep paper trading to gain confidence. be vigilant with tracking your potential gains/losses on trades you get out of early. try to figure out as many ways as possible to get yourself to stay in trades. also always maintain proper risk/reward levels.
exactly I think historically this type correction gets to about 5 times earnings wherever that puts the bottom.
And to show how little I know about stocks, I bailed out in the spring and stayed out because I had no clue to the timing of this, only the inevitibility. (Speaking of my 401K- I am not a trader)
unsure about airlines. i do know in general they are trying to cut back on flights due to recession. so they haven't really been a great play with declining oil prices due to the recession. fwiw jim rogers (excellent long term investor and horrrrrrible market timer) is long airlines. he is also been long energy commodities for awhile. also, he was short fannie, freddie, citi, and a couple other financials. look him up on youtube he has some good interviews.
Like I said robbie, I have a timeline of years, not months. The money I have invested, I don't need at all to maintain my lifestyle. I know what you do for a living and respect people that are successful at short term trading like you do, but it isn't my philosophy. Here's a couple buys I got into. AXP at 21, HLF at 28, RHI at 17, and PCU at 13. A lot of my investment decisions are based on strong earnings yields and ROC.
thanks... this guy's brilliant. i can't get enough of his interviews. they're a little depressing but it makes sense. i'm going to check out his books. p.s. those female interviewers are pretty hot. edit: any more investors i should know about to?
I'm 17, and am looking to get into the market with my dad, and I've been doing quite a bit of research the past few days. I had a simple question, if I use something like TD Ameritrade, can I short sell a stock? If so, how does that process work?? How long do people wait before they by the security back that they sold short? If anyone has some tips, and advice on where to do research, find 10K reports, and such that would be great.
i keep up with long term/macro stuff too. it helps my trading if i know what is going on and why things are moving when they move. all i have to say is WOW excellent prices. those companies are strong for the most part. i do worry about RHI a bit since their forward p/e is 11+ and they are likely to see further contraction with employment dropping potentially increasing that forward p/e. also a note with PCU...that div it is paying out will not be maintained just so you know but i'm gonna guess you already know that. anyhow...i have found another interesting potential value play. BEBE...sounds odd to look to buy a fashion play in this economy but they are stupidly cheap. they have about 3.70/share in cash and long term securities, a total book value of 5.45/share, and ZERO debt. current stock price is 6.78. also, they payout a .20 div. we will see if it is maintained or not. i am trying to find more plays like this in the retail space. feel free to post any ideas you have too.
http://www.sec.gov/edgar/searchedgar/companysearch.html and yes you can short stock if you have a margin acct. if you get short you can buy it back right after you get in the trade if you like. there is no time period you have to wait for.
Simple principles. Limit your risk. Don't gamble, and if you must, limit your risk. Invest more in what has a higher probability of success rather than what has a higher return potential. Don't try to beat the market. The market is king. The market owns all. All your base are belong to the market. Just flow with it. And basic principles of technical trading. Plot trendlines, support lines. Recognize transition patterns. Know your price targets, know when things have turned and when to get out. Don't try to jump in on a moving train, or worse still, try to push against it. Don't make impulse decisions. Always know exactly what you're doing. Know where to enter. Know where your exit points are. It's mostly common sense, but it's hard to follow common sense when you trade. It takes discipline, and it takes a strong gut sometimes. I've spent a long time in the past making mistakes and learning from them. Yesterday, for example, I was a little upset with myself for leaving quite a bit of extra profit on the table because of a trailing stop that triggered earlier on before the market really fell off a cliff. But in the end, I knew exactly what I was doing, and banked a profit. And I protected myself while doing it. That's how it's done. I don't have day-trading capital so I'm not as nimble as some others are, but I can still make smart decisions with what I have and make profitable trades in a bear market.
That's an amazing find, rob. My concern would be their earnings growth potential, but regardless that is amazing value, and at the very least it should be an excellent defensive play especially given the absence of leverage. I will keep an eye on it. The downtrend on the chart is still strongly intact and there is no bottom pattern that has developed yet, but once one does, I think I want to be all over it -- potential doubler IMO.
