Hello,
I been a member of TK for about 3 years now and I invest using the buy and hold strategy and only buy on major dips. I used fundamental analysis to buy stocks and hold for a decent profits, I usually hold for long times.
I have decided to learn the technical analysis and money management to trade a few stocks a few times per week due to my full time work schedule. I want to be a part time trader and learn technical analysis so I can learn price action on when to enter and exit a trade. I believe the market is too viloatile right now for the old buy and hold for investors. Any sudden economical change with Europe, Japan, etc. cause a losing position. So I believe understand the technical of the stock I am buying for either long or short term will benefit me as a stock investor.
Plus, this learning will help me with price entry if I decide to go long.
1. Is it possible to part time trade maybe 2-3 stocks per week? I work 40 hours a week, but have access to the internet. I figure I setup stop loss for times I am unable to watch the screen.
2. Where do i begin? My friend suggested I start reading the Discipline Trader first.
Thanks for advice and comments
Follow posts
Why is options so important to learn when it comes to just trading stocks?
Thanks,
Thanks
Actually, for the vast majority, sitting and analyzing charts all day make you frustrated and make bad moves. You will tend to focus too much on the small gyrations and miss out on the big ones. I check my holdings/market about a half dozen times a day and things usually work out just fine. I'll set buy/stop orders in advance and watch the market periodically and adjust accordingly.
My biggest suggestion in not to focus on the small, intra-day moves. Also, do not just focus on technicals and chart analysis, but keep in mind the market as a whole as well as the specific industries/sectors that affect your holdings. Chart analysis is good and dandy, but when it comes down to it they only reflect the past and are not a definitive projection of what will happen in the future. You will notice the biggest moves in the market usually procede after a certain technical measurement or resistance breaks.
My best advice is to start off slow until you get the hang of it and always remember there is never a free lunch when it comes to investing.
Options are nice because it gives you different ways to make money. You don't have to depend solely on prices movements. If the market is flat, you won't make any money buying and holding, but inplied volatility could change and you could make money that way. Or you can try to collect the time premium while everyone else is waiting for the market to do something.
Obviously, with options, there is much more risk involved.
I work 40+ hours a week and I say it's quite hard to day trade. Obviously it depends on your work load, but my time horizon for my trades generally last at least a day. I don't want to be in the middle of something, like at a meeting, and have to worry about my position.
By the way, thanks for the post Otter. It is interesting to get the perspective of a day trader.
I want to part time trade, Help
Displaying entries 1 - 20 of 22 forum posts in total
12
So, here it is at 11:53 Central and I am watching the futures board and ES side... preparing for my strategy to trade starting at 5:00 a.m. Central time.
Now for the easy part...
I just got my email from Better Stock Entries... and the "Bots" have been loaded and ready to fire at market open... I of course could have done this at 7:00 a.m. or later... but... I did it now.
Here is how my bot works for Better Stock... If the price touches "X" then buy x shares... Once bought, protect the downside by a stop loss or what I call a bail out order at 5% loss.. If I gain 5%... I sell 70% of my stock on the uptick and ride the thirty with a rolling stop loss of exact money paid... I exit when advised by Better Stock or exit before I get greedy... and never worry about it and let the bots run....
The above paragraph shows a method in which a trader can make money and work very little... but, you pay for the service.
I have advised everyone here that I am a day trader who makes money... I am a day trader who can not pick out a single stock and say it has value... and I use a service to assist me in finding stocks that are going to run to the upside... Be also advised the picks by the service are a secondary stream of income for this trader...not the primary...
Good luck finding what will work for you and your choice of risk...
Now for the easy part...
I just got my email from Better Stock Entries... and the "Bots" have been loaded and ready to fire at market open... I of course could have done this at 7:00 a.m. or later... but... I did it now.
Here is how my bot works for Better Stock... If the price touches "X" then buy x shares... Once bought, protect the downside by a stop loss or what I call a bail out order at 5% loss.. If I gain 5%... I sell 70% of my stock on the uptick and ride the thirty with a rolling stop loss of exact money paid... I exit when advised by Better Stock or exit before I get greedy... and never worry about it and let the bots run....
The above paragraph shows a method in which a trader can make money and work very little... but, you pay for the service.
I have advised everyone here that I am a day trader who makes money... I am a day trader who can not pick out a single stock and say it has value... and I use a service to assist me in finding stocks that are going to run to the upside... Be also advised the picks by the service are a secondary stream of income for this trader...not the primary...
Good luck finding what will work for you and your choice of risk...
Take time to learn.
Tradeking has a ton of free videos and blogs that will help you understand the market and trading. It's also a good Idea to choose a handful of stocks to trade that you watch and understand.
Have a Portfolio plan.
Split your portfolio into fast and slow money. Higher and lower risk.
Have a per-trade plan.
Have an entry and exit plan. Don't be afraid to take a loss.
Learn about Options.
I think most "income traders" use options. Learn, learn, learn. I can't stress that enough. Options will amp up your gains AND losses. It's imperative that you fully understand options before you start trading them.
Start out small.
Take your time. As Otter said, figure out what works for you and stick with it.
Good luck!
Tradeking has a ton of free videos and blogs that will help you understand the market and trading. It's also a good Idea to choose a handful of stocks to trade that you watch and understand.
Have a Portfolio plan.
Split your portfolio into fast and slow money. Higher and lower risk.
Have a per-trade plan.
Have an entry and exit plan. Don't be afraid to take a loss.
Learn about Options.
I think most "income traders" use options. Learn, learn, learn. I can't stress that enough. Options will amp up your gains AND losses. It's imperative that you fully understand options before you start trading them.
Start out small.
Take your time. As Otter said, figure out what works for you and stick with it.
Good luck!
Thanks Doougle,doougle said: Take time to learn.
Tradeking has a ton of free videos and blogs that will help you understand the market and trading. It's also a good Idea to choose a handful of stocks to trade that you watch and understand.
Have a Portfolio plan.
Split your portfolio into fast and slow money. Higher and lower risk.
Have a per-trade plan.
Have an entry and exit plan. Don't be afraid to take a loss.
Learn about Options.
I think most "income traders" use options. Learn, learn, learn. I can't stress that enough. Options will amp up your gains AND losses. It's imperative that you fully understand options before you start trading them.
Start out small.
Take your time. As Otter said, figure out what works for you and stick with it.
Good luck!
Why is options so important to learn when it comes to just trading stocks?
Thanks,
When you go fishing, do you take only one hook or the whole tackle box?dwash said:
Thanks Doougle,doougle said: Take time to learn.
Tradeking has a ton of free videos and blogs that will help you understand the market and trading. It's also a good Idea to choose a handful of stocks to trade that you watch and understand.
Have a Portfolio plan.
Split your portfolio into fast and slow money. Higher and lower risk.
Have a per-trade plan.
Have an entry and exit plan. Don't be afraid to take a loss.
Learn about Options.
I think most "income traders" use options. Learn, learn, learn. I can't stress that enough. Options will amp up your gains AND losses. It's imperative that you fully understand options before you start trading them.
Start out small.
Take your time. As Otter said, figure out what works for you and stick with it.
Good luck!
Why is options so important to learn when it comes to just trading stocks?
Thanks,
I take the entire tackle box OldFart. So, options help for cases where my trade goes the opposite way to where I want it go?OldFart said:
When you go fishing, do you take only one hook or the whole tackle box?
Thanks
if you own stocks and want insurance (for instance like you said, it goes the opposite way), you can buy a put option.
if you dont own stocks but want to own, and want to test your theory, you can buy a call option, you risk less capital if you're wrong.
Like they said, read up some.
Start out with Covered Calls and Protective Puts.
These basic strategies are really safe and should be your starting point.
I think many users mainly sell CCs. I believe OF or SP are the ones - it's like a monthly/bi-monthly div on your stock.
if you dont own stocks but want to own, and want to test your theory, you can buy a call option, you risk less capital if you're wrong.
Like they said, read up some.
Start out with Covered Calls and Protective Puts.
These basic strategies are really safe and should be your starting point.
I think many users mainly sell CCs. I believe OF or SP are the ones - it's like a monthly/bi-monthly div on your stock.
Thanks for the options comment. i will read on it.
Here is my question. And its basically about time. I work a normal 40 hour week job. I have my nights and weekend free, besides the times I spend to for enjoyment.
1. Do I need to watch the charts all day to be effective? I don't mind reading after work and doing research or some chart studying or whatever.
But I just want to know from your experience can the working guy accomplish this.
I'm not trying to get rich or be greedy. Getting $300 a month on a good trade is perfectly fine for me.
My whole goal is to learn and have a second skill besides depending on an employer and getting laid off again. Again, I am be investing for 3 years but mostly but
and hold. But, Im screwing up on entry points and need to add tech analysis to my knowledge bank.
Here is my question. And its basically about time. I work a normal 40 hour week job. I have my nights and weekend free, besides the times I spend to for enjoyment.
1. Do I need to watch the charts all day to be effective? I don't mind reading after work and doing research or some chart studying or whatever.
But I just want to know from your experience can the working guy accomplish this.
I'm not trying to get rich or be greedy. Getting $300 a month on a good trade is perfectly fine for me.
My whole goal is to learn and have a second skill besides depending on an employer and getting laid off again. Again, I am be investing for 3 years but mostly but
and hold. But, Im screwing up on entry points and need to add tech analysis to my knowledge bank.
Earning $300 a month depends on your capital. if you dont have say $25,000+ to invest 2-3 times a week, it's going to be hard without options.
If you want to trade instead of invest, look at 30min-daily charts, determine oversold/overbought conditions and play the swings 2-3 times a week. You will have the time to determine this after work at night. Maybe 30min-1hour a night. It's definitely doable.
You may not be successful starting out, but learn what works for you, and heed the warning about options, they could end up costing you 300 a month.
If you want to trade instead of invest, look at 30min-daily charts, determine oversold/overbought conditions and play the swings 2-3 times a week. You will have the time to determine this after work at night. Maybe 30min-1hour a night. It's definitely doable.
You may not be successful starting out, but learn what works for you, and heed the warning about options, they could end up costing you 300 a month.
Actually, for the vast majority, sitting and analyzing charts all day make you frustrated and make bad moves. You will tend to focus too much on the small gyrations and miss out on the big ones. I check my holdings/market about a half dozen times a day and things usually work out just fine. I'll set buy/stop orders in advance and watch the market periodically and adjust accordingly.
My biggest suggestion in not to focus on the small, intra-day moves. Also, do not just focus on technicals and chart analysis, but keep in mind the market as a whole as well as the specific industries/sectors that affect your holdings. Chart analysis is good and dandy, but when it comes down to it they only reflect the past and are not a definitive projection of what will happen in the future. You will notice the biggest moves in the market usually procede after a certain technical measurement or resistance breaks.
My best advice is to start off slow until you get the hang of it and always remember there is never a free lunch when it comes to investing.
Options are nice because it gives you different ways to make money. You don't have to depend solely on prices movements. If the market is flat, you won't make any money buying and holding, but inplied volatility could change and you could make money that way. Or you can try to collect the time premium while everyone else is waiting for the market to do something.
Obviously, with options, there is much more risk involved.
I work 40+ hours a week and I say it's quite hard to day trade. Obviously it depends on your work load, but my time horizon for my trades generally last at least a day. I don't want to be in the middle of something, like at a meeting, and have to worry about my position.
By the way, thanks for the post Otter. It is interesting to get the perspective of a day trader.
Thanks Obama for your response.
No, I don't have 25k, but somewhat there.
For instance, there is one company I been watching, SWC, for a long time. Fundamentals are good, volume is good, and I notice it moves up and down nicely. I would like to trade it. But no clue, when to buy it. Thats why I need some understanding of charts. TK has good info. But that's the problem I am facing right now. And until I learn how to better reduce my risk, I can't buy it.
No, I don't have 25k, but somewhat there.
For instance, there is one company I been watching, SWC, for a long time. Fundamentals are good, volume is good, and I notice it moves up and down nicely. I would like to trade it. But no clue, when to buy it. Thats why I need some understanding of charts. TK has good info. But that's the problem I am facing right now. And until I learn how to better reduce my risk, I can't buy it.
Well, I don't know the stock or sector at all. If you've done the research and think it's a buy, then pull the trigger, its down 5% today.
To be safer, only buy a partial amount with your capital, avg down if it continues down. Quick glance at technicals: overbought currently, had 50day crossover on the 28th. may have missed boat, not sure how closely it trades to news/data, but depending on the summit, the market will go up, or down.
To be safer, only buy a partial amount with your capital, avg down if it continues down. Quick glance at technicals: overbought currently, had 50day crossover on the 28th. may have missed boat, not sure how closely it trades to news/data, but depending on the summit, the market will go up, or down.
dwash,
I think you have some really good questions. Thank you for your message and reading my blog at www.oracole.com. I hope I can add some value to this conversation you have started.
As you know on my blog I focus on forecasting the trend of the broader market. I primarily started trying to forecast the market due to the fact that most of my investments are in a 401K with limited choices on investment (mutual funds only) and I feel that most long term technical analysis methods often miss the mark completely. The problem that many of us with limited investment funds has, is that the transaction costs can eat up a significant chunk of profit if you attempt to employ an incremental buy and sell strategy. An incremental purchase/sell strategy can help reduce risk.
For many new investors, a $1000 investment is a large investment, and on TK each transaction is $4.95 (a relatively good deal). If you make just one stock purchase with that $1000 your transaction cost is only 0.5% of your total purchase. If you make two purchases ($500 a piece) your transaction cost is only about 1% per a transaction. However, if you wanted to reduce risk and make 10 incremental purchases of a stock at $100 apiece your transaction costs are now 4.95%. With a market that has +/- 4.1 % range fees like that can seriously damage your portfolio. Therefore, as a small investor one is already at a huge disadvantage to the large investor (smart money). Note: I don't think they are really any smarter they just have economy of scale on their side.
Since we can't incrementally purchase/sell we find ourselves trying to gauge the top price to sell and the lowest price to buy. Often being very trigger happy in the process. Really the only strategy that makes sense for an investor with less than $25,000 to purchase stocks (I'm not talking options here) with is to have a long term strategy or a buy and hold strategy. However, this strategy is highly dependent (as always) on when you buy.
My method can be summarized as follows:
1. I use what I call a "Sentiment Signal" to determine the overall trend of the market. (see my blog for details) I only buy when the market sentiment is indicating improvement.
2. What is the Beta relative to the market (how affected by the market is the stock).
3. I study the financials of the company that I am interested in and look at some of the following things (there are some really good sights that discuss determining the value of a stock):
a. Equity:Shares Outstanding (I like it to be more than stock price at purchase).
b. (Market Cap + LT Debt)/Revenue(annual) < 1 (if possible) and relative to others in industry should be equal or lower.
c. I read the perspectus to try and gauge the companies future goals (do I like what I hear).
d. Are they maintaining shares outstanding at a constant level or selling shares to raise capital? Do they have to sell the shares or could they get financing (debt to asset/revenue ratio)?
4. Media/public interest in the stock? Is it just beginning (okay)? Is it counter to what the balance sheet says? I tend to avoid stocks that everyone has been rushing to or from.
5. Most important, establish which signals will trigger a sell for you. For me it would be a negative shift in long term market sentiment and/or significant changes in the financials.
6. I watch the week to week or day to day price changes (with mobile devices it is very easy to keep on top of now). If I see a significant change in price up I will usually cut my holdings in half if I still like the stock (one can employ the same method if the stock drops significantly). Note: I describe on my investment strategy how I gauge a significant price movement.
There is more, but too long to go into. Read, read, read (investing books) investing is not a passive activity, but it does not have to consume your life either. As always invest only when you understand. Don't through money at an investment blindly!
I think you have some really good questions. Thank you for your message and reading my blog at www.oracole.com. I hope I can add some value to this conversation you have started.
As you know on my blog I focus on forecasting the trend of the broader market. I primarily started trying to forecast the market due to the fact that most of my investments are in a 401K with limited choices on investment (mutual funds only) and I feel that most long term technical analysis methods often miss the mark completely. The problem that many of us with limited investment funds has, is that the transaction costs can eat up a significant chunk of profit if you attempt to employ an incremental buy and sell strategy. An incremental purchase/sell strategy can help reduce risk.
For many new investors, a $1000 investment is a large investment, and on TK each transaction is $4.95 (a relatively good deal). If you make just one stock purchase with that $1000 your transaction cost is only 0.5% of your total purchase. If you make two purchases ($500 a piece) your transaction cost is only about 1% per a transaction. However, if you wanted to reduce risk and make 10 incremental purchases of a stock at $100 apiece your transaction costs are now 4.95%. With a market that has +/- 4.1 % range fees like that can seriously damage your portfolio. Therefore, as a small investor one is already at a huge disadvantage to the large investor (smart money). Note: I don't think they are really any smarter they just have economy of scale on their side.
Since we can't incrementally purchase/sell we find ourselves trying to gauge the top price to sell and the lowest price to buy. Often being very trigger happy in the process. Really the only strategy that makes sense for an investor with less than $25,000 to purchase stocks (I'm not talking options here) with is to have a long term strategy or a buy and hold strategy. However, this strategy is highly dependent (as always) on when you buy.
My method can be summarized as follows:
1. I use what I call a "Sentiment Signal" to determine the overall trend of the market. (see my blog for details) I only buy when the market sentiment is indicating improvement.
2. What is the Beta relative to the market (how affected by the market is the stock).
3. I study the financials of the company that I am interested in and look at some of the following things (there are some really good sights that discuss determining the value of a stock):
a. Equity:Shares Outstanding (I like it to be more than stock price at purchase).
b. (Market Cap + LT Debt)/Revenue(annual) < 1 (if possible) and relative to others in industry should be equal or lower.
c. I read the perspectus to try and gauge the companies future goals (do I like what I hear).
d. Are they maintaining shares outstanding at a constant level or selling shares to raise capital? Do they have to sell the shares or could they get financing (debt to asset/revenue ratio)?
4. Media/public interest in the stock? Is it just beginning (okay)? Is it counter to what the balance sheet says? I tend to avoid stocks that everyone has been rushing to or from.
5. Most important, establish which signals will trigger a sell for you. For me it would be a negative shift in long term market sentiment and/or significant changes in the financials.
6. I watch the week to week or day to day price changes (with mobile devices it is very easy to keep on top of now). If I see a significant change in price up I will usually cut my holdings in half if I still like the stock (one can employ the same method if the stock drops significantly). Note: I describe on my investment strategy how I gauge a significant price movement.
There is more, but too long to go into. Read, read, read (investing books) investing is not a passive activity, but it does not have to consume your life either. As always invest only when you understand. Don't through money at an investment blindly!
Thank you so much. What about technical analysis? Is it required when needing to know when to enter a stock?Oracole said: dwash,
I think you have some really good questions. Thank you for your message and reading my blog at www.oracole.com. I hope I can add some value to this conversation you have started.
As you know on my blog I focus on forecasting the trend of the broader market. I primarily started trying to forecast the market due to the fact that most of my investments are in a 401K with limited choices on investment (mutual funds only) and I feel that most long term technical analysis methods often miss the mark completely. The problem that many of us with limited investment funds has, is that the transaction costs can eat up a significant chunk of profit if you attempt to employ an incremental buy and sell strategy. An incremental purchase/sell strategy can help reduce risk.
For many new investors, a $1000 investment is a large investment, and on TK each transaction is $4.95 (a relatively good deal). If you make just one stock purchase with that $1000 your transaction cost is only 0.5% of your total purchase. If you make two purchases ($500 a piece) your transaction cost is only about 1% per a transaction. However, if you wanted to reduce risk and make 10 incremental purchases of a stock at $100 apiece your transaction costs are now 4.95%. With a market that has +/- 4.1 % range fees like that can seriously damage your portfolio. Therefore, as a small investor one is already at a huge disadvantage to the large investor (smart money). Note: I don't think they are really any smarter they just have economy of scale on their side.
Since we can't incrementally purchase/sell we find ourselves trying to gauge the top price to sell and the lowest price to buy. Often being very trigger happy in the process. Really the only strategy that makes sense for an investor with less than $25,000 to purchase stocks (I'm not talking options here) with is to have a long term strategy or a buy and hold strategy. However, this strategy is highly dependent (as always) on when you buy.
My method can be summarized as follows:
1. I use what I call a "Sentiment Signal" to determine the overall trend of the market. (see my blog for details) I only buy when the market sentiment is indicating improvement.
2. What is the Beta relative to the market (how affected by the market is the stock).
3. I study the financials of the company that I am interested in and look at some of the following things (there are some really good sights that discuss determining the value of a stock):
a. Equity:Shares Outstanding (I like it to be more than stock price at purchase).
b. (Market Cap + LT Debt)/Revenue(annual) < 1 (if possible) and relative to others in industry should be equal or lower.
c. I read the perspectus to try and gauge the companies future goals (do I like what I hear).
d. Are they maintaining shares outstanding at a constant level or selling shares to raise capital? Do they have to sell the shares or could they get financing (debt to asset/revenue ratio)?
4. Media/public interest in the stock? Is it just beginning (okay)? Is it counter to what the balance sheet says? I tend to avoid stocks that everyone has been rushing to or from.
5. Most important, establish which signals will trigger a sell for you. For me it would be a negative shift in long term market sentiment and/or significant changes in the financials.
6. I watch the week to week or day to day price changes (with mobile devices it is very easy to keep on top of now). If I see a significant change in price up I will usually cut my holdings in half if I still like the stock (one can employ the same method if the stock drops significantly). Note: I describe on my investment strategy how I gauge a significant price movement.
There is more, but too long to go into. Read, read, read (investing books) investing is not a passive activity, but it does not have to consume your life either. As always invest only when you understand. Don't through money at an investment blindly!
I think technical analysis is always important (especially when over 60% of all trades today are algorithmic), but I have not found great long term signals which is why I have been developing my own.
Try to think of stocks like you would an investment property.
How do you determine which property to buy?
1. Look at the neighborhood (sector).
2. Compare the property for sale to similar properties on the market.
3. Inspect the property ... check the foundation for cracks.
When do you sell?
1. Ideally - When you have fixed it all up and it is shiny and pretty.
2. If there is a better opportunity.
3. If the neighborhood starts to go bad.
4. If you start to see small cracks in the foundation.
Try to think of stocks like you would an investment property.
How do you determine which property to buy?
1. Look at the neighborhood (sector).
2. Compare the property for sale to similar properties on the market.
3. Inspect the property ... check the foundation for cracks.
When do you sell?
1. Ideally - When you have fixed it all up and it is shiny and pretty.
2. If there is a better opportunity.
3. If the neighborhood starts to go bad.
4. If you start to see small cracks in the foundation.
Oracole, interesting strategy outline above. (two posts up)
I do something similar, but I skip step #1 and go straight to #2 (sort of), a top down evaluation of relative strengths between sectors and indices for long/short pairs using Beta to gauge risk and factor long/short ratio's.
I.E. - in 2008 I noticed the extremes in the gold/silver ratio relative to the last 40 years or so, got long silver & short gold, and sure enough it paid off quite well despite the increase in gold, the ratio has a degree of predictability over multiple years.
I have a question - Do you pay any attention to cyclical trends of this type...such as the business cycle or seasonal trends?
I do something similar, but I skip step #1 and go straight to #2 (sort of), a top down evaluation of relative strengths between sectors and indices for long/short pairs using Beta to gauge risk and factor long/short ratio's.
I.E. - in 2008 I noticed the extremes in the gold/silver ratio relative to the last 40 years or so, got long silver & short gold, and sure enough it paid off quite well despite the increase in gold, the ratio has a degree of predictability over multiple years.
I have a question - Do you pay any attention to cyclical trends of this type...such as the business cycle or seasonal trends?
I suggest you paper trade for now. Reason is that right now we have large swings that are not good for trading unless you day trade. The market is teaching you to buy the dips for a reason. What I have noticed is market changes so if you have not lived through a bear market, you may need to trade it in a different way. Follow a web site that has winners on it. Like the slope of hope. Many long term traders with charts. They have many videos of particular stocks and why they are going long or short or just images.
Tim Knight the sites creator has many video's as well as others.
http://slopeofhope.com/
Tim Knights usually has longs and shorts, however lately he is leaning all short.
http://www.youtube.com/watch?feature=player_embedded&v=gFso2HzcBcY
http://www.youtube.com/watch?v=yv3cpsaI_A8
Example of what I mean by bear market. Technically we are not in one until the S&P breaks 116 or those lines cross.
http://stockcharts.com/h-sc/ui?s=SPY&p=W&yr=13&mn=10&dy=0&id=p52878054684&a=250890756
Tim Knight the sites creator has many video's as well as others.
http://slopeofhope.com/
Tim Knights usually has longs and shorts, however lately he is leaning all short.
http://www.youtube.com/watch?feature=player_embedded&v=gFso2HzcBcY
http://www.youtube.com/watch?v=yv3cpsaI_A8
Example of what I mean by bear market. Technically we are not in one until the S&P breaks 116 or those lines cross.
http://stockcharts.com/h-sc/ui?s=SPY&p=W&yr=13&mn=10&dy=0&id=p52878054684&a=250890756
Thanks snowman for the advice
Incubus ...
Due to the fact that most of my investment funds are trapped in a 401K with limited opportunity outside of the allotted mutual funds chosen by my company. My focus has been primarily on equity markets with little focus elsewhere.
I personally don't own any gold or silver (aside from some of my wife's jewelry and silverware). I prefer equities because I see companies that provide a service and/or product as having the greatest potential for growth when the markets improve. Right now I am not buying jewelry or silverware due to their cost and the fact that I can live without them (therefore I won't buy gold or silver). I have many friends that have bought physical and paper gold/silver and have made money doing so. However, precious metals do not make sense to me as an investment right now. They don't have earnings, pay dividends, or sell a product/service. Precious metals only remain so highly valued because of fear in the market place (partly the same reason that bonds have such low interest rates). Interest rates are at record lows and in my opinion have only one way to go, and when the fear dissipates and interest rates begin to climb the value of precious metals will plummet as investors move to income generating investments. I believe that real interest rates have already begun to climb which is why banks have reduced their long term lending and you are beginning to see precious metals suffer.
I know there are still many that feel that gold is a good investment. If they understand the precious metal markets they will probably be okay, but if they are simply speculating they will probably get burned.
Snowman ...
Thanks for the info about "Slope of Hope". I'll check it out.
Due to the fact that most of my investment funds are trapped in a 401K with limited opportunity outside of the allotted mutual funds chosen by my company. My focus has been primarily on equity markets with little focus elsewhere.
I personally don't own any gold or silver (aside from some of my wife's jewelry and silverware). I prefer equities because I see companies that provide a service and/or product as having the greatest potential for growth when the markets improve. Right now I am not buying jewelry or silverware due to their cost and the fact that I can live without them (therefore I won't buy gold or silver). I have many friends that have bought physical and paper gold/silver and have made money doing so. However, precious metals do not make sense to me as an investment right now. They don't have earnings, pay dividends, or sell a product/service. Precious metals only remain so highly valued because of fear in the market place (partly the same reason that bonds have such low interest rates). Interest rates are at record lows and in my opinion have only one way to go, and when the fear dissipates and interest rates begin to climb the value of precious metals will plummet as investors move to income generating investments. I believe that real interest rates have already begun to climb which is why banks have reduced their long term lending and you are beginning to see precious metals suffer.
I know there are still many that feel that gold is a good investment. If they understand the precious metal markets they will probably be okay, but if they are simply speculating they will probably get burned.
Snowman ...
Thanks for the info about "Slope of Hope". I'll check it out.
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