Stock trading

[Jess]

Tell us what you know oh wise ones. I want to get into this and see what happens but i have no idea where to start.

HALP!!

[VDUBNDizzy]

Buy low, sell high. Or sell high, and buy back low. :D

[jononioo]

Since i started trading, ive noticed the main things that drive stocks is unexpected news. So, if you want to get in the action, you first have to find accurate and "speedy" news(microcaptrade-8k,10k,8q,10q forms should all be looked at). If the forms you read look good, put your orders in post on all the big forums about your discovery. soon others will read the same statements and become advocates and the word spreads. then when you feel you have made enough(hard to do) sell all or ride free shares. Repeat this proccess until you are rich.

Here is a text book example of how this works.

STOCK: CHAG
~ on april 23, I was watching my microcapfeed for all Fincial statments put out by companies and a company named Chancellor Group, Inc(CHAG) came up. They released an 8k statement. I browsed though it( roughly 20 pages) and i kinda like what i read( but was turned off by the fact they they are a "grey sheet stock". (im not too confident in reading finical forms so i didn't buy any shares). But what i did do was search my main penny forum for info about CHAG. Boom, one of the Gurus of stock picking was on top of this stock 2 hours after the 8k statement was released( i beat him to it, but he actually put in orders before me).

so I then put my orders in before the rest of the general public knew about it and boom... im up 400% The guy that put in his order it is more than likely up over 1100%



Here is the thread I was following
http://www.hotstockmarket.com/forums/showthread.php?t=50830&highlight=chag

and the chart: Notice strong support at .15 and resistance at .20
http://www.profitspi.com/stock-chart-str.aspx?id=chag&ca=1116622528



*** please keep in mind what i have posted is a VERY general idea of how things go. This is just one of my strategies. There is WAYYY more involved in trading than what i have posted.****

Ive used this strategy with CHAG, AAGH, and DKAM

[Zx RaTeD]

I'm glad that others seem to have taken interest in this besides Jon and myself. Jon, I remember when you were asking me for advice ; ) Ha, Ole Jon went the other way and traded penny stocks while I've been pretty much exclusively trading mid to large cap stocks online since I was 15 (remember Daytek? It's now TDAmeritrade). I also trade my larger accounts with ml.com. Hell, this is how I make my living and pay my tutition, it's my main source of income.

Anyway, Penny stocks move purely on hype. Mid to large cap stocks move not only on hype, but earnings, news, reports etc... Hrmmm, I could write a book the size of the bible on trading stocks. Jones Soda (JSDA) has been treating me nicely for the past couple of weeks. I always manage to get out before it drops. So far I'm up 18% and over 7 percent just today and hell, the dow dropped over 120 points...ouch, yeah, the rest of my portfolio felt it. As far as I'm concerned it's still a bull market, but Greenspan needs to shut the fuck up and Cramer needs to keep his mouth closed when there is no good reason to sell. I hate it when individuals move the fucking market...Cough Buffet Cough.


Seeing that many of you probably don't know that much about the market as most people don't, I will tell you the shows that I watch and recommend some books. All of these shows are viewable on my favorite channel CNBC. These shows come on Daily/Weekly: On The Money, The Closing Bell, Fast Money, Jim Cramer's Mad Money (which I am watching now lol!), The Big Idea, Business Nation. Watch the news during the day on CNBC as well as stay up with other general worldly and national news mainly China, Europe, Russia, India, and of course the Middle East (damn terrorists). Also follow the Asian Markets and watch pre-market conditions (before the market opens here in the states).

Books to read: ALL of Jim Cramer's books, Definately read his latest "Jim Cramer's Mad Money Watch TV Get Rich" Phil Town's "Rule #1" Oh yeah, and first I would read "Rich Dad Poor Dad" by Robert Kiyosaki just to set your mind right. Those are just a few to get you started and I read them all in about 7-8 hours each. Phil Town gives a very interesting perspective on trading and the market. First read Rich Dad, then Jim's Books, then Phil Town's in that order! Shit, this is getting long.

Side note...realize that you can lose a fuck ton of money as well, especially if you don't know what you are doing or get GREEDY! Know when to sell. Rule #1 is Don't lose money.

More to come if people have questions and I have the time. I'm busy getting my business started here in Bham and doing research out of the ass!

EDIT: Jon, those charts are gonna confuse the fuck outta people LOL! But those are some VERY key charts to follow. Oh yeah, I don't use the 12 26 9...too slow for day trading. Holla!

[Byrd]

So you guys have me hooked. My questions:

1. What software do you use? (Microcapfeed is getting expensive at $100/month)

2. What websites/forums are crucial?

3. Is there a website/forum/book that can go over the verbage?

4. How many hours a day do you spend doing this?

5. What's all this talk about pink sheets?

6. I've heard some bad things about trading penny stocks - you guys like the risk or what?


May prove helpful
http://www.hotstockmarket.com/forums/forumdisplay.php?f=47

[jsta240]

i say read rich dad poor dad whether you start trading or not. book can help you see a perspective that many overlook.(cant see the forest for the trees)

[1.8t]

I have been reading up on this for about the past 3 months or so and will probably start with real money within the year. First I am going to pay off all my debt to my rents, get some buffer money in my checking account and savings account, and then throw some at trading. I will take all that time to keep practicing and researching as much as possible.

[Zx RaTeD]

1. What software do you use? (Microcapfeed is getting expensive at $100/month)

I've heard some good things about Microcapfeed, but I usually don't use any software other than what Ameritrade has to offer. Especially seeing that I deal with the Mid to Large Cap stocks anyway. $100 a month isn't much to pay for that kind of information unless you have very little initial capital to invest. Hell, if that's the case, commision fees will eat you alive!

2. What websites/forums are crucial?
I'm not going to recommend any forums, but if you want you can look at investor business dailys site, morning star, and basically every other financial site out there, yes, you have to pay for alot of this infomation, but it's worth it to me.

3. Is there a website/forum/book that can go over the verbage?
Simply read the books that I have mentioned to you and they will help. Also go to nasdaq's site and do a little reading on terms and definitions

4. How many hours a day do you spend doing this?
Anywhere from non to 12 or more, totally depends on the market, research I'm doing, and what I am currently invested in. It's just all over the chart, but usually it's less than an hour I suppose. I really don't even have to spend that long, but usually I just like to browse. If I'm day trading I'm usually there from 8:30am until 3pm if I can be (that's when the market is open).
5. What's all this talk about pink sheets?
They provide info for OTC (over the counter) stocks which means they are not listed on a major exchange like NASDAQ, NYSE or AMEX etc.

6. I've heard some bad things about trading penny stocks - you guys like the risk or what?
There is risk everywhere (look at the market today, not looking good), I don't like the idea that they trade soley on hype. I have more money to invest so I prefer my mid to large cap stocks all day. I wouldn't touch penny stocks with more than 15% of my portfolio's value...I consider them risky as hell and that is all I am willing to dedicate to risk.

I wouldn't suggest jumping into the market with real cash. I'd do a little paper trading first (follow the numbers daily and write down your returns/losses or find a market simulator) I remember using the one on ZDTV.net back in 9th grade lol. I have no clue if it's still there or if that site exsists still. I did the million dollar portfolio challenge CNBC recently offered as well (this was a paper trading competition).


May prove helpful
[url]http://www.hotstockmarket.com/forums/forumdisplay.php?f=47[/url

[Zx RaTeD]

i say read rich dad poor dad whether you start trading or not. book can help you see a perspective that many overlook.(cant see the forest for the trees)

Agreed. I didn't learn Jack shit from this book, seeing that this is always how I've thought since sometime in middle school, but I recommend this book all of the time so people can see where the hell I am coming from with a lot of my bold ideas. Some people want to meet the president. I'd rather meet Robert Kiyosaki. It's just nice to know that someone sees things they way I do almost to a Tee. I have friends like that as well which can't be a bad thing. It's good to surround yourself with people you want to be like or you can learn from.

[jononioo]

6. I've heard some bad things about trading penny stocks - you guys like the risk or what?
There is risk everywhere (look at the market today, not looking good), I don't like the idea that they trade solely on hype. I have more money to invest so I prefer my mid to large cap stocks all day. I wouldn't touch penny stocks with more than 15% of my portfolio's value...I consider them risky as hell and that is all I am willing to dedicate to risk.


Not, true. Not ALL pennies move on hype. ALot of them move on actual SEC statements and forms. while others move on BS PRs. Take CHAG for example, the DD for this grey sheet has been done and an estimated PPS of ~.75 should be reached somewhere in 09'. That is legitimate info. But on the other hand, take BHUB. PURE HYPE ALL THROUGH THAT ONE. And the people that got stuck with that stock were all greedy. Im still holding 20k shares of BHUB @ $2 total, but i made money b/c i rode all my free shares, And stuck to my profit limits! so i could have cared less when the stock split

But i have nothing against hype b/c hype makes you money in an inefficient market. and everyone knows that penny land is VERY VERY VERY inefficient.


So you guys have me hooked. My questions:

1. What software do you use? (Microcapfeed is getting expensive at $100/month)

2. What websites/forums are crucial?

3. Is there a website/forum/book that can go over the verbage?

4. How many hours a day do you spend doing this?

5. What's all this talk about pink sheets?

6. I've heard some bad things about trading penny stocks - you guys like the risk or what?

May prove helpful
http://www.hotstockmarket.com/forums/forumdisplay.php?f=47
1.)I use Microcapfeed for Realtime PR, Filings, and L2's ($100 is expensive, but you have to pay to play) and Scottrade to execute all my trades. But as trent said, microcap is geared towards ALL stocks under $5

2.)Hotstockmarket, Inversers hub, shockwire, initnow

3.)hotstockmarket, specifically stock market university

4.)enough to make me throw my chair at my wall

5.)pinks, are nano cap stocks. SOME pinks are traded on nas, but not all.
I like pinks b/c the action is fast and you don't have to wait half a year to
rack in good profits.
6.)ok, this is very important. There are risks everywhere!!! but if you don't know what you are doing in nano cap stocks you can loose money. ALL YOUR MONEY!!!!!!! I have lost 75% of my total account value in minuites trading with pennies. But on the other hand i have tripled my account value in hours. It can goes both ways. BE PREPARED TO WIN BIG AND LOOSE BIG

Stockmarket university is where i got started. i know some of those threads are like 100+ pages long, make sure you read ALL of them! No joke. READ EVERYTHING. A good place to start is the "Teach me technical analysis " thread. I think thats where most of the new guys start. It will teach you how to read charts and patterns and trends.

[phillyd]

I invest long term...I don't day trade or trade individual stock at all, for now.

Day trading is RISKY, there is no way around it. It is the same as gambling...you must set limits; when to buy and when to sell. Be smart or you will loss your ass.

I buy mutual funds, why? Because the give you a a bunch of different companies and they are usually managed by a team of market gurus that can devote the time required to make 8%-25% annual returns.

My advice to anyone on this board is 1st: invest for your retirement, then 2nd: invest/trade for a hobby.

My dad invests in mutual funds, that is prolly why I do too. I have read Rich Dad Poor Dad, great book, read it. I also subscribe to Kiplingers Personal Finance...you can get excellent advice from that mag about stocks that have made and will continue to make big returns.

Take some time and paper trade...Here is a simulator that you can use, I believe there are quite a few out there...:
http://vse.marketwatch.com/Game/Homepage.aspx

This a a good way to figure out how to make a mil.
http://www.armchairmillionaire.com/calculator/cgi/backtointro.cgi?myname=Fred&age=30&takehome=%243%2C000&tax=%2410%2C000&taxdef=%2410%2C000&tdcontrib=%24800&step=1

If anyone want to open a NO FEES savings account and that returns 4.5% (this is a lot of money for a savings account) and get a $30 bonus (you have to wait 30 days before you can withdraw the $30 bonus), let me know...I will email you a referral.

[Zx RaTeD]

I invest long term...I don't day trade or trade individual stock at all, for now.

Day trading is RISKY, there is no way around it. It is the same as gambling...you must set limits; when to buy and when to sell. Be smart or you will loss your ass.

I buy mutual funds, why? Because the give you a a bunch of different companies and they are usually managed by a team of market gurus that can devote the time required to make 8%-25% annual returns.

My advice to anyone on this board is 1st: invest for your retirement, then 2nd: invest/trade for a hobby.

My dad invests in mutual funds, that is prolly why I do too. I have read Rich Dad Poor Dad, great book, read it. I also subscribe to Kiplingers Personal Finance...you can get excellent advice from that mag about stocks that have made and will continue to make big returns.

Take some time and paper trade...Here is a simulator that you can use, I believe there are quite a few out there...:
http://vse.marketwatch.com/Game/Homepage.aspx

This a a good way to figure out how to make a mil.
http://www.armchairmillionaire.com/calculator/cgi/backtointro.cgi?myname=Fred&age=30&takehome=%243%2C000&tax=%2410%2C000&taxdef=%2410%2C000&tdcontrib=%24800&step=1

If anyone want to open a NO FEES savings account and that returns 4.5% (this is a lot of money for a savings account) and get a $30 bonus (you have to wait 30 days before you can withdraw the $30 bonus), let me know...I will email you a referral.

I trade my dad's online stocks via Etrade. They are offering just over 5% for a no fees saving account. You can write a check straight from the account. As far as mutual funds go...yeah I have 3 of them, all class A funds and they are all doing well. However, the majority of funds out there don't even outperform the S&P 500. I'm talking like 90% of them. This is why I prefer stocks over funds.

In the past month I've made my portfolios a lot less risky, this is basically because of the interest rates, the housing markets, job reports and china. I'm just kind of hanging on to "safer" companies like Southern Company, Proctor and Gamble, Johnson and Johnson etc...It looks like I had some good timing after seeing what hurt the market has felt this week. Hopefully we'll see a turnaround, but what goes up, must come down and this rally will soon be over.

Greenspan hasn't been able to make up his mind this year, early this year is said that we would see a recession sometime towards the end of this year, probably starting in October. People began to get skeptical Then we see this 416 point drop in February, then the market totally turns around and we see a straight rally with the dow hitting record highs daily. I remember at one point the dow was positive like 21 out of 23 trading sessions. Greenspan recanted his statement saying that the "rest of the world is providing a cushion for the US and there will probably be no recession at all, and if so, a very mild one. THEN he comes back and says never mind, we're probably fucked. This was within the past couple of weeks and see how the markets have dropped. Especially after China got hit badly. Usually the market tends to slow down in may through the rest of the year and so far it looks like this trend has been pushed into June. You know what, this kind of shit wouldn't happen if our damn government just stuck to the fucking gold standard.

[Obike]

Phil beat me to posting Virtual Stock Exchange. I don't do penny trades or day trades, I invest long term. It's what my dad did, and it's how I've learned to invest. Take for example my account on Virtual Stock Exchange (VSE) that some friends setup because they didn't believe I would beat the crap out of them. I started with $100k on VSE and I'm now sitting at $165k. The closest person to me is sitting at $120k and everyone else is hovering around the $75k-$110k mark. I have my stocks in Nintendo and Toyota motor, and this game started before the Wii was released (my dad didn't take my advice on investing in Nintendo and now he's beating himself over the head with it).

As far as real stocks... I have a decent amount of my savings in low-interest-safe Mutual Funds. This is my safety net for falling on hard times, and I prefer the low risk and low returns compared to something higher risk and higher returns. My family also has several hundred shares of Class A Berkshire Hathaway stock (the company that Warren Buffet runs). If you think Google is a high stock price, check this out (http://finance.google.com/finance?q=BRK.A). A lot of it comes from knowing what companies to invest in... my dad, my brothers, and myself spend months of research following companies trends and financial aspects before we choose a stock to buy. The key thing to know is the amount of on-hand cash to debt... you can tell a lot on how a company is doing from that information. If they are in a lot of debt and have a mildly performing stock, that's something to be cautious about.

I also suggest quite a few books by Warren Buffet, and also get a HP accounting calculator. Those two things can help you out A LOT. Another thing to remember is patience and noticing market trends... also having a strong knowledge of the technology industry helps. Most people investing in that industry are completely clueless, and purely operates on hype. Monitoring slashdot, news.com, digg.com, and engadget.com is a great inside-track as most people don't follow this. If you see a cool product on there, chances are it's about a year from market... so you can invest early and ride it before the general public is aware.

Be weary of IPO's as well, especially in the tech industry.

[Zx RaTeD]

Phil beat me to posting Virtual Stock Exchange. I don't do penny trades or day trades, I invest long term. It's what my dad did, and it's how I've learned to invest. Take for example my account on Virtual Stock Exchange (VSE) that some friends setup because they didn't believe I would beat the crap out of them. I started with $100k on VSE and I'm now sitting at $165k. The closest person to me is sitting at $120k and everyone else is hovering around the $75k-$110k mark. I have my stocks in Nintendo and Toyota motor, and this game started before the Wii was released (my dad didn't take my advice on investing in Nintendo and now he's beating himself over the head with it).

As far as real stocks... I have a decent amount of my savings in low-interest-safe Mutual Funds. This is my safety net for falling on hard times, and I prefer the low risk and low returns compared to something higher risk and higher returns. My family also has several hundred shares of Class A Berkshire Hathaway stock (the company that Warren Buffet runs). If you think Google is a high stock price, check this out (http://finance.google.com/finance?q=BRK.A). A lot of it comes from knowing what companies to invest in... my dad, my brothers, and myself spend months of research following companies trends and financial aspects before we choose a stock to buy. The key thing to know is the amount of on-hand cash to debt... you can tell a lot on how a company is doing from that information. If they are in a lot of debt and have a mildly performing stock, that's something to be cautious about.

I also suggest quite a few books by Warren Buffet, and also get a HP accounting calculator. Those two things can help you out A LOT. Another thing to remember is patience and noticing market trends... also having a strong knowledge of the technology industry helps. Most people investing in that industry are completely clueless, and purely operates on hype. Monitoring slashdot, news.com, digg.com, and engadget.com is a great inside-track as most people don't follow this. If you see a cool product on there, chances are it's about a year from market... so you can invest early and ride it before the general public is aware.

Be weary of IPO's as well, especially in the tech industry.

Well said Bennifer. Haha, I knew you would mention the BRK/A shares ; ) Anyway, for those of you who can't own a $100,000 plus stock that refuses to split, take a look at the class B shares at BRK/B (still around $3,600 a share). Hit up nasdaq.com and take a look at a comparison chart...the class B shares mirror the A shares...hrmmm interesting. Oh, yeah and Berkshire usually returns upwards of 20+ percent a year...average. Also...Buffet has yet to sell a single share of his company's stock last I checked. Also interesting.

[Frosty_DUB]

Watch the show Mad Money with Jim Cramer. Its entertaining.:D

I got both of his books. Havent read them yet though.

[Zx RaTeD]

Watch the show Mad Money with Jim Cramer. Its entertaining.:D

I got both of his books. Havent read them yet though.

Already recommended by yours truly ; ) Oh yeah...read them. lol.

[Adam]

AAPL... all you have to know

[phillyd]

http://www.investopedia.com/Default.aspx?viewed=1

[Zx RaTeD]

AAPL... all you have to know

I was just talking about this with some friends locally. It's being upgraded like crazy. I'm talking jumps from $140 - $160. Hell it was up today with a 196 point drop in he DOW. They are saying that when and if the price of the Iphone drops to $300 Apple may see sales of over $15 billion. Who knows?

[Whitemustang46]

ETF's are all you need.

Just remember returns are commensurate with risk. IMO the best way to expose yourself to the least risk while still enabling a return in line with market returns or sector returns are investing in ETF's which are sort of like mini-mutual funds with no loads that you can trade in and out of through out the day just like any stock. Sure you might not make a huge gain like you would on trading in and out of regular stocks but you'll be limiting your risk exposure especially if you're risk averse and aren't really taking the risk of losing everything unless the market just completely bottoms out which won't happen.

[Adam]

I was just talking about this with some friends locally. It's being upgraded like crazy. I'm talking jumps from $140 - $160. Hell it was up today with a 196 point drop in he DOW. They are saying that when and if the price of the Iphone drops to $300 Apple may see sales of over $15 billion. Who knows?

I feel all warm inside owning AAPL @ 88

I feel tepid about having about double that amount in TWX @ 25 (Avg of time)

[Zx RaTeD]

I feel all warm inside owning AAPL @ 88

I feel tepid about having about double that amount in TWX @ 25 (Avg of time)

Nice, my friend's dad sold it at 50 after asking me if he should hold onto it...he's not so happy now considering he bought it a long time ago at 20 something. He kept saying I should have held onto it...I was always like...it's still not too late! I'm also still saying...it's not too late even though for a while there I felt that it was majorly overpriced, honestly I still do, but hell..ride the hype. It's being upgraded by big firms so fuck it. It's going up.

[Adam]

Nice, my friend's dad sold it at 50 after asking me if he should hold onto it...he's not so happy now considering he bought it a long time ago at 20 something. He kept saying I should have held onto it...I was always like...it's still not too late! I'm also still saying...it's not too late even though for a while there I felt that it was majorly overpriced, honestly I still do, but hell..ride the hype. It's being upgraded by big firms so fuck it. It's going up.
On the 29th when I have an iPhone in my hot sweaty hands I'll tell you to buy or not...

Or... I'll just post a thread gloating :rock:

[jononioo]

LOL at apple. I think ALL the upgrades are unwarranted. All you guys that are holding apple better start checking up on options activity. I think initial market reaction to apples Iphone and Iphone 2 are overly optimistic. I think by Q4 revs will prove my point. I believe a stronger investment would have been in RIMM(research in motion) earlier this year when the deal was announced that they were going to be MFG all of apples Iphones.

[Grider]

I believe a stronger investment would have been in RIMM(research in motion) earlier this year when the deal was announced that they were going to be MFG all of apples Iphones.

:bs:

Might want to check your sources.

[Adam]

:bs:

Might want to check your sources.
Concur.. the previous statement is 100% false