i have a question for the stock guru's

[spongebob]

anybody buy and sell stocks on a daily, weekly or even monthly basis?

what is your short term strategy in general?

what are some of the stocks you do this with? are they usually pretty steady stocks?

im thinking this. ive got about 30k i might wanna fool around with, not much but im not looking to make a killin'.

my dad does quite well buying and selling daily so i know im gonna be riding his coat-tails for sure. but from what i see his strategy is more for bigger gains.

my startegy will be something like this. buy steady stocks, ones that dont fluctuate too much but may have changes in them from a dollar or two a week, up and down. find one thats somewhere between 15 to 30$. that'll give me 1000 or 2000 shares.

as soon as it goes up .50 or 1.00 sell. make a little money. as soon as it dips, say .50 or something, buy back. continue. ofcourse watch other stocks and do the same.

any ideas or comments?

 

[spongebob]

and the other idea i have is too invest in real estate. buy fixer-uppers, fix them, turn them.

i have a little more money to do that. so i would start with one project at a time. plus i am very good at do work myself. so i would invest my sweat equity. and i think i have a good eye for spotting diamonds in the ruff.

just for example. this house i found which has fire damage is selling for only 12k. i think i could offer 10k cash tomorrow and get it. ive looked at briefly and appears to have no real structural damage. but it needs total gutting. which is no problem. houses in that area sell for 60 to 70k. so im almost positive i could make at least25 or even 30k. i estimate it will take me 4 to 6 months.

so its either stocks or turn property. i know for a fact i could turn properties for a profit. it will take more of my own sweat though. which i enjoy anyways.

 

[ZKaudio]

60k for a house? really?

 

[mylife]

home prices are largely based on 2 things: location and square footage. so unless you're building an addition, i'd think the profit would be negligible after the time and $ investment.

could be wrong though, i'm sure there's others here that know a lot more about this.

 

[Devastation]

i do this and garner most of my income from it. it takes a fair amount of time and research to be successful tho. my strategy varies at times depending on market conditions, but is mostly value companies, high growth companies, and areas of the market that are currently "hot". i use a large amount of leverage which greatly increases the risk and volatility of the account. i've been pretty successful and hope to do well into the future with it

 

[Devastation]

and don't limit yourself to stocks in a certain price range just to control a certain amount of shares. it's ludicrous. high priced stocks make big moves too. the only thing you should be concerned about is percentage moves, and where the stock you own is headed

 

[spongebob]

and don't limit yourself to stocks in a certain price range just to control a certain amount of shares. it's ludicrous. high priced stocks make big moves too. the only thing you should be concerned about is percentage moves, and where the stock you own is headed

i like that, ill remember it. thx.

 

[spongebob]

60k for a house? really?

yea your right, i dont know what i was thinking. there is no housing for 60k, i meant 600k.

 

[flex229]

good money can be made in the energy sector right now...

 

[calder]

good money can be made in the energy sector right now...

its taken a beating the past 2 days.

 

[bran987]

sponge, fix and flipping houses is very possible for the small investor to make money. trading is a lot harder. you need a strategy, and you need to spend some time developing it and trading it without real money or with very small amounts because you have not trained your emotions out of the process and you will make bad decisions. you don't think you will, but you will. It doesn't matter how intelligent you are.

Here is a forum from a guy who used to coach the top traders in the world, he was published in a famous trading book "Market Wizards" and has some great ideas. short term trading is as much psychology & strategy as it is technical analysis. I think you are smart enough to appreciate that.

 

[spongebob]

sponge, fix and flipping houses is very possible for the small investor to make money. trading is a lot harder. you need a strategy, and you need to spend some time developing it and trading it without real money or with very small amounts because you have not trained your emotions out of the process and you will make bad decisions. you don't think you will, but you will. It doesn't matter how intelligent you are.

Here is a forum from a guy who used to coach the top traders in the world, he was published in a famous trading book "Market Wizards" and has some great ideas. short term trading is as much psychology & strategy as it is technical analysis. I think you are smart enough to appreciate that.

thanks for the advice, sounds excellent.

as of right now im waiting to hear if my bid was recieved on that house. ive had a chance to work up numbers on it for the last two days and am positive i will make at least 25k. ive worked up numbers on my actual time(sweat equity and any time lining things up) invested into it also. looks like i might put about 160hrs in. so im very confident in what i stand to gain vs investment on this.

yea i set up a fake account trading stocks on my aol. i will do that for 6mon to a year before i even attempt to do it for real. by that time i will have more money anyway. i may not even do it. just depends on where im at with any house projects. im already tossing around another idea around with another piece of property.

your comment about short term trading is excellent as well. thats exactly how i am approaching it. i need to remember what i lack in technical knowledge i need to make up for in the psychological and strategical aspects of it.

thanks for the comments, i will apply them.

 

[ZKaudio]

capital gains?

 

[spongebob]

capital gains?

you sound pessimistic about everything, lol.

yea i bet i can get by with paying 10% or at most 15%. not near enough to persuade me not to do it.

 

[benny1970]

Anybody have any decent stock tips? I'm not looking for the day trade type thing, more the type of stock to keep for a few months and hope for 10%, etc.
I've been looking at banks, like RY, and CWB.TO
What about EBAY? Took a big drop a short while ago, from about 60 down to high 30's.
I think KEA might be a decent buy, it has dropped a bit in the last few months, but it rarely seems to go much lower than it is now..

Come on guys/gals, lets share some stock tips/ideas!

 

[SgtSlaughter]

Anybody have any decent stock tips? I'm not looking for the day trade type thing, more the type of stock to keep for a few months and hope for 10%, etc.
I've been looking at banks, like RY, and CWB.TO
What about EBAY? Took a big drop a short while ago, from about 60 down to high 30's.
I think KEA might be a decent buy, it has dropped a bit in the last few months, but it rarely seems to go much lower than it is now..

Come on guys/gals, lets share some stock tips/ideas!

I know this is an "older" thread being almost a month old since the last post. But I was just browsing... and thought that I would offer some advise..

Benny1970: ease stock tip: Think Cyclical .... remember that bell shapped curve from old Economics class (well maybe not, so humor me, lol) .... everything has it's ups and downs.

Easiest (well that I can think of at this exactly momment in time) is to work with Seasonal Items.... let's say a new game system that will sell 10,000 units for the upcoming christmas ... invest in the Company before its stock increases and make some cash. But ALWAYS do your due dillegence and research historic events with the company, ect...

Good Luck!

 

[Whacked]

Remember that with Short term trading you get a SUBSTANTIAL TAX hit! I day traded/swing traded for a year sand did fairly well. My dumb ass found out at the end of that year that all my profits were subjected to the highest tax scenario possible (fo me personally). Moral of the story? Put aside 30-40% of your "realized gain" away for Uncle Sam in the event you wantto day trade/swing trade.

 

[spongebob]

Remember that with Short term trading you get a SUBSTANTIAL TAX hit! I day traded/swing traded for a year sand did fairly well. My dumb ass found out at the end of that year that all my profits were subjected to the highest tax scenario possible (fo me personally). Moral of the story? Put aside 30-40% of your "realized gain" away for Uncle Sam in the event you wantto day trade/swing trade.

is that after each sale or just when you withdrawl from your account? i plan on leaving it alone for the most part.

 

[bran987]

is that after each sale or just when you withdrawl from your account? i plan on leaving it alone for the most part.

it's once per year when your taxes are due.

i.e. if you turn $100,000 into $200,000 in a year, you'll have to pay tax on the gain. UNLESS you haven't sold the stock at any point throughout the year i.e. active trading. doesn't matter if you have withdrawn the money from you account or not. you can hold stock for your entire life and not pay any taxes on the capital gains.

 

[Devastation]

don't EVER be concerned about having to pay capital gains tax on a short term trade. taking profits when there is profits to take is the name of this game. if you wait long enough your gain could turn into a loss. but i guess then you don't have to worry about paying any tax on anything

 

[spongebob]

it's once per year when your taxes are due.

i.e. if you turn $100,000 into $200,000 in a year, you'll have to pay tax on the gain. UNLESS you haven't sold the stock at any point throughout the year i.e. active trading. doesn't matter if you have withdrawn the money from you account or not. you can hold stock for your entire life and not pay any taxes on the capital gains.

thats what i thought just making sure.

so if i have vlo and and sold it for a profit and bought stx, im paying taxes on the vlo profit?

 

[spongebob]

don't EVER be concerned about having to pay capital gains tax on a short term trade. taking profits when there is profits to take is the name of this game. if you wait long enough your gain could turn into a loss. but i guess then you don't have to worry about paying any tax on anything

sounds good.

 

[sawastea]

it's once per year when your taxes are due.

i.e. if you turn $100,000 into $200,000 in a year, you'll have to pay tax on the gain. UNLESS you haven't sold the stock at any point throughout the year i.e. active trading. doesn't matter if you have withdrawn the money from you account or not. you can hold stock for your entire life and not pay any taxes on the capital gains.

You only pay on dividends recd...

 

[bran987]

You only pay on dividends recd...

yep, so FYI for you other guys if you are going to buy stocks that pay significant dividends, it's a good idea to buy them in a Roth IRA. You can reinvest the dividends tax-free. It's an advantage, even though the dividend tax rate has been reduced to 15%.

Another FYI, REIT dividends are mostly disqualified from the 15% dividend tax rate and are mostly taxed at ordinary income, so there is a much larger advantage to holding those in a Roth.

 

[perp69]

yep, so FYI for you other guys if you are going to buy stocks that pay significant dividends, it's a good idea to buy them in a Roth IRA. You can reinvest the dividends tax-free. It's an advantage, even though the dividend tax rate has been reduced to 15%.

Another FYI, REIT dividends are mostly disqualified from the 15% dividend tax rate and are mostly taxed at ordinary income, so there is a much larger advantage to holding those in a Roth.

Yeap. Good idea about the Roth. Then don't have to worry about capital gains. Problem solved.

 

[Spanky11]

out of interest, how are you guys trading? Are you doing it online, or old school (pick up the phone, ect)?.

 

[bran987]

out of interest, how are you guys trading? Are you doing it online, or old school (pick up the phone, ect)?.

online is only way to go now

 

[Creepusmaximus]

anybody buy and sell stocks on a daily, weekly or even monthly basis?

what is your short term strategy in general?

what are some of the stocks you do this with? are they usually pretty steady stocks?

im thinking this. ive got about 30k i might wanna fool around with, not much but im not looking to make a killin'.

my dad does quite well buying and selling daily so i know im gonna be riding his coat-tails for sure. but from what i see his strategy is more for bigger gains.

my startegy will be something like this. buy steady stocks, ones that dont fluctuate too much but may have changes in them from a dollar or two a week, up and down. find one thats somewhere between 15 to 30$. that'll give me 1000 or 2000 shares.

as soon as it goes up .50 or 1.00 sell. make a little money. as soon as it dips, say .50 or something, buy back. continue. ofcourse watch other stocks and do the same.

any ideas or comments?

No, bad idea. You need to know a lot to trade like that and it's a all or nothing deal. You can't be sort of a daytrader. You also need to understand short selling stocks, T/A, etc.

 

[Creepusmaximus]

sponge, fix and flipping houses is very possible for the small investor to make money. trading is a lot harder. you need a strategy, and you need to spend some time developing it and trading it without real money or with very small amounts because you have not trained your emotions out of the process and you will make bad decisions. you don't think you will, but you will. It doesn't matter how intelligent you are.

Here is a forum from a guy who used to coach the top traders in the world, he was published in a famous trading book "Market Wizards" and has some great ideas. short term trading is as much psychology & strategy as it is technical analysis. I think you are smart enough to appreciate that.

Bran is right. I made a ton on RMBS last week short selling it then turning around and buying it, selling it buying it again. It's not easy to pull that sort of trading off without losing your ass. Biggest mistake is when your theory is wrong and you just won't admitted it, two months latter your down 50%.

 

[Spanky11]

online is only way to go now

ORLY? what program are you using?