I still make calculations but they're like "If i save 10k this year..."
Online Stock Trading
- Thread starter Kruelgor
- Start date
I still make calculations but they're like "If i save 10k this year..."
That is kind of his point. If your trading is this emotional, you are doing it wrong.
Bears get rich, bulls get rich, pigs get slaughtered.
Kruelgor
Emperor
Here is my biggest lesson I've learned. You can't completely rely on what the expert analysts say, but they most certainly need to be a part of the equation that you use to pick a stock. The other parts of the equation will rely on studying the companies historical financial records yourself. Also, check the news headlines for the company going back at least 3 months before you buy. I've created for myself a scoring system to rate companies and the score will tell me the % gain I set my trigger at. Some companies I may only shoot for a 2% gain while others I will shoot for an 8% or even 10% gain.
This all started when I first got into this with pretend money, I noticed that many stocks will jump in aftermarket trading hours. I wanted to know what in the hell is causing these stocks to jump in aftermarket hours. So I researched it for a long time, and am now taking advantage of it.
This all started when I first got into this with pretend money, I noticed that many stocks will jump in aftermarket trading hours. I wanted to know what in the hell is causing these stocks to jump in aftermarket hours. So I researched it for a long time, and am now taking advantage of it.
Jim Cramer hits soundboards.
Fundamentals research is great for long-term investing, but not all that relevant for the game you are playing.
Well, he is a pig slaughterer. A manipulator for sure.
JerichoHill
Bedrock of Knowledge
So while you are paying attention to this thread, I would like your opinion on this, since I respect your opinion (if I am not part of the subset you are ignoring for sanity's state - this post may move me into that category):
Portfolio is two parts. The first part is the classic mutual fund mix that is currently more stocky than bondy, but is getting more bondy over time.
The second part is individual stocks - not day trading, but not buy-and-hold either. No shorting, margin, options, or other exotic trickery. Generally a handful of stocks that have relatively short holding periods (days/weeks/months rather than day or years). This part is tax sheltered so there are no capital gains issues.
The second part is currently bigger than the first part, but the ratio changes over time with the ratio changing in favor of the first part.
I'm 43. The stock/bond ratio in Part 1 is 57/43, with the bond portion going up by a point near every birthday. The Part 1/Part 2 ratio is 43/57 with Part 1 going up by a point near every birthday.
Your thoughts appreciated whether,
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Jolly dude, I like you. You are not ignored.
Your first portfolio sounds like a classic rebalancing over your lifetime portfolio, more risky when young (stocks) less so when old (bonds) and downside loss is mitigated because when stocks do well, bonds tend not too, and vice versa (keyword: tend)
Your second part sounds like my individual stock basket (I call it my mutual fund, lol), except I tend to identify with the value investing school. I'd encourage to pick and read "Million Dollar Portfolio" and go through the various investment strategies, there are alot. I think what's important is that you do a strategy that you are confident in and that you feel well educated in. There is no sense in me being a churning trader when that just is not something that my personality would gel with, I'm very much a long outlook value investor guy in my psychology. I have a friend who has a portfolio like yourself, but that's his style. Put it like this, we're both successful, but I prefer to spend my saturday night at a semi-quiet cocktail lounge sipping on an old-fashioned or enjoying a 30 year old scotch while in conversation. He prefers red bull and vodka and clubs with DJ's . You can see how our personalities motivate us to our differing investment strategies. Important thing is to never, ever get cocky.
On your first part, you're following the classic 100 minus your age for bonds. That's fine, that's good passive rule, and its good you are just letting that be safety net. You should be getting less risky over time.
The really important thing jolly, is that you have enough money today to be enjoying life, and you're currently on track for hitting your retirement goals. Focusing on the finish line is a good way to ensure you get there, rather than looking immediately ahead =). You sound like you're doing just fine.
(Note: I think its awesome when people get personally active in investing. It's just that for the vast majority of folks, they'd rather spend time elsewhere, and they should. For those, just passive investing is fine. Basically, do what you care, and don't go broke.
@Krueglor
You are so depending on the market to deliver an extremely unlikely result. If such was commonplace, you'd there be alot more out there. You've again, invested in a great time for long buyers. You sound quite cocky, excited, and that is a big no no in both Vegas and with stock investing. Rule #1 of stock investing club : don't get emotionally involved.
Further Jolly is right. You're using a long-term metric to predict short term fluctuations. I don't much care for technical analysis, but...you should at least use a short-term tool if you are short-term investing.
JerichoHill
Bedrock of Knowledge
This is even more of a warning sign.
Kruelgor
Emperor
I'm sorry, but I have to disagree with you. Even if you were Warren Buffet saying that I would have to say I disagree with you, or at least my stacks upon stacks of data disagrees with you.
This is how I felt every day for months. Not only that I kept it a secret from my fiancee which made it even more stressful.
Kruelgor
Emperor
The game I play seems to be a unique one. I've read messageboards of other investors talk, and I don't like at all the game they are playing. I don't like traditional "day trading" because it requires too much clicking and second-by-second monitoring. That doesn't interest me. I have a career job and can't be monitoring the stock second-by-second.
I also don't like long term investing because it opens yourself to huge losses because you never know what big news event might happen at any given moment that pertains to said company. No, that doesn't enthuse me either.
I've seen many of the other games too that traders like to do, and no, those didnt attract me either. So, I created my own game.
I also don't like long term investing because it opens yourself to huge losses because you never know what big news event might happen at any given moment that pertains to said company. No, that doesn't enthuse me either.
I've seen many of the other games too that traders like to do, and no, those didnt attract me either. So, I created my own game.
JerichoHill
Bedrock of Knowledge
You would disagree without much real thought with arguably the best investor in American History? That's pretty arrogant dude.
Also, you're totally playing a game I've seen so many people do, its not even funny. For instance, check out this thread. SAME GAME!
http://forums.civfanatics.com/showthread.php?t=366179&page=19
Well, enjoying money today is one thing I corrected. My Portfolio 2 used to be my only portfolio and I was in a race to the finish line, so I lived too frugally. Now, I make enough where after paying my bills, I can split the rest in half - half towards my investments and half towards 30-something scotch, 20-something companionship, and whatever else strikes my fancy.
Probably my problem now is defining the finish line or at least the point where I start taking from the portfolio rather than contributing to it. Certainly not before age 59 1/2. I want to lawyer as long as I can (so I say today), but for the making-a-living-at-it to not be so important at some point. I guess at 59 1/2 I start looking at withdrawal rates vs. the income needed to support my desired lifestyle.
Nope, many have played your game before. Very few have won at it.
JerichoHill
Bedrock of Knowledge
hehe, I like it Jolly, there's a new phrase. I like my women younger than my scotch, but at least aged 18 years.
Kruelgor
Emperor
The way I see it, Warren Buffet grew up in a different era with limited tools and sources for research. The Internet has changed everything.
The game HAS changed.
That's what everyone was saying circa 1996 to 1999.
Kruelgor
Emperor
Warren Buffet got his claim to fame way before then.
JerichoHill
Bedrock of Knowledge
No. It hasn't. Tools got fancier. It got easier to fool people they could get rich quickly. The game didn't change.
Further, ole Warren is still hopping around and running big ole company that's still pulling in great profits.
I don't think its bad to experiment, but its arrogance to say "I would never consider Warren Buffett's advice, I don't need it." You never turn down a lesson from someone who's been there, done that, and succeeded. I got like when I was very young. Had a good string in 1998-1999. Lost pretty all my portfolio because of the dot com bust that I swore wasn't coming. That was very humbling. I learned.
And he has still be successful since 1996 while many people talking like you got wiped out in 2000.
Kruelgor
Emperor
Yeah, but once you have a lot of money it's a lot easier to make it. What's the old saying? It takes money to make money.
