I avoid momentum trading because you have to be right twice: You have to buy at the right price, and also SELL at the right price.
Yes and no. When trading (see short-term gain), most retail "investors" put on risk positions with non-risk capital. If you are putting $5k to work looking to trade for some short-term gains, you need to be willing to end up underwater on that capital for some extended period of time. It's classic 'get rich quick' mentality that causes people to take freak out and realize losses when they are losing money on a trade.Isn't that particularly true with any trade?
On the flip side to momo trading, you have long-term investors who will invest their short-term capital into short-term treasuries and *high* yielding saving/CD's. Risk capital is best left for long-term position taking.As opposed to dollar-cost averaging for long-term investments...
Done and done. I do need to turn my 401k back on, as I stopped contributions while on medical leave.1) Pay off all debt - interest is a losing investment
2) Save minimum 6 months of expenses (all expenses) in cash
3) Max your 401k and IRA - 401k to max match from your company, then IRA, then 401k to max.
4) use only 10% of your funds for investments in speculative trading (this excludes 401k funds)
This is very true and takes a while to get accustomed with, it's also why learning how to position size and set targets and stop losses are paramount when trading. It's a numbers game through and through, it's a second JOB for me, not a hobby and I am obsessed with what I do. My goal in life is to forever hate the weekends and make the same trading as I do as an engineer.The biggest problem with trading is that you have to accept more risk to generate the returns. An investor would be happy with 10% per year, while the trader is trying for that per day. He wants to get 10% today so that if tomorrow's a bad day (and he loses 9%), he's up 1% for the two days... The only way to generate higher returns is through higher risk, whether it's a smaller/more worthless stock (which is why people play penny stocks) or options on the bigger stocks. If you're trying to daytrade high-priced stocks like goog/aapl/etc, the costs of trading is going to wipe out any meager gains you get.
It will dull when you get a sound understanding of how the market behaves (trends, understand support and resistance, irrationality etc.) and when you grasp that trading/investing should be an emotionless activity. Along the way you will make an assumption and get burned for it. Those assumptions become expensive mistakes to learn from, eventually you will minimize them. It's taken me 2.5 years to get where I am now and I still get shaken by emotion from time to time, but it's also been 2.5 years for me and that alone is something to be proud of as 92% of day traders fail within their first couple years. Also consider that I am by myself, I am my own trader, technician, speculator, manager etc.Stop-losses set tonight. What a fun exercise in human emotion. The brain knew what it wanted, but the gut had a tougher time accepting it. How long did that type of experience hang with y'all regular traders? I'm assuming it dulls.
Prepare to have your face ripped off tomorrow. Expect the hedge funds to pile into that short heavily....and my Apple stock just got interesting.
Apple Inc. (NASDAQ: AAPL): fell by 5.31% or $-19.96/share in after hours trading to $356.22 on news that Steve Jobs has resigned from CEO of Apple Computers.
And my face is safe.Apple's ($370.48, -$5.70, -1.52%) ailing chief executive, Steve Jobs, is officially stepping down from the helm of the company, a historic shift that hands the reins to Chief Operating Officer Tim Cook. But analysts came out in support of Apple, with J.P. Morgan, UBS and Deutsche Bank all discouraging selling shares of the company.
Yes and no. Look at historical insider sales for a better perspective. If they are regular sales of the same amount, they are likely part of a plan or tax sales. If they are large block sales with no prior history of such, than yes, you should be very cognizant. They might not think that earnings will drop, but something like AAPL is very momentum driven.http://www.gurufocus.com/news/143905/weekly-top-insider-sells-intu-hans-rovi-coh-and-vrsk
So, if company insiders are selling the stock (as happened with Hansen) is it typically indicative of them believing the value is near the top of the climb, or do these guys just want some cash? The earnings reports for Hansen are still favorable, and the market price is up today (but so is the whole market).
Correct me if I am wrong here but don't company executives only have certain windows each year where they are able to dump their positions?http://www.gurufocus.com/news/143905/weekly-top-insider-sells-intu-hans-rovi-coh-and-vrsk
So, if company insiders are selling the stock (as happened with Hansen) is it typically in
dicative of them believing the value is near the top of the climb, or do these guys just want some cash? The earnings reports for Hansen are still favorable, and the market price is up today (but so is the whole market).
That is a pre-planned sales. Once the plan is set in place, the plan can continue despite any company volatility.Reed Hastings has been selling 5,000 shares a week or every two weeks for months and months now.
drop in the sand.Reed Hastings has been selling 5,000 shares a week or every two weeks for months and months now.
The cheaper you buy a dividend paying stock, the higher the dividend payout ratio is for you. Make a point of buying low on those, if you can. Also, dividends tax at current cap gains if you take them as cash (iirc) vs. reinvesting in shares.Started looking at some div paying socks today. Considering diversifying industries too. P&G, Gen Mills, Unilever.
Momentum and stupidity. the market is no longer about investing in companies based on their merits. It is 100% about momentum.AMZN has mine too. $177 a couple weeks back, up to $216 with a 52 week high of $227. With a down economy and low consumer confidence/spending, and no new jobs, not to mention state tax issues, what could be driving the price? The speculation of their new Android tablet? Srsly?
What is your sell px/%? You need to know this before you ever buy the stock. Know your targets, use them, and don't get greedy.HANS is up from my buy 6.66% Evil.