Day traders always get burned in the end. Anyone who tries to "time" the market by looing at leading and lagging indicators and investing is taking a risk.
I do not buy stocks. I buy companies whose long-term forecasts are sound. Value-investing, really.
Fortunes will be made and lost by those trying to time the market, and brokers will always be OK because they make money on the trades. The more volatility, the more they make. Not a bad gig.
Codicil
The market got wind of the banker bail-out and the market rallied; it is not due to (1) tax cuts, (2) economic growth, (3) job creation, or (4) anything positive.
It is due to the U.S. taxpayer, via the Treasury, buying bad loans.
I told you the banks were accumulating bad loans to get a bail-out.
Yes it isdue to something positive, it is due to the widespread belief that the banking system is no longer about to collapse.
Confidence in the banking system has returned, a normal enviroment for investment has been restored.
Day traders do fine.
Banks were not trying to get a bail out. Bail out comes with significant drawbacks for bank. A loss of control, regulation, nationalisation. Loss of bonus's, cancellation of dividend payments, stock price collapse and government appointee's on the board. Almost all banks have been trying to raise the capital they need without resorting to the offered bailouts. The government is the lender of last resort, not first choice.
Banks accumulated bad loans because the government forced them too or because they deemed them cheap enough to outweigh the risk of payments defaulting.
As I've been ranting on since the start of the economic hit..
It's not the market about to plunge into darkness it's the everyday consumer that is plunging there.
Also right now it takes more to make more in the market. So basically all the little guys who invest 1,000 into the market expecting to see tons are going to be in for a shocker (it's not that easy unless you found something better than gold) maybe a 10% gain at the current rate.
So in essence put MORE in to get alot, or put in a small amount and get a small back.
Either way bio tech and nano tech is looking icky today and I think I'll stay out of the ring.
It is using the debt and credit of the United States taxpayer to purchase mortgage securities and collateralized debt obligations that NO ONE wants.
Credit Agencies
THREE credit rating agencies (Moody's, S & P, and Fitch) are regulated and authorized by the government to rate bonds and CDOs referenced above. They totally, and completely, missed the ball on this one.
No Regulation
There was no regulationg or a lack of regulation.
Who, What, and How of Regulation?
Regulation is less of telling someone what to do than responding to what has already happened. It is about transparency to see if there is fraud, self-dealing, or any other event that could threaten a great depression or market crash.
Comments
Day traders always get burned in the end. Anyone who tries to "time" the market by looing at leading and lagging indicators and investing is taking a risk.
I do not buy stocks. I buy companies whose long-term forecasts are sound. Value-investing, really.
Fortunes will be made and lost by those trying to time the market, and brokers will always be OK because they make money on the trades. The more volatility, the more they make. Not a bad gig.
Codicil
The market got wind of the banker bail-out and the market rallied; it is not due to (1) tax cuts, (2) economic growth, (3) job creation, or (4) anything positive.
It is due to the U.S. taxpayer, via the Treasury, buying bad loans.
I told you the banks were accumulating bad loans to get a bail-out.
Yes it is due to something positive, it is due to the widespread belief that the banking system is no longer about to collapse.
Confidence in the banking system has returned, a normal enviroment for investment has been restored.
Day traders do fine.
Banks were not trying to get a bail out. Bail out comes with significant drawbacks for bank. A loss of control, regulation, nationalisation. Loss of bonus's, cancellation of dividend payments, stock price collapse and government appointee's on the board. Almost all banks have been trying to raise the capital they need without resorting to the offered bailouts. The government is the lender of last resort, not first choice.
Banks accumulated bad loans because the government forced them too or because they deemed them cheap enough to outweigh the risk of payments defaulting.
Day trading is entirely possible if done right.
Scalping is harder.
Swing trading is probably the easiest of them all.
Enigma, how are you doing today?
___________________
Sadly, I see storm clouds on the horizon. A faint stench of Vanguard is in the air.-Kien
http://www.penny-arcade.com/comic/2006/12/13/
todays selloff is due to the notion obama might be president.
the man is already destoying our economy!!@!!@!
-I will subtlety invade your psyche-
It's not as simple as just investing.
You have to make the right investments.
The market took another big dip today.
Anyone that thinks things are going to get better any time soon is off thier rocker. The bad is just getting started.
As I've been ranting on since the start of the economic hit..
It's not the market about to plunge into darkness it's the everyday consumer that is plunging there.
Also right now it takes more to make more in the market. So basically all the little guys who invest 1,000 into the market expecting to see tons are going to be in for a shocker (it's not that easy unless you found something better than gold) maybe a 10% gain at the current rate.
So in essence put MORE in to get alot, or put in a small amount and get a small back.
Either way bio tech and nano tech is looking icky today and I think I'll stay out of the ring.
It is using the debt and credit of the United States taxpayer to purchase mortgage securities and collateralized debt obligations that NO ONE wants.
Credit Agencies
THREE credit rating agencies (Moody's, S & P, and Fitch) are regulated and authorized by the government to rate bonds and CDOs referenced above. They totally, and completely, missed the ball on this one.
No Regulation
There was no regulationg or a lack of regulation.
Who, What, and How of Regulation?
Regulation is less of telling someone what to do than responding to what has already happened. It is about transparency to see if there is fraud, self-dealing, or any other event that could threaten a great depression or market crash.