Down goes the Dow

i see how you would think that. But here's the scoop. Maybe one half of one percent of my investments, i will use for speculation. I always do it in an IRA so i won't get hit with the short term capital gain tax. I shoot to make a little bit on a short term trade, maybe a day trade, or hold it pretty much as long as i need to. It is entirely separate from everything else, which is pretty much buy and hold. At one time, i was able to go something like 90% of these trades being profitable. As i said before, during the last dip a couple of weeks ago, i did a handful of these and lost every single time until i bought near the bottom on a few and held onto them (still).

Those short term trades are about making a few bucks and no, nothing about investing.

My comment is referring to the spirit of this era, where speculative trading is marketed as investing. Encouraged and promoted by silly commercials on the financial networks.

Ghost of Igloi wrote:

My comment is referring to the spirit of this era, where speculative trading is marketed as investing. Encouraged and promoted by silly commercials on the financial networks.

Your opinion is not necessarily reality.

Shaolin wrote:

Ghost of Igloi wrote:

My comment is referring to the spirit of this era, where speculative trading is marketed as investing. Encouraged and promoted by silly commercials on the financial networks.

Your opinion is not necessarily reality.

Ghost of Igloi wrote:

Shaolin wrote:

Your opinion is not necessarily reality.

Thank you.

I went to Stuart's party. It was rocking!

WHat is your deal? There's long term trades and there's things called short term trades. It's a big market, IGO, and there's room for both, even if it doesn't fit into your paradigm.

Ah, Kmart stock went to zero, so not so good for Mr. P. I just think your view is a symptom of an era. Time will tell whether it is a larger disease that needs a cure.

It's not a disease and it's not a cure. It's a trading strategy, one amongst a whole plethora of them. I am not even going to argue its merit with you. WHat i find surprising is that you seem to have trouble with the idea of a short term trade. Not to the exclusion of long term investing, but in addition to it.

Sorry if i'm scaring you (not really).

As I recall trading stocks was pretty common in the late 1990s. In 2007 at the next market peak not so much as I remember. Seems to confirm it in this research:

http://www.pewresearch.org/2007/11/19/tracking-the-traders/

Stock trading and high margin debt of this era reminds me more of 1999-2000.

seattle prattle wrote:

It's not a disease and it's not a cure. It's a trading strategy, one amongst a whole plethora of them. I am not even going to argue its merit with you. WHat i find surprising is that you seem to have trouble with the idea of a short term trade. Not to the exclusion of long term investing, but in addition to it.

Sorry if i'm scaring you (not really).

I am not criticizing the viability, just the popularity. It has been easy, so likely to fade in popularity when each “buy on the dip” trade is a loser.

Ghost of Igloi wrote:

Ah, Kmart stock went to zero, so not so good for Mr. P. I just think your view is a symptom of an era. Time will tell whether it is a larger disease that needs a cure.

Kmart stock? No such thing. Try to keep up.

seattle prattle wrote:

What i find surprising is that you seem to have trouble with the idea of a short term trade.

Igy believes you are a loser unless you buy at the very bottom and sell at the very top. He has not been shy about ridiculing others here who have taken tidy profits while leaving a few pennies on the table.

It’s not about short, or long, term trades with him. It’s about the absolute maximum profit.

Of course, this is all taking place with Igy mostly on the sidelines.

Ghost of Igloi wrote:

seattle prattle wrote:

It's not a disease and it's not a cure. It's a trading strategy, one amongst a whole plethora of them. I am not even going to argue its merit with you. WHat i find surprising is that you seem to have trouble with the idea of a short term trade. Not to the exclusion of long term investing, but in addition to it.

Sorry if i'm scaring you (not really).

I am not criticizing the viability, just the popularity. It has been easy, so likely to fade in popularity when each “buy on the dip” trade is a loser.

no way, jose. I'm sure a good portion are bets in the opposite direction (i.e. shorting). I'm not an expert so you are really asking the wrong person. But amongst high-frequency traders, from what i've gathered, they have absolutely no hesitation shorting just as readily as they will go long.

J Hardy wrote:

It’s taken nearly 4 weeks to drop 7%, "it’s happening.”

It’s closer to 6%. That’s not much given the huge gains we've seen in recent months. People went gaga when the Dow reached 25k which is essentially where we are right now.

I don’t know if we’re headed up or down (no one does), but it’s way too soon to declare "it’s happening".

Mawasata wrote:

J Hardy wrote:

It’s taken nearly 4 weeks to drop 7%, "it’s happening.”

It’s closer to 6%. That’s not much given the huge gains we've seen in recent months. People went gaga when the Dow reached 25k which is essentially where we are right now.

I don’t know if we’re headed up or down (no one does), but it’s way too soon to declare "it’s happening".

If you stay in it will be way too late.

Shaolin wrote:

Ghost of Igloi wrote:

My comment is referring to the spirit of this era, where speculative trading is marketed as investing. Encouraged and promoted by silly commercials on the financial networks.

Your opinion is not necessarily reality.

You can't make an opposition comment like that!

I'm sure your nastiness will be followed by insults and disparaging youtube video's.