Down goes the Dow

helloooooo? wrote:

hmmmmmmmmmmmmmmm wrote:

How do you know this is a high?

what is it about the words 'record high' that you don't understand?

What is it about the fact that there have been thousands upon thousands of 'record highs' over the past century that have been excellent buying opportunities (and horrible times to get out of the market)?

Klioty wrote:

You can't be that stupid.

I think it is safe to assume that you cannot explain it.

dummier wrote:

helloooooo? wrote:

what is it about the words 'record high' that you don't understand?

What is it about the fact that there have been thousands upon thousands of 'record highs' over the past century that have been excellent buying opportunities (and horrible times to get out of the market)?

Sorry, did not complete the sentence. Should have read:

What is it about the fact that there have been thousands upon thousands of 'record highs' over the past century that have been excellent buying opportunities (and horrible times to get out of the market) that you don't understand?

dummier wrote:

dummy wrote:

Why are you cheering? All of your new purchases are at high prices!

How do you know?

Because he has indicated so. How don't you?

Klioty wrote:

dummy wrote:

Why are you cheering? All of your new purchases are at high prices!

Look up "dollar cost averaging" and learn something.

Such great insight here. /sarc

Pointing Out the Obvious wrote:

Actually it has everything to do with stops. As soon as you sell you lock in whatever gain/loss that you have up until that point. But now you are out of the market and hence will be paying the opportunity cost of not being in the market should it rise.

People of ignorance believe that stops are some magical way to increase rewards without increasing risks (or reduce risks without giving up rewards). They are no such thing. They are emotional crutches. Nothing more. Very similar in that sense to the emotional crutch of dollar cost averaging.

It would seem that you are the one who is lacking in education. Or is it simply a lack of intellectual capacity?

I assume you somehow missed the genesis of our discussion. It was about minimizing losses, not increasing rewards.

Klioty wrote:

You can't be that stupid.

K5 wrote:

I think it is safe to assume that you cannot explain it.

I think it's safe to say that if you need someone to explain it to you, then you are in over your head here.

Pay attention wrote:

Pointing Out the Obvious wrote:

Actually it has everything to do with stops. As soon as you sell you lock in whatever gain/loss that you have up until that point. But now you are out of the market and hence will be paying the opportunity cost of not being in the market should it rise.

People of ignorance believe that stops are some magical way to increase rewards without increasing risks (or reduce risks without giving up rewards). They are no such thing. They are emotional crutches. Nothing more. Very similar in that sense to the emotional crutch of dollar cost averaging.

It would seem that you are the one who is lacking in education. Or is it simply a lack of intellectual capacity?

I assume you somehow missed the genesis of our discussion. It was about minimizing losses, not increasing rewards.

Sorry, but you can't get off that easily. You can minimize losses by not being in the market at all.

If you are talking about stops then it is assumed that one will be in the market at times (perhaps not at other times). Once in the market one cannot separate managing potential losses from managing potential rewards.

Please try to learn something about investing before posting on an investment thread.

Pointing Out the Obvious wrote:

Once in the market one cannot separate managing potential losses from managing potential rewards.

That is exactly what I'm talking about. Stops are a key tool in managing both.

Pointing Out the Obvious wrote:

Please try to learn something about investing before posting on an investment thread.

tell that to K5 who doesn't even know what dollar-cost-averaging is

Klioty wrote:

Klioty wrote:

You can't be that stupid.

K5 wrote:

I think it is safe to assume that you cannot explain it.

I think it's safe to say that if you need someone to explain it to you, then you are in over your head here.

Can't do it, can you? Throwing around terms that have been thrown at you with no real understanding. Must be a Rightie

dresser wrote:

Pointing Out the Obvious wrote:

Please try to learn something about investing before posting on an investment thread.

tell that to K5 who doesn't even know what dollar-cost-averaging is

Just waiting for one of you geniuses to display your knowledge of these sales terms that you like to throw around

K5 wrote:

dresser wrote:

tell that to K5 who doesn't even know what dollar-cost-averaging is

Just waiting for one of you geniuses to display your knowledge of these sales terms that you like to throw around

They can't.

K5 wrote:

Just waiting for one of you geniuses to display your knowledge of these sales terms that you like to throw around

Like the other fellow wrote, if you are not familiar with these basic terms, then you are in over your head. It also appears you don't know how to use a search engine. Do you need that explained to you, too?

Jutre wrote:

K5 wrote:

Just waiting for one of you geniuses to display your knowledge of these sales terms that you like to throw around

Like the other fellow wrote, if you are not familiar with these basic terms, then you are in over your head. It also appears you don't know how to use a search engine. Do you need that explained to you, too?

You guys are all so familiar with basic terms. It is your understanding of what they are that is in question.

Not one of you has tried to display your understanding of a simple concept. Why is that?

dummy wrote:

Why are you cheering? All of your new purchases are at high prices!

They are at the highest now, but again, as over time the stock market ALWAYS goes up, my purchases today will one day be seen as a bargain.

It's actually crazy how much longer we could continue to see an upward trend. Most of America still doesn't believe we are in anything other than a horrible economy, and there are still a LOT of potential investors who have money on the sidelines. This has shocked me. I do prefer a long steady climb though, so I'm not looking forward to the day when everyone and their brother is geeked about stocks...that will mean a big uptick for a short period of time followed by a large correction. When the market is smokin', I'll make sure just to put in my base minimum, and I won't throw in any extra until the enthusiasm begins to sour.

Flagpole wrote:

It's actually crazy how much longer we could continue to see an upward trend. Most of America still doesn't believe we are in anything other than a horrible economy, and there are still a LOT of potential investors who have money on the sidelines. This has shocked me. I do prefer a long steady climb though, so I'm not looking forward to the day when everyone and their brother is geeked about stocks...that will mean a big uptick for a short period of time followed by a large correction. When the market is smokin', I'll make sure just to put in my base minimum, and I won't throw in any extra until the enthusiasm begins to sour.

This post is the epitome of why most people need professional investing advice. It shows a fundamental misunderstanding of how the market works.

K5 wrote:

Tis better to panic too early than too late.

You operate in PANIC mode? That explains alot.

inquired mind wrote:

Flagpole wrote:

It's actually crazy how much longer we could continue to see an upward trend. Most of America still doesn't believe we are in anything other than a horrible economy, and there are still a LOT of potential investors who have money on the sidelines. This has shocked me. I do prefer a long steady climb though, so I'm not looking forward to the day when everyone and their brother is geeked about stocks...that will mean a big uptick for a short period of time followed by a large correction. When the market is smokin', I'll make sure just to put in my base minimum, and I won't throw in any extra until the enthusiasm begins to sour.

This post is the epitome of why most people need professional investing advice. It shows a fundamental misunderstanding of how the market works.

__

wel...obviously many factors affect stock prices. Some think corporate earnings drive stock prices. It might surprise you that there is not much correlation between corp profits and stock prices, esp for time periods under 10 years.

and there is not much correlation between consumer confidence and consumer spending.

much of what determines stock prices is what Flagpole is talking about - how interested people get in the stock market.

Which is hard to square with the 'this is not a gamble long term' description of the stock market.