I thought we could have a thread dedicated to discussing the stock market, as well as post trades we make.I currently like working two high volatility ETFs: TZA and TNA.My current position: 200 shares of TZA @ 10.95 bought on 2/6/2013. Stop loss is 14400+ on the Dow.I bought those because i believe we are at a top of some kind with the Dow at 1400. I believe were in the process of slowly rolling over right now.
Yikes! I'm convinced real traders are smarter than me, so I stick to index funds and index ETFs (vanguard), save for a few decent dividend stocks I've collected over the years. If I had more time and confidence, I'd have 10-20 long positions that I would move in and out of as I felt those companies were over and undervalued. That said, technically, because I'm so equity heavy, it's still an aggressive stance, just a wussy way of being so.
I have a friend who has done really well focusing on only 5, but that makes me nervous. too many eggs in too few baskets.
I've found that going short, getting too frisky with options and everything on the futures market is essentially just gambling unless you're really putting your time in. even people that do see so much more volatility that I wonder if it's worth it. Your leveraged fund is already affecting my blood pressure, and I haven't even pulled up a chart.
Anyway, why put the stop on the Dow instead of the S&P? General market fear of even numbers? I always preferred the S&P, but the news always reports the Dow. I suppose I answered my own question.
Yes its always scary to invest. I take comfort in my stops. This trade at worst will cost me but not bankrupt me. its predicated on the Dow failing to convincingly clear 14k. So i set the stop 10% above it.
How will that work out in the event of a second bubble-crash?
It's a bit like Cinderella. She has to leave the orgy, err party at midnight. The difference to the burst time of an internet bubble is that Cinderella has a clock while there is none in stock market trading, at least not for the common people. Their money will end up as profits for those with a clock. A few ones will make a profit out of luck, however.
Success at speculations is about knowing things before others know them. There are different ways to achieve that and the easiest ones are criminal or at least sociopathic. Stock market speculations are a bit like dog racing bets, Nigerian scams and pyramid/snowball schemes, with all the cheating etc.
B-b-b-but, kris, what about all the growth that traders create?
They are like gardeners, constantly bringing forth bloom and bounty, for the benefit of all. Some may call this trinkle down, where the prosperity finds its way from the Porsche and Mercedes driving high-fliers down to those humble second-hand Daihatsu owning under-achievers but it's really like a wondrous golden shower of warmth and well-being. I get chills just contemplating their selfless heroism.
Some may call this trinkle down, where the prosperity finds its way from the Porsche and Mercedes driving high-fliers down to those humble second-hand Daihatsu owning under-achievers but it's really like a wondrous golden shower of warmth and well-being. I get chills just contemplating their selfless heroism.
"Trinkle"? Snarkasm aside, "trickle down" <does> work, since it's inherent to Capitalism, as anyone who grasped their basic economics classes can tell you. The Western World wouldn't have been riding America's economic coat-tails for almost 100 years were that not the case, nor would America have been the World's economic powerhouse. Even the Keynesian "economists" like Krugman (and therefore Obama) secretly know it, even if they stupidly assume that Gov't "churn" can somehow take the place of the producers creating wealth. The issues are whether it works well, if it is at all equitable in its workings, if there's anything that might work more efficiently, and if there's legitimate rationale to switch. Of those issues, the only one I find worth debate is whether unnatural monopoly should be tolerated.
I'll leave it to the forum to come up with some perverse commentary about the board game.
Originally Posted by LozHinge the Unhinged
Say Loz, let me into your flat some evening so I can steal the money in your mattress.