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Stocks, easy question...

Jbatts

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For those who are into stocks; i have a stupid question.
I've heard investing in stocks is a lot of gambling... but i was wondering: is part of being really good at stocks researching the company you are about to buy stock in? As in, do great stock people research stocks and find little info and get their learn on THEN make intelligent stock choices?
 
For those who are into stocks; i have a stupid question.
I've heard investing in stocks is a lot of gambling... but i was wondering: is part of being really good at stocks researching the company you are about to buy stock in? As in, do great stock people research stocks and find little info and get their learn on THEN make intelligent stock choices?
This could turn into a book, but I'm keeping it short.

2 ways to research: technical snalysis and fundamental analysis.

One looks at thebcompsnu stock prices and looks for trends over time. The other looks at the company performance, performance of the peers, the sector it is in (energy, defense, retail, etc), and other factors to assign a value score... and then decide if the current price is above that score (bad time to buy) or below the value score (good time to buy)
 
For those who are into stocks; i have a stupid question.
I've heard investing in stocks is a lot of gambling... but i was wondering: is part of being really good at stocks researching the company you are about to buy stock in? As in, do great stock people research stocks and find little info and get their learn on THEN make intelligent stock choices?

I've lost my ass in buying dumb "HOT" stocks, mainly in the pharmaceutical industry late 2000s. All of them are worth shit now. Buy the tried and true companies. Look at what stocks Warren Buffet buys and buy those.
 
I know a lot of old timers who have tons of "dividend" stocks. They get a check each quarter paid to them...if you have a lot of them it gives you money to live off of later.

I always wanted to invest bc you can make a lot of money, but you can also lose a lot of money too. Blue chip stocks are for those who want a modest return on investment over time.

It depends on how aggressive you are and what your return on investment will vary. If you are young you can be more aggressive bc you have lots of time to fuck around. Older guys like myself have to play it a bit safer.

Also, I think ppl behind the scenes find out all the good shit way before you see it in the news or whatever.

Anyone know the best and easiest company to use?? Etrade? IDK
 
The thing about "hot" stocks is that they're being pumped and dumped. When there's a lot of buzz and hype about a stock, it's being pumped. People rush in and start buying. The increase in buying and demand is what causes the stock price to rise. Once the hype fades out, the price stops rising and everyone starts cashing in and getting out. As the orders to sell increase, the price begins to fall. This creates panic and everyone starts selling. The price falls faster and faster as no one is buying so you have to put in orders for lower and lower sell prices to get rid of your shares. The only people buying at this point are the suckers who found out too late or don't know what they're doing. You can still make money on these, you just have to time your entry and exit and be quick. I've been in an out of positions in a matter of minutes before. You can also take a short position at the peak of the hype and profit on the downfall. If you buy one of these to hold long term, you'll probably lose your ass. If you want to hold something long term, research the company and don't buy when there is hype. What a lot of people don't know about stock market tips is that these promoters are often paid in stock, or have already purchased large amounts of shares and then are attempting to create hype about the company to inflate the price so they can sell. Sometimes, it's crooked CEOs paying someone to hype the stock of their BS company so they can cash in and shut down the business. If a stock is worth $1, and you purchase, own, or are given 50,000 shares and you pay stock promoters $100,000 to hype up your stock, it could rise $2, $3, $4, fuck up to $10 a share in a day or two, then it will crash. If you sell your 50,000 that you got at $1 for $5 a share, you're making $200k in a day or two (minus what you paid for promoters)... there's big money involved, so tread wisely and so some research. Google Timothy Sykes and watch some of his videos.


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The whole economic system is likely to collapse this year in my opinion. Stay away from stocks... lol

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If you don't put forth the effort yes it is gambling. It's an art that takes years to learn. Be aware that the market dynamics have changed, things that have worked for years are now void. Dark pools and the like have changed pricing behavior.

If you're not prepared to lose, do not invest privately. You are going to lose more often than not for a while. You must develope a solid plan and always use that plan.

The biggest tip I can give you and can't stress enough. Never ride a loss down, if your investment has lost 8% you sell no questions asked. Under no circumstances do you "average down."

The market is an emotional roller coaster. Your biggest enemy will be your own emotions.

Forget derivatives, foreign stocks, microcaps, inverse etfs...... Start by studying the American markets common stock in decent companies.

Buy when there's blood in the streets and sell when the company is being talked about and touted by all. If everybody is talking about it forget buying it.

"Diversification" is just an illusion when talking about common stocks. General mkt direction is going to dictate most of a stocks movement. The market moves as a whole especially in times of increased volitility.
 
I've done pretty well researching market trends (more on the contrarian side) and undervalued companies. I have money in mining stocks, small biotech and pharm companies, some IOT companies, etc. I did well with big companies like Apple and J&J but sold and invested my profits. I also like stocks that pay dividends and reinvesting.
 
Okay so much great advice here; a appreciate it.
So to summarize, stay American, sell if it dips less than 5%, and the answer to my original question is YES: Stock people do research the companies and try to predict the future the best they can.

Being knowledgeable in a field can't hurt, right? Especially if it's a very complex field and you know things others don't or at least very few would know.

Loxo-101 I'm going to see what I can do with that one.


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IML Gear Cream!
One piece of advice for when you are starting out:

Look at companies and industries you know about... But not the one you work in. Reason for that caveat is that if your industry takes a shit, you don't want your investments to tank as you lose your job.
 
The whole economic system is likely to collapse this year in my opinion. Stay away from stocks... lol

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Lol God out I had a dollar for every time that was spoken. The world will be fucked if that happens. Not just the market!


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Lol God out I had a dollar for every time that was spoken. The world will be fucked if that happens. Not just the market!


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Planning for this is part of why guns, ammo, swords, bows, etc are in my repetoire.
 
Lol God out I had a dollar for every time that was spoken. The world will be fucked if that happens. Not just the market!


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Agreed, that horn has been blown for years and years. Time shall tell, but the difference is clear in the math now. Nearly 550 trillion exposure to derivatives in the global markets alone = collapse.

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