Anybody Buying Yet? Where’s the Bottom?

cgasner1 said:
To some degree yes it is. I still think a portion of it is the big boys taking money again. I mean talking about tariffs is one thing but yesterday someone posted about a random republican sexually assaulting a minor. I doubt that had a effect on the dow
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Well every 10 mins someone mentions TDS like that's some real thing and has nothing to do with what's happening to the global trade environment
 
406dn said:
Which is why I am very much a buy and hold sort of investor. I have made a few moves that made me some decent returns. Some years ago, Target reported disappointing earnings and dropped 17% that day. I bought a 1000 shares the next morning. Three years later, I sold them at triple the purchase price.

I think the average amount of time I hold a stock is something more than five years.

I know several coworkers who day traded away their retirement account. It is seductive to think you are smarter than the market. I try to place more faith, that over a decent span of time, a good business is going to grow its earnings.
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There are two different ways to day trade.

You can approach it more long term and just have the understanding that you won't take a loss. Meaning that you will ride out an investment as long as it takes to go positive which could mean years. There are times where a stock goes of the market and you just end up losing it all, it can happen but you should have made more money in your profits than the rare chance of completely losing it all on one stock.

You can also approach it with a very quick buy/sell mentality. With the online apps and how you can set up orders these days, this is very easy to do. You establish buy orders at a low price you want to buy in at and once the purchase happens, you immediate place two orders - a stop loss order and a take profit order. This ensures you never lose too much on any one stock and guarantees that you sell it off once your happy profit margin is it.
 
Treeshark said:
This puts a cap on the upside, which is why most people fail in the long run.
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I won't generalize because I'm not familiar enough with what other people do.

I myself do a mixture of both and it depends on the stock value (am I gambling on a penny stock or investing in a Bluechip). The majority of my day trading is done by making a purchase at a low enough price that I feel confident it will at some point rebound in the near future for profit. I do this by selecting a stock that has seen a lot of volatility over the last few months. I will typically wait it out a day or two before putting my stop loss and take profit orders in. I'm doing this to try and gauge and make sure I don't sell too early on a loss if the stock was in a major free fall to the bottom and allow it a chance to rebound. My stop loss is typically at 90% and my take profit is typically at 130%. Rinse and repeat. Never more than 5% of my total capital gets put into a purchase.
 
NDGuy said:
Well every 10 mins someone mentions TDS like that's some real thing and has nothing to do with what's happening to the global trade environment
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So posting an article about sexual assault proves the point how? Anyways it’s quite the dip today I know a couple guys at work made a killing yesterday
 
Treeshark said:
Agreed. But when?

As we saw yesterday and today, guessing wrong by even a day could be catastrophic for an individual investor.

This level of volatility is not good.
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Got me.

I told my adult son last night on our dog walk that T is playing T-ball with tariffs and China is throwing curve balls at him.

The trade war is going to be outside the tariff percentage with China. They have the ability to manipulate our long term interest rates by selling and not buying bonds. They can make strategic alliances with other countries lowering demand for US products. They have a bunch of other financial ideas too I’m ignorant about.

We need to resolve China’s issue first.

Other major thought - Mexico outplayed the world on the tariff wars. It took the tariff increase but never retaliated against the US, which means it didn’t raise prices on its citizens. It’s watching the world fight without participating.
 
seeth07 said:
There are two different ways to day trade.

You can approach it more long term and just have the understanding that you won't take a loss. Meaning that you will ride out an investment as long as it takes to go positive which could mean years. There are times where a stock goes of the market and you just end up losing it all, it can happen but you should have made more money in your profits than the rare chance of completely losing it all on one stock.

You can also approach it with a very quick buy/sell mentality. With the online apps and how you can set up orders these days, this is very easy to do. You establish buy orders at a low price you want to buy in at and once the purchase happens, you immediate place two orders - a stop loss order and a take profit order. This ensures you never lose too much on any one stock and guarantees that you sell it off once your happy profit margin is it.
Click to expand...

I don't want to be glued to the market, all day, all the time. I do try to pay attention as to what's been going on.

I look at your first approach as a sunk cost trap. I've been guilty of it. I held a position in Nutrien for a long time. I was under water with it for most of the time I held it. With hindsight, I should have sold it not long after Russia invaded Ukraine. It spiked, and, greedy me, I thought it would stay there, so long as the war waged on. Finally several months ago, I sold it and moved on. It has gone nowhere since then. I can't imagine the tariff stuff is going to help them.

I purchased google a year after I retired, and have now owned it for 11years. The last several months have been disappointing, but the stock remains far above, what I have into it.

imo, a person does not have to try outsmart the market as much as just being in the market. Then you are betting on the economy generally, over a several year period. That has worked okay for me. I've been retired a dozen years and my retirement funds are half again larger than when I retired. We've lived a standard of living equivalent to when working, maybe a bit more.
 
406dn said:
I don't want to be glued to the market, all day, all the time. I do try to pay attention as to what's been going on.

I look at your first approach as a sunk cost trap. I've been guilty of it. I held a position in Nutrien for a long time. I was under water with it for most of the time I held it. With hindsight, I should have sold it not long after Russia invaded Ukraine. It spiked, and, greedy me, I thought it would stay there, so long as the war waged on. Finally several months ago, I sold it and moved on. It has gone nowhere since then. I can't imagine the tariff stuff is going to help them.

I purchased google a year after I retired, and have now owned it for 11years. The last several months have been disappointing, but the stock remains far above, what I have into it.

imo, a person does not have to try outsmart the market as much as just being in the market. Then you are betting on the economy generally, over a several year period. That has worked okay for me. I've been retired a dozen years and my retirement funds are half again larger than when I retired. We've lived a standard of living equivalent to when working, maybe a bit more.
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That isn't day trading though, we are talking apples to oranges. My long term financial investment portfolio (mostly my 401k and physical investments such as land) is not the same as my day trading portfolio. It is much smaller in size than my long term investments and the goals between the two are quite different. It is for myself more of a hobby than anything else and I'm attempting to make more from it than the 5% I could get if I just put it in a CD or something. I also don't add money to this account but instead I actually steal from it (take the gains out) which is completely opposite of the long term investments. Its a tool for me to generate play money in a manner which I have found to really enjoy.
 
Treeshark said:
Agreed. But when?

As we saw yesterday and today, guessing wrong by even a day could be catastrophic for an individual investor.

This level of volatility is not good.
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And I know there are differences of opinion on impact, but what China does with the US bonds it still has could be a factor as well.
 
seeth07 said:
That isn't day trading though, we are talking apples to oranges. My long term financial investment portfolio (mostly my 401k and physical investments such as land) is not the same as my day trading portfolio. It is much smaller in size than my long term investments and the goals between the two are quite different. It is for myself more of a hobby than anything else and I'm attempting to make more from it than the 5% I could get if I just put it in a CD or something. I also don't add money to this account but instead I actually steal from it (take the gains out) which is completely opposite of the long term investments. Its a tool for me to generate play money in a manner which I have found to really enjoy.
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Are you then factoring taxes due when they are sold as part of your actual return when sold then?

With our money in similar situations I general have it in tax managed funds. Victory, Vanguard and others have them.
 
Bonasababy said:
Are you then factoring taxes due when they are sold as part of your actual return when sold then?

With our money in similar situations I general have it in tax managed funds. Victory, Vanguard and others have them.
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I have to pay taxes on my gains at the end of the year. I'm not aware of a way to trade freely on the market with any stock I chose (or at times options) and avoid paying the taxes at the end of the year on the gains.
 
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