STOCKS, NYSE, NASDAQ - Are you making money like a big boss?

[Andy Griffin]

How illegal is it to invest in industries to buffer your losses, I.E. if your a transit company worried about high fuel prices, why not buy up fuel stocks to counter any  changes in the market.

That's not illegal.  What you are talking about is called "hedging," and wise traders/investors do it all the time.  Some people hedge by doing what you suggest, others use options. 

[Andy Griffin]

Can you provide pictured illustrations of this said "pump and dump" sir?

Ron told me I would be banned for life if I did.   

[ob205]

ARNA bet on USA obesity,  went from $2 to $11, little regression now.

[JBGRAY]

Equate stock traders with poker players.  Do poker players make a lot of money?  Some make millions doing it.  Even with the best poker minds, a bad draw can mean losing tens of thousands so there is chance involved.  Great skill can level that chance out.

I'm not a great poker player.  If you're not a great stock trader(or have insider tips like many of our politicians do) don't bet on the stock market.  You might as well be the 80 year old chain smoking lady at a Vegas slot machine just throwing her money away like a boss.

[MikMaq]

Equate stock traders with poker players.  Do poker players make a lot of money?  Some make millions doing it.  Even with the best poker minds, a bad draw can mean losing tens of thousands so there is chance involved.  Great skill can level that chance out.

I'm not a great poker player.  If you're not a great stock trader(or have insider tips like many of our politicians do) don't bet on the stock market.  You might as well be the 80 year old chain smoking lady at a Vegas slot machine just throwing her money away like a boss.

Meh it's best to think of it, like adopting an african or something, you may not actually be succesful but the hope is always there.

[Andy Griffin]

Equate stock traders with poker players. 

I see what you are saying, but I don't take it quite that far.  I look at trading securities like I would look at trading junk from yard sales. 

Let's say, for example, that I find an old hammer at a yard sale.  I buy it for a dollar, and the next week, I have a yard sale of my own and sell it for two dollars.  100% profit.

Obviously, trading securities is more complicated that this; I'm just sharing the underlying principle.  Most of these "day trader" types do no research and operate on "hunches" (or "press releases" from pump and dump machines), while trying to earn $1MM off of a single $5 penny stock purchase.  If they focused on finding undervalued securities and taking 10-20% gains (after commissions and taxes), they would do far better.  A 10% gain in a month equates to a 120% annual return but too many people want to double their money every five minutes and that unrealistic goal leads to poor trading decisions.

Again, I'm not discounting what you mention about possible corruptions in the market, I'm just saying that wise trading is not gambling in the truest sense of the word.

And to make this post bodybuilding related...

[Game Time]

I see what you are saying, but I don't take it quite that far.  I look at trading securities like I would look at trading junk from yard sales. 

Let's say, for example, that I find an old hammer at a yard sale.  I buy it for a dollar, and the next week, I have a yard sale of my own and sell it for two dollars.  100% profit.

Obviously, trading securities is more complicated that this; I'm just sharing the underlying principle.  Most of these "day trader" types do no research and operate on "hunches" (or "press releases" from pump and dump machines), while trying to earn $1MM off of a single $5 penny stock purchase.  If they focused on finding undervalued securities and taking 10-20% gains (after commissions and taxes), they would do far better.  A 10% gain in a month equates to a 120% annual return but too many people want to double their money every five minutes and that unrealistic goal leads to poor trading decisions.

Again, I'm not discounting what you mention about possible corruptions in the market, I'm just saying that wise trading is not gambling in the truest sense of the word.

And to make this post bodybuilding related...

Any day trader who trades on "hunches" will blow up his account fast. If you don't put the research in or know how to read charts you will not be successful. This is a very competitive and unforgiving industry. Most hedge funds don't make 10% in a year, let alone 120% returns.

[Andy Griffin]

Any day trader who trades on "hunches" will blow up his account fast. If you don't put the research in or know how to read charts you will not be successful. This is a very competitive and unforgiving industry. Most hedge funds don't make 10% in a year, let alone 120% returns.

Exactly.  Funds typically can't perform as well as a skilled, disciplined individual trader (they have so many req's to meet). Plus, hedge funds are predominantly "defensive" in nature. 

[DroppingPlates]

no shit, but that advice is about as indepth and usefull as saying, "to live, breathe in, then breathe out".

cant predict the future.

It's not about predicting, it's about minimizing the deviation.
Successful trading is all about having a good timing strategy and the guys who make big bucks are the silent ones.

[POB]

Invest in T it's not volatile like other stocks and worse you'll do is a 5% return as far as dividend. Doesn't matter if you like the company, put your $ where it will grow

[jude2]

2 stocks that I am getting a great return on and yield is AGNC and NLY. I don't know how long it will last, but it has been great so far. So be careful.