Author Topic: THE STOCK MARKET  (Read 6492 times)

Prince

  • Posts: 438
THE STOCK MARKET
« Reply #15 on: April 01, 2005, 01:36:04 AM »
All ye stock junkies, check out Comtech Telecommunications Corp (CMTL)
March 04.........35.48
March 22.........46.19
March 30.........53.00 at the time of writing.

Translation? If I had bought this stock on March 04 and sold it today, I would have had a profit of $17.52.  

That means just 100 shares of it would have netted $1,752.00.  One thousand shares would have meant $17, 520.00.

Guess what, I didn\'t see it then.  I only cought it this morning, so I jumped in for only 100 shares.  At the time of writing, I\'m looking at $107.00 even with the market on the downswing today.  

I\'m gonna hold it for a few days, maybe a week, and see what happens.  I don\'t seem to detect any weakness yet.  Check it out, it is not a bad bet.
He who knows not, and knows not that he knows not, is a fool.

If you s-m-e-e-e-e-e-e-e-e-e-e-e-e-e-e-e-e-e-l-l-l-l-l-l-l what the Prince - is - cooking!!

(Adapted from WWE’s Rock.)

Prince

  • Posts: 438
THE STOCK MARKET
« Reply #16 on: April 03, 2005, 03:41:36 AM »
As I said in my last post, I was gonna hold CMTL for a few days, maybe a week, and see what happens.

Well, It didn\'t take long to see what happens.  I had bought it on Thursday @ 51.55.  It was doing very well. I remember I reported to you that I was looking at 107.00 in profit already, on 100 shares.  That was at 3 pm when it had risen to 52.54.  So, having determined to hold it, I let it ride out the day.

At close that Thursday, it had fallen to 52.10, which wasn\'t bad.  Friday morning, the bell rings and this bad boy began to climb.  At 9.45 am, just 15 mins after opening, it had jumped to 52.81.  Happy days are here again, was my song.  I relaxed and went to do other things.

At 10 am, there was all this commotion on TV.  I always tune in on Wall Street to get the live sounds and updates.  So I rushed to my computer.  Something must have happened, because the market was heading south.  I checked my stocks.  By the time I got to CMTL, it had dropped to $52.50.  Without a second thought, I sold it right away at a profit of 95 cents a share.  So, for my hundred shares, I bagged $95.00.  If I had bought 1000 share, I would have been holding $950.00.

That?s chicken feed.  But considering what would have happened if I hadn\'t sold, I think I came out ahead.  At about 1.30, it had fallen to $51.00, translating to a 100.00 loss, if I hadn\'t sold.  However, by the end of the day, it had only managed to creep up to $51.84.

This highlights the need for people to be traders not investors.
He who knows not, and knows not that he knows not, is a fool.

If you s-m-e-e-e-e-e-e-e-e-e-e-e-e-e-e-e-e-e-l-l-l-l-l-l-l what the Prince - is - cooking!!

(Adapted from WWE’s Rock.)

Honeybunnie

  • Posts: 714
THE STOCK MARKET
« Reply #17 on: April 03, 2005, 05:00:46 AM »
Prince if someone I know wanted to get into stock trading, is there some kind of software needed or that you would recommend?

Susia

  • Posts: 301
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THE STOCK MARKET
« Reply #18 on: April 03, 2005, 06:55:04 AM »
hmm Prince, u see why i dont really Trade stocks , one has to be on top on the stock market to see when to either buy or dump your stocks and see whats going on in the stock market...

Oh well at least u made a profit of $95.00......... and as a stock trader u have to know what direction the prices and going and be able to deduce the effects on the share u have...

I am currently takign a course in Stockholders equity, EPS, Dilutives securities etc... I hate this course but i dont really have a choice but at least it gives me as insight as to whats going on in the stock market, wall street to be precise.
Begin with the determination to suceed and the work is half done already.

Prince

  • Posts: 438
THE STOCK MARKET
« Reply #19 on: April 03, 2005, 08:04:20 AM »
Eeeey, Susia, that\'s how the world rolls.  You have to be on top of things of you wanna succeed.  A lawyer who\'s not on top of things loses cases.  Doctors, who play with their work, usually leave instruments in the body cavity of patients.  If you want to play with your money, the casinos are open.  But if you wanna work with your money, you have to stay on top of things.

Actually, you don\'t need courses to be able to trade, unless you\'re planning to work in Wall Street or look for employment in a brokerage firm.  I didn\'t take any courses, but I\'m trading.

You really don\'t have to know the direction of prices.  If you knew that, you\'d be the richest woman in the entire universe.  What you do is predict.  If you\'re right, you win.  If you are wrong, you lose.  That is where stock analysis comes in.  To help you predict.

Imagine you are in the grocery business.  Now, the weather people say there\'s gonna be a bad hurricane and Florida will be hard hit.  If Florida is hard hit, you know that orange groves can be devastated.  Given all the circumstances that influence the weather, the weather boys may be wrong or they may be right.  

You have a choice to make.  Do you buy up oranges and fill your warehouse so that if something happens, you\'ll have enough to sell to your customers and keep your business alive and maybe charge a little more, when the shit hits the fan.  You don\'t want to miss out on all that action

Do you let it ride, hoping your supplier has a plan.  If your supplier fails you, you will not have oranges to sell when the storm hits and thereafter.  You customers will have to go elsewhere to satisfy their orange craving.  In the process, they may discover a store that charges less they you do or is cleaner than yours, or friendlier than your employees.  You don\'t want to go find out; they may never come back.

This is where you do what amounts to analysis, in the stock business.  You listen to the news to be sure you heard right about the storm.  What are other people saying about it.  Is this one special?  Is it trendy?  What has happened in past hurricanes like this?

Then, you call up the weather center or tune in to the weather channel.  How sure are the weather people?  How far inland and what is the target area?  What is the expected intensity and has it been categorized?

Next, you call your supplier and find out what they know.  Have they heard about the storm?  Have they dealt with this kind before?  What are their plans for this thing?  Do you have any other options, if push comes to shove?

What you?ve been doing this far is analyzing the orange stock.  Depending on the information you get, you make a decision, to fill your warehouse or not.  That\'s the decision you make to buy or not to buy stock.

But what, after all the hoopla, the storm hit Cuba and went back into the sea.  Or it could, instead of taking Florida head on; change course and move north, and never makes land.  Florida didn\'t take a hit.  The orange groves will be just fine.  Maybe, the rain that came with the peripheral winds will do their body good.

What happens to you warehouse full of oranges?  Orange prices just dropped because other stores had done the same as you.  What do you do?  It\'s getting warmer and your orange may rot.  You simply have to unload you stuff.  You sell at a loss.

That, my friend, in a nutshell, is the business of stock trading.
He who knows not, and knows not that he knows not, is a fool.

If you s-m-e-e-e-e-e-e-e-e-e-e-e-e-e-e-e-e-e-l-l-l-l-l-l-l what the Prince - is - cooking!!

(Adapted from WWE’s Rock.)

Prince

  • Posts: 438
THE STOCK MARKET
« Reply #20 on: April 03, 2005, 05:54:19 PM »
Honeyb, there are many ways by which one can approach stock trading.  You know, as huge as stock trading is, covering the whole world, there has to be a zillion ways to trade.  So, I\'ll only discuss what I know, which is nothing relative to the volume of knowledge out there, about trading.  

There are many programs, of various prices, on the market.  The principal factor to influence one\'s choice of program or style of trading is money.  How much the prospective trader wants to devote to trading.

It\'s also important that one shops around for a stockbroker to accommodate the prospective trader\'s needs, style, and desire.  If you are trading on line, your major concern is price.  Most brokers charge $10 a trade.  Scott Trade charges $7.  I hear one on TV that charges $5.  But if they are gonna be placing the orders for you, their charges will be higher.

You\'ll also want to know the minimum required to open an account with the broker.  I know Scott Trade can open an account for as little as $500; my sister has an account with them.  However, there are others that require a couple of thousands to open an account.

My broker is a company called Preferred Trade.  They are one of those high-enders.  They charge about $13 a trade and require about $2,000 to open an account.  If there?s time I?ll tell you why I stick with them.

This far, we?re only talking about stockbrokers.  You definitely need one.  Although when you trade online you will do the actual trading, some one has to forward your orders into the pit.  There is no charge for their services, other than the commissions you pay per trade.  When you buy, it?s a trade, they charge you.  If you sell, it?s another trade, you get charged also.  In other words, to complete a trade i.e., buy and then sell, you will have made two trades and will be charged accordingly.

With what I have described so far, you will only be a cash trader.  Nest time, I will try to discuss other kinds of trading and their financial involvements.
He who knows not, and knows not that he knows not, is a fool.

If you s-m-e-e-e-e-e-e-e-e-e-e-e-e-e-e-e-e-e-l-l-l-l-l-l-l what the Prince - is - cooking!!

(Adapted from WWE’s Rock.)

Prince

  • Posts: 438
THE STOCK MARKET
« Reply #21 on: April 04, 2005, 06:57:21 PM »
We have covered a few basics in the practice of stock trading.  An individual\'s trading habit is very dependent on the kind of trading style he chooses.  One can prefer position trading, long term trading, intermediate trading, short term trading, active trading, super active trading, short trading, or all of the above.

While you trading habit depends on your preference, your preference depends on how much money you are willing to sink in and how much risk you are capable and willing to absorb.  To be able to operate as an active trader, super active trader, short trader, you have to apply and be approved as a day trader by your stockbroker.

Day trading can be the most exciting style of trading but it carries the most risk.  It also has the potential of higher return.  Day trading allows you to buy and sell the same stock within one market day.  If you are not a day trader and you buy and sell the same stock in one day, you may be penalized.  

You may be allowed not more than four day trades in 5 consecutive days.  You broker is best suited to educate you on their principles regarding day trading by a non-approved trader.  There other restrictions too, like when the proceeds of such a trade becomes available for you to trade with.

Day trading comes with huge advantages.  However, it is this advantage that sucks unsuspecting victims under.  Some brokers will allow you twice that amount of your equity (the total amount in you account), while others may allow you as much as four times your equity.  My broker, Preferred Trade, is one of those.  If you have $30, 000 as your equity, as a day trader, you will have a buying power of $120,000.  There are rules and restrictions.  Be sure you are knowledgeable about this if you don\'t want to get into trouble.

As a day trader, you can also short a stock.  Shorting means selling a stock you don?t own.  Since you don?t own it, you broker has to borrow it from somewhere to make it available to you.  You?ll have to buy it back to replace the borrowed stock.  For instance: if you think that the price of stock XXX is gonna fall, you can short it.  Let?s say you wanna short 100 shares.  Your broker will advance you 100 shares of XXX to sell at, say, $50.00 a share.  In time, the price falls to say 30.00, for some reason, you can buy it at that price.

Implication:  You sold your borrowed 100 shares of XXX @ $50.00 a share at a total cost of  $5000.00.  The price drops and you buy back the 100 shares of XXX @ $30 at a total of $3000.  You give back the 100 shares you just bought back and pocket $2000.00 as your profit.  But if the price turns around after you had sold, you?ll have to buy the 100 shares at a price higher than $50 a share.  Depending on by how much the price goes up, your loss will be the difference in price/share X 100.

I\'ll stop here.  Next I will discuss the various programs available to help in your trading.  As I said earlier, I know next to nothing when it comes to stock trading.  Consequently, I cannot cover everything.  However, you may ask questions and I\'ll attempt to answer them to the best of my ability.
He who knows not, and knows not that he knows not, is a fool.

If you s-m-e-e-e-e-e-e-e-e-e-e-e-e-e-e-e-e-e-l-l-l-l-l-l-l what the Prince - is - cooking!!

(Adapted from WWE’s Rock.)

Honeybunnie

  • Posts: 714
THE STOCK MARKET
« Reply #22 on: April 06, 2005, 01:56:39 AM »
Prince this has been very enlightening especially for me. Day Trading sounds like the ebe-ano of stock trading, but being that I am not ready to take that huge a risk at this point in my young life, I will take my time before attempting or undertaking that venture. That aside, I hear trading is a huge way to make money, especailly if you are good at forecasting et al, and knowing the right time to trade your stocks etc.

okey

  • Posts: 220
THE STOCK MARKET
« Reply #23 on: April 07, 2005, 12:54:29 AM »
Isn\'t there a penalty for pulling your stocks early? Just curious
===
Quality is never an accident; It is always the result of high intention, sincere effort, Intelligent direction and skillful execution;
It represents the wise choice of many alternatives

okey

  • Posts: 220
Is the US stock maket over valued???
« Reply #24 on: April 17, 2005, 12:26:34 AM »
Over the past few year, the US stock market has been riding high. I kept  wondering why investors continue to invest when most of the leading economic data have been disappointing.

-Quaterly earning have been disappointing
- Terrible job market / unemployment reports / continued layoff
- Souring trade deficit
- Increasing national debt
- Consumers in more debt today
- Tax cuts which is currently not helping the economy
- Slow down in several economic sectors including real estate
- Rising energy demand/cost (which can cripple growth on an energy dependant economy)
- Plus the cost of the Iraq and Afghan wars


Is this the time to push the panic button? Or should one ride it out hoping for better times aheaad.
===========
As of this weekend:
Dow   10,087.51
Nasdaq   1,908.15
S&P 500   1,142.62
===========
Personally, i do not see an end in sight unless there is a revision of the entire US economic policy. I believe a lot of stocks are over valued a correction is in sight.
===
Quality is never an accident; It is always the result of high intention, sincere effort, Intelligent direction and skillful execution;
It represents the wise choice of many alternatives

Susia

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THE STOCK MARKET
« Reply #25 on: April 17, 2005, 01:38:34 PM »
@ Okey... Yea, i was looking at a couple EPS ( Earnings per share) and it was very disappointing.... a lot more quartely EPS shld be coming out on most companies next week!!


U dont get Penalized for pulling ur stocks early. i mean its urs and you dump and buy at ur leisure.
Begin with the determination to suceed and the work is half done already.

okey

  • Posts: 220
THE STOCK MARKET
« Reply #26 on: April 19, 2005, 09:42:14 AM »
Quote from: \"Susia\"
U dont get Penalized for pulling ur stocks early. i mean its urs and you dump and buy at ur leisure.

Thanks for the clarification. I\'m not sure where i heard that. Either a tax penalty or something.
Anyway, i believe 1Q results, overall will be down from last year.

I kinda like oil stocks right now @ $50/barrel
===
Quality is never an accident; It is always the result of high intention, sincere effort, Intelligent direction and skillful execution;
It represents the wise choice of many alternatives