Talking stocks, trading, and investing in general

Discussion in 'Business, Careers & Education' started by mikeman, Feb 2, 2011.

  1. ustudent

    ustudent Well-Known Member

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    For someone who only has $2000 dollars telling them to buy 2 stocks is suicide and pointless especially nowadays with the advent of ETF's and fee free index mutual funds.

    My casino analogy is quite accurate. Telling someone who is asking for investing advice on this board to buy one or two stocks with 100% of their capital is ridiculous. The OP obviously has no investing experience if he's posing this question on Style Forum (fyi, this isn't Stock Forum). By asking him to pick one stock (dividend yielding or not) is the exact same thing as going to a casino and gambling your money away.

    If you think my argument is weak you should go read a book that isn't that well known called The Intelligent Investor by a not so well known equity investor named Benjamin Graham.



    Theoretically there would be very little to no difference as the investor would see the return as a dividend or as a capital gain in the price of the stock.

    There still is no point in buying one or two stocks with 100% of your money. Any argument against that is complete uneducated bullshit.



    Hopefully you meant that it's not known on this forum. Otherwise, The Intelligent Investor and Graham's strategies have been read, researched and tested by millions.

    Anyways, for a little background for anyone who doesn't know: Warren Buffet has called The Intelligent Investor the best investing book ever written and he's the best example for Graham's strategies. Graham is essentially the one who taught Buffet how to invest and was his Professor when Buffet was in Uni.
     


  2. javyn

    javyn Senior member

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    Any word on ETA of a Groupon IPO?
     


  3. javyn

    javyn Senior member

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    Seeing that as of Monday, Apple is no longer the #1 held stock by hedge funds, has been replaced by MSFT. What's going on with Microsoft these days?
     


  4. Contingency Plan

    Contingency Plan Senior member

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    $8.5billion for Skype? Really?!
     


  5. BlackSheepChef

    BlackSheepChef Member

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    Gap (GPS) long under 19.40 as a swing trade.
     


  6. Slopho

    Slopho Senior member

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    $8.5billion for Skype? Really?!

    MSFT has too much money. Raise that dividend to 2.00.
     


  7. james_gsx

    james_gsx Well-Known Member

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    Maybe someone can enlighten me with MSFT. But they seem dead in the water to me and left behind the rest of the pack. Do they have any formidable strategy going forward, or are they paying huge premiums on small companies and banking on the cash flows of their software?
     


  8. Reevolving

    Reevolving Senior member

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    Maybe someone can enlighten me with MSFT. But they seem dead in the water to me and left behind the rest of the pack. Do they have any formidable strategy going forward, or are they paying huge premiums on small companies and banking on the cash flows of their software?

    Well said. That's exactly their situation.
     


  9. javyn

    javyn Senior member

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    Can anyone link me to a good 2011 IPO calendar? Finding one is surprisingly difficult.

    Just applied for a margin account, hope it's approved by the time Yandex goes public (tomorrow?)
     


  10. newbie123

    newbie123 Well-Known Member

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    Anybody here a Boglehead? [​IMG]
     


  11. Slopho

    Slopho Senior member

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    Can anyone link me to a good 2011 IPO calendar? Finding one is surprisingly difficult.

    Just applied for a margin account, hope it's approved by the time Yandex goes public (tomorrow?)


    [​IMG] Here's hoping you don't get it. Unless you trade on a normal basis and are experienced this is an incredibly dangerous thing to do.
     


  12. otc

    otc Senior member

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    [​IMG] Here's hoping you don't get it. Unless you trade on a normal basis and are experienced this is an incredibly dangerous thing to do.

    I wouldn't mind having a margin account. I do all of my trading within the confines of retirement accounts so it isn't an option but it might be nice.

    It takes 3 days for an ACH transfer to go through, and sometimes I see an opportunity I would like to jump on, but it would require selling a current position (and then asking a clerk to make the funds available since they don't do it automatically until settlement on IRAs). If I had a margin account, I would keep it unlevered but use the margin to allow me to make decisions quickly without having to wait 72 hours for a transfer to go through.
     


  13. Slopho

    Slopho Senior member

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    I wouldn't mind having a margin account. I do all of my trading within the confines of retirement accounts so it isn't an option but it might be nice.

    It takes 3 days for an ACH transfer to go through, and sometimes I see an opportunity I would like to jump on, but it would require selling a current position (and then asking a clerk to make the funds available since they don't do it automatically until settlement on IRAs). If I had a margin account, I would keep it unlevered but use the margin to allow me to make decisions quickly without having to wait 72 hours for a transfer to go through.


    Yeah, but you know what you're doing. I know of someone who lost $750,000 on margin.
     


  14. javyn

    javyn Senior member

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    I don't short sell, or buy more than I can back up in my cash account. I only want a margin acct so I can not have to wait 2 days after I sell to buy again. I've traded lots a few years ago in my cash account, and gotten several threatening letters from the SEC heheh, but did well nonetheless scalping IPOs. Going to try that again now.

    Margin account approved this morning, I'm ready for YNDX IPO.
     


  15. otc

    otc Senior member

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    Oddly enough....I now have a margin account too.

    I opened a schwab checking account which required me to open an empty brokerage account which is margin-enabled by default.

    I can't use the margin without first making a 5k deposit, but it wasn't particularly hard to get.
     


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