Stock Market Plunges 1000 Points by Error! (1 Viewer)

[Rutledge]

An experienced trader can make money in an up or down market...

One small change: An experienced trader can LOSE money in an up or down market...

The statistics are clear: Day trading is rarely a profitable activity. No matter how "experienced".

Its no different than Vegas. The only folks really making any money are the houses (brokerage firms that execute the trades).

 

[Njja]

One small change: An experienced trader can LOSE money in an up or down market...

The statistics are clear: Day trading is rarely a profitable activity. No matter how "experienced".

Its no different than Vegas. The only folks really making any money are the houses (brokerage firms that execute the trades).

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I do not "Day trade", or even work off a margin account. I work off positions

I maintain, and adjust depending on market conditions. Yes my broker makes

money, I usually average 40-50 trades a quarter. It is a small price to pay

for the results.

Sorry you see little value in the market, and believe only brokers make any

money.

A smart investor can do quite well, if he makes the effort.

 

[MarkeytMaker]

How would you like to be this guy? It appears that someone hit the wrong button which caused PG (Proctor & Gamble) stock to plunge from $61 per share to $39 a share which contributed to a 1000 point decline in the market today!

It recovered to end the day down 347.....but I can only imagine this fellow has just joined the ranks of the unemployed!

How is it possible you ask? Actually it is quite easy, and I have done it myself! In my case I sold 2000 shares in the after market and simply put the wrong price in! I was lucky in that my shares went off far above my listed price which limited my loss.

Fortunately I was able to recover my shares at a considerable discount when someone else (I assume) made the same mistake a few days later.

Our stock market, the greatest market place in the world!

Imagine the money that can be made if you control the ups and downs?

 

[Njja]

Imagine the money that can be made if you control the ups and downs?

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First you have to realize that they are controlled to a certain degree. Once

you understand that, you are ahead of the game. Now if you can determine

the direction they are currently taking the market.....you are on to something.

Anyone buying at thursdays low (or there about) could have done quite well

today.

 

[Rutledge]

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I do not "Day trade", or even work off a margin account. I work off positions

I maintain, and adjust depending on market conditions. Yes my broker makes

money, I usually average 40-50 trades a quarter. It is a small price to pay

for the results.

Sorry you see little value in the market, and believe only brokers make any

money.

A smart investor can do quite well, if he makes the effort.

I see plenty of value in the market. Its just that, over time, the average Joe has very, very little chance of beating the market averages. There are hundreds of studies that support this view.

And if only it were true that being a smart investor and "making an effort" were all it took to "do well". Sadly, it is not so. Many hard working, very smart people/investors regularly underperform the market averages or, even worst, lose their entire life savings.*

The market is up 80% over the last year. Those who have been fully invested over that time have surely made some money -- albeit after taking significannt losses in 2008. Thus, most are not yet back to where they were.

* Basic math says that most investors MUST underperform the market averages. Once transaction costs are subtracted greater than half of investors will have experienced below average returns. Morningstar studies show the average Joe investor has very poor timing (often chasing returns) and does much worse than that.

**Making 40-50 trades a quarter is, for all intents and purposes, day trading.

 

[Njja]

I see plenty of value in the market. Its just that, over time, the average Joe has very, very little chance of beating the market averages. There are hundreds of studies that support this view.

**Making 40-50 trades a quarter is, for all intents and purposes, day trading.

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You are obviously much smarter then I am. You understand all the

averages, and obstacles that have given you this negitive view

of an individual investors chance of participating in the market.

I never got my MBA, and I must have missed all those studies!

The term "Day Trader" usually implys a fellow buying thousands of shares

on "margin" hoping for an increase of .05 or .10 and ruined if it goes the other

way.

It doesn't fit what I do.

 

[Rutledge]

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You are obviously much smarter then I am. You understand all the

averages, and obstacles that have given you this negitive view

of an individual investors chance of participating in the market.

I never got my MBA, and I must have missed all those studies!

I did however invest in Coke & Pepsi in 1986, and a little company called

Home Depot in 1989 though I supose it was just luck.

The term "Day Trader" usually implys a fellow buying thousands of shares

on "margin" hoping for an increase of .05 or .10 and ruined if it goes the other

way.

It doesn't fit what I do.

Every active investor has success stories. Most people dont talk too much about their "non-sucess" stories. The key is how the entire portfolio has done - both on an absolute basis, and relative to the market average.

Day trading takes many forms.