Quit losing money

thecrazymr · Jun 6, 2016

I am so tired of watching people lose money in the markets, then complain that the markets are bad. The markets are what they are, a tool to grow your wealth. I am going to give the simplest advice I can think of...... Invest in proven companies, dividend payers, that you have researched and believe will last for more than 100 years. That is the only thing a person needs to know about investing. If you do this, and learn how to capitalize on the market fluctuations, it won't matter if the markets goes up, down, or sideways.

How to capitalize: Only look at the market if your last sale has settled, (3 Days after sale)..... If the stock is going up, do nothing. If the stock is flat, do nothing. If the stock is falling, check the overall market, if it is also falling, sell.... But sell with the intent to buy it back.... once sold, watch the price fall until it levels out or starts to rise again, then buy back the same number of shares or more than what you sold.

It really is that simple, if you only preserve a few pennies, that is a few pennies per share that you would not otherwise have. Always purchase back the same number or more shares than what you sold and always end the day invested. If you preserve 0.25% or more on a trade, and trade only 1 time per week, you will be beating a buy and hold strategy by 12% or more per year...... you will have higher tax implications and each year all of your gains/losses will be realized so there will be no carry over or unrealized gains/losses from year to year.

The real key is to always purchase more shares when you can with the preservation of money from the sales. This will compound over time and by being invested every day, you get to capitalize on all positive stock moves.

And use brokers with the smallest fees you can find...... Robinhood.com is a good start (MY Opinion)

rathcoole_exile · Jun 6, 2016

thecrazymr said:
I am so tired of watching people lose money in the markets, then complain that the markets are bad.

why let it get to you ? It's got nothing to do with you, so why worry ?

thecrazymr said:
Invest in proven companies, dividend payers, that you have researched and believe will last for more than 100 years.

so in the 90s you would have been heavily invested in Kodak ?
That must have worked out well for you

thecrazymr · Jun 6, 2016

rathcoole_exile said:
why let it get to you ? It's got nothing to do with you, so why worry ?

so in the 90s you would have been heavily invested in Kodak ?
That must have worked out well for you

No need to explain the first part, talking in general about the people who come to me with the complaints....... Investing and growth should be basic concepts.

As for the 90's..... Coke, Johnson and Johnson, and IBM were the places I placed my money..... And yes, they have and continue to do well for me. I focus on growing my holdings and let the growth take care of the value.....

Kodak was a very focused company and with computers taking off at an exponential rate, standard film was not going to last. Again, you must be forward looking at least to the point of will a companies products become obsolete.

Even today, there are many products and therefore companies that you could say might not hold a future...... GoPro would be one that is too narrowly focused and I would avoid.... Yet many investors jump into bed because its a novelty.

Today: Johnson and Johnson, Coke, IBM, Prudential, MGM, Intel, Apple, ..... These are the companies I choose to remain invested with.

dunitatlsatrodney · Jun 6, 2016

I like to buy low and sell high, it really is that simple it's people who are dumb and have no idea how to predict the future

whistling:whistling

rathcoole_exile · Jun 6, 2016

Johnson and Johnson - you don't think the cancer scare caused by the talc powder scandal will have any long-lasting impact ?

Coke - eventually, maybe 5, maybe 10 years, the sheeple are going to wake up to the reality of the damage that that toxic brew does to them
I wouldn't put a penny towards any soda company, sugary foods, fast foods etc in the long term.
It won't be immediate, but the sheeple will eventually wake up

rathcoole_exile · Jun 6, 2016

thecrazymr said:
Investing and growth should be basic concepts.

long term I just buy BRK.A and BRK.B shares,

(although .A are so expensive and almost out of reach now)

and just let Mr Buffet take care of my long-term investing for me .....

TraderCL · Jun 6, 2016

thecrazymr said:
I am so tired of watching people lose money in the markets, then complain that the markets are bad. The markets are what they are, a tool to grow your wealth. I am going to give the simplest advice I can think of...... Invest in proven companies, dividend payers, that you have researched and believe will last for more than 100 years. That is the only thing a person needs to know about investing. If you do this, and learn how to capitalize on the market fluctuations, it won't matter if the markets goes up, down, or sideways.

How to capitalize: Only look at the market if your last sale has settled, (3 Days after sale)..... If the stock is going up, do nothing. If the stock is flat, do nothing. If the stock is falling, check the overall market, if it is also falling, sell.... But sell with the intent to buy it back.... once sold, watch the price fall until it levels out or starts to rise again, then buy back the same number of shares or more than what you sold.

It really is that simple, if you only preserve a few pennies, that is a few pennies per share that you would not otherwise have. Always purchase back the same number or more shares than what you sold and always end the day invested. If you preserve 0.25% or more on a trade, and trade only 1 time per week, you will be beating a buy and hold strategy by 12% or more per year...... you will have higher tax implications and each year all of your gains/losses will be realized so there will be no carry over or unrealized gains/losses from year to year.

The real key is to always purchase more shares when you can with the preservation of money from the sales. This will compound over time and by being invested every day, you get to capitalize on all positive stock moves.

And use brokers with the smallest fees you can find...... Robinhood.com is a good start (MY Opinion)

Hey, interesting thread but not everyone is complaining. Most people have very little market knowledge so are not likely to ever succeed. It is not even a question of asset they trade. All assets if they can be bought ir sold have profit potential. Currency is highly leveraged so to most people it is an easy way to lose money. I do agree equities have cleaner sense of value so they are easy to trade. I purchased some shares of Brazilian Sugar company called Cosan (CZZ). I bought at $2.83 in February round about anyway and it is $5.82 now, I am not sitting in Millions but I am already on some people's several months salary but that said you require a lot more capital as there is no leverage. As a stock investor I look primarily for value and yes I do absolute valuation modelling.

Also on the FX front I have some good trades, I tend to have a medium to long-term view on currency and I make use of all market information to my advantage before making decisions, so again it is all down to ones level of professionalism. I run a trading business as well as trade, so my life is trading. I have no job and very few interests with the exception of real estate, my second love. You won't hear me moaning. The markets are the last free frontier in capitalism.

Splitlink · Jun 6, 2016

rathcoole_exile said:
why let it get to you ? It's got nothing to do with you, so why worry ?

so in the 90s you would have been heavily invested in Kodak ?
That must have worked out well for you

Kodak? In the 90's?

Digital cameras were, and still are, in. Ektachrome was out.

Nevertheless, I do agree with you about getting tired of other traders troubles.

Its a question of "Don't tell me your problems and I won't tell you mine"

barjon · Jun 6, 2016

All trading is simple until you come to do it. The quaint "watch price fall until it levels out or starts to rise again" type comment is so simply said - now try finding that point to buy back in real time.

thecrazymr · Jun 6, 2016

barjon said:
All trading is simple until you come to do it. The quaint "watch price fall until it levels out or starts to rise again" type comment is so simply said - now try finding that point to buy back in real time.

For me, that is the easy part..... Once I sell, I am looking for between 0.25% and 1% drop in price..... once I have my minimum, I prepare my buy order, and quickly purchase if the stock and the market together begin a turn....

Most people want max value and wait for extra here or extra there as they are afraid they will miss getting a better price. I have a strong belief in what I do and it is serving me well so it is easy for me to take the small price change and get back in..... I firmly believe that it is better to be invested and miss getting a lower price than to not be invested and watch the stock take off. I can always trade again once the trade settles.....

Greed kills and knowing about what you can achieve from a trade will help stop getting greedy..... And just like those that buy to sell later..... If the market quickly changes course, you cut your losses early so they don't compound. If the market shifts after I sell, I will buy back and accept the rise in price difference as the cost of a small mistake...... everyone has those trades.

And I use a line chart, not bar or candlestick.... I find that it better shows me a smooth transaction in the course of the stock.... When you have too much information such as a candlestick provides, you overthink a trade and it makes it more difficult to focus on a trending pattern..... It's a simple chart for a simple style of trading.

dunitatlsatrodney · Jun 6, 2016

How long have you been coining it this way mr?

thecrazymr · Jun 6, 2016

rathcoole_exile said:
Johnson and Johnson - you don't think the cancer scare caused by the talc powder scandal will have any long-lasting impact ?

Coke - eventually, maybe 5, maybe 10 years, the sheeple are going to wake up to the reality of the damage that that toxic brew does to them
I wouldn't put a penny towards any soda company, sugary foods, fast foods etc in the long term.
It won't be immediate, but the sheeple will eventually wake up

First, Johnson and Johnson is a well diversified company with there fingers in enough products of variety. They have the ability to weather many different types of issues.... And, the way I trade stock, a scare to a company will dip the price and I trade those dips.... I sell when a stock is falling but with the intent to buy it back at lower prices and for more shares. So when a scare passes, I have more shares to ride the price back up..... I believe this company will be around for a very long time and have no problem owning stock in it.

Second, Coke does not just produce sugary beverages. Just like all other soft drink companies, they are constantly looking into less sugar drinks, less calorie drinks, and oh yeah, Dasani bottled water for those that don't drink soda..... Soda is a product that will be around until I am no longer around so I feel a company that feeds an addiction like soft drinks do will weather any issues for my investing lifetime. Coke, is the largest company of this kind and has market around the world, not just the US..... With the bottle water added to its mix, it provides for both sides of the isle as well.

thecrazymr · Jun 6, 2016

dunitatlsatrodney said:
How long have you been coining it this way mr?

I have been investing since 1992..... it took me several years to actually discover something that worked for me, by 1997 I realized how the fluctuations in price could be best utilized by me and began putting together a new outlook that led to my current Long Term Investing with Short Term Trading style of investing. By 2001, I began strictly using this style and it has done well for me.

In 2015 I discovered Robinhood.com and began trading on their platform, but with limited success because of the nature of their accounts. Now in 2016 I believe I will have more success with their new Instant Accounts...... My other broker is Scottrade..... I know there are cheaper brokers, but that's where I started investing and so I just remained.....

I only make 1 trade per week at the most for each stock that I own, the rest of the time my money just rides the waves of the market remaining fully invested.

thecrazymr · Jun 6, 2016

And for those wondering:
NO, I don't use leverage. I own a select group of stocks that I have faith in. I sell 100% of my shares in a company when the stock is falling and I always buy back 100% of the shares I sold when the price begins to rise. When possible, I buy back more shares than I sold. The only time I don't buy back everything I sell is once per year when I sell enough shares to cover the taxes on my gains for the year. However, I begin each new year with more shares in each company than I began the year prior.

This growth in shares is what I strictly focus on. As long as my shares are increasing, the market will take care of itself. And doing this without leverage (Buying Long, or Selling Short) allows me to ignore the market price as it relates to my portfolio. I only need to focus on if there is a trading opportunity that will grow my holdings.

Quit losing money

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