The stock market always goes up, over many years. I have a question about that.

[postman]

If you want to really out perform indexes, find out which companies are going to be pushed out because they dont meet the criteria and sell them BEFORE they go. Conversely, its not difficult to work out whic companies will be included in the next review and buy them BEFORE they are put into the index.
Why?
Because tracker funds (and there are LOTS) buy shares that are in the index and sell shares that are not in the index. Front run them!

 

[foroom lluzers]

Ok. You're speaking in a bunch of riddles, but I mostly understand what you're saying. Like I say, I will do the research myself and come to my own conclusions. If I am in any reasonable doubt, I will not risk any money.

You're right, I'm not expecting anyone to reveal any big money-making secrets here. It was just a question I wanted some clarification on.

You really believe , in a blind leading the blind scenario , that these geniuses know everything.

 

[postman]

You really believe , in a blind leading the blind scenario , that these geniuses know everything.

Thomas Edison, Stephen Hawking, Albert Einstein - these geniuses were brimming with confidence.

 

[Xylitol]

It's a well known strategy, and reinvesting dividends is worth considering. There are a few things to bear in mind though.
1) If you tried this with a spreadbet firm for example, you don't actually own shares, so your broker could go bankrupt and you might lose your money.
2) If you bought at a bad time, say 2007 before the fall, 10 years later you would have a return of about 50%, which is ~4.6% per year. That's ok, but how does it compare with other investments (a house, bonds). It's not enough to live off either, unless you are investing a lot of capital.
3) Just looking at the price doesn't take into account inflation. What is 4.6% a year when it has been adjusted for inflation? Here's an inflation adjusted chart


http://www.multpl.com/inflation-adjusted-s-p-500

looking at this, if you bought the high between 1900-1910, 45 years later you're down almost 50% adjusted for inflation. 80 years later you're not far ahead of breakeven.

Thanks for taking the time to give a detailed reply. I can't respond properly to this, because I don't have enough knowledge on stocks. I will do research to confirm whether what you say is true or not.

A serious question deserving a serious answer.

Generally people dont have £100,000 to invest for 30 years (it means they are 20 something and are in debt). So you have to buy shares in small amounts, this means you pay large fees to brokers who dont really want your small business and this eats into any future profit.

An alternative is to buy a tracker fund with low fees and make sure they re invest the dividends. Or as an added bonus if you really want to do it yourself, only buy the 60 or so shares that make up 90% of the value of the ftse and you will save on some fees.

If you want to really out perform indexes, find out which companies are going to be pushed out because they dont meet the criteria and sell them BEFORE they go. Conversely, its not difficult to work out whic companies will be included in the next review and buy them BEFORE they are put into the index.
Why?
Because tracker funds (and there are LOTS) buy shares that are in the index and sell shares that are not in the index. Front run them!

Thanks for the serious answer. Again, I will do my research.

 

[Xylitol]

You really believe , in a blind leading the blind scenario , that these geniuses know everything.

Yes I still do believe in that. Which is why I'm going to do extensive research to determine whether what some posters in here say is correct, or whether they're chatting a load of rubbish.

By the way, if that image was a backhanded compliment of my intelligence, then thank you. I am clearly having doubts, which = intelligent, according to your image.

 

[lexcorp]

Not necessarily exactly the same, but it reminded me of this old thread from the infamous Spanish89

http://www.trade2win.com/boards/indices/32629-trading-ftse-1-per-pip-3000-pip-stoploss.html

But some of the replies might help you in relation to your own situation and questions/research

 

[darktone]

Yes I still do believe in that. Which is why I'm going to do extensive research to determine whether what some posters in here say is correct, or whether they're chatting a load of rubbish.

By the way, if that image was a backhanded compliment of my intelligence, then thank you. I am clearly having doubts, which = intelligent, according to your image.

Could be your undoing mind, wana be careful o them pesky beliefs

But anyways, you a smart cookie, I reckon youll take the right path

 

[Xylitol]

.

So you think I will be a victim of confirmation bias? You're right, I could well be. But I will try my best not to be.


Anyway, how old are you by the way? I'm guessing at least in your 30's, if not older than that. Your posts are extremely immature. Take your bitterness and condescending attitude elsewhere. Just because you couldn't make any money at trading, you take out your anger on an internet forum. How utterly pathetic.

 

[Xylitol]

Not necessarily exactly the same, but it reminded me of this old thread from the infamous Spanish89

http://www.trade2win.com/boards/indices/32629-trading-ftse-1-per-pip-3000-pip-stoploss.html

But some of the replies might help you in relation to your own situation and questions/research

Interesting. Did he fail? I'm guessing he did.

 

[postman]

... you take out your anger on an internet forum. ....

Errm I may have misunderstood, but from my experience thats what ALL internet forums are for. Aren't they?

 

[foroom lluzers]

So you think I will be a victim of confirmation bias? You're right, I could well be. But I will try my best not to be.


Anyway, how old are you by the way? I'm guessing at least in your 30's, if not older than that. Your posts are extremely immature. Take your bitterness and condescending attitude elsewhere. Just because you couldn't make any money at trading, you take out your anger on an internet forum. How utterly pathetic.

Please don't increase the size of his posts , he is seeking attention with bigger posts.Don't know if it is from the jolly rangers .

 

[postman]

Please don't increase the size of his posts , he is seeking attention with bigger posts.Don't know if it is from the jolly rangers .

 

[Xylitol]

Errm I may have misunderstood, but from my experience thats what ALL internet forums are for. Aren't they?

Maybe. I just found it annoying after a few posts. I could tell he was a bitter, angry, condescending a*sehole from his first reply in this thread, although I responded politely. I have no time for idiots like him.

Please don't increase the size of his posts , he is seeking attention with bigger posts.Don't know if it is from the jolly rangers .

You're right. I have replaced his quotes with a "." instead. People like him don't deserve to have their entire message quoted.

 

[darktone]

So you think I will be a victim of confirmation bias? You're right, I could well be. But I will try my best not to be.
Anyway, how old are you by the way? I'm guessing at least in your 30's, if not older than that. Your posts are extremely immature. Take your bitterness and condescending attitude elsewhere. Just because you couldn't make any money at trading, you take out your anger on an internet forum. How utterly pathetic.

Are you sure about all o that? Do you think you might possibly be wrong on a few points? After reading your blind leading the blind thread I thought to myself now theres a bloke who needs some help, so here I am, to help, you just dont know it yet .

 

[darktone]

If I was id be ramping it up to 20+ posts a day like the pros do

 

[postman]

If I was id be ramping it up to 20+ posts a day like the pros do

I'm glad someone recognises I'm a pro! :clap:

 

[darktone]

Maybe. I just found it annoying after a few posts. I could tell he was a bitter, angry, condescending a*sehole from his first reply in this thread, although I responded politely. I have no time for idiots like him. :lol

Condescending a*sehole eh, hmm sometimes, but usually, only to condescending a*seholes

A quick tip:- If this exchange has ya heckles up, you might do well give the old trading a miss until youve got your emotional intelligence up a notch or two. Next to what you can do to yourself, this is nada, nothing, zero.

 

[darktone]

I'm glad someone recognises I'm a pro! :clap:

All day every day

 

[darktone]

I think this threads going quite well. Im feeling were really starting to make progress

 

[darktone]

BrB bro, I goto pop out for few