NA Stock technique

[RyanB]

Yeah day trading I agree with you but not sure what sort of news will pop the bubble for a while. Probably some idiots going to war somewhere.

The Fed meeting next week could possibly make an impact, we'll see. But I just can't see how it can keep adding 100+ points a day without a sell off.

 

[JoseCuervo]

I wasn't holding any long term investment funds, just short term stocks, I took the gains I made, so actually it didn't hurt me to make these moves.There's always another day.

What are short term stocks?

If you're in it for the long term, I think you're making the right choice by leaving it alone.

For me, who has mostly been doing day trading, I didn't see the risk in hanging on to them. The trading history over the past month has without a doubt been abnormal and a sell off has to be in the near future. I'll be surprised if it isn't. In the short term, it just wasn't worth it to me.

If you are not investing for the long term, what time-horizon are you investing for?

The last 8 years (also known as the Obama administration) has been very easy to make money, without doing much trading. And, the last 4 weeks, since Trump was elected, has been even easier. Unless you were amazing day trading, you have left a ton of money on the table by not investing long term.

 

[JoseCuervo]

Stocks that I only intend to hold for short term.

What are the characteristics of those? I always thought equity was a perpetual (long term) interest in a company, so the mis-match of buying a long term interest for a short term doesn't seem clear.

 

[RyanB]

What are the characteristics of those?

A stock held for more than 1 year is considered a long term investment by the IRS. Stocks for a few days to a few months are short term.

If you are not investing for the long term, what time-horizon are you investing for?

Depends on the stock, sometimes I am in for the long term, more than often I'm just in for a few days.

 

[JoseCuervo]

A stock held for more than 1 year is considered a long term investment by the IRS. Stocks for a few days to a few months are short term.

Those are actually the same shares. They have the same claims to the company's earnings and assets, independent of IRS regulations.

Depends on the stock, sometimes I am in for the long term, more than often I'm just in for a few days.

Do you find you get superior returns over a longer term investment strategy?

 

[RyanB]

Those are actually the same shares. They have the same claims to the company's earnings and assets, independent of IRS regulations.




Do you find you get superior returns over a longer term investment strategy?

ST and LT are not the same bud. Uncle Sam taxes you differently based upon how long you held them.

Returns totally depend on the individual stock and the condition of the market. I've done well both ways.

 

[JoseCuervo]

ST and LT are not the same bud. Uncle Sam taxes you differently based upon how long you held them.

Returns totally depend on the individual stock and the condition of the market. I've done well both ways.

They are the same shares, there are not "ST and LT" shares. They both are a perpetual claim to the company's earnings and assets.

 

[RyanB]

They are the same shares, there are not "ST and LT" shares. They both are a perpetual claim to the company's earnings and assets.

I understand that. Seemed like you were stating that ST and LT investments were the same.

 

[Let'sgoflying!]

UAL
You had to be very fast to catch that one.
Plus it only changed by $2 so you'd have to buy a bunch of it.

 

[asicer]

UAL
You had to be very fast to catch that one.
Plus it only changed by $2 so you'd have to buy a bunch of it.

If you are trying to take advantage of a small and fast movement then buying the stock is the wrong way to go. Options and contracts are where you want to be.

 

[coloradobluesky]

Short term trading suffers a 20% disadvantage due to spreads (if do a buy and sell every day). That kills the odds of making a profit.

 

[FastEddieB]

Plus gains taxed at the higher short term capital gains rate.