Bubble Investing

[Pathus]

Haha I am going to wait and see.. I'm gonna look for the hype and some action and then get in on it.

No skill required. You just have to have discipline! Returns of 10,000% a year guaranteed! Buy my book!

 

[ig0r]

Quote from Midas:

re:
Do you have any guesses as to the next bubbles before they happen, or will you just wait and see.


Your guess is as good as mine....

Energy? Maybe soft commodities. Both of these sparked by perhaps uncontrollable future growth of chinese economy.

 

[cakulev]

Quote from Pathus:

Google was hyped beyond belief from the very start... should have went ahead and bought regardless of the value. Who the fuck cares?

I am sick of everything I am learning about using the past to determine the future or "value investing". Nobody knows what is going to happen. Nobody buys rationally.. everybody today just wants a quick profit. You have to be smarter than everybody else and profit from all of the stupidity.

Grab onto the high fliers and then use some damn control and take profits at least to cover the basis and then ride along for awhile. I see no point in putting in so much hard work researching. Look at Enron and Worldcomm... who the hell could have known they were gonna go down so damn fast?

The problem with bubbles is they like to burst. So you have to use some stop losses. But the trick is the stop needs to be wide enough to withstand its large volatility (most of the people knows it’s a bubble so there will be lot of fake crashes).
So if this is not carefully calculated you may be either whipsawed too many times, or lost more than you started due to the large stop. Either way, no free money unless you have some other edge other than buying bubbles.

 

[Pathus]

No free money? FREE MONEY IS OUT THERE. look at google.
106 bucks to 290

do you think anybody who bought the stock has an edge?

 

[Midas]

Making money speculating (in any market) is really not as hard as many people make it...

I follow these rules and it keeps me ahead of the game:

1) Don't pick tops (or bottoms)

2) Limit your down side risk (keep a good risk to reward ratio ALWAYS)

3) Don't be greedy

4) Base hits win more games than home runs

5) Keep it simple

 

[Midas]

re:
"Haha I am going to wait and see.. I'm gonna look for the hype and some action and then get in on it.

No skill required. You just have to have discipline! Returns of 10,000% a year guaranteed! Buy my book!"




Don't knock it..... There is alot of money to be made selling picks and shovels to any modern day gold rush. Including books, seminars, software, etc.

Just look infomercial mogul Carlten Sheets, Suzy Ormond, or the "Rich Dad Poor Dad" Guy.


Now that is easy money with limited downside risk!

 

[Pathus]

Thats .10,000% a year.

 

[Ikspec]

Quote from Pathus:

Google was hyped beyond belief from the very start... should have went ahead and bought regardless of the value. Who the fuck cares?

Hyped? The deal price on it got lowered and all everyone kept talking about was all the problems with the IPO and how it was a mess and how the stock was pricing too high. I don't call that hype. What do you call hype?

 

[Longhorns]

Quote from Pathus:

No free money? FREE MONEY IS OUT THERE. look at google.
106 bucks to 290

So how much "FREE MONEY" did you make on google?

 

[kut2k2]

Quote from Pathus:

Google was hyped beyond belief from the very start... should have went ahead and bought regardless of the value. Who the fuck cares?

I am sick of everything I am learning about using the past to determine the future or "value investing". ... Look at Enron and Worldcomm... who the hell could have known they were gonna go down so damn fast?

I've long been amused by people who advocate funnymentals as somehow inherently more rational than technical analysis. Both TA and FA are minefields, you just have to go with the few techniques that make the most sense and hope for the best.