Quote from txuk:
Jack, I've read prior posts in which you mention trading equities over the phone. I assumed you traded this way because it was what you were accustomed to, and because you traded in large size and received special service from the broker.
But in this case, why do you suggest Pashaz is better off with full-service & phone as opposed to a discount broker, trading electronically? My impression is that the phone is more expensive and it takes away visibility of the transaction.
Because he is at work and just starting out.
Timing the market to make 10% on a natural cyclic move is not a big part of making money for beginners.
The stocks that are there to play will easily give a person 10% out of the 20 to 40% swings that will show up on the lists.
As a person gets to making a hot list from the stocks that will show up for him, he sees that 10% profit on a trade begins after the breakout and ends before the peak.
He is just taking a chunk out of the middle of the run up as a beginning effort while he works full time. This is not a monitoring scenario.
To learn to become rich in a short time starting from scratch only involves learning how to work with a very small portion of the market. The restrictive universe selection is the key to overcoming the most prevalent myth that it takes time to learn to make money.
It, in fact, does not take time to learn to make money. What a person has to understand to launch right from day one of his effort is the following:
1. Stocks can be sorted into a very small universe that has the following characteristics:
a. Quality according to their earnings and price performance.
b. Reliability which means the stocks do the expected without fail.
c. Repeatability which means the stocks do b over and voer and over.
So the thread owner has the ability to do these things from day one and it takes 5 seconds after the sorting device has been set up to the correct defaults.
He can do daily reviews of this properly arranged universe from day one as well. "Bulking" on clearstation tells him where a stock is, what is next and how fast it is changing.
from this there is no skill required to make up a list of "hot" stcks.
For him, he has no idea of what a hot stock is at first. So his list is just going to make money anyway from the start. There is almost no way a stock he puts on the list is going to not make money. It is just a crude and simple no fail type of list.
In the world of work etc, there is a thing called "tasking". "Tasking to make money is simply being prepared to make money. Most people think they have 15,000 stocks to choose from and that they need to pick the right ones from the 15,000 by doing it themselves. Read the posts here and see how most of these people screw it up over and over.
Today, machines do the sorting. Machines tell you when a stock is getting ready to breakout. It is that simple.
I read a lot of posts here that are written by dummies to get a view of their plight and stupidity. I think about what could possibly "fix" what is busted for them.
Think about how hard it is to determine when a stock is going to break out. I use fifth to seventh graders to figure out how people have the capability to make money.
When I sit for an hour with a class, I listen to thier solutions for figuring out when a stock is going to breakout. They know stocks go up and down. They can read the WSJ and/or IBD quite well. They can do the math too.
For some reason they focus on what is going on. They perceive that a person has to know what is going on before a stock breaks out. They break the cycle up into parts.
Peaking is the first thing they get straight. Breakouts come next.
How to make money comes next.
Skipping to the point, they do come to the conclusion that it all works the same over and over and then they figure out how to figure out what is next.
when do you think they get around to figurung out how to look at the cycle in reverse time? LOL.......
there is a kid squirming in the seat almost immediately who says "lets do it backwards".
What is backwards from the peak? What is backwards from the break out? What is backwards from it happens over and over?
The AHA and the religious experience for them is only one answer. Only one.
there is no change in the answer to going backwards from the over and over thing. It just keeps. "over and overing...LOL.
The Joseph Campbell answer prevails for the peaking. The myth of the little engine that could comes up. they do not go back from the peak facing backwards. They go down from the peak and chug back up top the peak from further and further back.
The look back from the breakout is where they focus with greatest interest. The three most closely resembling Tony Robbins in their uniforms (I am a private school advocate since kids only go through school once) are definitely wanting to huddle and preach about it.
Why do they do this?
They figured out if you know what is going on before the break out, then you are there watching as the breakout occurs.
They know that the breakout is where you begin to make money and take the little engine that could ride.
There is no way you can keep a group of kids away from the black board as they tell you what happens before breakout.
Do you know what happens after the kids go home and tell their parents what they "learned" today.
For some it is like going to ET and finding nononsense type B people. for others it is like the kid and the parent have something to talk about at long last. for others it is going to be who get the IBD or WSJ first.
ask your kid how to know when a breakout is coming up.
