You daytrade because you have poor social skills?

i daytrade because i suffer from severe constipation. i have not been able to find another job where i could work sitting on the john.

can't comment on social skills because i stay in the bathroom a lot...
 
I don't day trade at all but I decided to make a remark on investing as "value converts" are being exceptionally naive. Buy and hold would have gotten you nothing for the last 10 years. Even Cramer admits that. In reality, when you have nothing (actually less than nothing if you take into account inflation) you need that much more in the future to catch up to your "promised 8% a year")
 
Quote from IShopAtPublix:

I would not be asking the question if I have not "thought about it"
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LOL



ahhh funny threads.


btw if what sort of traidng places have all these bimbos german trader???

cos fuk sitting at home all day doing this! id love to sit in an office doing it with load sof bimbos and people arojnd me for social life n sex! :p
 
Quote from IShopAtPublix:

Value Investing is a scam as is investing in general. As to why, let's consider what constitutes buying a (common) share in a company. When you buy a (common) share in a company you buy a infinitesimal stake with very little to no input into the actual management of a company and with no right to demand earnings or assets proportionate to your stake in the company. Yet to receive this "privilege" people pay several times the assets (book value) and earnings per share(value investor consider it a "bargain" when you pay less than 15 times earnings. Try using this methodology when purchasing a corner grocery store...). People debate why 15 times earnings is good here but bad there. Why not 13 times earnings? Why not 21? Or 40.5? There is no such thing as intrinsic value. Most everything is subjective. As an example, I believe Google is a glorified search engine, stock_trad3r believes google will rule the world in 10 years. It should be noted that Pundits frequently use next years or even 5 years from now projected earnings to justify price now. While I totally disagree with the premise of using future earnings to justify price NOW, why don't they DISCOUNT those earnings to present value?

Even when you talk about book value, you are talking about accounting terms. Assets could be illiquid or worthless.

From an economic point of view, whether you buy a share with 15 times earnings or 40 times earnings your purchase does not make sense. What you end up doing is buying something with the expectation that someone will buy it later at a higher price i.e speculation.

Wall St conveniently highlights achievements of the US stockmarket in the 20th century but it does not take a genius to realize it will not repeat. So this scam goes on by regular infusions of cash from 401(k) into mutual funds and foreigners.



I read "The intelligent investor" and it was book that did not impress me in the least(I also read Technical Analysis of Stock Trends by Edwards&Magee and while I was not awed I found its reasoning superior to the "intelligent investor") Several hundred pages devoted to telling me that I am better off "buying the market" and hoping!!! for an average result as a "defensive investor"

Phil Fisher the author of "Common Stocks and Uncommon Profits" believed that the best time to sell a stock was "never". Imagine how awesome it would be to buy GM in 1929 and hold it till now... Oh wait a second. Nobody can have such a long term acumen for strategic changes in technology and in the world. I bet even Albert Einstein could not foresee the internet, myspace and cell phones.

The morale of the story, don't act like you are an investor when you are not.

I personally believe that the markets don't measure reality but People's perception of reality I don't care about being "right", I don't care about intrinsic value. I don't pile into company earnings, GDP reports, unemployment reports, etc. I realize that there are many people who like to provide their often misguided opinion. There are way more of them and arguing with them is suicide. So I immerse myself in the charts. They to me provide objectivity.

Instead of "hoping" for 8% a year I go for a lot more, using the ideas of resistance/trends and overextension.


P.S I am attaching a mini broker statement for my GBP/JPY trades. Notice the timing of the second trade(compare it to a chart).
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While I agree with you 100%. I don't think you addressed exactly why value investing is such of a worthless endevor.

Let's first start with the bloated money supply, which overvalues all assets with artificial demand. P/E of the SP500 was 47 in 2000! So, this means that liquidity goes up, which is good for traders (since trends become smoother) while very bad for investors, since fundamentals under those conditions do not drive prices.

Also, value investing assumes that the market is very inefficient. Regardless of your stance on this highly controversal theory, it would be hard to argue that the market has not become more efficient. Just consider the access that everybody has to stock screeners and instant 24/7 news. It would be foolish to think that you know something that the insiders don't know. And when something does go wrong, they will know about it before you do and price-in that event with a lot of money, causing the stock to fall very sharply before you can get out.

You can take advantage of market inefficiencies such as bubbles. Shorting the NASDAQ in 2000 could technically be called a value investment. But otherwise, I think it is unlikely that you will find a badly beaten down stock that isn't cheap for a reason. Even if you find good stocks with low P/Es, it doesn't mean that they won't get sold off further with the general market.

And yes, intrinsic value is very subjective! However, there are periods when it does become possible (like now). Right now, price and value are very loosly tied. However, this is also the riskiest time to invest, as many companies will go belly up. Knowing which penny will make it back above $5 is more of a gamble than an art.

Unfortunately, the days of finding the next walmart are gone (at least for the next few decades). This means that speculating on small-caps will be riskier than ever, especially since these depend more on liquid credit than the large caps.

cgarcia, if you knew how manipulated this "value investing" games was you'd never play it. Better to simply buy the SPY to get exposure to a bull/bear market. For get value investing, it really is a sucker's game.
 
Interesting question about poor social skills.
Most of the answers are crude, rude and anti-social.

Point made.
 
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