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Trading

I really really don't want to start a discussion on stock-picking or day trading systems, but recently I've been reminiscing about the days a couple of years ago when everybody used to work with one eye on the stock ticker. Desperately bad for productivity, but it was the heady days of the boom when all you needed was a job title and a business plan.

Does anyone still do online trading while working?  Did anyone make any money out of it in the end?  Any other comments on the whole topic?

John
Tuesday, April 01, 2003

FWIW, I'm planning to get back into the stock market after a mid- to post-bubble hiatus. My philosophy will be what it's always been - buy into a company whose business you understand and have faith in, then hold.

And, of course, diversify...

Philo

Philo
Tuesday, April 01, 2003

Philo wrote:  "buy into a company whose business you understand and have faith in"

Sounds good in theory, but in practice it doesn't work any better than picking stocks by throwing darts at the financial pages.  See Burton Malkiel's book, "A Random Walk Down Wall Street".  Joel reviewed the book here:

http://www.joelonsoftware.com/navLinks/fog0000000262.html

Alex Chernavsky
Tuesday, April 01, 2003

Interestingly the company I work for expressly forbids trading stock from work.

Now at home...

Lou
Tuesday, April 01, 2003

Alex, an interesting rebuttal to the theory espoused in "A Walk Down Wall Street":

I would especially recommend reading the letters of Buffett to Berkshire Hathaway stock holders. Buffett in effect says to the Efficient Market theorists: "If you're so smart, how come I'm so rich?"

[grin]

Philo

Philo
Tuesday, April 01, 2003

>>>
I would especially recommend reading the letters of Buffett to Berkshire Hathaway stock holders. Buffett in effect says to the Efficient Market theorists: "If you're so smart, how come I'm so rich?"
<<<
Buffet is one person. Anecdotes say nothing about the validity of theories/concepts.

sgf
Tuesday, April 01, 2003

My job is to program software for day traders, so it's part of the job description to trade at work =).

daytrading
Tuesday, April 01, 2003

MSFT.  My one and only trading stock.  Latest trade was in @22.5, out @26.  The resistance levels are good for this stock, and it has plenty of good will going with it.  Pure trend line trading.

Also, I despise the company - yea verily, I loathe it.  So that makes it very easy not to "fall in love with the stock".  Exiting is very easy.  Also, I've never shorted it - even though I've been tempted to.  But it would be too hard to resist the short.

Next entry point appears to be 23, or 23.5 - depending on how quickly this latestest local fall takes.  I'm saying 23, and soon.  Set a stop at 22.

How to know in this last churn up (merely a 3 day hold) to sell @26? There is a ton of congestion last summer @26 (post split) which then led to a fall.  Also, another try up in late August which failed.  So there are lots of people holding the stock who are looking to sell @26 and break even.  Likewise more congestion @26 in Oct & Feb.  Definitely, 26 as a short term ceiling.

Nat Ersoz
Tuesday, April 01, 2003

O, BTW.  All buys/sells are set at home days before they hit.  I avoid looking at stocks at work.  I waste plenty of time here on JoS.

Nat Ersoz
Tuesday, April 01, 2003

I actually make more money trading than I do working.
The main reason I keep working is because I'm trying to accumulate brownie points in academia, in hopes of getting into a PhD program someday.

choppy
Tuesday, April 01, 2003

INFY, CTSh, MSFT, PLUM, DELL..... looks like i have a better chance of making money by getting a Royal Flush - than with Dell....

Prakash S
Tuesday, April 01, 2003

the key is to not only understand the company, but also understand the price.


Tuesday, April 01, 2003

I work for a small trading firm doing option arbitrage so I get to "trade" at work. Although, it's not like what some of you think it is. For the most part its all automated. As far as Buffet and the efficient market hypothesis, I have never come across an independent at home (or online) trader that has consistently beaten the market. I worked for a brokerage firm for a while and we had near 100% client blowout but the clients sure sounded like they knew what they were doing. They could give resistance/support levels, fundamentals, and perfect retroactive analysis.  And Buffet runs an insurance company and can influence company boards. He has access to priviledged information, an excellent network, and can withstand heavy loses until he's proven right. Also, he may just be lucky...you can flip a coin and get heads 10 times in a row, you know. 

bdw
Tuesday, April 01, 2003

Buffet made a lot of money buying & selling stocks, but it wasn't until he started buying & selling companies that he became obscenely wealthy.  Being able to control the company sometimes makes all the difference.


Tuesday, April 01, 2003

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