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.
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.
Philo wrote: "buy into a company whose business you understand and have faith in"
Interestingly the company I work for expressly forbids trading stock from work.
Alex, an interesting rebuttal to the theory espoused in "A Walk Down Wall Street":
My job is to program software for day traders, so it's part of the job description to trade at work =).
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.
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.
I actually make more money trading than I do working.
INFY, CTSh, MSFT, PLUM, DELL..... looks like i have a better chance of making money by getting a Royal Flush - than with Dell....
the key is to not only understand the company, but also understand the price.
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.
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.
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