Agreed.
To OP, never ever invest in anything you don't fully understand. Website you stated seems like the typical internet scam.
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higher return than stockmarket? (2 Viewers)
- Thread starter magpieftw
- Start date
To OP, never ever invest in anything you don't fully understand. Website you stated seems like the typical internet scam.
Year 9 commerce made you an expert?
I hope you weren't trying to insult me.
Your post serves no purpose other than start an argument.
You might not have anything better to do with your time, who am i to say.
It was private study that allowed me to gain knowledge about the sharemarket
such as subscribing to the Australian stock report and wise owl
also listening to the podcasts available on the asx websites
And many other ways.
I actually started learning in the holidays before school started
If I now may ask you a question, can you read plain English
nowhere did i say i was an expert
p.s. Year 9 commerce and expert cannot be used in the same sentence, Unless you are describing that they cannot be used in the same sentence.
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Omnidragon
Devil
Hahaha the kid's getting angry
seremify007
Junior Member
Low amount of principal/initial capital.
Willing to accept significant risk and total loss of principal in exchange for potentially high returns.
... why not just go to the casino? At least you get free drinks whilst you're at it.
Willing to accept significant risk and total loss of principal in exchange for potentially high returns.
... why not just go to the casino? At least you get free drinks whilst you're at it.
Why so much sarcasm ? I honestly do not understand your motives.
You seem hell bent on trolling me
Thanks
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$5000 is the minimum. $10k is a good minimum.
The stockmarket can't be compared to a casino if we consider that the FOREX is more of a 'casino'...
If the stock market does indeed follow a random walk (http://en.wikipedia.org/wiki/Random_walk_hypothesis), then it is indeed impossible to use technical analysis (moving averages, bolinger bands etc) to guarantee positive yield from short-term swings. Trading tens of thousands of stocks frequently relative to small percentage points movements is then in essence gambling.
If by then the best we can do is to use a little fundamental analysis (macroeconomic indicators etc) to forecast stock prices, it's like skilled gambling.
The stock market is however different from the casino and regular gambling, in that over time the average stock appreciates, whereas your returns in the casino remain constant (and your expected returns are negative).
If by then the best we can do is to use a little fundamental analysis (macroeconomic indicators etc) to forecast stock prices, it's like skilled gambling.
The stock market is however different from the casino and regular gambling, in that over time the average stock appreciates, whereas your returns in the casino remain constant (and your expected returns are negative).
seremify007
Junior Member
As randoma s it may be, I still think it's possible to use technical analysis for the most part... it may not work 100% of the time (i.e. guaranteed) but I've come to realise that you can combine both technical with fundamentals to make money... but ultimately the easiest way is sheer volume.
ZAvenger
New Member
Funny you should mention "sheer volume" because well that is what hedge funds do.
Personally I think trading shares to make money is a real waste of time unless you have hedge fund / trader at an investment bank level funds and all day to watch the market and make trades.
The amount of professional and institutional traders in the market are like a sea, and all you really are as a small investor is a dingy. All you can do is ride the waves that all these other people make. By the time a share value is rising or dropping enough for you to trade it, the institutions have already made there money and are off to the next share.
So it is sort of like gambling, the odds are really just stacked against you. Shares are good if you really want to INVEST in a company.
Personally I think trading shares to make money is a real waste of time unless you have hedge fund / trader at an investment bank level funds and all day to watch the market and make trades.
The amount of professional and institutional traders in the market are like a sea, and all you really are as a small investor is a dingy. All you can do is ride the waves that all these other people make. By the time a share value is rising or dropping enough for you to trade it, the institutions have already made there money and are off to the next share.
So it is sort of like gambling, the odds are really just stacked against you. Shares are good if you really want to INVEST in a company.
seremify007
Junior Member
But that's why technical analysis can work to your advantage.. you are as you put it, riding the waves.
Does anybody actually believe in the Random Walk Hypothesis, or for that matter, the EMH anymore? They seem more riddled with holes than Swiss cheese.
I do believe that there are trading systems out there with an edge, or with a positive expected return over time. Look at how many quantitative hedge funds that exist and the returns they generate. To use your analogy, it would be akin to playing blackjack but using card counting strategies. The best part of it is that there is no house to kick you out.
On the topic of gambling, leveraging 400x on forex trades is the best way to go for $500. Either you lose it all or you make like $2000 overnight with the markets in their current state.
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Tim035
Member
- Joined
- Oct 15, 2005
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- 857
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- HSC
- 2006
Managed funds are doing it rough atm, I have hedged index fund with Vanguard that's doing mildly better than just my online high interest bank account.
The simple way to look at it is there are a huge number of extremely intelligent, highly knowledgeable fund managers out there. But by the law of average, even among the best and brightest 50% must be above and 50% must be below the average, factor in then management expenses and capital gains tax and your chances of picking a fund, holding on to a portfolio or even worse, actively trading stocks to beat a market index are about 10-15% at best.
The simple way to look at it is there are a huge number of extremely intelligent, highly knowledgeable fund managers out there. But by the law of average, even among the best and brightest 50% must be above and 50% must be below the average, factor in then management expenses and capital gains tax and your chances of picking a fund, holding on to a portfolio or even worse, actively trading stocks to beat a market index are about 10-15% at best.