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funtrader1

01/17/14 10:40 PM

#700 RE: cattracker1 #698

Cattracker,

Please keep in mind I am replying to your interests and at no time have I recommend any stock, I do not do that.

I offer my best research and thoughts based on my experience and knowledge and have fun doing it.

I have done corporate and personal taxes for 30+ years and there is one lesson you do not want to learn the hard way.

That is, day trading Large Cap stocks.

One client, which I still do their taxes, is a prime example.

The husband tolerates the wife's stock trades mainly because it was her inheritance from her father, $2.4 million.

Oh, and the husband and wife are well aware I tell this story otherwise I would not.

Her inheritance came from her father's stock portfolio that consisted of only 3 stocks. IBM, Microsoft and Coke.

He accumulated shares of all three while employed with IBM since 1974. He passed away in 2011.

He did exercise stock options with IBM which helped but he never sold a single share of his positions in any of the three. Of course, that is the extreme and not the best course of action.

Fast forward >>> now the husband's wife is day trading similar large cap stocks.

She will buy a stock for $96 on Mon, then panic and sell it for $93 on Wed. then buy it back again on Friday for $95.

And I am not talking a $1k trade, I am talking $100k trades every time.

Sound stupid, well it is, and that is exactly what I see every day.

There is no way to market time, even Warren Buffet never did that.

If long, Find a company with good fundamentals, fiscal policy and good management. Stick with it until the formula changes.

If day trading, buy on momentum, sell on news.

I don't buy short, that's like living on credit, I'm more of a debit person so I can't lose more than I have.

Option trading is another way to go, returns can be greater with less up front money.

I don't have enough experience to offer my thoughts so please don't even ask.

Have a good weekend!!