Any other stock traders here?

Discussion in 'Indie Related Chat' started by cliffski, Jun 24, 2010.

  1. cliffski

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    I occasionally gamble my savings on the stock market, like the maniac that I am. Does anyone else paddle in the markets?
    I know it might seem a crazy time to do it, but I have (over the last 24 months) made a better return than the best bank rates, plus it's fun.
    As geeks who sit in front of PCs all day, we are well placed to be day traders. Anyone else having a go? Any tips?
     
  2. ionside

    ionside New Member

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    I was into it last year and the year before. Kept to the long trades, mostly in banks and mining (Australian trades). Sold too early in most of them, but never lost any money.

    I've stopped for the moment because I found watching the trade graphs were eating away at my productivity.
     
  3. Mac

    Mac New Member

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    Yep, doing the same thing.

    Unfortunately, daytrading is not allowed for me and there are some other restrictions you usually don't have. But hey, working for a bank has both, positive and negative aspects.

    Not many tips here. Just the regular stuff. Watch the market, keep up with the latest news, bet on solid, stable companies.
    Diversifikation of your portfolio is important. Avoid bulk risk.

    And never forget the two most basic rules:
    1. Never invest money you really need. Chances are that you loose everything.
    2. Small Risk = possible small profits, High Risk = possible high profits
     
  4. Roman Budzowski

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    I did invest heavily last year and made great money. Then I stopped, because it was eating a lot of my time and even with great returns I still made less than I would making games.

    Advices? Either buy and forget or buy and sell fast (with smaller buy safer returns).
     
  5. hippocoder

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    Lets jump in the tardis and go back to 1990 when apple was almost done for...
     
  6. Nexic

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    I had a brief go at it and made a 50% return within a few months. But was taking me away from game development, something that over a 10 year period is likely to make me far more wealthy than trading (even if I had a large starting investment). Plus, I don't think I have the guts to play with big numbers.

    Will probably invest again, but I'll probably go for longer term stuff that I won't need to manage so closely.
     
  7. cliffski

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    I have a stock ticker on google desktop which makes it easy to check my stuff, and invest in about 6 companies at a time.
    I did speculate a bit with commodities, Lead, Gold and so on (just re-bought gold recently).
    I would avoid leveraged commodity funds now, they are way too volatile for my heart.

    The reason I don't do better is I always want to have money *in* the market, meaning when there is a sudden short-term price drop, i don't have any funds available to buy, and end up kicking myself.
    I did deliberately buy some stuff just after the election, before the coalition was announced, then sold a few days later, and that was awesome :D
     
  8. richtaur

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    I'm probably just going to invest in a lifecycle or mutual fund because I'm way too lazy to be active with it. Definitely pretty cool nerd stuff tho, the numbers can be especially fun because it's real money :D
     
  9. Game Producer

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    Hmm, what stock traders stuff/software/sites/thing you guys use? (banks offer expensive stuff that will eat all the profits here in Finland :D)
     
  10. Grey Alien

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    Missed this thread. Yeah I'm dabbling too. I was using my bank (TD Canada Trust) but they were charging a whopping $30 a trade (and too much for currency conversion), so I ditched them and use Questrade who charge $5, much nicer and they have better web tools. I also track stocks on my iphone of course.

    I'm only using some savings that I was OK with treating as "gambling money" so nothing critical, but it does mean I can't buy many shares at a time. Still I've managed to get several double figure returns in a short period of time that makes leaving money in the bank look foolish. (Also I always seem to sell to early then kick myself.) However, the last few days of the US stock market bombing has pained me somewhat. The question is: panic and sell, or hold out hoping for recovery? Holding is tempting, the problem is um I used margin - so may have to bolster the account with more cash (feeding the slot machine).

    I've now realised that if I'd sold my house in Dec 2008 and put all the money on the stock market in March 2009, by now I would have been able to buy my house back with no mortgage. That sort of hindsight is kinda nuts. If it crashes again, I may do that.

    I read a great book by the way: The Intelligent Investor (recent version with notes by a modern expert). Check it out. Awesome.
     
  11. zoombapup

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    I'd say be VERY careful here. Its basically gambling and you have to ask yourself if you would gamble the same money in any other form?

    I used to trade while I was at Team17 becuase the owner of the company did that a lot and got me hooked. But unless youre on it 24/7 then youre likely to come acropper at some point.

    I made some pretty good profits out of a few trades, but also got crushed on a few. I came out about even or ahead maybe 5-10k, but the crushing defeats were really low. I lost about 45k on telecoms (still came out ahead on the overall trade, but could have made huge gains if I'd stay in longer).

    Seriously, its a gambling game and I really dont think its worth it. Will get you in the "city banker" mindset.
     
  12. Game Producer

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    That's bit same as saying:

    "If I had mortgaged my house, put all in RED instead of BLACK and I could have buy house back with no morgage" ;)
     
  13. Grey Alien

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    @Game Producer: I finally understood you were making a roulette analogy :) (at first I thought you meant red as in debt and black as in credit). Anyway, I disagree because many people in the know made fortunes when the stock market crashed because they invested heavily at the bottom (or rather, just after when signs of recovery showed). Sure there was some risk of total financial meltdown but there were many more RED slots on the roulette wheel.
     
  14. Escapee

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    Whenever and wherever you trade on stock market, You are going against
    Super Computer High Frequency Algorithmic Trading Owned by The Big Shots.

    The end result is
    Day-Traders Lose Big, Still Live in Denial: 77% of American Traders are “Losers” While 82% of Day-Traders in Taiwan-China Are Bigger “Losers”! :eek:

    and

    Goldman Sachs Group Inc.’s traders made money every single day of the first quarter, a feat the firm has never accomplished before.


    What is Flash Order

     
    #14 Escapee, Jul 2, 2010
    Last edited: Jul 2, 2010
  15. Escapee

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    I bet those people already had insider information when a particular event would occur (IE : Bailout package, disaster, etc) before they invested or sold heavily at the top and bottom respectively.

    One of the recent examples
    BP chief Tony Hayward sold shares weeks before oil spill

    Goldman Sachs sold more than half of its stock in troubled energy giant BP before the Gulf oil spill in April.

    Here is another shocker for those who admire the one and the only legendary valued investor.

    http://dailybail.com/home/did-warren-buffett-berkshire-sell-a-million-shares-of-moodys.html


    For peasants like us with no "connection" and no technological advantage, it's really no different than gambling. We're always left holding the last financial grenade that will explode anytime.

    At the moment, I have 0 $$ in stock market. However, if the market crashes heavily, I might consider gambling a little bit just for fun. :D
     
    #15 Escapee, Jul 2, 2010
    Last edited: Jul 2, 2010
  16. Roman Budzowski

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    I disagree. Sure, you can believe in what you wrote and don't make any money, but for those that know what they are doing, are not greed, it's not gambling. First of all don't be greedy, and don't try to beat the market. I followed this rules last year and make a lot of cash on the stocks. I followed just those 2 rules and my experience in the stock market last year was near 0.
     
  17. Escapee

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    This important rule is also applicable when gambling in Casino.
    Set a winning and losing target, don't try to beat the "house" or you lose your shirt. If you hit a massive jackpot by luck, GREAT! run away and never come back again.

    Personally, I have been "investing" in Physical Gold since 2007 when the price was low as crisis hedge, I make sure that the money i used to invest or speculate is not a big potion of my total saving so that when the investment turns sour due to unforeseen circumstance, I will not become the next bungee jumper without cord.
     
    #17 Escapee, Jul 2, 2010
    Last edited: Jul 2, 2010
  18. Roman Budzowski

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    I never played in Casino, so I might be wrong, but in Casino if you lose you lose all money you put on the table. In the stock market, if you lose, you lose just a part of it, depending on your mindset it can be 5%, 10%, 20% of investment. Of course if you're greedy or have "sunken costs" mindset you can lose it all.

    So no, it's not like gambling at all for me.
     
  19. cliffski

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    Its not gambling if you pay attention to stuff. I averaged 7% return ove the last 2 years.
    Granted, I used to work for a stock trading company in the city, but that gvies me no more real-time information now than anyone else.

    Currently I've got 8 different stocks. 7 equities in the UK, plus some gold as an ETF.
    Right now, I'm down slightly, but I recently bought and sold tate and lyle at a profit.
     
  20. zoombapup

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    Of course its gambling. The value can go down as well as up. Just because something looks secure doesnt make it that way. I'm sure people with shared in BP last year thought it wasnt much of a gamble.

    Its a bloody complex system and unless youre on it 24/7 its a bloody big gamble too. I know you CAN manage the risk, but then youre a trader and not a game maker ;)
     

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