Since I bought my combination of stocks, stock options, and eminis 9 trading days ago on the 2nd of August, my universal IB account is up 100%. My question is: My broker friend is saying that this is just the beginning. The markets will rise alot more. He hand fed me the exact stocks, options, and futures contracts to buy. Should I trust him and just hold on? He told me to "roll over" the stock options and buy next month's expiration. Or should I take half or all profits off the table? I want to become a trader, but at the same time, I see that buy and hold investors generally make more money than day traders (not floor traders). So, please take the poll and let me know your thoughts.
How do you figure? Even after you add all of the traders that lose money the ones who make money kill investors hands down. If you would have started "investing" 6 months ago you would probably de down 100%. Get some "balls" and learn to trade for your self. Who cares what your brokers says.
if your broker really knew what he was doing, he wouldn't be giving advice and he would be out here trading with the rest of us.
Buddy, you'll probably find this offensive...but read it anyway... if you rely on a BROKER (friend or not) to make your decisions, you are an absolute idiot, and deserve whatever you get. Your broker doesn't know anything about what the markets gonna do just by virtue of being a broker....stop kidding yourself dude..
Maybe so, maybe not. There is no correlation, as people from all groups get f^cked, and people from all groups make money. Most brokers are wrong almost all of the time. No offense, but statistically, your friend will most likely be wrong. Also, he really doesn't have any business telling you to trade options or futures, as it's apparent to me at least, that you're just starting to get your feet wet. Buy and hold for futures is a really, really bad idea - consider the 6-7% you're losing off the bat from margin interest, unless you've put up cash or bills. The economy is in the shitter, so I'd say take profits and learn more about trading before you get too confident and blow your whole wad with "buy and hold." If you want to buy and hold, put that money on a monthly basis into a good, proven, diversified fund (hint: avoid any funds that were started since 1996, when any jackass could start a fund and make some money). Also, don't ever buy options. From the start, odds are against you. Also, don't trade futures anymore until you know what they're about. Most people, but not all, find trading stocks easier. PAPER TRADE for a while, and get to learn the fact that you don't know anything yet. I don't know anything either - I'm not broke because I know that for a fact.
Just a guess, but I will stick my neck out and say this whole thread is a goof. It makes so little sense, I can't believe I am even responding. But I won't vote....that will be my way of "demonstrating". However, if on the remote chance that Permabull is serious, well, I would have to go along with all the rest saying it is ridiculous to listen to a broker. Or at least a broker that is making calls like he has described. I still think this has to be a joke. If Permabull is half as naive as he tries to come across, and the story is real, then the broker is guilty of soliciting unsuitable investments. The whole story does not add up!!!! RS7
most buy and hold investors didn't invest 6 months ago, or even 2 -3 years ago. buy and hold investors buy when P/E is low. The investors that bought during the bubble were more like traders in the sense that they jumped in because there was momentum, not because of solid investing criteria. Buy and hold investors bought before the bubble when P/E was low. you shouldn't equate buy and hold investors with people who buy and don't sell because they are greedy. Buy and hold investing has to do with finding deals and selling them when they are no longer deals. and whats wrong with listening to my broker friend? hell, he's made me and everyone of his clients rich in just two weeks. It would take me more than a lifetime to make 100% in a money market account. now I have the option of retiring early or investing in a career like daytrading. Maybe I will learn how to trade, but I don't think it's bad to listen to an expert, especially one who is a friend.
1. Really ? On what resources this conclusion is made ? 2. If Your friend is so good, You`ll be rich soon, then not to worry about the rest 3. There is something else between daytrading and "buy and hold"
permabull, Okay 100% what are we talking about here 5K, 50K, or 500K? You are very obviously impressed with this broker friend so lets here what you have made. Ya, I guess because PE ratios are low the market is guaranteed to go up. How could I forget.