I heard the Murray show that buying and holding is a disaster. He said the Japanese market didn't reach back to the level it was 23 years ago. He also said the Great Depression reduced Dow from 350 to 45, and it took 25 years to get back to pre-depression level (1950s). So I am thinking, this stock market is bouncing up and down, maybe for the next 20 years before reaching 1999 level. I got some CSCO at over 100 dollars. To generate income, I need to trade this market, not hold it. Any advice where I should start with? Stocks, ETFs, or options and futures?
your individual retirement account will lose value when you start trading. dont be a dummy. get a regular account or a prop account and keep the retirement account separate
why do trust him so much? The market could easily go much higher also, especially with the printing presses running 24/7
I wonder how many poor souls blew up their only retirement savings thinking they could just come in here bright eyed and bushy tailed
Do yourself a favor and don't trade your retirement account. You will most probably lose most of it. Just buy treasury notes.
here is my opinion about US markets and why it will be different than Japan. Back in the day i was thinking same way(10+ years down market,similar to Japan scenario),but recent gvt actions and market reactions proved that i was wrong. Unless some one like Ron Paul is elected-markets will continue to go up,propped by US gvt. to satisfy WS and keep people like you happy,with their IRA accounts. http://www.elitetrader.com/vb/showthread.php?s=&threadid=241561&perpage=6&pagenumber=2
someone suggested asking a profitable trader to trade for me and split the profit. Anyone has an idea of how the profit is split? 20% or 30% of the profit for the trader? Hedge funds charge 20%.
If you find a "profitable trader" who's willing to take your offer of 20%-30% of the profit, you should start thinking about how to split losses. The comparison with hedge funds is apples and oranges.
I would seriously, seriously re-consider this approach for many reasons: 1) They have "ZERO" skin in the game when trading your account. This method basically just gives them an option on your account. Heads, they win and get some money. Tails, they lose nothing. Win-Win (for them). 2) Many IRA are restrictive on what you can trade 3) Do you have the expertise to identify a profitable trader? My advice is to take the (probably lengthy) time required to learn what you need to make your own decisions or else just stick the entire portfolio in a fairly diverse group of dividend paying stocks, re-invest those dividends, and let it sit until your retire.