Discussion in 'Professional Trading' started by totalrook, Dec 8, 2005.

  1. totalrook



    Is there any way for Joe Couch Potato to have the most simplified, 8 year old's version of short term stocks? I'm trying a fantasy stock simulation game, but, I have NO BASIS for knowing what to buy and when to sell. Also, it is not realistic as it is an extremely short-term game where you are usually trying to sell what you have every 1-3 days.

    Mainly, I want a very basic concept of how to follow stocks. As it is, I just buy major, dependable NASDAQ stocks that have been down/losing and that's my only strategy. And the game itself is not realistic so I can't get simple advice for a game where most people don't do a lot of day trading on NY stock exchange?

    At least with sports betting, I know what's going on even if I am not doing well. Is stock the same way? You just look at the last week, last month and try to pick a good stock that is down?

    Anyone know where I'm coming from?
  2. totalrook


    by pure chance I bought Goog yesterday and today it went up. But, now, should I sell it immediately, or wait a few days or weeks?
  3. rook, if anybody here had the answer to that question on a regular basis, they wouldn't be here, they'd be on some island paradise enjoying their $millions. To "win" at the trading game you either buy and hold for 20 years(no, buying dotcoms with PE's of 200 doesn't count), or you need to find some "edge" that allows you to make a profit buying and selling a stock. What that edge might be is up to the individual. It could be just about anything, really, as long as you have done some research into this "edge" and have a reasonable expectation that it will continue in the near future.
    Written another way, you need to find a technique or "style" where after considerable research, you can hopefully find something with a long-term "positive expectancy" profile? Just hope it continues!:p

  4. dac8555


    we have all been where your were at one time or another (except for me, i was born knowing everything).

    i think the best way to start is to buy a few books.

    I think most will agree that 2 of the books that got most of us "hooked" and wanting to learn more are

    1. MArket wizards-jack schwagger
    2. The new market wizards-Also Jack schwagger.

    they are interviews with some of the best traders that have ever lived. you cant put them down. I always have a copy in my car. I was literally reading those books while my wife was in labor.

    they dont really teach trading techniques(well maybe a little...that is where i learned about CAN SLIM), but they have good tips, and they definately whet the appetite to want to learn more.

  5. I think most would agree this is a bad strategy especially for short term trading. I think the saying goes "Dont try to catch a falling knife" I had a buddy who blew up using this was back when lucent was trading at 60 a share in july sept 2000 it dropped to 40 so he bought as much as he could of it. The next month it hit a low of 20. The month after that it hit a low of 15 and the month after that a low of 12. Most investors say "Buy low, sell high" but as traders we say "buy high, sell higher!" Your brain will fight this concept at first, but you will see its right more often than buying a falling stock.

    I agree with dac, you should read some books on trading because the market is an expensive teacher. Go to and just type in trading and tons of good books will come up.

    Good luck

  6. I thought I was a workaholic.....but I think that takes the cake right there. You must be one hell of a multi-tasker!
  7. I'm not sure how people win stock trading simulation games but about year 2000 I watched some contests. The winners bought huge quantities of penny stocks (maybe 10 cents a share) and if the price went up (say to 15 cents a share) they sold. It is likely not possible to trade such large quantities of low price stocks in real markets. My own buying can send prices up, and my own selling might send prices down. If you place some very large bets and win three times in a row you can run your starting capital up a lot and perhaps win the contest. The contestants would buy low and sell high, a good strategy for a contest but I do not trade that way with real money.
  8. ===============

    Noticed my profits in GOOG getting smaller;
    not a good sign, noticed the highs getting smaller,
    gap ups getting smaller, dont want to be on $24 dollar or more drop.

    May very well uptrend some more;
    but stopped trading it myself, for a season ,
    better uptrends around for sure:cool:
  9. This may not work for a couch potatoe, as mentioned;
    but an 8 year old kid could grasp it.

    On a slowing trend [rate of % increase];
    one can snug up a trailing stop just a little bit,
    if the trend is still very good,
    you will still be in, profits swing up.

    If a small snug up trailing [tighten] stop gets hit , well that was a good time to get out anyway.:cool: