what is so difficult about stock trading?

Dear Summer

Golden Member
Sep 30, 2008
1,015
1
71
let's assume you have $10000 to invest
conduct due diligence and fundamental research
analyze the graphs, numerical data, daily range, read equity research reports, etc.
you easily locate a low value stock (especially now). For example, a share priced at $6 that you know will move up based on your research
you purchase 1666 shares
set a sell limit at $8 which is realistic and easily attainable based on the data you have researched
in a matter of days, you have made over 3k

 

TwiceOver

Lifer
Dec 20, 2002
13,544
44
91
The hard part is all the little chunks of cash that everyone takes out when you make trades.
 

mundane

Diamond Member
Jun 7, 2002
5,603
8
81
Exactly. You're guaranteed 30% returns in a 'matter of days'. No risk involved.
 
S

SlitheryDee

Probably nothing. I have no idea though, just life experiences that tell me that very few things that appear outwardly complicated really are once you get into them.
 

nickbits

Diamond Member
Mar 10, 2008
4,122
1
81
Well let's say you bought $10,000 of any stock around the middle of last year. You probably would have < $6,000 today regardless of the stock you picked.

Plus any info you can research is probably already priced into the stock.

 

randay

Lifer
May 30, 2006
11,018
216
106
yup, i made over a billion dollars this way. absolutely no risk involved. i dont know why people think its so hard to do.
 

iGas

Diamond Member
Feb 7, 2009
6,240
1
0
Originally posted by: nickbits
Well let's say you bought $10,000 of any stock around the middle of last year. You probably would have < $6,000 today regardless of the stock you picked.

Plus any info you can research is probably already priced into the stock.
I'm still down 30% from last year.
 

SSSnail

Lifer
Nov 29, 2006
17,458
83
86
Oh, trading stocks is easy, as a matter of fact I'm writing a book about it. Actually here's the content of the book "Buy low, sell high", just send me the money to my paypal account for all that wisdom.
 

dullard

Elite Member
May 21, 2001
26,048
4,695
126
Originally posted by: Dear Summer
For example, a share priced at $6 that you know will move up based on your research.
I bolded the difficult part.

People KNEW that Enron was making money hand over fist. So they KNEW its stock was going up.

People KNEW that Lehman Brothers was a massive company doing sound financial work. They KNEW its stock was going up.

It doesn't matter how much work you do looking into the buisness plan, the products/services, the value, etc. One stupid management screwup or economy downturn or misleading report can destroy your whole research. And you'll never know it. That is, until you lost a lot of money.
 

Balt

Lifer
Mar 12, 2000
12,673
482
126
You are dealing with imperfect information.

You are dealing with economic forces outside of your control.

You are dealing with the whims of irrational people.

That about sums it up.
 

JS80

Lifer
Oct 24, 2005
26,271
7
81
Are you kidding? You are competing in a rigged market against Goldman, you will get your ass handed. And don't confusing "trading" with "investing."
 

Mo0o

Lifer
Jul 31, 2001
24,227
3
76
"The best way to end up with a small fortune by day trading is to start with a large fortune"
 

mugs

Lifer
Apr 29, 2003
48,920
46
91
Originally posted by: Dear Summer
let's assume you have $10000 to invest
conduct due diligence and fundamental research
analyze the graphs, numerical data, daily range, read equity research reports, etc.
you easily locate a low value stock (especially now). For example, a share priced at $6 that you know will move up based on your research
you purchase 1666 shares
set a sell limit at $8 which is realistic and easily attainable based on the data you have researched
in a matter of days, you have made over 3k

Name one stock that will go up 33% in the next few days. I'll come back next week to see how you did.
 

Miramonti

Lifer
Aug 26, 2000
28,653
100
106
Originally posted by: Dear Summer
let's assume you have $10000 to invest
conduct due diligence and fundamental research
analyze the graphs, numerical data, daily range, read equity research reports, etc.
you easily locate a low value stock (especially now). For example, a share priced at $6 that you know will move up based on your research
you purchase 1666 shares
set a sell limit at $8 which is realistic and easily attainable based on the data you have researched
in a matter of days, you have made over 3k
When you play poker, do you always go 'all in' on each hand as well?
 
Oct 20, 2005
10,978
44
91
Originally posted by: Dear Summer
let's assume you have $10000 to invest
conduct due diligence and fundamental research
analyze the graphs, numerical data, daily range, read equity research reports, etc.
you easily locate a low value stock (especially now). For example, a share priced at $6 that you know will move up based on your research

you purchase 1666 shares
set a sell limit at $8 which is realistic and easily attainable based on the data you have researched
in a matter of days, you have made over 3k

What's so difficult? See bolded.
 

Descartes

Lifer
Oct 10, 1999
13,968
2
0
Originally posted by: Schfifty Five
Originally posted by: Dear Summer
let's assume you have $10000 to invest
conduct due diligence and fundamental research
analyze the graphs, numerical data, daily range, read equity research reports, etc.
you easily locate a low value stock (especially now). For example, a share priced at $6 that you know will move up based on your research

you purchase 1666 shares
set a sell limit at $8 which is realistic and easily attainable based on the data you have researched
in a matter of days, you have made over 3k

What's so difficult? See bolded.

It reminds me of some of the stock threads where people literally and honestly replied with things like: "What's so difficult? Just buy low and sell high."

 

darkxshade

Lifer
Mar 31, 2001
13,749
6
81
Originally posted by: mugs
Originally posted by: Dear Summer
let's assume you have $10000 to invest
conduct due diligence and fundamental research
analyze the graphs, numerical data, daily range, read equity research reports, etc.
you easily locate a low value stock (especially now). For example, a share priced at $6 that you know will move up based on your research
you purchase 1666 shares
set a sell limit at $8 which is realistic and easily attainable based on the data you have researched
in a matter of days, you have made over 3k

Name one stock that will go up 33% in the next few days. I'll come back next week to see how you did.

I'll do you one better, I'll give you several winning horses that pays more than double as soon as I find the misplaced sports alamanic I obtained during my time travel to the future.