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Alright, I'm young and interesting in investing small amounts of money for starters into stocks. I'm a novice at this sort of thing. Recommend me some great investment books. GO.

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Stocks return 8% per year.

I think when you get greedy and try to make 9% a year you risk losing much of your portfolio.

8 percent is a lot better than inflation and will make you a millionaire.

I am your average Joe Blow and really just stated the above because nobody really knows how to make money except for the people who are insiders.

Not true.

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Alright, I'm young and interesting in investing small amounts of money for starters into stocks. I'm a novice at this sort of thing. Recommend me some great investment books. GO.

Go to your public library. I'm sure they have some. You need to understand the markets, how to invest, how things work. It's not easy, not simple, and and not for everyone. But it can be quite lucrative.

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Stocks return 8% per year.

I think when you get greedy and try to make 9% a year you risk losing much of your portfolio.

8 percent is a lot better than inflation and will make you a millionaire.

I am your average Joe Blow and really just stated the above because nobody really knows how to make money except for the people who are insiders.

I'm somewhat sympathetic to building wealth vs. chasing performance view of investing....especially when done over the long run.

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Go to your public library. I'm sure they have some. You need to understand the markets, how to invest, how things work. It's not easy, not simple, and and not for everyone. But it can be quite lucrative.

....if you're willing to make the time investment. Lots of time IMO and even then success is not guaranteed.

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....if you're willing to make the time investment. Lots of time IMO and even then success is not guaranteed.

Agree.

When I was doing it full time it was 15-16 hour days, if not longer. The more time you invest the better your chances, and I like mine better than turning my money over to some guy I don't know with a pretty title.

Nothing in life is guaranteed.

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Reading the IBD message boards, some swear by the CAN-SLIM method developed by its founder......and at least as many swear AT CAN-SLIM. :P And for all those interested that acronym means:

C - Current quarterly earnings per share has increased sharply from the same quarters' earnings reported in the prior year. (Beware of items in financial statements that can cause earnings distortions.)

A - Annual earnings increases over the last five years.

N - New products, management, and other new events. In addition, the company's stock has reached new highs.

S - Small supply and large demand for a stock creates excess demand, and an environment in which stock prices can soar. Companies acquiring their own stock reduces market supply and can indicate their expectation of future profitability. Look for low debt-equity ratios.

L - Choose leaders over laggard stocks within the same industry. Use the relative strength index as a guide.

I - Pick stocks who have institutional sponsorship by a few institutions with recent above average performance. Be cautious of stocks that are over owned by institutions.

M - Determining market direction by reviewing market averages daily.

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You should see the order on the screen. It has an "X" on the balloon. Click the "X" and it gets deleted. Or, go to the monitor tab at the top, activity and positions, working orders. You can cancel from there as well.

Got it, thanks. I was trying to right click the actual order itself, but "cancel" was not coming up.

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For those of you that subscribe to IBD, make sure to read the latest paper's "The big picture." It's on the front page.

Interesting week to come.

As of 9:18 tonight, the dollar is getting hammered, and the S&P futures are up almost 6 handles.

Especially where they say:

Still, trying to gerrymander winning positions when most of the map is negative is a fool’s errand. Unless the market shifts to a clear uptrend and new or revived leadership emerges, there’s little reason to buy stocks.

By the way--when you say "S&P futures are up almost 6 handles", what does this mean?

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When I looked last night before bed, the dollar was getting killed and the S&P futures were up about 6 points (handles)which is a significant move for the S&P (about 70 on the Dow). The market opened way up this morning (Dow well over 100 and S&P over 11) but has given back almost half of it now.

Sorry, didn’t realize I did that.

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For those of you that subscribe to IBD, make sure to read the latest paper's "The big picture." It's on the front page.

Interesting week to come.

As of 9:18 tonight, the dollar is getting hammered, and the S&P futures are up almost 6 handles.

It's one of the first things I look at. In very few words they summarize the market, direction, and what investors should be doing with their portfolio quite nicely.

However, my subscription runs out in August and I think I'm going to be moving away from individual stock investing (for the most part but not entirely) and look more into trying to grasp the big picture and balancing my mutual fund allocations. I'm thinking paper edition of the WSJ.....how do you like their articles and analysis, especially in comparison to IBD?

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When I looked last night before bed, the dollar was getting killed and the S&P futures were up about 6 points (handles)which is a significant move for the S&P (about 70 on the Dow). The market opened way up this morning (Dow well over 100 and S&P over 11) but has given back almost half of it now.

Sorry, didn’t realize I did that.

Thanks. As you can tell, it was "handles" I was trying to understand. So it seems that handles = points, e.g., the S&P is at 1338 "handles" right now. Terminology seems awkward, but hey, whatev. :grin:

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Thanks. As you can tell, it was "handles" I was trying to understand. So it seems that handles = points, e.g., the S&P is at 1338 "handles" right now. Terminology seems awkward, but hey, whatev. :grin:

You see it quite a bit when you read the financial blogs and message boards, but not much in the main stream. I had just read an article about it and it was stuck in my cranium.

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It's one of the first things I look at. In very few words they summarize the market, direction, and what investors should be doing with their portfolio quite nicely.

However, my subscription runs out in August and I think I'm going to be moving away from individual stock investing (for the most part but not entirely) and look more into trying to grasp the big picture and balancing my mutual fund allocations. I'm thinking paper edition of the WSJ.....how do you like their articles and analysis, especially in comparison to IBD?

I have read the WSJ as most have. Like any publication they have good and bad. I stay away from the opinon pages, and whatever Jon Hilsenrath (spelling ?) writes. He's nothing but a Fed butt kisser.

They give you a good bunch of data, but I don't think they cover the stocks as well as IBD and they don't have anything like CANSLIM. I prefer individual stocks over mutual funds, which many are just a basket of stocks to begin with. If I want to lower my risk by diversification (like a mutual fund does) I'll just go with an index fund, or ETF.

There is nothing wrong with the WSJ. I used to get a mailer every so many months for a 99 dollar a year thing but never bit, but I was tempted. I'm happy with what I have, I'm used to it and it works for me. I'm also a market junkie so if one was laying on the table of the dentist office, I would read it. Never got on a plane without one either.

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I have read the WSJ as most have. Like any publication they have good and bad. I stay away from the opinon pages, and whatever Jon Hilsenrath (spelling ?) writes. He's nothing but a Fed butt kisser.

They give you a good bunch of data, but I don't think they cover the stocks as well as IBD and they don't have anything like CANSLIM. I prefer individual stocks over mutual funds, which many are just a basket of stocks to begin with. If I want to lower my risk by diversification (like a mutual fund does) I'll just go with an index fund, or ETF.

There is nothing wrong with the WSJ. I used to get a mailer every so many months for a 99 dollar a year thing but never bit, but I was tempted. I'm happy with what I have, I'm used to it and it works for me. I'm also a market junkie so if one was laying on the table of the dentist office, I would read it. Never got on a plane without one either.

I read our company's electronic version frequently but don't like electronic versions of large papers. IBD is much more compact but I feel at times I'm missing the big picture......stock/company analysis is very good though.

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I like the fact I can download the .pdf version of IBD and take it with me (on a memory stick). I also like their IBD 50, and 200. I export, copy and paste the 50 into one of my watch lists in on my trading platform every week (used to be 100).

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screwball, what do you think the arguments for and against ETFs versus mutual funds are?

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Yeah there's been a lot of monkey business, and tons of shorting. I'm currently long on both Yongye (YONG) and Telestone Tech (TSTC) - I briefly had a position in Trina but gave up on solar for now. Nice pop for TSTC today I see, and I have not given up on YONG. Vast majority of my holdings are in growth funds, but I play with a few stocks. Made a killing on Six Flags a while back, and did well back in the day on CLF, PCU, and MRO (before the big crash). Took a bath on ENER (yeah another dumb solar pick). I have some CLF again, also some Chevron and Nuance. Western Digital was good to me.

Anybody getting back into Apple?

YONG...

As we said yesterday, not a day passes anymore without another Chinese fraud being exposed. Today's alleged "fraudcap": Yongue International (NASDAQ: YONG), which the fine share sleuths at Absaroka Capital have initiated coverage on with a Conviction Sell and a $1.00 price target (or over 80% downside).

Another Chinese Fraud? Absaroka Capital Initiates Coverage Of Yongue International (NASDAQ: YONG) With A $1 Price Target | zero hedge

Reggie Middleton thinks that Apples margins are about to shrink, significantly... Here's a nice bit outside of his paywall...

Front Page

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screwball, what do you think the arguments for and against ETFs versus mutual funds are?

Without writing a book, I'll try the pro/con game.

Pro ETF

Easy way to diversify (index fund as example SPY, QQQQ, etc)

You can buy sectors (basic materials, finance, healthcare, etc) or plays on things you otherwise couldn’t (oil for example).

You can short sectors (see above)

Almost endless choices (maybe a con too - too many these days)

Trade like a stock so fees are whatever you now pay.

Most can be shorted, therefore a better market, and more liquid (more shares traded)

You can buy options (puts/calls) on them so you can lever up if you wanted to.

More information about open interest, put/call ratio (again, trades like stocks)

There are 2X, 3X, and even 4X leveraged ETFs that track the underlying "X"x amount (if you have the nads to do it). A Con too. The leveraged plays are short term only, rarely hold overnight, especially anything over 2X.

Cons for ETFs

Decay - some of the leveraged ETF decay pretty bad - lose value because of the way they work. Shouldn’t hold long term. See tracking the “daily” price movement (this is mostly on the 2, 3, and 4 leveraged ETF – real WMDs (for your account).

They are a form of derivative - made up of underlying, bonds, swaps, and who knows what else (not all are like this but some are).

Some such as SLV (silver) and GLD (gold) do not hold enough physical metal to fund the capital in the fund.

Trust – not all ETFs are made the same – some are rip offs, plain and simple.

Complicated – never trade them unless you read their prospectus – they are very complicated.

Have created a problem in the markets because they are part of liquidity in speculation to create bubbles (see oil as an example - 100 times (whatever the number is today) more money in oil futures that can take delivery)).

I see them mostly as trading vehicles, not so much long term investments. But I look at the entire market that way

Mutual funds

Usually contain a basket of stocks

Managed by someone else, if managed at all.

Many times filled with dogs that pay a bit of a dividend but unless you own a gazillion shares does't make you any money.

Check the fund against the S&P 500 to see the returns (if worse, it's a dog)

I don't see them as any safer than any other investment in the "risk" market, other than risk management via diversification.

If your a stock picker you can make much more than with a mutual fund.

Nothing wrong with mutual funds for most people. People that are into the market, traders, and the like will go where they can get the highest return in the shortest amount of time. Hence - pigmen. :cheeky:

I was in a hurry, hope this came out ok.

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.....and I would add that if you are a stock picker you can make much more than with a mutual fund....and you can lose much more. Especially if you're into tech stocks. I've read many tales of woe from the IBD message boards from CAN-SLIMers who are crying 'no mas.' Also hard to say no to mutuals when your company matches. Free money. From a personal investment standpoint away from the employer, I would not go mutuals.

Edited by Greenwit

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.....and I would add that if you are a stock picker you can make much more than with a mutual fund....and you can lose much more. Especially if you're into tech stocks. I've read many tales of woe from the IBD message boards from CAN-SLIMers who are crying 'no mas.' Also hard to say no to mutuals when your company matches. Free money. From a personal investment standpoint away from the employer, I would not go mutuals.

Sounds to me like those CAN-SLIMers don't follow directions and don't know what a stop is.

You never go into a trade without knowing your entry price, your stop price, and what you expect the price target (sell price) to be. Then you must use discipline to carry the plan out. One of the most important trading tips anyone can get.

Too many people fall in love with a trade. They are so sure they are right (been there done that) they will just watch it fall, day after day, until they finally capitulate and realize the loss. That IS NOT how you trade.

Totally agree on the company match. That's free money.

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As of 9:18 tonight, the dollar is getting hammered, and the S&P futures are up almost 6 handles.

Speaking of a 6 handle, did you see what they did to the S&P about 20 minutes before market close? That was a 6 handle paint job if I've ever seen one.

This on a day when:

1. Chicago PMI drops like a rock, from 67.6 to 56.6, 4th largest decline ever, largest since Lehman Bankruptcy, and largest 2 month decline since 1980.

2. New reports that there's a serious oil leak draining into the ocean at Fukishima.

3. US reached a new record... Food Assistance at an all time high. 44.2 million people, or 14.5% of US citizens.

4. Case Shiller now reporting a housing double dip, though this should be priced in because we knew this was coming for months. Home prices at mid-2002 levels now.

5. On again off again Greek bailout. Not a done deal, but the market wants to think it is, I guess. Seems to me that this is a political deathblow for Merkel, as Germans are really against another bailout. And Greece conservatives are saying they won't support the new austerity package.

6. Belarus implemented food price freezes. Government failure is imminent. As you recall, they deflated their currency 56% about a week ago... love that hyperinflation.

7. JP Morgan says there will be no QE3. Which means there will be QE3.

8. AND there it was, literally off the press. The CME just lowered margin requirements on the ES, SP, YM -- on fairly high vol --- there was your shot of pre-QE for an economy that is a junkie and can't sustain on it's own. It's a race to reinflate...

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LOL. I know. From the large gap up this morning, to giving back half of it by a bit after noon, the melt up in early afternoon, to the paint job in the last 45 minutes - color me not surprised.

VWAP - the pigmen on Wall Street won again. But it was the last day of the month. Let's see what happens tomorrow.

It makes no sense, but it hasn't for quite some time now.

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