Sup Sup Forums I was wondering if anybody on this board has dealt with stocks and if so I was wondering something

Sup Sup Forums I was wondering if anybody on this board has dealt with stocks and if so I was wondering something.
Now I have never been involved with trading or anything of the sort and due to my lack of knowledge I can't help but wonder how it's possible to lose money.

From what I do understand one can hold onto their stocks for as long as they wish so couldn't you just hold on to the stock until it goes past what you payed for it and then sell it?

If not, what prevents this from being a possibility?

Nothing, that's how you get rich

>From what I do understand one can hold onto their stocks for as long as they wish so couldn't you just hold on to the stock until it goes past what you payed for it and then sell it?
Of course you could do this. Many people do. However, these are called MUTUAL FUNDS. They are way safer than stocks but give pretty solid annual yields. That's how people save up for retirement.

you lose money by not earning anything while you wait, instead of investing on something else

>>/biz/

Depends on your goal. What are you a daily trader or you going on long term?

Long term

Long term goals can go 5 15 or 20 yrs. Blue chips stock goes really good for this. Just do cost averaging every month

You'll find out soon enough.

Stocks are in a massive bubble now that's been building up for 8 years now.

Bond rates are in the trash.
Interest rates are in the trash.
Real estate is over-saturated and dangerous.
Europe is risky in general.
All investment money has been pouring into stocks simply for lack of other choices. A lot of "safe" stocks now have ridiculous P/E ratios -- which doesn't mean much but does help bolster the argument that people are throwing money at them with pure abandon.

This will all change when interest rates goes up and the Fed knows it.

Once there's a valid alternative investment, you'll see money come out of stocks and go into that. Danger is it can and probably will turn into panic selling.

That's how you end up losing 80% of the value of your portfolio.

Incidentally, I would expect Democrats (and billionaires like George Soros) to try and make this happen within the next 4 years. They will very much like to pin this on Trump even though the president has almost exactly nothing to do with stock market prices.

Sometimes stocks drop below what you payed for it and won't come back up to that price again. Also, company take overs and such can be good or bad for investors. There are a lot of different factors in almost of this and fairly conplicated.

Fear and panic are how it's so easy for 99% of people to lose money. Don't do it as a hobby, go hard or not at all.

This really happens. If you know to check the chart of a stock youll see a pattern

>one can hold onto their stocks for as long as they wish so couldn't you just hold on to the stock until it goes past what you payed for it and then sell it?


thats the idea....what if the stock price goes down? It can and often does go down for a number of reasons...it really depends what your timeline is...if you can hold your stock for 40yrs you probably be fine...but there are no guarantees.

Forgot to mention re:your last line - Don't discount survival bias. Holding companies forever is easy with hindsight, but you never know which ones will go broke & lose 100% of your initial capital.

In other words, you "backtest" the idea of holding shit forever because it always goes up eventually, but you fail to see all the 1000's of companies that went broke and only look at the ones still around today.

Capital protection is key to surviving any kind of investing/trading.

Patterns are dangerous things. Humans have evolved to see them, even when they don't exist. A pattern on a chart is no guarantee of anything. Yes they can be a useful tool as a representation of human behaviour under certain conditions, but you really need to be able to identify when those conditions have changed, and most importantly of all, know how much it'll cost you if the shit hits the fan unexpectedly (i.e Brexit, or the Trump vote sending US futures limit down for a few hours before the rally).

You guys are all faggots. Futures trading is where its at.

I wake up around 10ish everyday unless theres someone from the FED or IMF giving a speech.

THe day of the election i was lurking like any other day and on a hunch turned on the tv and popped it over to bloomberg.

Trump winning, 200 down and its steep.

Placed in a put order for 5 contracts and waited til it hit 700

that was a happy accident, and i couldve held it for 100points more, but in 20 minutes maybe of work i made 19k

no need to worry when going to sleep which way the market went cause i cash out the same day i put in

Why limit yourself to futures? I get into just about anything, depending on the environment. CFDs (which are illegal in the states on anything except currency I believe? we can still use em down under though) were fucking awesome for the same kind of moves back in 09 when the market was going nuts over every ADP nonfarm payroll release.

I kind of prefer futures options to futures, leaves me more cash to play with, but obviously time decay can be a bitch if things take longer than expected to happen.

Buy and hold strategy pays out most of the time.

Stocks have highest ROI compared to other investments, save from real estate.

Unless you happened to buy the S&P500 in 2000, then you'd have been waiting 10 years to get back to break-even, with the dividends roughly covering inflation. Follow that with another 7-8 years before you started making any profit on said position.

OP, always check facts about any simple strategy before trying it with real money.

Long term sure, stocks have a great ROI, but you can still drastically improve it with even a little timing & research into current conditions.

This is true. Based on my experience (brexit) i gain a 15% on one stock but too scared of what could really happen on the market. And the result of this trump as president could lead an gain in maybe a next week or a month

Well the basic is buy low sell high