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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: waverider who wrote (9421)	11/29/2001 9:35:05 PM
From: Mark Johnson	Respond to of 99280

<<To be successful in the market, you have to trade.>> Trade smart.....not daily, hourly swings.....gimme a break.....

To: waverider who wrote (9421)	11/29/2001 9:37:22 PM
From: Rich1	Respond to of 99280

Real wealth not made by Daytrading IMHO....

To: waverider who wrote (9421)	11/29/2001 9:44:11 PM
From: Mark Johnson	Read Replies (1) \| Respond to of 99280

I bot MDT, MSFT, NOK, and HDI five years ago as a core position in one of my IRA accounts and I'm not disappointed I did...Very little trading and hardly any brokerage fees....wonder if many daytrading studs did better over the last five years.......LOL.....

To: waverider who wrote (9421)	11/29/2001 9:49:25 PM
From: bob	Respond to of 99280

>>To be successful in the market, you have to trade.<< While I love to do some trading I do not agree with your statement above. Another view... ask the expert autos college debt insurance investing millionaire in the making money 101 money makeover portfolio rx saving & spending taxes your home CNNfn on TV Services CNN.com CNNSI.com MONEY Magazine Customer Service E-MAIL NEWSLETTERS sign up! MOBILE NEWS AvantGo sign up! Personal Finance > Money 101 -- List of All Lessons -- Setting Priorities Making a budget Basics of banking Basics of investing Investing in stocks Investing in bonds Buying a home Investing in mutual funds Controlling debt Employee stock options Saving for college Kids and money Planning for retirement Investing in IPOs Asset allocation Hiring financial help Health insurance Buying a car Taxes Home insurance Life insurance Futures and options Family law Estate planning Auto insurance Top 10 things to know Here is an overview of the most important points of this lesson. For more discussion, click any section of "The details" at the upper right (calculators are marked with a ). Or, click "Take the test" to jump directly to the quiz. 1. Stocks aren't just pieces of paper. When you buy a share of stock, you are taking a share of ownership in a company. Collectively, the company is owned by all the shareholders, and each share represents a claim on assets and earnings. 2. There are many different kinds of stocks. The most common ways to divide the market are by company size, sector, and types of growth patterns. Investors may talk about large-cap vs. small-cap stocks, communication vs. technology stocks, or growth vs. value stocks, for example. 3. Stock prices track earnings. Over the short term, the behavior of the market is based on enthusiasm, fear, rumors, and news. Over the long term, though, it is mainly company earnings that determine whether a stock's price will go up, down, or sideways. 4. Stocks are your best shot for getting a return over and above the pace of inflation. Since the end of World War II, the average large stock has returned, on average, 11 percent a year -- well ahead of inflation, and the return of bonds, real estate and other savings vehicles. As a result, stocks are the best way to save money for long-ter m goals like retirement. 5. Individual stocks are not the market. A good stock may go up even when the market is going down, while a stinker can go down even when the market is booming. 6. A great track record does not guarantee strong performance in the future. Stock prices are based on projections of future earnings. A strong track record bodes well, but even the best companies can slip. 7. You can't tell how expensive a stock is by looking only at its price. Because a stock's value is depends on earnings, a $100 stock can be cheap if the company's earnings are high enough, while a $2 stock can be expensive if earnings prospects are dim. 8. Investors compare stock prices to other factors to assess value. To get a sense of whether a stock is over- or undervalued, investors compare its price to revenue, earnings, cash flow, and other fundamental criteria. 9. A smart portfolio positioned for long-term growth includes strong stocks from different industries. As a general rule, it's best to hold stocks from several different industries. That way, if one area of the economy goes into the dumps, you have something to fall back on. Plus, financially sound companies with above-average earnings growth are the best bet for steady long-term returns. 10. It's smarter to buy and hold good stocks than to engage in rapid-fire trading. The cost of trading has dropped dramatically -- it's easy to find commissions for less than $10 a trade. But there are other costs to trading -- including mark-ups by brokers and higher taxes for short-term trades -- that stack the odds against traders.

To: waverider who wrote (9421)	11/30/2001 12:22:48 AM
From: Alex MG	Respond to of 99280

"...To be successful in the market, you have to trade... There are cycles where buy and hold is the way to go and then there are cycles where market timing is the way to go. Obviously the 18 yr period up to 2000 was buy and hold, and that top was blown off in the largest bubble of all time. So the odds greatly favor a simple buy and hold investor will not do well going forward, not until the excesses have been finally wrung out. Of course there'll be some excellent rallies, but they must be timed, they are quick and furious.