I'm thinking about being a DAY TRADER on stock market

pigman · November 12, 2008, 09:27:19 PM

A person just has to look on the bright side. We can sell almost any stock and not have to pay any capital gains tax. 8)

Rocky_J · November 12, 2008, 09:58:52 PM

I found a couple stocks that are paying an exceptional dividend (due to lowered share prices) and I'm weeding out the losers and stocking up on these winners in the dips. I found a couple oil shipping stocks because we're still going to buy it regardless of price and it still needs to be shipped.

NAT just jumped due to getting mentioned on Jim Cramer's show so it's a bit high right now, but it will settle back down- hopefully dip down to $27-$28. The quarterly dividend has already been anounced at $1.61 and will be paid to stockholders of record as of 11/21, payout will be in early December.

I missed the last jump in NAT and bought TNK instead. It's bouncing between $9 and $13, I bought at $9.07. Their quarterly dividend should be announced this week at about 90 cents.

My mortgage play is NLY, they concentrate on the highest quality mortgages and are holding up well, with a 55 cent annual dividend. I need to add to my position and will hopefully pick up more tomorrow below $13.

I also have some AEA (Advance America cash advance centers) which is about $2 and paying a 6 cent quarterly dividend. In hard economic times I'd expect these types of places to do a brisk business.

SPIKER · November 12, 2008, 10:19:47 PM

Like RockyJ only stocks I been buying have good dividends. I have a good share in 4 or 5 stocks all in the 4~8% div range. many of them have lost in share price, but if the money is not needed in the next few months to years then that will come back and in the mean time the high dividends will pay to hold them.
company I work for is going great, so keeping money to pay bills is ok, investing some savings is what I've done last few months, I've had a few bad losers WB and WM are the 2 that are worst in actual realized losses. Most of the others were a cut & run loss of which usually were only a few hundred at most. I've gained and lost over 3500 all in all, I'm down in unrealized losses at this time. I've had close to 300 in dividends paid in last month, on stocks that are down 10~30%. While it may take a while to get back up to where those were bought, I'm after big names with big balance sheets and energy plays. I've had DUK (Duke Energy) for 4 months now. it came down a bit same with JOYG and FCX. While it may be a year or two until the price was nice enough to sell I will also have made some in the quarterly divs...

I have not put any more cash into the system in a long while so just playing with savings that was making less than 2% in CDs, I'm getting more than that in DIVs.

Mark

logwalker · November 20, 2008, 09:39:17 PM

We are officially in the 7500 territory now. If you want to know how we got here there was a great article in the Conde Nast online today that is very interesting read. Amazing just how much went on since the 80's. My prediction of Dow 6000 is starting to look optimistic. Wow are we ever in for some grief. The article is written by Michael Lewis. He wrote a book called " Liar's Poker" back in the late '80's that was very prophetic. Hang on to your hat. Joe

http://www.portfolio.com/news-markets/national-news/portfolio/2008/11/11/The-End-of-Wall-Streets-Boom?tid=true#page1

ellmoe · November 21, 2008, 06:52:34 AM

Great article, Joe.

Mark

Warbird · November 21, 2008, 11:04:17 AM

Yes, that is an awesome article, minus the language. Thanks for sharing it.

Gary_C · November 21, 2008, 02:03:43 PM

Yes, that was a good article. It was funny and obsene in more than one way. The part about one of the mortgage backed securities backed by the mortgage of the migrant farm worker in California that was earning $14,000 per year and could not speak english and bought a $720,000 home was sad and true.

And when the trader that was shorting these funds learned that the money he was putting into short positions was going to pay the interest on the bonds that were three levels below dog do in value and was making them worth even more on the market was just sick.

And then there are the bond rating companies including Moodys that is 20 per cent owned by our new president's advisor, Warren Buffet. :

And then the taxpayers bailed them out. >:( >:(

SPIKER · November 22, 2008, 10:15:27 AM

That was a good read, but it only covered a small part of todays problems, the financial market place with the CDOs and such.
The large swings going on now are a different root cause. I talked a bit about Cramer on one of the pages how he has been exposing what is going on in tha markets lately, all the underliying BS that many of the wallstreet types have been doing. Also had some more good info on how the market has been swinging 400~800 points a day at the end of the day this past week. regarding the the spiders, how that by shorting one spider you can gain multiple shorts on one leveraged point. you short one spdr and that spdr shorts 3 or 4 or more companies causing them all to go down and you to make money. Then when the hedge fund investors see them drop they want out, so the managers will need to cover their loans they took from the investors. So they have invested in such things as muni bonds or real estate, they can not sell the real estate instantly but say 50% of their FUND is in stocks, the STOCKS can be dumped and make money instantly. the large amount of real estate or muni bonds ect can not be sold fast are left in the hedge funds. so when they have to front up money they sell the stocks as easiest way to gain actual cash fast. NOW the hedge fund managers are on the band wagon of shorting every thing using the SPDRS and or general large volume shorting to drive the market even farther down by shorting the same stocks that they just dumped on the market, (dump a million shares of best company in the world onto the market it drops down a lot,) then short a few million more of these same company stocks it falls even faster, then others see it falling and jump onto the short selling band wagon and or if they own them they dump it into a market where there are FEW buyers. Few buyers means that prices can free fall much faster, also go up faster when short squeezes happen. All this means that the rich guys doing this are basically stealing everyones 401K and Pension Funds. I think that Berniackie and the NEW NYfed chairman are probably almost in on it. the RICH guys are not going to be hurt that much, it is the small people who's money is actually being taken... These guys (even reading the artical above) are legally stealing all the money from the little people and the government seems to be helping them with the SHORT free for all, and the letting hedgefund managers not have to pay for they crimes they do to others... I was hoping that Obama would turn it around but more you hear about his connections the less likely it will be changed...

Mark

logwalker · November 22, 2008, 12:09:07 PM

Mark, what do you know about this new Treasury chairman? Joe

farmerdoug · November 22, 2008, 01:10:09 PM

You have not lost anything unless you sell your stock or the company goes belly up.

If you based the drop in value of stock as a loss then the rich guys are losing too.

The same thing said about short traders works for day traders also. Day traders feed on the volitility of a market and can make the swings even wilder. ;)

SPIKER · November 23, 2008, 10:56:08 AM

I don't know the guy but some of the tv shows on finance say he was/is one of the guys who wanted to open up the markets and let the naked shorting, and do away with the up-tick rules along with letting much of the problems take place. his job as the NY fed was to make sure the finance people were doing things legally. Seems that he helped loosen many of the rules and if the rules were getting bent then loosen them up more type of thing by the way I heard it. Like I said I don;t know the guy but what I hear from the finance shows I watch daily.

Day traders are not heavy enough into the market to make much of a dent. While the access to the accounts are so easy for EVERYONE to get into the game is also part of reason it can swing fast & furious. Myself like many others that manage my own IRA 401ks ect can buy & sell easier and cheaper and faster granted but the guys who buy & sell MILLIONS of shares (billions of dollars) are ones who are making the markets.) NOT the little guys who may only move a few 100 shares of a company many companies have market caps in the hundreds of millions of shares so a few thousand or so shares will not even cause a penny swing.

Mark

Ron Wenrich · November 23, 2008, 11:27:04 AM

Geithner, Paulson, and Bernake have been involved in all the bailouts coming out of Washington. That includes the sale of Bear Stearns, the bailout of AIG, and the takeover of Freddie Mac and Fannie Mae.

Here's an article in the Washington Post from September. Link

He's an insider to everything that has happened for the past 5 years. The housing bubble was created by too much money coming from the Fed. He was one of those doing the voting.

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Nebraska · January 08, 2022, 02:13:59 PM

say_what I guess now I know exactly what some of my clients feel like when I unload too many five dollar words. May have to go back and read this old thread.

mike_belben · January 08, 2022, 06:59:26 PM

I wonder how spikers account looked by 09.

Claybraker · January 09, 2022, 05:06:32 PM

Quote from: Nebraska on January 08, 2022, 02:13:59 PM
say_what I guess now I know exactly what some of my clients feel like when I unload too many five dollar words. May have to go back and read this old thread.

I read the first two pages skipped ahead to now. That was when my cousin made a small fortune raising alpacas. Started with a medium size fortune.

Nebraska · January 09, 2022, 08:57:39 PM

Quote from: Claybraker on January 09, 2022, 05:06:32 PM
Quote from: Nebraska on January 08, 2022, 02:13:59 PM
say_what I guess now I know exactly what some of my clients feel like when I unload too many five dollar words. May have to go back and read this old thread.
I read the first two pages skipped ahead to now. That was when my cousin made a small fortune raising alpacas. Started with a medium size fortune.

Ah yes fad animal farming...gotta love it. Only good if you are at the top of pyramid in the ponzy scheme. Seen them come and go in many flavors. Pot bellied pigs, Ostriches, pack goats :D....just kidding about the last one...