Are rumours everything?

Discussion in 'Stock Market' started by Mr. Sauerkraut, Jan 13, 2011.

  1. Mr. Sauerkraut
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    Mr. Sauerkraut Active Member

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    HI

    i haven´t already dealed with stocks or stock options but i´m interested in. I´ve just read that Northtrop-Grumman wants to buy Rheinmetall, the onliest german tank producer left. It seems to be a rumour without any truth, but anyway the Rheinmetall stocks went up about 3,8%.

    I did make an calculation some months ago. If you start with 200$ and define as goal an increasing of 1% per day, you would have 7556$ after 1 year. After 2 years it would be 285.491$. One year later, it´s 10.786.830$.

    Ten Million Dollars. Starting from 200$. 1% per day. 3 Years and you have it.

    Question to the professionals: Is that realistic, making 1% profit per day by trading? Do you only have to have open ears and eyes?
     
    Last edited: Jan 13, 2011
  2. Mr. Sauerkraut
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    Mr. Sauerkraut Active Member

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    oh yes, i googeld it for myseltf. 1% per day seems to be wishthinking. Well, so it goes, sometimes you are right, sometimes you are wrong. Man can´t know everything.
     
  3. Baruch Menachem
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    Baruch Menachem '

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    Roumers are for those who have connectons and are in the know. For the regular investor, they are poison.

    And unless you own a seat in the exchange, the profits from stock trading are negative. Stock investing is just slightly higher return than bond trading because of bigger risk. think of it as a bank account where if things go real well, you could get 6% in a year rather than 3%, but you could also loose your deposit.
     
  4. Mr. Sauerkraut
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    Mr. Sauerkraut Active Member

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    I´m just reading on several sites about daytrading and dealing with stock options in general. The thing is, that you have to make 3% profit to earn 1% because all of these charge fees and taxes. Well, doing this just for fun with a few hundret dollars won´t break my neck. I bought one year ago a book from the aother Marc Gordon "How to become a millionaire in 91 days" Well, it is from the year 1977 and it did cost only 50 cent on a flea market but it was amazing to read. Anyways it has a very good first part when Gordon gives a lesson in the history of economy, starting from the ancient age to today, what was very interesting to read. And he explains very well the trading techniques on the market, short sales for example. But amazing is this sujet anyway.
     
  5. william the wie
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    william the wie Gold Member

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    Google Black Swan and you stand a much better chance of reaching your goals.
     
  6. Toro
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    Toro Diamond Member

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    No, it is not realistic to expect to earn 1% a day.

    If you earned 1% each day the stock market was open, you would earn 1127% over one year and 27,856,683% over five years. Warren Buffett, perhaps the greatest investor ever, has compounded his money at a bit over 20% per year.

    And no, rumours are usually a bad way to invest because most rumours aren't true.
     
  7. Zander
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    Zander Platinum Member

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    If you want to become wealthy your best bet is to start your own business and live below your means. It ain't glamorous and it takes effort. But very few people get rich trading stock, except the brokers.

    Get rich quick schemes, stock day trading systems, multi-level marketing, etc, all appeal to human laziness and greed. They only work for the people selling them.....
     
  8. william the wie
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    william the wie Gold Member

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    Almost all people who have gotten rich in the stock market have gotten rich slow and most often with hedged positions. I don't recall the returns on going long on Value Line's highest rated stocks and shorting their lowest rated stocks but it was much higher than Buffet's returns when I read it decades ago. Likewise New Constructs which uses a different rating system claims 60% annualized returns in recent years.
     
  9. editec
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    editec Mr. Forgot-it-All

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    1% a DAY?!

    If you can pull that off every day for a year you're best investor in human history.
     
  10. Mr. Sauerkraut
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    Mr. Sauerkraut Active Member

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    thynks, i think you´re right. If i ever wil trade with options, I´ll start with a little change, what won´t hort when it´s lost.

    I´ve already started a small onlineshop about something i´ve invented. Last year was the test run about the acceptance of the customers, market chances, manufacturing etc.. But I think it´s time now for doing the next step.
     

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