Anyone on board good at investing stocks?

DrewBrees713

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Howdy folks,

I just got into stocks a few weeks ago and so far, im in the green. I only had a little over $4k to play with( dont laugh) and it’s trending up nicely. I know it isnt much but a guy gotta start somewhere.
I’m a bit confuse the number of trades i’m allowed to make in a week with TDAmeritrade. Can someone explain round trips and such?
My other question is about margin. Is it wise to take out a loan from them to get more stocks? Whats the interest rate? Thanks!
 

HuduVudu

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Fires can warm but they can also burn. Be very, very careful in the market.

Some good books to read Market Wizards (all three books), Reminiscences of a Stock Operator and last and by far the most important read is Fooled by Randomness.

I will leave you with this thought ... If you don't know who the mark is, then it's you.

P.S. As Softhammer said margin is bad for new people ... I will further that with options are even worse.
 
OP
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D

DrewBrees713

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I totally understand it’s not prudent to trade with margins. That said, lately ive just been “On”. I’d chalked that up to beginner’s lucks. It’s so tempting to dip into margin to purchase more shares as 80% of my porfolio is making me $ everyday for the last few wks and 100% of the shares on my watchlist too. Wish there was a mentor that could help me thru this while im still HOT or lucky :)
 

Joedubyk

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I totally understand it’s not prudent to trade with margins. That said, lately ive just been “On”. I’d chalked that up to beginner’s lucks. It’s so tempting to dip into margin to purchase more shares as 80% of my porfolio is making me $ everyday for the last few wks and 100% of the shares on my watchlist too. Wish there was a mentor that could help me thru this while im still HOT or lucky :)

Lucky. The entire market has been going up for 2.5 months. Keep it in perspective.
 

HuduVudu

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Wish there was a mentor that could help me thru this while im still HOT or lucky
Luck is your enemy, edge is your friend.
One of the most important things that I learned from the Market Wizards books was that successful traders trade to protect. They want to keep trading. That is key, keep trading. If you don't have money you don't trade and luck will not keep you trading.

It's like stealing, you may get a one off payday but for long term cash flow you will have to keep stealing, eventually you will get caught (your luck runs out) and you will stop making money.

You don't need a mentor you need a plan and YOU need to make it.
 

Joedubyk

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Margin trading as a newbie is a very very bad idea. The market in totally illogical right now, up for no good reason. Be careful and take profits when you can. Most of all don’t get cocky, 4 gs can disappear with disturbing speed.

TONS of stimulus, 0 interest rates, and the virus is better than feared. Plenty of reasons for it to recover. Though, I agree. stock valuations are really really high. But to say "no good reason," isn't necessarily true. Wall st always front runs things like these.
 

Snookin

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Everyone is “on” right now. If you started a few weeks ago you came in on the backside of the biggest jump in history since March 23rd. It isn’t you. Almost every stock is up the last 3 weeks. Big investors still hoarding cash and day traders, gamblers and new investors have the market cranking in the short term.
 

HuduVudu

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Agree @Joedubyk the real estate correction caught me with my pants down. I kept thinking this overblown this is crazy ... never got in. I didn't make that mistake this time.
 

Joedubyk

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Everyone is “on” right now. If you started a few weeks ago you came in on the backside of the biggest jump in history since March 23rd. It isn’t you. Almost every stock is up the last 3 weeks. Big investors still hoarding cash and day traders, gamblers and new investors have the market cranking in the short term.

Right. Everyone is a genius buying in a bull market...
 

Joedubyk

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Agree @Joedubyk the real estate correction caught me with my pants down. I kept thinking this overblown this is crazy ... never got in. I didn't make that mistake this time.

Yea, I first got into the work force the in mid 2000s. I missed out on the recovery beause Id idn't haev money, but I did not hesitate to keep buying into the lows. I didn't get the bottom, but Im up 25% on the year in my 401K from the dip buys.
 

Randallh99

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I work at one of the large banks (not a trader though). Our economist is heavily bearish due to the unemployment levels and lack of consumer demand. Consumer demand drives the US economy and it’s going to be tough for retailers for the rest of the year and into 2021. Think about how many businesses will go out of business due to COVID and think about the owners and employees losing their jobs. This stock market makes no sense right now.
 

HuduVudu

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And this was exactly the post I needed to see to confirm that this is a huge bubble.
I am not quite sure how you got that from this post, but be very careful with that thinking if you are investing. I went through the real estate correction. When the actual bubble burst the subsequent price movements were every bit as crazy as we are currently seeing.
 

bcarl77

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I am not quite sure how you got that from this post, but be very careful with that thinking if you are investing. I went through the real estate correction. When the actual bubble burst the subsequent price movements were every bit as crazy as we are currently seeing.

I say that because people are talking about margin trading on a reef forum and they have never traded before. The market is being proped up with all kinds of new "investors".

I too work at a large financial services firm. Our economic outlook is similar to what was mentioned above. Bearish due to lack of consumer confidence and consumer demand.
 

Joedubyk

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I say that because people are talking about margin trading on a reef forum and they have never traded before. The market is being proped up with all kinds of new "investors".

I too work at a large financial services firm. Our economic outlook is similar to what was mentioned above. Bearish due to lack of consumer confidence and consumer demand.


I have to disagree with that , again. See photo below. This is an indicator I made showing dark pool buying, data DIRECTLY from finra. When the line is in the box it generally means they are buying. This is noit retail pumping the market. this has been institutional

5daydix1.jpg
 

shred5

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Some advice.
Do not buy based on news or emotions. Buy based on financials and earnings.
Do not become emotionally attached to a stock and do not be afraid to sell. It does not matter how much you have lost, some stocks never come back and some disappear.

Don't try catching tops or bottoms because it is to easy to miss.

Buy what you know.

Most of the money I made was based on computer stocks because part of my job is IT. I know what the trends are in computers.
 

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