Quote: (12-18-2010 11:46 AM)kimleebj Wrote:
Quote: (12-18-2010 02:34 AM)Luckystar Wrote:
it's a backhanded insult. ... He has merit in much of what he says, backhandedness aside.
Thanks for the feedback and qualified support, but please don't mistake disagreement for insult. I sincerely believe what Tevye says:It's no shame to be poor.
Let me be clear about the disagreement. Subutai and Young_Money countenance gambling.
Quote: (12-17-2010 02:56 AM)young_money Wrote:
I ... foolishly bought stock and long term options on what I considered solid investments, which included gold mining stocks, Google, etc. Needless to say, they did not pan out.
I disagree with the gambling approach, disagree with Young_Money's technical analysis, and don't think young guys should focus on investing.
Note that after I posted this, Hydrogonian, Young_Money, and pretty much everyone agreed that it is better to build a business than invest in stocks. Subutai, take note!
Building a business is far superior to trading stocks for many reasons, but not because it is somehow less risky. Most entrepreneurs can attest that it takes years of hard work without pay just for the chance to "make it big". That can also mean serious financial investment and multiple failed companies. Very few people are lucky enough to get it right on the first try.
The reason why it's superior is that the experience gained in learning how to build something from the ground floor cannot be taken away. If I had to start over again tomorrow, I could rely on all my past experiences to guide me. This is something that no one can teach. I also have a good amount of freedom and make a lot more than I ever could with my finance degree alone.
As for stocks, I never risk more than 1% of my portfolio on a single trade. I also keep a large percentage in cash, and always use stops. I do not consider that gambling. Randomly buying and selling stocks by intuition, feel, tip from friend, etc without proper money management and stops, is gambling. I deserved to lose the money I did at the start of my trading career because I did take too many risks and I went by intuition mostly. I am definitely not "countenancing" that. I was just trying to say to the OP that there are other options out there, besides taking huge risks.
As for technical analysis, I know very little and was not trying to come across as some type of expert. I was just trying to explain by memory how I thought stochastics were used by the service I subscribe to. There is obviously a lot more to trading stocks, and no one should use one indicator alone. Moving averages, trend channel support and resistance, along with pullbacks off highs, RSI, and stoh's are all important. I have no interest in staring at charts all day or watching the markets non-stop. I spend less than an hour a week trading stocks that are recommended by a service I trust. They post all winners and losers on their website and have a 63% winning percentage rate. I am making good consistent gains and spending my time on my business, which is what I was recommending. So I guess we do agree.