/diy/ - Do It Yourself

how can i make money from the astronomical rise in the price of oil once iran mines the straits of hormuz and world war 3 begins?

>>115853
Enhance the matrix

>>115854
is installing gentoo on my amd k6-II and plugging it in with my ethernet token ring NIC going to be sufficient?

>>115842
>how do I do this
You're going to need a broker. banks, investors, wealth management, i think you can also do it online. also the fee for trading is one share of Coke is >20% of the share try to buy in bulk to keep profit high.

I always wanted to know how this work. Anybody can put it in simple terms? It's just "buy low sell high" kind of operations?

I see all these fags pretending to make a great living off of Day Trading. If you do the normal day trading like..

Buy: $42.001
Sell: $42:009

You make fucking .008 of a cent on each share. You'd need something like 10,000 shares to make it even worth your time and at that price thats $400,000. No average person can afford to throw up $400,000 to make $80.

Shits dumb and a waste of time to be even looking into it.

>>115917
That's not including taxes and fees from wherever you're trading.

day trading isn't just shares though... it's gambling. you can put money on anything; it's been known for people to earn upwards of £10,000 in a single day, after only putting £1,000 on the table.

>>115917
I don't know much of the matter (almost nothing), but can't you make bigger profits if (for example) you know that X market is going up and you sell your shares when these are at the maximum value?

>>115960
You can sit on a stock and hope it goes up.
There is no "knowing".

Depends on how much cash you have, but I'm doing week trading with $2000 and it goes pretty good so far, got 20% in a month.


However only do this if you can afford to loose it all.

>>115968
> $400
> Better off just getting a minimum wage job and working 80 hours a month.

>>115971
I'm doing it because I find it interesting, but it's not like I have to sit there each day on monitor the stock. I'm checking it 4 times a day, and got a stoploss on it if shit happens.

Read the Intelligent Investor

That should be your investing bible

It separates investing and speculating and dismisses the latter as pure gambling

>>115853
Buy gold & silver!

They'll appreciate in value once the governments of the world devalue currency by printing more of it.

If you want to become a trader, there are two ways to do it:
1) Do it yourself
2) Have it done for you (A brokerage)

Also, there are multiple investment vehicles. The most commonly known is "Stock", or shares of a company, traded on the market. Mutual funds are a collection of investors putting money into a range of (typically diversified) products. This is the easiest way to invest in a range of vehicles with minimal involvement. Exchange Traded Funds (ETF) are like mutual funds, but they typically track a specific sector like technology, energy, etc.

To get started in typical trading of stock and/or options, you need to sign on with an online trading system. I suggest TDAmeritrade as they have some beautiful software (ThinkOrSwim) that lets you go for real, or play paper. It will allow you to have a fake account with monopoly money, and you can make real investments using real data, and test your theories and investment ideas.

Shorting a stock is risky: Basically selling a stock that you do not own, and having the obligation to fulfill the sold stock at a later time. For example, if news of the BP oil spill just hit, you would short their stock and once it hit bottom, buy to fulfill the obligation. You keep the difference. (Short @ $60, buy to fulfill @ $30, profit $30).


This is for informational use only. This is not specific to your investment strategy and it is not rendered financial advice.

Continued in next post.

>>116016
(Damn, my fingers hurt now)

The stock market is very unpredictable, but using and analyzing the performance data can sometimes lead to a less chaotic outlook on the stock. There are certain patterns of a stock that, once you identify it, can sometimes be used to predict future movement. This is called Technical Analysis, and is used heavily in short term trading.

The other way we find some order in the stock market is by using Fundamental Analysis. This is more of a "big picture" type approach, and is used for long-term buy and hold strategies. You look at the overall profile of the company, including the SEC filings, and determine if the company is healthy. If the company has low P/E, doesn't carry a huge amount of debt, and the margins are good, it could be considered healthy. These aren't the only factors, and is only a brief glimpse into the concept of fundamental analysis.

Another sidenote: When you sign up, you will be asked about your investment goals. If you say "I am a conservative investor and I don't like risk", you will not be authorized to short stocks, for instance. Make sure you know exactly what kind of risk you are willing to take before you sign up.

Hopefully this should give you just enough (very rough and quick) information to get started, or at least start Googling for more information regarding investing.

This is for informational use only. This is not specific to your investment strategy and it is not rendered financial advice.

>>115991
a lil off subject but i saw that you liked the hobo recipe so i made this with you in mind.


sorry for the interruption..continue thread

I should mention that the more you know about the stock market, the better you are. There is a whole slew of people here that don't know anything about how the market works. This is to their severe detriment, because there are two types of people in the world: People who took the time to understand the stock market, and those who don't invest and won't invest. Those who didn't don't have the knowledge or skill to comprehend how they can take $10,000, and turn it into $20,000. This is pretty troubling. The younger you make your first investments, the better. You need to get a grasp on this if you want a good life, where your money works for you and not the other way around.

Nothing is too hard to learn, and nothing is too difficult to master if you want it. We're living in the age of information, so we better use it before we get phased out by those who do.

>>116022
what app is that?

Forex trader here, I'm curious how the stock market compares to forex trading.

What's the maximum available leverage for retail traders?
How wide do you normally set your stop losses (in % of total balance)?
Is shorting available to amateur retail traders with small accounts?
How much can you expect to make per month, assuming your money management is reasonable?
How's the liquidity? Do you often have to wait more than a few seconds to execute a trade?

Also,
>>116022
holy shit, just looking at all those indicators makes my head hurt. Do you seriously need all that to trade stocks? On forex, naked trading is generally considered much better than using indicators. Is that not the case for stocks?

pic related, my short from a while ago (stupid mistake, stop loss way to tight)

>>116016
>>116017
>>116022

Thanks a lot.
I want to learn about this and this comes really
Any more advices like those would be really appreciated.

>>116034
Thinkorswin 2

Super interested in this. I've always wanted to invest but I've always felt like I don't know nearly enough about the stock market to really do well. Invest, you seem to really know your way around ThinkOrSwim... could you give us maybe a quick run-through of some of the graphs, charts, and data you see in that screenshot you posted, what some of it means, and how you use it to your advantage?

As opposed to all of you, fags, the subject is my actual work.

Thing is, the common securities private clients are allowed to trade (like stocks, forex, funds and ETFs) aren't that profitable. If you can pull off consistent returns (i.e. above the inflation rate not fucking everything up), then you are better then the 99% of the day trading idiots out there.

To get anything like 20-25% you have to be leveraged up to your neck. Meaning you invest $100 of your own money and $9900 of the money you've borrowed (at, let's assume, 5%).

Say, you're lucky and your investment of 10k goes up by 5.2%, yielding $520 gross profit. You pay the 5% on the borrowed $9900, which is $495, leaving you with $25 net profit for yourself. Awesome, 25% return. You can pay back the $9900 plus $495 interest and keep the $125.

Now consider, that shit may get real and the investment will lose 5.2%. You're down $520 and your position now costs $9480. On top of that, you owe the bank $495 interest and the $9900 principal. $9480 - ($9900 + $495) = -$915. Awesome, dude, a return of -915%.

So, yeah, day trade.


----
Also, only when I post here, am I painfully reminded how retarded the system is.

I've started investing. Mainly in large cap stocks that have a decent dividend yield. I think I'm up 2% since I started so I've not really made any money. But I've not lost any yet, and I'm learning alot plus I'd struggle to find a bank account paying more than 1% at the moment.

Issue is that the small amounts I can trade mean I get buggered on the commission and tax, so I'm having to take it slow. Once I feel I understand companies a bit more I'm gonna start looking at small caps. But for not I'm sticking with a conservative strategy until I feel I know what I'm doing.

>>116127
Hahaha what.

What you just said is that if your trade goes 5.2% in your favor, you gain 25%, but if it goes 5.2% against you, you lose 915%. I can't be bothered to figure out how the fuck you arrived at that conclusion, but whatever your idea of leveraging is, it is wrong.

If you gain 25% on a 5.2% move in your favor, you lose the exact same amount on the same move against you. Simple.

Also, you can't actually lose 915%, you would be stopped out by your broker before you reach -100%.

By the way, in order to make 25% per month, you only need about 1.25% per day on average. Slow and steady wins the race.

If anyone is interested in the Gartman Letter and wants to split a subscription with me please email me. I will get back to you ASAP. penguin941@gmail.com

This isn't spam, just trying to save money while saving someone else money if they happen to already have a subscription and wanna reduce the cost with me.

Back when I was high school I had a part-time, off-the-record job doing stocks with someone else's money. The primary thing to watch for day trading was volume and the news.

>>116137
This. Stock Trading isn't easy, but it is possible to make good gains on it in the medium-long term

So I want to go to the military and I want to invest a lot of the money I make since it'll just be sitting there anyway. What's the best low maintenance investment. I heard index funds were the way to go.

>>115853
We think alike. It is inevitable and in the plan.

>>116377
Those Bonds that double in price after 5 years or something. That is your best bet. But you won't have really any money to do it with until your 2nd year in.

Save like half of your minimum wage army salary and get a bond. in 5 years ti'll be double.

You have the numbers, shitwipe. Either do the math, or get back to your trailer.

>>116583
>>Those Bonds that double in price after 5 years or something.

What are they called? Are they only available in America?

>>115842

First off the market is rigged. But the good news is you can game the rigging once you learn HOW it's rigged. I use a combination of fundamental analysis, charting, and news.

Day trading is for suckers. Your time horizon should be anywhere from one day/week to three to six months. But you should define your goals before you lay down any money.

A good primer on trading from an investor's perspective is "One Up On Wall Street" by Peter Lynch.

For speculation, you should only really be doing options. They are the perfect speculative instrument as you put up a fraction of the money for potentially 10x plus gains. The catch is you can completely lose your ass on a few bad expirations. That's why I usually buy at least six months out. I wouldn't recommend options for the beginner though.

And if you really want to be safe. Buy gold and silver in US mintage.

>>116159
The Gartman Letter is a reputable newsletter but it is mostly for forex. it is also illegal to share subscriptions of the letter.

Didn't read half of this shit, might as well contribute from my personal experiences:
>invested once in an investment fund
>shares in the fund dropped
>barely withdraw 30% of my original investment

Investment funds seem very simple. You just give your money to a bank and then they trade with it. (You basically buy a part of the investment portfolio, you buy a few units or a few dozen units of it which the portfolio managers utilize to trade).

This is good if you know a manager so you can predict what to buy-sell, but it's bad once you don't know shit and just buy some part of the portfolio and wait 2 years to lose the most of your money.

The next thing of which I know of is Forex. To me it's much more easier to 'play with' than usual stock exchange (e.g. what you mentioned OP, buying shares of Coca Cola). There's a ton of literature online and my best suggestion for you is to find an online forex forum from where you are, where there's a bunch of shit written for new people. Just start reading it and see if it is for you.

tl;dr you just don't have a simple "buy this, sell that" like they do in the movie Wall Street. It takes time to get to know WHAT you are doing, HOW you are doing it and WHY.

My suggestion to you is Forex.
>research
>get demo
>explore EVERYTHING in it
>get cent account
>proceed to real account

Peace.

I don't buy stocks but I buy silver bars. Pretty much I learned how to buy/sell stuff off RuneScape lol.. but I bought 100oz when it was $11 a oz and sold it all when it was $48 a oz but there was a $1.50 fee per oz for buying/selling so I made a profit of $3,400 in the end of which I bought another 100 oz of silver when it dropped to $29.

Today I printed the book "How the stock market works" by Michael Becket and Yvette Essen.

Is it good reading to start learning about this?
I haven't started reading it yet, but I think it talks about market mechanics rather than investments or how to make money.

I uploaded it to mediafire. I forgot how to upload to /rs/.
http://www.mediafire.com/?dtxvewvg5vmjt71

Bump, because i'm interested too

bump bump
with a story
> try forex out,
> inium on the trading platform was 200$ ( in real)
> try test account
> rep says not indicative or real market
> why use it as a test then
> hang up.

looking for a much lower account.minium buy.

>>118714
$200 is essentially $0 in trading.

>>118714
They aren't allowed to say that a demo is indicative of real market, but the charts and the platform and everything is exactly the same, except you're playing with fake money. (you'll often also get a bit more lag on a real account, but that's not a huge issue)

>>118737
$200 is enough to trade forex if your broker offers microlots (0.01 standard lots) and a high enough leverage. Obviously you're not going to make much money with only $200, but it's a good amount to start with, since you'll most likely lose your first deposit.

>looking for a much lower account.minium buy.
If you're in the US, here's an example broker that offers micro accounts, with a minimum deposit of 1 USD:
http://www.fxopen.com/TradingTerms.aspx
They have 0.1 microlot transaction sizes, which is 0.001 standard lots.
(note that I'm not recommending this broker in particular, just an example. do your own research)

this is a great thread... thanks for everyone who joined in

right now I am making about 1000 a month swing trading. I work for an oil company so I am really familiar with how the stock behaves based on news so I buy in the dips and sell when I reach 3-5%. I then wait for the next dip and continue. In 2011 I managed to get a 60% return on 25000 that I saved up. It might take me a while at this pace, but it should grow exponentially to the point where I can buy a nice house with it. Capital gains taxes are a bitch for me though (tax bracket at about 25%).

Here's the thing. It's not hard, BUT you need to have a lot of money to play with to really make anything. You can't really do much with a few hundred dollars. You're better off enjoying the few hundred dollars buying something for yourself.

just these last 2 weeks I made 1500 off of AUY. I bought it at 15.10 and sold it yesterday for 16.00

Bumpin. We need a board just for this.

>>116127

This is completely fucking wrong.

Do you even trade?

>>117086

>For speculation, you should only really be doing options. They are the perfect speculative instrument as you put up a fraction of the money for potentially 10x plus gains. The catch is you can completely lose your ass on a few bad expirations. That's why I usually buy at least six months out. I wouldn't recommend options for the beginner though.

Finally, someone who isn't a complete retard.

I usually buy LEAPs. You still get massive leverage on your investment and your expiration risk is lower. Granted you are paying a premium for all that time but your delta on volatility is low.

>>120478 here.

I want to warn people against things like penny stocks or low volume trading. I want them to learn from my own personal errors. The volatility on these stocks is VERY high (meaning the percentage change can be fucking crazy, we're talking +/-10% or more in a single day). What happens is that guys with lots of money and the ability to execute RAPID trades will eat the little guy alive. These guys will artificially drive the price of the stock to a place where it will look enticing to a poor idiotic retail investor (aka your normal run of the mill hobby trader working a 9-5) and once that person pours their savings into that stock, the high frequency trader then sells and leaves the retail investor 'holding the bag', earning them the name of 'bagholder' while the big guy laughs all the way to the bank.

My suggestion: stick to high volume stocks. At such high volumes they are very hard to manipulate and there are plenty of high volume stocks out there that swing just enough to net you nice returns. I trade heavily in chevron (CVX) because I like how the price wavers from the 90s to just over 100 every few weeks/months. The stock follows the news nicely and it is very predictable. Any time there is turmoil in the middle east it goes over 100. Remember lybia? It had shit-all to do with chevron as a company but the stock skyrocketed. That was an excellent selling opportunity. I then waited for the news to wane a bit and bought in the low 90s only to sell again just over 100 a month later. In an entire year you could only trade 4 or 5 times and still get 50-60% returns.

TLDR; don't try to get into day trading/high frequency trading. Trade high volume reputable stocks that can't be manipulated on a monthly/bimonthly basis. Enjoy money.

>>120495
>Trade high volume reputable stocks that can't be manipulated on a monthly/bimonthly basis.

BigStock1 just made something pretty stupid, their own projections is for loss.
When suddenly
QE 3(or is it 4 that's next up?) is announced!
BigStock leaps 8%, leaving your shorts a smoldering wreckage.

BigStock2 Is looking splendid, announced apple-killer product yesterday, will climb, definitely!
When ECB decides to not bail out a bond auction by buying everything this week, due to politics. Everything takes a nosedive. Your longs are vaporized.

welcome to the retard rollercoaster market dancing to the pipe of central banks

>>120514
>>120514
I am personally looking forward to this debt ceiling impass for more buying opportunities. It is a lock that the market will react negatively and there will be trader jitters. I actually love this post recession environment. All it takes is for someone to sneeze and prices fall precipitously then all it takes is some day when they announce unemployment or manufacturing rose .000000000000000000001% for the market to rebound. So much money to be made, shame I don't have more to invest.