Is it a great time to buy stocks now - Octrober 11, 2008? Since most prices are down?

[Focus]

yahoo is a steal right now...same with google...as the "real world" market crumbles, the online advertising & global ad spending using these marketing platforms is stronger than ever and growing..visa is a steal right now too for long term growth, mastercard is decent too imo

 

[stewie]

I wouldn't put money in when the direction/momentum of the market is heading down... NYSE should open up based on other markets...but I won't be in yet. I feel the markets will hit lower levels than where they are now.

JMO
Goodluck

 

[south]

yeah...but in vegas...u get free drinks while u play!..

Ha! Good point!

 

[jasdon11]

I don't touch stocks, but would never even consider it while there is so much uncertainty in the markets. I would wait for all the crap to be shaken out of companies balance sheets before risking anything, and that will take at least 12 months.

 

[Sheva]

almost all the company are UP today, last Friday was a good day to buy....

 

[Theo]

Would have, should have. Hindsight is always 20/20.
A stock trader never lets emotion interfere with trades.
There are always opportunities. It's not gambling.

 

[jasdon11]

Would have, should have. Hindsight is always 20/20.
A stock trader never lets emotion interfere with trades.
There are always opportunities. It's not gambling.

It is gambling. It's a gamble on the quality of the information you get.

 

[south]

It is gambling. It's a gamble on the quality of the information you get.

Absolutely correct!

 

[Theo]

It is gambling. It's a gamble on the quality of the information you get.

I disagree. First off, I am referring to trading without emotion. It's fundamental. It's not gambling. You cannot let your emotions dictate when to exit a trade or when to place one. Second, with regards to quality of information, the market right now has little relevance to the market of last year. Volatility is created by factors outside of a stock's real properties or that of the company that issues it. So even if you have quality information it's irrelevant. When the Dow plummets, it affects the majority of the stocks in the same manner.

 

[jasdon11]

I disagree. First off, I am referring to trading without emotion. It's fundamental. It's not gambling. You cannot let your emotions dictate when to exit a trade or when to place one. Second, with regards to quality of information, the market right now has little relevance to the market of last year. Volatility is created by factors outside of a stock's real properties or that of the company that issues it. So even if you have quality information it's irrelevant. When the Dow plummets, it affects the majority of the stocks in the same manner.

You are contradicting yourself here.

Even when trading without emotion, it is a gamble - has to be - even without factoring in the volatility you mention. There is no guarantee that a stock will eventually recover a price.

If it isn't a gamble, then it must be a pure arbitrage, and these don't really excist in stock trading, just in commodities.

 

[Theo]

Do you trade stocks? I don't think so, unless your definition of gambling is lack of a guarantee of results. What you're saying is the opposite of the fundamentals of trading. There is no gambling in stocks because there are no odds to abide by. You place your trades based on a myriad elements of information, including past performance and current trends. With stock trading you don't try to guess; in fact, an experienced trader handles stops and buys in a manner that would allow them to make money regardless of the stock's direction.

Gambling is for the hopeless at casinos.

 

[jasdon11]

I know I must sound pedantic here, but there is an element of risk with trading stocks. There doesn't need to be an element of 'odds' for it to be a gamble. If there is any risk, there is a gamble - end of...

In answer to your question, no, I don't trade stocks (I made that point above in post #24), but I did trade currency for 18 months and was moderately good at it. The reason I stopped is that both the market-makers I used were effectively crooked; systematically not filling orders in their favour, and (although I couldn't prove this) also guilty in my eyes of hunting. I know you have mentioned that you trade forex, so I'm sure you will have encountered this too.

Anyway, to put an end to this, are you saying that there is a way to trade stocks that does not have an element of risk, or just that you can eliminate most of the risk? I would agree with the latter, but not the former.

 

[Theo]

Risk does not equate gambling. Walking outside at night involves risk, does this mean you're gambling?

Since you trade FOREX, you must be setting your trades based on alerts and announcements but also visual trends displayed by some sort of real time software. If you placed your trade and walked away for 2 months, then you'd be gambling.

 

[jasdon11]

Risk does not equate gambling. Walking outside at night involves risk, does this mean you're gambling?

Since you trade FOREX, you must be setting your trades based on alerts and announcements but also visual trends displayed by some sort of real time software. If you placed your trade and walked away for 2 months, then you'd be gambling.

Taking any kind of risk, does equate to a gamble, and yes, if walking outside at night or during the day for that matter involves risk, then you are taking a gamble with that risk however small.

By definition, anything involving any sort of risk, is a gamble.

When I was trading, I day traded based purely on trend with tight stops for small gains. I closed my book each night whatever the position, and didn't trade for the three days around a USD or GBP interest rate decision. Sometimes I would go for a week or more without placing a trade, other times I'd make multiple trades per day. No emotion but plenty of risk.

Every trade is a gamble even when you know what both possible outcomes are, your upside or downside; risk is present because you cannot want both outcomes at the same time.