Investing

Anyone else getting hammered?

  • Last Updated:
  • Jun 15th, 2013 8:13 pm
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Sr. Member
Nov 25, 2010
981 posts
167 upvotes
Kanada
rfdrfd wrote:
Jun 4th, 2013 3:30 pm
As anything in life, there are advantages and disadvantages. Indexes have less risk when compared to stocks (inside the index). However, you will lose (sorry typo) a powerful enhancer: Correlation.

To stack the odds for a successful trade, one should use the overall market to correlate to the index, then correlate to the stock. That's one advantage of trading the stock itself. Maybe some bad earnings will come out and your stock drops (sometimes it can even go up with bad earnings, hence, never trade on fundamentals alone). However, if your sector is on a strong uptrend, it will drag your stock up. And if the market is coming out of a demand zone, that's another big push for the sector and for your stock.

If you want to skip to the middle and trade only sector index, thats fine, but you lose 1 more good correlation that can help you to succeed, or cushion a bad blow.
If you invest in single stock, you face that one of the companies invested in might bust like what happened with Nortel.
Deal Addict
Mar 10, 2010
1588 posts
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Rickson9 wrote:
Jun 4th, 2013 2:39 pm
On the surface, this is true. However, having said that, active managers of large funds also have many significant anchors that inhibit their performance that do not apply to individuals with some ability and the correct temperament.

If an individual recognizes that they have little or no ability and a poor temperament for investing, and if their choices are between Active Management and Index Funds, then they would be wise to invest in the latter.
Yes, but large fund managers also have several advantages such as having the time to focus solely on the market since it's their job...most of us work real jobs for a living and don't have 100% of our time during market hours to focus on the market.

Also, large fund managers have access to way more information that is accessible to joe public. With all these advantages, they're still not able to beat the index though, not sure how you expect to, at least not without taking on more risk, which is why I said index funds have less risk and have proven to beat all other strategies after fees and commissions are taken into account.
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Apr 30, 2012
2613 posts
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Montreal
taeyang987 wrote:
Jun 3rd, 2013 11:30 am
My bread and butter BCE.TO was flying for months...now its losing 70 cents a day!
Firebot wrote:
Jun 3rd, 2013 12:06 pm
Good grief I took a look at BCE.TO. The stock is like 5% off it's 52 week high after a huge run up. You shouldn't be investing if you are concerned about something like this.
BCE.TO now trading at around $45.
Is now a good time to buy in or will it drop further?

virtuman1980 wrote:
Feb 21st, 2013 8:56 am
Haha...pretty interesting fellow indeed...but it was this persistence/stubbornness of his that got him the positive result in the end.
datako wrote:
Feb 19th, 2013 12:35 am
... Although, I'm a little surprised you went against what everyone advised ,op. You've got balls and absolutely crazy at the same time to do this.
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Feb 7, 2008
5671 posts
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Ottawa
bgallagher wrote:
Jun 5th, 2013 10:27 am
BCE.TO now trading at around $45.
Is now a good time to buy in or will it drop further?
Ask your magic 8 ball
Deal Addict
May 22, 2003
1661 posts
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Vancouver
So is gold expected to make small rally with equities under pressure? Still holding gold stocks at at 25% loss. I was overweight in gold and my portfolio has been severely stunted because of this.
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Jun 19, 2009
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Rickson9 wrote:
Jun 4th, 2013 2:39 pm
On the surface, this is true. However, having said that, active managers of large funds also have many significant anchors that inhibit their performance that do not apply to individuals with some ability and the correct temperament.

If an individual recognizes that they have little or no ability and a poor temperament for investing, and if their choices are between Active Management and Index Funds, then they would be wise to invest in the latter.
Unfortunately this advice is least heeded when most needed.
Deal Fanatic
Dec 11, 2008
6157 posts
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Sort of. It just means to me that I can buy for cheap. Not sure when though lol
Member
Feb 28, 2012
262 posts
27 upvotes
TORONTO
speedyforme wrote:
Jun 5th, 2013 12:40 pm
Sort of. It just means to me that I can buy for cheap. Not sure when though lol
average in
Newbie
Jun 20, 2012
90 posts
2 upvotes
Mississauga
bgallagher wrote:
Jun 5th, 2013 10:27 am
BCE.TO now trading at around $45.
Is now a good time to buy in or will it drop further?
Anytime a stock drops you always ask if it's a good time to buy, stop asking and do your own research on the stock.
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Apr 30, 2012
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Lucida wrote:
Jun 5th, 2013 5:40 pm
Anytime a stock drops you always ask if it's a good time to buy, stop asking and do your own research on the stock.
LOL, :lol:
Can you tell I am inexperienced stock investor?
I only started weeks ago but have bought a considerable amount of stocks but still feel uneasy. :confused:

virtuman1980 wrote:
Feb 21st, 2013 8:56 am
Haha...pretty interesting fellow indeed...but it was this persistence/stubbornness of his that got him the positive result in the end.
datako wrote:
Feb 19th, 2013 12:35 am
... Although, I'm a little surprised you went against what everyone advised ,op. You've got balls and absolutely crazy at the same time to do this.
Newbie
Jun 20, 2012
90 posts
2 upvotes
Mississauga
bgallagher wrote:
Jun 5th, 2013 5:54 pm
LOL, :lol:
Can you tell I am inexperienced stock investor?
I only started weeks ago but have bought a considerable amount of stocks but still feel uneasy. :confused:
I'm an inexperienced investor too, but I don't go around asking if every stock is a good buy. If you actually did some research you'd find that the CRTC implemented (or is going too, I forget) new laws which will negatively affect revenues for most/all cellphone carriers, hence the recent drop, and a good reason why it's not a good time to buy.
Deal Addict
Feb 15, 2013
2445 posts
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Vitalogy80 wrote:
Jun 4th, 2013 4:09 pm
Also, large fund managers have access to way more information that is accessible to joe public.
Only speaking for myself, I do not consider this an advantage. In fact, I consider this to be a disadvantage. My perspective only.
Deal Fanatic
Dec 11, 2008
6157 posts
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hotdawg100 wrote:
Jun 5th, 2013 5:16 pm
average in
RIght so say I owe 200 shares of something. ANd I only have enough money to buy 200 more. Do I buy 100 now or buy all 200? Or is this dependant onmy original price vs current price? Etc etc
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Apr 30, 2012
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speedyforme wrote:
Jun 6th, 2013 7:58 am
RIght so say I owe 200 shares of something. ANd I only have enough money to buy 200 more. Do I buy 100 now or buy all 200? Or is this dependant onmy original price vs current price? Etc etc
It depends on your personality/temperament, really.

virtuman1980 wrote:
Feb 21st, 2013 8:56 am
Haha...pretty interesting fellow indeed...but it was this persistence/stubbornness of his that got him the positive result in the end.
datako wrote:
Feb 19th, 2013 12:35 am
... Although, I'm a little surprised you went against what everyone advised ,op. You've got balls and absolutely crazy at the same time to do this.
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Jun 26, 2005
7260 posts
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Case in point. BCE is lower again. I got out for profits, while others are hanging on in a losing position. My capital is being used for something else instead.
SnoopDop wrote:
Jun 4th, 2013 3:44 pm
If you invest in single stock, you face that one of the companies invested in might bust like what happened with Nortel.
Incorrect. You always need a STOP in place. You need to have this in mind BEFORE you place a trade.
Entry price - stop price = your risk. Determine your risk before you enter. Be it -5%, -$200, whatever you feel comfortable with losing.

If everyone that lost big time in Nortel had a stop in place, NONE of them would be losing big time.
When it dropped to $90, why didn't the stop kick in? $80? 70? 60? 50? 30? Come on, they are just idiots.
HOPING that it will come back is not a strategy. Sure it may, but like all things in life, you should plan for the negatives, not just assume everything is going to be positive.

bgallagher wrote:
Jun 5th, 2013 10:27 am
BCE.TO now trading at around $45.
Is now a good time to buy in or will it drop further?
bgallagher wrote:
Jun 5th, 2013 5:54 pm
LOL, :lol:
Can you tell I am inexperienced stock investor?
I only started weeks ago but have bought a considerable amount of stocks but still feel uneasy. :confused:

You need to have stops in place. I got out of my BCE with a nice gain already last week. Putting stops in place will take your emotions out of trading/investing. Emotions will mess your trading up big time.

BCE, T, ENB, etc. are all on a downtrend now. DO NOT fight the trend, only go counter trend if you are good at trading.. Trend will dominate, just like AAPL. It takes a MAJOR reason for a strong trend to reverse.

#1 rule in trading/investing in the stock market: manager your risk !
Proof markets are trading with Technical Analysis: proof-why-we-not-using-fundamentals-market-1201524/
A common sense guide to Technical Analysis: http://www.stansberryresearch.com/pub/r ... Guide.html
My Online Trading Academy (Toronto) review: online-trading-academy-my-experience-952660/
My real RFD stock trading tracking: tracking-my-stock-picks-rfd-1228103/
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