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#71
10-18-2007, 01:32 PM
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Re: 50% returns on small amounts?
DC,
Any thoughts on the delisting of MXIM? It seems like an unusual situation, given that it was an S&P500 component. Might this be one of those "it's not as bad as it looks" situations? 
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#72
10-18-2007, 04:55 PM
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Re: 50% returns on small amounts?
[ QUOTE ]
DC, Any thoughts on the delisting of MXIM? It seems like an unusual situation, given that it was an S&P500 component. Might this be one of those "it's not as bad as it looks" situations? [/ QUOTE ] I seldom have opinions on stocks with billion dollar market caps.
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#74
10-18-2007, 07:34 PM
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Re: 50% returns on small amounts?
[ QUOTE ]
[ QUOTE ] If you could easily sustain 50% rates on small accounts you could grow $50,000 to $1million in just about 7 1/4 years and grow it $10,000,000 in about 13 years. If you could do this why wouldnt you simply grow you're account to 1-2 million and then just live like a rockstar off the $500,000 -$1,000,000 youre bringing in every year? [/ QUOTE ] Why not, indeed? Some of my trading buddies do. [/ QUOTE ] Good article in the WSJ today about guys going busto on real estate. Guy in Vegas had 14 homes and was living like a balla, he's now busto filing for bankruptcy. At the top 2 years ago how smart do you think this guy thought he was? Guys making big money trading stocks typically trade for huge investment banks and pretty much make markets scalping the differance between bid and ask when possible. Their advantage comes from the capital base of their company and order flow from established clients. I don't mean to be a hater but we live in a very competitive society with lots and lots of smart people. There is a regression to the mean over time and 50% is no reasonable long term expected return for investors. In the short run anything is possible. Reading all this makes me want to short this market soooooooooooooooooooooooooo BAD!
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#75
10-19-2007, 12:17 AM
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Re: 50% returns on small amounts?
[ QUOTE ]
[ QUOTE ] [ QUOTE ] If you could easily sustain 50% rates on small accounts you could grow $50,000 to $1million in just about 7 1/4 years and grow it $10,000,000 in about 13 years. If you could do this why wouldnt you simply grow you're account to 1-2 million and then just live like a rockstar off the $500,000 -$1,000,000 youre bringing in every year? [/ QUOTE ] Why not, indeed? Some of my trading buddies do. [/ QUOTE ] Good article in the WSJ today about guys going busto on real estate. Guy in Vegas had 14 homes and was living like a balla, he's now busto filing for bankruptcy. At the top 2 years ago how smart do you think this guy thought he was? Guys making big money trading stocks typically trade for huge investment banks and pretty much make markets scalping the differance between bid and ask when possible. Their advantage comes from the capital base of their company and order flow from established clients. [/ QUOTE ] None of my trading buddies trade like that, not even the market maker. [ QUOTE ] I don't mean to be a hater but we live in a very competitive society with lots and lots of smart people. There is a regression to the mean over time and 50% is no reasonable long term expected return for investors. In the short run anything is possible. [/ QUOTE ] Regression to the mean of what? To the mean of their trading results? You make no sense. [ QUOTE ] Reading all this makes me want to short this market soooooooooooooooooooooooooo BAD! [/ QUOTE ] So grow some balls and do it.
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#76
10-19-2007, 12:20 AM
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Re: 50% returns on small amounts?
[ QUOTE ]
[ QUOTE ] DC, Any thoughts on the delisting of MXIM? It seems like an unusual situation, given that it was an S&P500 component. Might this be one of those "it's not as bad as it looks" situations? [/ QUOTE ] I seldom have opinions on stocks with billion dollar market caps. [/ QUOTE ] It hasn't really gone down much anyway. It's not possible to know what the outcome of the investigation is going to be, or the possible court cases, so it seems like just gambling to me.
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#77
10-19-2007, 01:17 AM
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Re: 50% returns on small amounts?
[ QUOTE ]
I don't mean to be a hater but we live in a very competitive society with lots and lots of smart people. There is a regression to the mean over time and 50% is no reasonable long term expected return for investors. In the short run anything is possible. [/ QUOTE ] [ QUOTE ] Regression to the mean of what? To the mean of their trading results? You make no sense. [/ QUOTE ] Lets say stocks have averaged 10% a year for 80 years on a risk adjusted basis you really can't expect to do 5 times that over time. If those types of opportunities to make 50% are available competition for investment returns will quickly price out the anomoly. Edward Thorpe in the 60's identified a profitable way to sell over priced warrants. Investors took notice and warrants became more fairly valued eliminating a profitable opportunity. [ QUOTE ] Reading all this makes me want to short this market soooooooooooooooooooooooooo BAD! [/ QUOTE ] [ QUOTE ] So grow some balls and do it. [/ QUOTE ] My problem is short term gains are taxed quite heavily. Short term losses are limited to a $3,000 a year write off. I'm kinda laying almost 2 - 1 odds tax wise if I attempt a short term trade. Besides that I already have enough for my meager life style.
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