Day Trading vs. Powerball

[Eye of the Tiger]

I've read books and watched The Wolf of Wallstreet, so I'm almost ready to toss some money in and see what happens.

[CaminoRacer]

The biggest lesson to learn from Wolf of Wallstreet is that penny stocks are terrible, but selling penny stocks for huge cuts can be very profitable. So take the $600 and start selling penny stocks.

[12,000 RPM]

Buy low, sell to the clueless

[Eye of the Tiger]

On a side note, I'm getting an LLC, but I can't think of a good name. The only thing I got is "Wee, LLC" (or Oui, LLC). Pronounced, "We'll see."

[giant_mtb]

Don't bother with penny stocks.  Super volatile, hard to read, have to sift through way too much bullshit doing your DD.

[MX793]

Commission and fees tend to be higher on penny stocks as well.

[Eye of the Tiger]

Ok, screw penny stalks.
Dollar stocks?
And I don't hace the money for day trading, but a few trades per week, ja.

[Submariner]

Starting a small weed grow is your best bet. 

Not that I'm advocating that.  Weed is illegal and Jesus hates weed.  Don't grow weed, heathen. 

[CaminoRacer]

Starting a small weed grow is your best bet. 

Not that I'm advocating that.  Weed is illegal and Jesus hates weed.  Don't grow weed, heathen. 

I was really hoping that Ohio legalized it so I could start a smuggling business and sell it to KY teenagers.

[Eye of the Tiger]

I don't care about weed. I'd smoke it if it was legal, but I'm not a weed enthusiast.

I would like to be more of a money enthusuast, however. If I cared about it, I might end up with more of it.

From my meteorology experience, I am good at interpolating a subjective analysis around statistical trends, and playing conservative. If I can apply this to trading stocks, I can make a little extra money. Perhaps. Or do tons of drugs and end up in jail. Whatever.

[BimmerM3]

I don't care about weed. I'd smoke it if it was legal, but I'm not a weed enthusiast.

I would like to be more of a money enthusuast, however. If I cared about it, I might end up with more of it.

From my meteorology experience, I am good at interpolating a subjective analysis around statistical trends, and playing conservative. If I can apply this to trading stocks, I can make a little extra money. Perhaps. Or do tons of drugs and end up in jail. Whatever.

If you're actually looking to start investing, low-cost index funds are the way to go. Studies have shown that the percentage professional traders that consistently outperform the market is actually lower than random chance.

EDIT: Actually, I think that was the number of mutual funds that consistently outperform the market, which also takes into account the fees for the fund. So I guess if you're doing it yourself and thus have no fees, it's slightly more likely.

Still though, low cost index funds are your best bet.

[Eye of the Tiger]

If you're actually looking to start investing, low-cost index funds are the way to go. Studies have shown that the percentage professional traders that consistently outperform the market is actually lower than random chance.

Boring.
So how does any professional trader have a damn job if a monkey would statistically outperform them?

[BimmerM3]

Boring.
So how does any professional trader have a damn job if a monkey would statistically outperform them?

Because less informed people *think* professional traders are better at their jobs than they really are and buy their funds anyway. 

Also, see my edit.

[Eye of the Tiger]

Because less informed people *think* they're better at their jobs than they really are and buy their funds anyway. Fund managers basically just make a percentage of the value of the fund.

Also, see my edit.

Or I can buy a stock, wait for it to go up, then sell it when it stops going up. So simple, yo.

[CaminoRacer]

If you're actually looking to start investing, low-cost index funds are the way to go. Studies have shown that the percentage professional traders that consistently outperform the market is actually lower than random chance.

EDIT: Actually, I think that was the number of mutual funds that consistently outperform the market, which also takes into account the fees for the fund. So I guess if you're doing it yourself and thus have no fees, it's slightly more likely.

Still though, low cost index funds are your best bet.

I'm not sure if that's talking about a different kind of fund than the one I have, but I get a couple percentage points more than the S&P 500. Just a Vanguard (or Fidelity or something) medium risk thing.

[BimmerM3]

I'm not sure if that's talking about a different kind of fund than the one I have, but I get a couple percentage points more than the S&P 500. Just a Vanguard (or Fidelity or something) medium risk thing.

1. The returns you're seeing probably don't include all of the fees.

2. This was looking at all funds over a long period of time. In any given year, some funds over perform and some funds under perform. But the likelihood that it will consistently outperform the market year after year after year is pretty small.

[MrH]

Any opinions on wealthfront vs betterment?

[Eye of the Tiger]

Ok, lettuce pretend.

Today I will pretend that I bought the following stocks. Fees not included:

DARA (NASDAQ)
200 shares @ 0.900 = $180.00

USEG (NASDAQ)
400 shares @ 0.310 = $124.00

ALU (NYSE)
50 shares @ 3.93 = $196.50

BORN (NYSE)
100 shares @ 1.13 = $113.00

Total investment of $613.50

I will monitor these stocks for the next few days and "sell" them as necessary. Fucking let's see if I can make enough money to make it worth the two hours that I spent browsing stock charts.

[giant_mtb]

You could also get an app or use a paper trading website to practice and let the software do the work.

[Eye of the Tiger]

You could also get an app or use a paper trading website to practice and let the software do the work.

Yeah, I got an app. It's pretty comprehensive. I can even set limits and buy cocaine.

[Eye of the Tiger]

I've lost $14 so far. But I expect things to turn around in a few days.

[Eye of the Tiger]

-$12 as of today.

[Eye of the Tiger]

-$6 net as of midday. This is my new career.

[Eye of the Tiger]

Back to -$12. Meh.

So, I still need an LLC name. I'm drawing a blank.

[giant_mtb]

Why do you need an LLC?  Why do you want to pay taxes?

[Eye of the Tiger]

Why do you need an LLC?  Why do you want to pay taxes?

To limit my liability. It is required. Don't you have one?

[giant_mtb]

To limit my liability. It is required. Don't you have one?

Yes. I have two in my name now, actually. It's just $25/year for the name in my state. And them 15.whatever percent income tax cuz self employed.

[BENZ BOY15]

Well, I'd say none of the above....buy some drugs in bulk and then sell them individually. There's a good return.

[Eye of the Tiger]

Yes. I have two in my name now, actually. It's just $25/year for the name in my state. And them 15.whatever percent income tax cuz self employed.

Pfft. Taxes smaxes. I just need a name...

Wee, LLC
Period Correct, LLC
Well Oiled Machine, LLC
Qualitative Express, LLC
Rhymes With Orange,  LLC
Search And Research, LLC
Wind and Rewind, LLC
Jesus, LLC
Better With Cheese, LLC
Do Not Touch, LLC
Power Band, LLC
Two Tens for a Five, LLC

?

[giant_mtb]

Better With Cheese, LLC for sure.