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Thread: DIY traders. Jump in with some limit buys.

  1. #21

    Good poinr.

    Quote Originally Posted by MADPEBS1 View Post
    is your broker making money (commissions) everytime he sells/buys ?????????????????????




    https://www.bogleheads.org/wiki/Main_Page start here

    https://www.bogleheads.org/forum/index.php a good information page...

    If so you are lossing money.

    Go to fidelity, vanguard and do your own buying and selling...
    Some brokers charge a commission on each trade, some go with a annual percentage fee (usually between 1% and 2%), some do both. There are nearly as many ways brokers make money as there are brokers.

    The plot below shows the effect of a 1% annual fee (that's considered low) on an client's holdings over 20 years. It ain't pretty.

    I use Merrill Edge. Free trades for maintaining a minimum amount. I also use ETrade. $6.95/trade. Any amount. On this last event, Only 1 stock was bought and sold through ETrade. $13.90 fee.
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  2. #22

    I think I do. Day traders do it even more frequently.

    Quote Originally Posted by MADPEBS1 View Post

    i just dont understand the shuffling around twice a month ....
    Here's why IMHO.

    If you refer to the DJIA plot for the last 3 months below. If you had $100K on Mar 1, you now have $99,825 minus pro-rated broker's commissions & fees.

    If you bought anywhere NEAR a perceived low point and sold anywhere NEAR a perceived level of recovery, your profit COULD be 5.78%. Let's assume you have difficulty to noticing when the DOW is low and when you are about to return to its recent historical high. Let's say your profit is only 2.5%. Then today your $100K is worth $102,500... vs. $99,825. That's why you buy/sell. That's why you get in/out of the market. Your broker won't do that for you. You stay in.

    Please note: The DJIA, NASDAQ & S&P indices are REAL historical traces of buys and sells. So to say, my broker outperforms the DOW, etc, etc. is only a half-truth. In order for the historical trace to be determined, there has to be an equal number of winners and losers.

    Incidentally, ever notice the 3 indices follow one another like Siamese triplets? Peculiar, since DJIA is big caps, NASDAQ is technology and S&P is a mix. They can't all have the same criteria performance. I wonder if events are controlling sells/buys?
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  3. #23

    DIY Stock Traders: Time to set your alarm clock for limit buys again.

    By now you should have taken advantage of the 2 drops in the DJIA since March 1 and bought/sold your way out of the market for a nice profit. (Buy: late March, early to mid-April. Sold: April 25th. Buy: May 17th. Sold: May 25th).

    Time to prep for the next limit buy opportunity. You don’t want to be bothered watching the DJIA every day so set up a price triggered e-mail and/or text alert message when the DJI (that’s the symbol for the DOW) when it falls to 20657 and 20445. That’s about –2% and –3%. Most online stock trading accounts allow you to do this for free. It’ll take just a couple of minutes.

    Now you can do the important stuff like mow your lawn, plant your tomatoes and watch your favorite streaming series. When the alerts trigger, we’ll talk about shopping the safe big cap and/or blue chips that mimic the DOW with limit buys.

    Toodles

  4. #24
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    Quote Originally Posted by hitchicken View Post
    If you bought anywhere NEAR a perceived low point and sold anywhere NEAR a perceived level of recovery, your profit COULD be 5.78%. Let's assume you have difficulty to noticing when the DOW is low and when you are about to return to its recent historical high. Let's say your profit is only 2.5%. Then today your $100K is worth $102,500... vs. $99,825. That's why you buy/sell. That's why you get in/out of the market. Your broker won't do that for you. You stay in.
    You missed two items here, #1 the overwhelming majority of people miss-time the market, and this includes professional brokers. If you want sources, check google there are a million studies supporting this. If it were easy to recognize the trends, everybody would make money (directly or from guaranteed profitable brokers). #2 jumping in and out may cause you to miss an ex-dividend date or two, so you will likely lose money on trades, miss-timing the market, and missing your dividend.

  5. #25

    You are correct. Factual and accurate points.

    Quote Originally Posted by Clem72 View Post
    You missed two items here, #1 the overwhelming majority of people miss-time the market, and this includes professional brokers. If you want sources, check google there are a million studies supporting this. If it were easy to recognize the trends, everybody would make money (directly or from guaranteed profitable brokers). #2 jumping in and out may cause you to miss an ex-dividend date or two, so you will likely lose money on trades, miss-timing the market, and missing your dividend.
    Both points you make are absolutely true, however…

    point #1: I never crystal-ball the market. I simply offer to buy at 1% or 2% lower when the DJI is already down 3% or more. And I offer to sell at a 1% or 2% higher price when the market is near recovery. If limit buys/sells trigger, I make money. If they don’t, I’ve lost nothing… but usually I find a few stragglers/takers. I did a quicky time plot sequence over the last 3 months showing what I mean.

    point #2: This is true. But dividends are typical 2%-3% per year. Like it or not, I believe it comes out of the share price of the stock (thereby lowering it). The limit buy low/sell high philosophy easily exceeds this gain.

    Good and factual points, but not enough sway me from my path. I still see too many overriding advantages
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