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261 votes

Investment strategy for Google: What did I do wrong?

This is clearly not the answer you’re looking for, but you went wrong by trying to pick stocks and time the market. It’s been shown to be a fool’s game. Furthermore: if you picked several stocks, ...
Alex's user avatar
  • 1,399
120 votes
Accepted

Is trying to learn day trading a complete waste of time?

The vast majority of people that day trade lose money. Of those that make money, most aren't going to beat an index fund. Of those that actually beat an index fund, very few do so without investing ...
Justin Cave's user avatar
  • 27.3k
103 votes

Why is the stock market so unpredictable?

The stock market measures how things change from what we predicted. If only things we predicted happened, the prices of stocks wouldn't really change. You might think, "But Apple went from a tiny ...
David Schwartz's user avatar
102 votes

Why aren’t there more stock market prediction tools available?

If one could build a model for accurately predicting future stock prices then: Why would anyone share it? Wouldn't there be some individuals cornering the market, making people like Peter Lynch, ...
Bob Baerker's user avatar
  • 76.6k
88 votes
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Is it a good idea to copy a trader when investing?

The first thing that pops up when you open your link is a disclaimer: 66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how ...
Bob Baerker's user avatar
  • 76.6k
87 votes

Why did Tesla's stock value drop by 40 USD for just 5 minutes on August 2nd at 3:20pm?

Refresh the report. You'll probably see that dip gone. It was likely just a glitch in the reporting data when you happened to run it. Oddities like this happen from time to time. When you see ...
BobbyScon's user avatar
  • 14k
63 votes

Investment strategy for Google: What did I do wrong?

It's tech-heavy because I am a tech guy and I always feel comfortable investing in a tech company. First, no you do not feel comfortable. You invested in an incredibly volatile company in a volatile ...
Eric Lippert's user avatar
  • 4,996
63 votes

Is it a good idea to copy a trader when investing?

Well, consider it from the other side. Why would a trader be willing to share trades? Consider the following scenario. The reference trader makes a trade in a low volume market. The trade is ...
Brythan's user avatar
  • 21k
59 votes

Why aren’t there more stock market prediction tools available?

These tools exist (see Nelson's answer), but they aren't available for purchase because once they become publicly available, they cease to work. The logic goes something like this. Suppose the stock ...
Allure's user avatar
  • 2,720
53 votes

Can I profit from anticipating a drop in value?

To expand on the comment made by @NateEldredge, you're looking to take a short position. A short position essentially functions as follows: Borrow a share owned by someone else Sell that share Wait ...
quid's user avatar
  • 49k
48 votes
Accepted

Is it true that, "just ten trading days represent 63 per cent of the returns of the past 50 years"?

Mild vs. Wild Randomness: Focusing on those Risks that Matter and A focus on the exceptions that prove the rule are copies of the original article referenced by the Wikipedia page. The authors are ...
Justin Cave's user avatar
  • 27.3k
44 votes

Why is the stock market so unpredictable?

If you think about, most of the things we do in a day are pretty predictable. Really? Waking up, You never oversleep. deciding what sites to browse, Not sure how many people plan that in the ...
TomTom's user avatar
  • 11.5k
44 votes

Does the stock price drop if one of the largest shareholders of the company sells all their shares?

I'm not sure I would classify Musk's recent TSLA share transactions as "selling like a madman". For one thing his holdings are extensive and he's sold, so far at least, only a small ...
jwh20's user avatar
  • 3,468
40 votes

Why can more jobs mean more inflation and decreased stock prices? What are other links in the chain to watch out for?

Many news outlets ... are reporting that the current US stock sell-off is due to a stronger-than-expected jobs report in January... Had the market done well in the last few days those same people ...
TTT's user avatar
  • 47.2k
38 votes
Accepted

What happened to Home Depot's Stock in 1988?

It's got to be a bad chunk of data on Google. Yahoo finance does not show that anomaly for 1988, nor does the chart from Home Depot's investor relations site:
Ben Miller's user avatar
  • 116k
36 votes

Why do some investment firms publish their market predictions?

They do so because it’s free advertising. If they get it wildly wrong, it will be totally forgotten —- it’s not news when a prediction fails to come to pass. Unfortunately, it is often considered ...
jmoreno's user avatar
  • 1,355
35 votes

Is it true that, "just ten trading days represent 63 per cent of the returns of the past 50 years"?

Nassim Taleb is remarkably brilliant. It's his work that's cited in the article. In my opinion, there are 2 choices, a misquote, if the article is wrong, or a misunderstanding on the part of the ...
JTP - Apologise to Monica's user avatar
29 votes

Why is AT&T's stock price declining, during the days that they announced the acquisition of Time Warner inc.?

It is not unusual for the acquiring company's stock to fall in any time of merger announcement. Some of it has to do with the fact the acquirer is going to either take on new debt to pay for the cost ...
Daniel Anderson's user avatar
29 votes
Accepted

How to interpret stock performance charts "vs S&P 500"

tl;dr: The CNN Money and Yahoo Finance charts are wildly inaccurate. The TD Ameritrade chart appears to be accurate and shows returns with reinvested dividends. Ignoring buggy data, CNN most likely ...
Ryan's user avatar
  • 671
25 votes

Why aren’t there more stock market prediction tools available?

They exist, but it's not for you to buy. Here is a story about Ke Xu, quantitative analyst. Basically, the algorithms exist, but they are closely guarded secrets. Someone tried to steal them and got ...
Nelson's user avatar
  • 856
25 votes
Accepted

Can a subsidiary/division of a company have a larger market cap than the parent company?

The market capitalization of Naspers is approximately 1.3 trillion ZAR, which is equivalent to approximately 75 billion EUR. The market capitalization of Prosus is approximately 130 billion EUR. If ...
Flux's user avatar
  • 17.1k
24 votes

Investment strategy for Google: What did I do wrong?

Check your price to earnings ratios and your price to book ratios for each of your assets. It has been an upward ride, so "foolish" stocks like Alphabet tend to rise faster. I would begin to ...
Dave Harris's user avatar
  • 4,277
23 votes

How do you take profit from stock trading while keeping capital invested?

You don't have to sell just because the price has gone up 25%. You sell... if you need the money... because you think that the company share price will not be growing any more or even it will be ...
mhoran_psprep's user avatar
21 votes

Why is the stock market so unpredictable?

Short answer: arbitrage. The way I see it, you're not really betting on anything physical, nor even on how well companies perform; you're betting on what all the other investors/speculators think ...
gidds's user avatar
  • 417
21 votes

Does an IPO mean a company is going public or is already public?

I know IPO means that particular company, regardless of the country, is offering some quantity of their stocks to the public via stock exchange. An IPO is an initial Public offering. They are taking ...
mhoran_psprep's user avatar
20 votes

Investment strategy for Google: What did I do wrong?

If there was an easy answer to your question, everybody would be millionaires. I suggest reading "One Up on Wall Street" by Peter Lynch. After you are done with that, read "Security Analysis" by ...
Five Bagger's user avatar
  • 9,785
20 votes
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At which P/E ratio can a stock be considered overvalued?

It sounds like the asker is looking for a rule of thumb about P/E. If only the market would be so kind as to have a simple rule of thumb. It unfortunately depends on the time and the range you are ...
Henry Crutcher's user avatar
18 votes
Accepted

Why was S&P 500 PE Ratio so high on May 2009

Asking why the p/e was so high is best answered "because reported earnings were so low". Recall that the S&P500 bottomed in early March 2009 when the panic of the financial crisis reached ...
not-nick's user avatar
  • 6,418
17 votes

Can I profit from anticipating a drop in value?

Purchasing an option to sell the stock is probably the safest bet. This gives you reasonable leverage, and your risk is limited to the cost of the option. Say the stock currently sells for $100 per ...
David Schwartz's user avatar
17 votes

Why can more jobs mean more inflation and decreased stock prices? What are other links in the chain to watch out for?

First, I advise against attributing stock market movements to particular pieces of news. Many cable shows depend on your interest in this question, but unless the news is nuclear war, its long-term ...
Andrew Lazarus's user avatar

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