How to turn $9,500 into $550,000+

[nomore4s]

Its quite simple and requires very little time at all.There is no need to spend hours drooling over charts, using all kinds of T/A, and F/A to justify why you bought what you bought.

It is as simple as a buy and hold approach, with no attention needed.

Here is the story, a true story at that of how it could have been achieved.

I bought FMG back in Aug 2004 for 64 cents, the trade took me about 10 minutes to complete, after reading the announcement etc. Of course I sold out 2 weeks later after it had hit my stop-loss (10%). But thats not the point!

Now look at the price of FMG mid $30's and even reached $40 over the past 2weeks

You see, you can make extreme amounts of money with no effort required at all.
I could have executed that trade and never turned on the computer again for 2.5 years, then come back to see a massive account balance.

So it really does pose the question are most of us just simply wasting time mulling over hours and hours of charts, glued to a computer screen etc, when the majority of us could just buy almost any mining stock in the midst of a mining boom, and make squillions, just by being patient.

..

IMO This is the problem with society nowadays, people want everything for nothing. STC wants big gains without actually doing any work for it.

A couple of questions then.
1. How do you pick your stock? Surely there has to be some research involved?
2. What happens when you pick a stock that halves in value?
3. If its so easy and simple, why haven't you done it? Or why aren't you doing it?
In the example you showed you not only didn't turn $9,500 into $550,000+, you actually made a loss! Doesn't seem that easy to me.

Sure you could get lucky with this approach and actually pick the right stock, but imo you've got just as much or more chance of picking a stock that halves in value or goes bust. You may as well go and spend $9,500 on lotto tickets or take it to the casino and pick a number on the roulette wheel and hope for the best.
Like wavepicker said there is no easy money in the markets.

Good luck to you STC if this is the approach you decide to take, but I have a feeling you start threads like this just to stir people up.

 

[nizar]

A couple of questions then.
1. How do you pick your stock? Surely there has to be some research involved?
2. What happens when you pick a stock that halves in value?
3. If its so easy and simple, why haven't you done it? Or why aren't you doing it?
In the example you showed you not only didn't turn $9,500 into $550,000+, you actually made a loss! Doesn't seem that easy to me.

Top point.
For someone who thought it was so easy.........

Id like to see him attempt these questions, especially q4.

 

[henry vanderhave]

my brother in law made over $400,000. he bought 5000 csl shares when they listed at $2.50 per share.cost $12500 to get in.Today they are approximately $90.00 dollars per share,value now $450,000.His policy is,never sell anything.he buys quality only and holds to this day.hes annoyed they dont pay fully franked dividends.he buys for the divies.he knew they were good coming from the government.He also did same with commonwealth bank and national bank.still holding.amongst others.never sell is his way buy quality.

 

[Julia]

IMO This is the problem with society nowadays, people want everything for nothing. STC wants big gains without actually doing any work for it.

A couple of questions then.
1. How do you pick your stock? Surely there has to be some research involved?
2. What happens when you pick a stock that halves in value?
3. If its so easy and simple, why haven't you done it? Or why aren't you doing it?
In the example you showed you not only didn't turn $9,500 into $550,000+, you actually made a loss! Doesn't seem that easy to me.

Sure you could get lucky with this approach and actually pick the right stock, but imo you've got just as much or more chance of picking a stock that halves in value or goes bust. You may as well go and spend $9,500 on lotto tickets or take it to the casino and pick a number on the roulette wheel and hope for the best.
Like wavepicker said there is no easy money in the markets.

Good luck to you STC if this is the approach you decide to take, but I have a feeling you start threads like this just to stir people up.

Exactly. Great post.

 

[hongwong]

hmmmm nice topic ...

After being a "fundie" and trying to learn what the chartist see in stock trading....

I must admit i would prefer "fundie" over charting.... maybe because i suck at charting.

The best thing repeart over time and time again is find a great company that is under valued and then buy as much as you can.

Finding that company is the hardpart ...

Other thing that I feel chartist and fundie must do is look how the company is going.

Like coles .. Go down to a coles super market and compare it to woolsworth ...

i think this is great insider knowledge.

Personally I have not seen a successful chartist that I read about i can read about .... all i see is their self promotion stuff.

 

[wayneL]

Personally I have not seen a successful chartist that I read about i can read about .... all i see is their self promotion stuff.

Buy this book

 

[doctorj]

His policy is,never sell anything.he buys quality only and holds to this day.

How did he go with Telstra 2? I don't mean to have a go, but its easy to trot out examples of winners, people just love talking about their triumphs but aren't so quick to talk about losers.

 

[laurie]

The real title should have been How to turn $9,500 into $394,815.00+ [assuming top tax rate of 46% if held for 12 months] sometimes people forget a three letter word called CGT! that is why Mr Costello has Billions of surplus cash mainly from the share market

cheers laurie

 

[CanOz]

my brother in law made over $400,000. he bought 5000 csl shares when they listed at $2.50 per share.cost $12500 to get in.Today they are approximately $90.00 dollars per share,value now $450,000.His policy is,never sell anything.he buys quality only and holds to this day.hes annoyed they dont pay fully franked dividends.he buys for the divies.he knew they were good coming from the government.He also did same with commonwealth bank and national bank.still holding.amongst others.never sell is his way buy quality.

Agree, plenty of these types of stories around, a dime a dozen.

I got a mate whos uncle is sitting on a multi $million portfolio...ANZ, CBA, WOW, NAB, all blue chips too! Bought them all for a song too! He says when he goes, its all his (which incidently he couldn't care less about, more to him to just have his uncle around).

His uncle is grinning like a toothless wonder!...................because he is!

He's 94!

Buy and hold, even if you die before you can sell.



Cheers,

 

[michael_selway]

my brother in law made over $400,000. he bought 5000 csl shares when they listed at $2.50 per share.cost $12500 to get in.Today they are approximately $90.00 dollars per share,value now $450,000.His policy is,never sell anything.he buys quality only and holds to this day.hes annoyed they dont pay fully franked dividends.he buys for the divies.he knew they were good coming from the government.He also did same with commonwealth bank and national bank.still holding.amongst others.never sell is his way buy quality.

Hm CSL dropped from $50 to $10 in 2002 i think?

Do you know what his thoughts were then?

thx

MS

 

[Nick Radge]

Hm CSL dropped from $50 to $10 in 2002 i think?

Do you know what his thoughts were then?

"I really should buy Amcor 'cause I'm using a lot of toilet paper these days..."

Good for you STC.

For everyone else, survivorship bias at its best.

 

[krisbarry]

Cleary some are missing the point, and that is when I traded on FMG, I used no T/A or F/A, to be quite honest I had no idea what that all meant, as I was a few weeks into learning how to trade. I just simply read the announcement on the ASX website and bought in.

FMG was still an explorer at the time that I bought in, so who ever said that only mining companies that produce, will make you squillions? There is one big fat lie which I have exposed.

The rest comes down to luck, the Chinese, resource profit upgrades and the mining boom.

Yep my only mistake was either selling in the first place or not re-entering at a later stage.

I sold out losing $950 which was more than enough for me, knowing what I know now, that is called a stop loss, and I placed it at a pretty good point (10% loss is acceptable).

But I must stress again that I used no T/A or F/A in an intentional way, the buy and hold approach would have worked a treat

 

[nizar]

Cleary some are missing the point, and that is when I traded on FMG, I used no T/A or F/A, to be quite honest I had no idea what that all meant, as I was a few weeks into learning how to trade. I just simply read the announcement on the ASX website and bought in.

FMG was still an explorer at the time that I bought in, so who ever said that only mining companies that produce, will make you squillions? There is one big fat lie which I have exposed.

The rest comes down to luck, the Chinese, resource profit upgrades and the mining boom.

Yep my only mistake was either selling in the first place or not re-entering at a later stage.

I sold out losing $950 which was more than enough for me, knowing what I know now, that is called a stop loss, and I placed it at a pretty good point (10% loss is acceptable).

But I must stress again that I used no T/A or F/A in an intentional way, the buy and hold approach would have worked a treat

STC.

Clearly you have missed the point.

Several professionals in this thread, i repeat professionals, like Nick and Mag, have tried to shed some light, that buy and hold random stocks isnt a viable strategy but still you havent understood.

There are, i think about, 1700 stocks on the ASX.
How many 50-baggers in the last 2.5years?
Only FMG?
Probably.
That's 1/1700, so 0.05% chance.

Does that sound like an edge to you?

Theres no such thing as easy money on the markets.

Note that FMG had a 40ish% pullback last year from $10 to about $6.

 

[nizar]

Maybe we should start threads about all the bullmarket champions?

PDN i bought $9500 worth in 2004 for 1c.
Thats 950,000 shares.

So worth about $8million. A bit more than $950,000.

How about HDR from 7c and OXR from 7c?

 

[wavepicker]

But I must stress again that I used no T/A or F/A in an intentional way, the buy and hold approach would have worked a treat

STC, I don't think anyone would be disputing that buy and hold can work,
assuming you are lucky and patient enough to hold the right stock.

Equally though there are times when you could be holding any stock for a very very long time before you turn a profit.

Just ask the investors who bought Nikkei stocks in 1989/90 or even just before then, they would be now sitting on 80% losses 12 years later, and even to this day would not have recovered half their losses. Or for that matter the NASDAQ stocks which are still languishing well off their 2000 highs.

There are no guarrantees long term holds will work out. After the crash of 1929, it took holders of a lot of bluechips bluechips 25 years to recoup their $$$. Do you you know what most did thereafter??? They sold. Thereafter those same companies kept on rising. Ofcourse most of the holders of the stock are all deceased!!

ANYTHING is possible in the market.



Cheers

 

[Julia]

Maybe we should start threads about all the bullmarket champions?

PDN i bought $9500 worth in 2004 for 1c.
Thats 950,000 shares.

So worth about $8million. A bit more than $950,000.

How about HDR from 7c and OXR from 7c?

Do you still have those PDN, Nizar?

 

[nizar]

Do you still have those PDN, Nizar?

No i didnt buy PDN at 1c.
I was just trying to prove a point.

 

[krisbarry]

STC.

Clearly you have missed the point.

Several professionals in this thread, i repeat professionals, like Nick and Mag, have tried to shed some light, that buy and hold random stocks isnt a viable strategy but still you havent understood.

There are, i think about, 1700 stocks on the ASX.
How many 50-baggers in the last 2.5years?
Only FMG?
Probably.
That's 1/1700, so 0.05% chance.

Does that sound like an edge to you?

Theres no such thing as easy money on the markets.

Note that FMG had a 40ish% pullback last year from $10 to about $6.

True, and I am giving you an example of how its possible to pick a winner at random, just like lotto numbers and make what professionals make with no effort at all.

There is always 2 sides to look at things. Many professionals make big, big mistakes too.

 

[DB008]

Very good arguments so far.
Conspiracy comes to mind. I guess everyone has heard stories how a monkey throws a dart into a stock listings page in the financial review and usually out performes most managed funds!!!

I'm thinking of getting some Legend Mining (LEG) shares. A steal at 8 cents a share. Buy $1000 worth and l'll let u guys know in 2 years where they are.

I was going to do this with Tanami Gold, but 1 year on, they are still hovering between 14-20 cents.

 

[henry vanderhave]

Michael.When the CSL shares went down he was not concerned at all.Quality share and hes in for the dividends.And he loathes to pay CGT
.and in the long run they seem to always rebound.He wouldnt touch explorers and small miners --cause they dont pay dividends-simple. Hes not a traderon short term movement looks at the bigger picture .thanks