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

[nioka]

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.
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Why not include PRE at 3.6c. I put 20000 in the bottom drawer at 3c. Any more suggestions?

 

[mime]

On the flipside you could have done it with NEO and made a massive loss. I'm doing the same thing with BPT. I bought at around $0.46 and hoping it reaches the $5 region in the future.

Speaking of FMG. I was reading the little research thing on comsec and the companies future earnings are -500% or so. Are they sitting on a huge asset or something?

 

[Sean K]

I threw a dart at the dot com board in the 90s and it hit EISA. Went from $1.00 to $4.00 to administration....

Why didn't that turn me into a millionaire STC?

Actually, I'm still struggling with the point of the thread. My brain must be still fried from the weekend. Are you saying that we should all just be throwing darts, and hold in hope?

 

[krisbarry]

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!!!

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Too true, just like the monkeys get taught how to collect bananas, so do we humans get taught how to collect shares.

Some monkeys learn how to trade bananas and others buy and hold for a rainy day

Guess it depends on which banana palms have the biggest and ripest bunches, some monkeys would use considerable time and brain power casing palm after palm in search for the best, others would just climb up one palm and hope for the best.

No answers is right or wrong, sometimes its just luck of the draw!

 

[dj_420]

Speaking of FMG. I was reading the little research thing on comsec and the companies future earnings are -500% or so. Are they sitting on a huge asset or something?

only a couple of billion tonnes of iron ore

 

[krisbarry]

At this stage we have no idea how many people owning FMG shares have acheived what results, but lets just say a few thousand people since 2004 have achieved it with no T/A, no F/A and simply bought and held.

So for those that think only 1 or 2 stocks do this, that might be true, but the end result is that thousands benefit, so that does skew the stats in my favor a little more don't you think?

 

[the barry]

I threw a dart at the dot com board in the 90s and it hit EISA. Went from $1.00 to $4.00 to administration....

Why didn't that turn me into a millionaire STC?

Actually, I'm still struggling with the point of the thread. My brain must be still fried from the weekend. Are you saying that we should all just be throwing darts, and hold in hope?

Officially the worst thread ever. What a waste of time.

 

[the barry]

At this stage we have no idea how many people owning FMG shares have acheived what results, but lets just say a few thousand people since 2004 have achieved it with no T/A, no F/A and simply bought and held.

So for those that think only 1 or 2 stocks do this, that might be true, but the end result is that thousands benefit, so that does skew the stats in my favor a little more don't you think?

I still can't work out the point you are trying to make. Can you please explain in plain english.

 

[doctorj]

There are so many of these "make lots of money with next to no effort or capital" here at ASF and more are appearing all the time. I think it's a symptom of so much easy money being made in the market. People think anyone can do it, afterall if someone can come in and bag a stock like BMN straight off the bat, its natural for them to think themselves geniuses and the game easy.

Nick's right, this is just survivorship bias played in near real time. With the coming of the bears, these type of posts will disappear into the ether as these 'successful' investors and traders decide they're better off playing golf or buying property.

 

[krisbarry]

The point I am making is that for many people its possible to make huge amounts of money using no method at all except for the buy and hold approach.

Even a monkey can be trained how to buy a stock and sit on it for a few years.

But again ...we humans love to complicate things with charts, and theories, and forumlas etc.

 

[krisbarry]

Buying any of the 4 major banks some 5 years ago would have resulted in the same approach....massive profits, with no effort required.

No charting, No T/A, no F/A

just throwing out 4 more examples of how even a monkey can make money

 

[>Apocalypto<]

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.



..

Good luck with that in a trading sideways market!

one system will work great in one kind of market, don't forget that

 

[Sean K]

Buying any of the 4 major banks some 5 years ago would have resulted in the same approach....massive profits, with no effort required.

No charting, No T/A, no F/A

just throwing out 4 more examples of how even a monkey can make money

That's not what you are saying STC. You have actively decided to buy one of the big 4 banks in this example. That's more than just a plain lucky buy anything and hold approach. You have to have known which are the big 4 banks for a start. A monkey wouldn't know that. Maybe.

 

[the barry]

Buying any of the 4 major banks some 5 years ago would have resulted in the same approach....massive profits, with no effort required.

No charting, No T/A, no F/A

just throwing out 4 more examples of how even a monkey can make money

So how do you know to buy those banks? You just wake up and think, you know what? Im going to buy the banks today and come back in ten years and i will be rich. Can you try adding something of substance to your point of view?

 

[prawn_86]

not wanting to speak for STC, but this is how i understand it:

he is saying that in current bullish conditions ppl can tend to over complicate things by trading and charting etc etc when after a bit of simple research a buy and hold strategy can pay off very well.

i guess it is as much of a psychological thread as opposed to trading strategies. EG - why do some ppl prefer trading to buying and holding when results could be the same/similar (maintaining current market conditions)

 

[krisbarry]

Can you try adding something of substance to your point of view?

Substance is what we humans love to add to life, just to make ourselves feel important and in control.

If we add a chart and a theory, then we are in total control of a stock!

Not so...the monkey could also achieve the same results with no substance, no chart, and no theory.

Lets just say X stock rose $5 in 1 year...It was $1 and rose to $5

The monkey buys in on day 1 and sits on it...he goes about his daily business and checks it 1 year later, to find he is 5X more wealthier.

The human buys the same stock on day 1...charts it this way, charts it that way, sells it a few times over that year and buys it again a few times. Discusses the stock on a few forums, and anayalsis it to the nth degree.
Then 1 year later the human checks the account balance and alas...he is 5 X more wealthier too.

But who is the smarter of the 2, most would say the human, because he is in control....wrong....the monkey is cause the stock didn't control him, he got on with his life while the human wasted it by mulling over it, discussing it, charting it etc etc. Thats my theory!

 

[the barry]

Substance is what we humans love to add to life, just to make ourselves feel important and in control.

If we add a chart and a theory, then we are in total control of a stock!

Not so...the monkey could also achieve the same results with no substance, no chart, and no theory.

Lets just say X stock rose $5 in 1 year...

The monkey buys in on day 1 and sits on it...he goes about his daily business and checks it 1 year later, to find he is 5X more wealthier.

The human buys the same stock on day 1...charts it this way, charts it that way, sells it a few times over that year and buys it again a few times. Discusses the stock on a few forums, and anayalsis it to the nth degree.
Then 1 year later the human checks the account balance and alas...he is 5 X more wealthier too.

But who is the smarter of the 2, most would say the human, because he is in control....wrong....the monkey is cause the stock didn't control him, he got on with his life while the human wasted it by mulling over it, discussing it, charting it etc etc. Thats my theory!

I still don't see what your point is? What is this stock x you talk of? In hindsight I could say you should buy any stock that has gone up x amount and just sit on it. Without the power of hindsight, how do you pick your stock x?

 

[Kauri]

not wanting to speak for STC, but this is how i understand it:

he is saying that in current bullish conditions ppl can tend to over complicate things by trading and charting etc etc when after a bit of simple research a buy and hold strategy can pay off very well.

i guess it is as much of a psychological thread as opposed to trading strategies. EG - why do some ppl prefer trading to buying and holding when results could be the same/similar (maintaining current market conditions)

Because these threads allways contain the phrases ..."'could have...would have".... hell even I would have cleaned up at the races if they had only delivered Sundays paper a day earlier!!!!
Don't talk about what might have been, if the strategy is so good and obviously foolproof, lets have an example now, real-time, that we all can follow..... .. or not. ..

 

[prawn_86]

Don't talk about what might have been, if the strategy is so good and obviously foolproof, lets have an example now, real-time, that we all can follow..... .. or not. ..

obviously only my opinions dyor etc etc,
but i believe TMR shows heaps of potential especially as they already have cashflow.
and FNT is a bit more speculative but heaps of upside from both tech and fundy view

lets come back to this post in 2 years and see lol

 

[disarray]

So how do you know to buy those banks? You just wake up and think, you know what? Im going to buy the banks today and come back in ten years and i will be rich. Can you try adding something of substance to your point of view?

to be fair to the guy, there are some blindingly obvious choices which you know almost HAVE to take off. when i was 17 years old they privatised the commonwealth bank and i didn't know the first thing about the markets, but i knew it was going to make a pile of money. i even told my old man to buy some shares. same with MYOB. same with T1 and T3 (T2 was an obvious dud). some companies just have a stable, successful model as well as the support of the public. charting is irrelevant in this case, buy on fundamentals and public/market sentiment.

people saying "just wait till a sideways market" seem to be missing the point STC is making that buy and hold means "buy and hold". sideways markets are irrelevant, bear markets are irrelevant, because the overwhelming trend for markets is UP, and as more of the world modernises and more money is flowing through the economy, the stronger this upward trend will be.

for smaller stocks, spec stocks or whatever then T/A and F/A are vital, but for something that starts in a strong (almost dominant position as was the case with MYOB) then you have an almost guaranteed money tree if you invest with a modicum of sense.

but yes, i agree, the "get rich quick" crowd do love these sorts of threads to encourage each other. if they make money, good for them.