Why do you buy shares in a company?

[ROE]

Hi All,

Why do you buy shares in a company???

Is it:
accelerated eps?
tip?
new product?
great future prospects?
Insiders are buying?
Comany is undervalued?
etc...

Cheers,

Ceasar.

I buy because I admire and like to be part owner of that business..and part owner I want to share future profit and provide me with an income when I retire in 30 years from now... I also acknowledge a long the way I will make mistakes and it will cost me some money but over all the return will out run the lost .. I stick with it thick and thin and it takes 10,000 hours to be a master of a subject and each day I get closer to the 10,000 hours I am a better investor

Why 10,000 hours ask this man
http://www.amazon.com/Outliers-Story-Success-Malcolm-Gladwell/dp/0316017922

 

[MS+Tradesim]

It is easy to claim anything in a forum. Over time you get a sense for who is full of it, and who knows what they're talking about, even without seeing trading records.

During the bull run I made good money on fundamental/technical trades. In this market I don't believe fundamentals carry much weight, so I trade purely on price action at the moment, and I will add fundamentals back in when there is reason to think they are more reliable. I did not capitalise by shorting the large part of the last year's crash because I'm relatively young (33) and I've never seen anything like it. Despite that, I still make money doing what I do and the market over the last 13-14mths has added a lot of experience to my trading resume.

I post a lot on mechanical (which is not equivalent with automated) trading and trading systems development. The feedback from people I've been privileged to assist is the only thing that matters to me. However, I'm going to post a few trades that best exemplify my approaches, which go against a lot of the accepted wisdom, to show that you need your own approach and you need to discount other people's opinions if it is clear that their beliefs cannot improve your own approach.

One of the best pieces of advice I learned is that nobody trades the markets, they trade their beliefs about the markets. Hence, I accept that the way I trade (and invest) is based on my perceptions and even though I do this for a living, it doesn't mean other people with very different beliefs cannot achieve good results. What is ridiculous is to show disrespect for another person's methodology only because it differs from one's own beliefs. I would suggest that kind of person is unlikely to succeed because they will short-sightedly suffer from an overdose of confirmation bias ie. they'll seek out information that supports their beliefs and discount information that contradicts their beliefs and perversely and irrationally hold on to losing investments/strategies. This attitude is fairly obvious in a lot of contributors to this forum.

Anyway, some of my trades which underline that going against the herd, even a lot of seasoned traders, can generate good rewards.....

 

[MS+Tradesim]

CVN - Chart reference:

1) First pops up on my radar. Check the fundamentals. All good. Wait for post-ann. sell-off, none occurs, so....

2) Build position, then later.....

Top right of chart, shows topping indications with new highs on very low volume, then falls through support/resistance at 72-ish on 9/1/08. News from USA looking crappier every day. Bull run is over for all intents and purposes. XAO has rolled over and no reason to believe new highs are coming.

3) XAO breaks through S/R (blue dotted line) on the day and with no technical reasons left to stay in (even though company bottom line is still great), I exit on the 9/1/08. (additional 20,000 shares sold on the day belonged to someone else. weren't bought as part of my trade)

 

[MS+Tradesim]

What happens then? Record breaking down days on the XAO, with corresponding crash in CVN.....price action in relation to broader market movement.

Then I do very little trading until September. Plenty of opportunities but not sure how to safely capitalise so I spend the time in research and development.

 

[nunthewiser]

off topic ... but how did you put that trading history on the screen ? everytime i try save the screen to my docs it goes into an XPS file or something , i cant delete my account number or any other details . i am not computer literate and it usually wouldnt bother me but seems without proof here EVEN when making real time calls sometimes they are viewed as fulla poo without broker statements ....... is it worth the bother learning ( ie is it easy to explain here ?) or should i just tellem to jam sand up there clackas and worry about there own trading details instead

and really tho on a side note . IF one is able to delete stuff on the trade history(ie acc details etc) why cant someone change or edit the details to make oneself look like a 100% winner ? buggared if i know and now just rambling as been trying to get these statements on screen for nearly 3hours now just because someone doubted my trading in another thread ......

geez after typing all this .i just realised im a bigger ******** than he is cos i just wasted a good part of my evening worrying about it !!!

 

[bunyip]

Sir O......well done in nailing a nice trade. But from now on I hope you won't feel that you're under any obligation to prove anything. There will always be an odd person who for their own reasons, will try to paint you as a liar.
Those sort of people are not worth responding to.
As a confident and successful trader you are under no obligation to prove yourself to anyone - least of all the 'toxic people' you refer to.

All the best to you.

 

[So_Cynical]

off topic ... but how did you put that trading history on the screen ? everytime i try save the screen to my docs it goes into an XPS file or something.

Screen shot (print screen) then paste in paint - save as whatever/JPEG
edit with PhotoFiltre...acc details etc. http://photofiltre.free.fr/download_en.htm

 

[MS+Tradesim]

While R&D is always ongoing, at some point you have to start trading an idea. There will always be something that could be done better. So I establish some workable strategies and kick them off and improve them with live results. Actually, one of them was designed during the bull market but I'd forgotten I had it. After dusting off and live testing, I start trading it and it now provides a solid income. Also doing other trading ideas at present but my bread and butter comes from buying momentum stocks on/near close and selling the next day on/near open. There are quite a few boxes to check for each stock but once they're ticked the trade takes place.

The results for this system I've already posted earlier in the thread. I do not recommend anyone try the same thing. This works for me because I have a fully developed strategy, back-tested, forward tested, live for some time and tracking as planned. I definitely wouldn't recommend it as territory for newcomers.

But the point is that no-one else is going to take responsibility for your losses, so don't abdicate responsibility to others for your profits!!!! Don't reject an idea just because someone else says it can't be done. Prove it for yourself.

Ps. I forgot to add about CVN that the reason it went against the herd was the fundamentalists were saying "Hold! Hold!" went from a technical perspective it looked like a good time to sell.

As an interesting point of trivia, this great little trade from the above system was completely wrong and misguided, according to the fundamentals and probably most technicals.......

 

[nunthewiser]

Screen shot (print screen) then paste in paint - save as whatever/JPEG
edit with PhotoFiltre...acc details etc. http://photofiltre.free.fr/download_en.htm

paint?

just pressed prtsc button on laptop .nothing!!


ARRRRRGH


bugga it . thanks for your help ...... wasted enough time on it already ......

thanks anyways

 

[Julia]

off topic ... but how did you put that trading history on the screen ? everytime i try save the screen to my docs it goes into an XPS file or something , i cant delete my account number or any other details . i am not computer literate and it usually wouldnt bother me but seems without proof here EVEN when making real time calls sometimes they are viewed as fulla poo without broker statements ....... is it worth the bother learning ( ie is it easy to explain here ?) or should i just tellem to jam sand up there clackas and worry about there own trading details instead

and really tho on a side note . IF one is able to delete stuff on the trade history(ie acc details etc) why cant someone change or edit the details to make oneself look like a 100% winner ? buggared if i know and now just rambling as been trying to get these statements on screen for nearly 3hours now just because someone doubted my trading in another thread ......

geez after typing all this .i just realised im a bigger ******** than he is cos i just wasted a good part of my evening worrying about it !!!

Try downloading and using this, Nun.
http://winsnap.brothersoft.com/
I'm a complete technophobe but I find this is a piece of cake. Will be forever grateful to the ASF member who suggested it to me a couple of years ago.

 

[nunthewiser]

Try downloading and using this, Nun.
http://winsnap.brothersoft.com/
I'm a complete technophobe but I find this is a piece of cake. Will be forever grateful to the ASF member who suggested it to me a couple of years ago.

thanks but that keeps popping up on my popbar saying " internet explorer has blocked it from downloading files to my computer ""


thanks anyways

toldya i was illiterate

 

[So_Cynical]

paint?

just pressed prtsc button on laptop .nothing!!


ARRRRRGH


bugga it . thanks for your help ...... wasted enough time on it already ......

thanks anyways

hitting print screen is like a short cut for copy...so now u have to paste

Goto start button > programs > accessories > paint > edit > paste

 

[nunthewiser]

hitting print screen is like a short cut for copy...so now u have to paste

Goto start button > programs > accessories > paint > edit > paste

thanks for your help guys ....

tried all that , i must be doing something wrong , will try another time when i can get my head around it ... have written down all instructions and will have another look when im not going round in circles on it

 

[ceasar73]

One of the best pieces of advice I learned is that nobody trades the markets, they trade their beliefs about the markets. Hence, I accept that the way I trade (and invest) is based on my perceptions and even though I do this for a living, it doesn't mean other people with very different beliefs cannot achieve good results.QUOTE]

Yep, I agree tradesim.People trade/invest based on their perceptions.

The aim of this thread (and others I have posted) was to get an insight into the other traders perceptions.

 

[ceasar73]

One of the best pieces of advice I learned is that nobody trades the markets, they trade their beliefs about the markets. Hence, I accept that the way I trade (and invest) is based on my perceptions and even though I do this for a living, it doesn't mean other people with very different beliefs cannot achieve good results.QUOTE]

Yep, I agree tradesim.People trade/invest based on their perceptions.

The aim of this thread (and others I have posted) was to get an insight into the other traders perceptions.

This should read 'investors perception'.

 

[Sean K]

The aim of this thread (and others I have posted) was to get an insight into the other traders perceptions.

And then bag them for not sharing your ideas.



So, why do you buy shares?

To make a loss?

 

[skc]

One of the best pieces of advice I learned is that nobody trades the markets, they trade their beliefs about the markets. Hence, I accept that the way I trade (and invest) is based on my perceptions and even though I do this for a living, it doesn't mean other people with very different beliefs cannot achieve good results.QUOTE]

Yep, I agree tradesim.People trade/invest based on their perceptions.

The aim of this thread (and others I have posted) was to get an insight into the other traders perceptions.

Is this what you are trying to express? http://en.wikipedia.org/wiki/Keynesian_beauty_contest

Sensational.
Incredible.
My un reserved apologies.
I choose Joe as the recipient of the $500.

I would like to further challenge Sir O and have him produce a statement / certificate etc showing that he has really received his Knighthood...

 

[Sir Osisofliver]

I would like to further challenge Sir O and have him produce a statement / certificate etc showing that he has really received his Knighthood...

HAR HAR

 

[derty]

off topic ... but how did you put that trading history on the screen ? everytime i try save the screen to my docs it goes into an XPS file or something

There is a handy and very easy to use little program called srip32. It is free ware and you can get it from here: http://www.esnips.com/doc/226effc2-20dd-4313-aca4-ba64528f9079/srip32

I find it easiest to use the Grab Rectangular Area method and drag over what I want to capture. Then just save it as a .jpg file.

If you have problems downloading it just PM me an email address and I'll send it to you, it's only 366kb.

 

[ceasar73]

And then bag them for not sharing your ideas.



So, why do you buy shares?

To make a loss?

Im missing something here? Who did I bag for not sharing my ideas??.