Hello and Welcome. Sorry, I can't say I've heard of them. I use the internet and a couple of different print publications to do my research for stocks. All of my research tools cost less than software. Is there a "human" factor worked into this software program? Great to meet you, and look forward to great conversation :)
Almost always the trading systems are technical analysis programs that don't rely on human judgement. I can't imagine it's possible for a program to make anyone into a good trader. You're almost always better off researching 5 or fewer stocks, picking the best 3 and holding for a period of 1 year or more if possible.
Alfredsokol - I am not at that level of sophistication as yet or should I say don't have the knowledge. I appreciate the input Hathor - Great to meet you! Can you share some more info and the cost involved? Happy Harry - I beleive you are right, the software is based on technical analysis pre-programmed. Please share some more info, I want to trade inorder to furnish my real estate deals. Holding a stock for 1yr is out of scope for me right now.
The main thing you want to do is learn the basics. You want stocks of companies with high earnings. You also need to set a profit objective.
hey pleasure to meet you.... welcome to superior investor and enjoy ur stay... the way i understand ur requirement u are looking for high turnover in your portfolio.... the only thing im wondering about is what is ur investmet value... i mean how much money u are going to be investing... because if u are investing small amounts than i don't advice u high turnover but if u are investing a high amount where a slight move can make u a good amount of money than yes i would say that technical analysis will give u a descent return with a high turnover.... chahine
Always a point worth remembering: High turnover = high costs = death to a small portfolio. The smaller the portfolio, the fewer the trades you can make.
[quote:e6998ebb30="alfredsokol"]Always a point worth remembering: High turnover = high costs = death to a small portfolio. The smaller the portfolio, the fewer the trades you can make.[/quote:e6998ebb30] Why is this? Please enlighten me. <--Newbie
The commission on the trades are too high of a percentage if the trades are very small. People with $1,000 in a portfolio will usually put that into 2 or more stocks. Assume they but two stocks: If it costs you $10 to buy and $10 to sell you spend $20 out of capital of $500. That's 4 % of your capital gone. The best thing that can happen to a small portfolio is hitting a winner on one stock. Trading in and out can be very tough to do.
Gotcha... ...another question for you, What are the percentages of income tax you have to pay on a short term(<1 yr) gain compared to a long term(>1 yr)? I don't fully understand this side of the equation yet... Thanks, Nate
It can get to be pretty substantial with a lot of trades in and out. Stocks held less than a year are going to be taxed heavier than stocks that you hold for over a year.
The longer you can hold onto the stock, the less tax you pay and less transaction fees ;-)
Long Term Capital Gains taxes are paid at a 20% rate. Short Term gains are taxed as normal income, so generally you're looking at a 38% or so. So almost twice as much in taxes for the short term trader. That means the short term trader has to do twice as well as someone with a longer time horizon to compensate.
Copyright 2008, All Rights Reserved. Thanks for visiting a Performance Marketing Group Network Website. Advertise Here. Please visit one of our other quality websites.: