The Best Cyprus Community

Skip to content


INVESTMENTS

Feel free to talk about anything that you want.

Re: INVESTMENTS

Postby Maximus » Fri Nov 16, 2018 7:20 pm

Paphitis wrote:
miltiades wrote:Did you make any money.?
I did stupid!! Now fuck off you little peasant .


You did very well so well done again.

Your 8% profit is excellent in such a short period of time. Your investments don’t need to hit 12 euros for you to be happy with your return.

Your return is just perfect. It was a good trade.


Well it depends.

As I have said earlier, you cant keep taking an 8% ROI (or return on money at risk) per trade and expect to be profitable over the long term if your success rate is less than 92%. It will take one loss of 100% of what you are prepared to lose on a single trade to seriously hurt your portfolio / investment.

A system or trading plan like this will have a negative expectancy over the long term.

The price can go either up or down. You have a 50:50 chance of calling it right, and in nearly all cases, the market gives you an opportunity to close in a profit at some point. Not taking trading costs in to account and depending on how far the price moves in either direction and when you buy or sell, makes all the difference to your results..

The key to success is how you manage your money.
Maximus
Main Contributor
Main Contributor
 
Posts: 7594
Joined: Wed Aug 10, 2011 7:23 pm

Re: INVESTMENTS

Postby Pyrpolizer » Fri Nov 16, 2018 10:28 pm

miltiades wrote:Just an update in Tomtom
Their chief executive had intense discussions yesterday with Bloomburg hence the drop in the price.
Having read extensively I shall at 10am sell my shares. Although I had fixed a 7.00 euro as my selling target, I have decided to cash in my profit which should be around 680 euros. Not bad foe a 2 week investement.


Hahaha.
What happened to your "Just sit tight and wait" after you did exactly what I told you to do just yesterday? :P
cyprus46523-260.html#p872392
The details were already known from various reports in the media.
Was it so difficult for you to use your brain to judge if what he was trying to sell was sellable or not?
Did you really have to read it in Bloomburg to beleive it? :o
User avatar
Pyrpolizer
Leading Contributor
Leading Contributor
 
Posts: 12893
Joined: Wed Mar 29, 2006 11:33 pm

Re: INVESTMENTS

Postby Paphitis » Sat Nov 17, 2018 2:43 am

Maximus wrote:
Paphitis wrote:
miltiades wrote:Did you make any money.?
I did stupid!! Now fuck off you little peasant .


You did very well so well done again.

Your 8% profit is excellent in such a short period of time. Your investments don’t need to hit 12 euros for you to be happy with your return.

Your return is just perfect. It was a good trade.


Well it depends.

As I have said earlier, you cant keep taking an 8% ROI (or return on money at risk) per trade and expect to be profitable over the long term if your success rate is less than 92%. It will take one loss of 100% of what you are prepared to lose on a single trade to seriously hurt your portfolio / investment.

A system or trading plan like this will have a negative expectancy over the long term.

The price can go either up or down. You have a 50:50 chance of calling it right, and in nearly all cases, the market gives you an opportunity to close in a profit at some point. Not taking trading costs in to account and depending on how far the price moves in either direction and when you buy or sell, makes all the difference to your results..

The key to success is how you manage your money.


Why can’t he make a profit.

Some traders do intra day trading but that is high volume. Institutional Oension funds and Banks are notorious for their intra day trades

Miltis expenses are a $17 fee to buy and a $17 fee to sell if he did it himself.

Total brokerage about $34.

So he made a tidy profit
User avatar
Paphitis
Leading Contributor
Leading Contributor
 
Posts: 32303
Joined: Sun May 21, 2006 2:06 pm

Re: INVESTMENTS

Postby Maximus » Sat Nov 17, 2018 3:00 am

Paphitis wrote:
Maximus wrote:
Paphitis wrote:
miltiades wrote:Did you make any money.?
I did stupid!! Now fuck off you little peasant .


You did very well so well done again.

Your 8% profit is excellent in such a short period of time. Your investments don’t need to hit 12 euros for you to be happy with your return.

Your return is just perfect. It was a good trade.


Well it depends.

As I have said earlier, you cant keep taking an 8% ROI (or return on money at risk) per trade and expect to be profitable over the long term if your success rate is less than 92%. It will take one loss of 100% of what you are prepared to lose on a single trade to seriously hurt your portfolio / investment.

A system or trading plan like this will have a negative expectancy over the long term.

The price can go either up or down. You have a 50:50 chance of calling it right, and in nearly all cases, the market gives you an opportunity to close in a profit at some point. Not taking trading costs in to account and depending on how far the price moves in either direction and when you buy or sell, makes all the difference to your results..

The key to success is how you manage your money.


Why can’t he make a profit.

Some traders do intra day trading but that is high volume.

Miltis expenses are a $17 fee to buy and a $17 fee to sell if he did it himself.

Total brokerage about $34.

So he made a tidy profit


If this was the only trade being taken but lets say you take 100 trades.

So you risk $1 to make 8 cents.

When one trade doesn't work out and you lose a dollar, you have wiped out the profit from the last 12.5 trades.

over the long term, if you don't maintain this high success rate of greater than 92%, your methods / system will generate a negative expectancy.

Do you realize how hard it is to maintain a 92+ % success rate from trading or investing? Close to improbably impossible.

In other words, you wont make money consistently.

Let me put it another way,

Would you rather make 8 cents per dollar risked with a 92% success rate or $4 per dollar risked with a 35% success rate?

This is the key to making money from the stock market.
Maximus
Main Contributor
Main Contributor
 
Posts: 7594
Joined: Wed Aug 10, 2011 7:23 pm

Re: INVESTMENTS

Postby Paphitis » Sat Nov 17, 2018 3:05 am

Maximus wrote:
Paphitis wrote:
Maximus wrote:
Paphitis wrote:
miltiades wrote:Did you make any money.?
I did stupid!! Now fuck off you little peasant .


You did very well so well done again.

Your 8% profit is excellent in such a short period of time. Your investments don’t need to hit 12 euros for you to be happy with your return.

Your return is just perfect. It was a good trade.


Well it depends.

As I have said earlier, you cant keep taking an 8% ROI (or return on money at risk) per trade and expect to be profitable over the long term if your success rate is less than 92%. It will take one loss of 100% of what you are prepared to lose on a single trade to seriously hurt your portfolio / investment.

A system or trading plan like this will have a negative expectancy over the long term.

The price can go either up or down. You have a 50:50 chance of calling it right, and in nearly all cases, the market gives you an opportunity to close in a profit at some point. Not taking trading costs in to account and depending on how far the price moves in either direction and when you buy or sell, makes all the difference to your results..

The key to success is how you manage your money.


Why can’t he make a profit.

Some traders do intra day trading but that is high volume.

Miltis expenses are a $17 fee to buy and a $17 fee to sell if he did it himself.

Total brokerage about $34.

So he made a tidy profit


If this was the only trade being taken but lets say you take 100 trades.

So you risk $1 to make 8 cents.

When one trade doesn't work out and you lose a dollar, you have wiped out the profit from the last 12.5 trades.

over the long term, if you don't maintain this high success rate of greater than 92%, your methods / system will generate a negative expectancy.

Do you realize how hard it is to maintain a 92+ % success rate from trading or investing? Close to improbably impossible.

In other words, you wont make money consistently.

Let me put it another way,

Would you rather make 8 cents per dollar risked with a 95% success rate or $4 per dollar risked with a 35% success rate?


I never said to target 8% on each trade. It varies and depends on the situation and what stock.

I have a firm belief that I can get close to 100% strike rate. It isn’t a difficult thing to do if you stick to the blue chips.

You might suffer some short term volatility but the stock should trade back up especially if it is the reporting season before it goes x dividend. You will get 8% just there alone.
User avatar
Paphitis
Leading Contributor
Leading Contributor
 
Posts: 32303
Joined: Sun May 21, 2006 2:06 pm

Re: INVESTMENTS

Postby Maximus » Sat Nov 17, 2018 3:14 am

The worlds billionaire traders and investors don't have a 100% success rate.

Two high profile ones, notably, Mr Soros and Mr Buffet certainly don't have a 100% success rate and they are supposed to be the best.

What makes you think you can maintain a 100% success rate?
Maximus
Main Contributor
Main Contributor
 
Posts: 7594
Joined: Wed Aug 10, 2011 7:23 pm

Re: INVESTMENTS

Postby Maximus » Sat Nov 17, 2018 3:17 am

None one, I mean no one, ever in the history of capitalism has or had a 100% success rate in the stock market or trading or investing world.
Maximus
Main Contributor
Main Contributor
 
Posts: 7594
Joined: Wed Aug 10, 2011 7:23 pm

Re: INVESTMENTS

Postby Maximus » Sat Nov 17, 2018 3:23 am

Generally speaking, the higher your success rate, you can expect a lower return on investment. The inverse is also true.

Like some business's have a high turnover but low margin or low turnover and higher margins.

In trading or investing, you have to balance some variables and how you balance them or stack the odds, this will determine whether you make money consistently or not.
Maximus
Main Contributor
Main Contributor
 
Posts: 7594
Joined: Wed Aug 10, 2011 7:23 pm

Re: INVESTMENTS

Postby Paphitis » Sat Nov 17, 2018 3:36 am

Maximus wrote:None one, I mean no one, ever in the history of capitalism has or had a 100% success rate in the stock market or trading or investing world.


Only because people let emotions in the way. Emotion and business don’t mix.

I reckon pro traders can get close to it but will only sell for liquidity to jump on something else they decide might be better.

Trading isn’t a very difficult thing if you are prepared to hold and wait unless you are on a bad stock that will collapse. No stock just goes bad overnight.
User avatar
Paphitis
Leading Contributor
Leading Contributor
 
Posts: 32303
Joined: Sun May 21, 2006 2:06 pm

Re: INVESTMENTS

Postby Paphitis » Sat Nov 17, 2018 3:41 am

Maximus wrote:Generally speaking, the higher your success rate, you can expect a lower return on investment. The inverse is also true.

Like some business's have a high turnover but low margin or low turnover and higher margins.

In trading or investing, you have to balance some variables and how you balance them or stack the odds, this will determine whether you make money consistently or not.


Usually, trades are short term plays ranging from 1 day to let’s say a couple of months.

I consider long term investing in stocks to be when you hold a particular stock for 12 months plus 1 day. That is the threshold were you get a Capital Gains discount of 50%. That is a long term trade.

When you are investing long term, you are chasing long term Capital Growth. You want a lot more than 8%.

When you are trading short term , then 8% is a pretty good win in my book. If you go negative then you just hold and wait for it to come back. You work on the principle that a loss is not realised unless you sell out of the trade.

When you go dividend cherry picking you get close to 4% on dividend alone - better than bank interest.
User avatar
Paphitis
Leading Contributor
Leading Contributor
 
Posts: 32303
Joined: Sun May 21, 2006 2:06 pm

PreviousNext

Return to General Chat

Who is online

Users browsing this forum: No registered users and 0 guests