List some ways to make 10% on your money

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Hi, I've recently started to invest my money and was wondering if day trading is a good way to make 8-10% return on your money ? Are there any flaws with this?

I've used the TD mutual fund calculator to calculate the amount of money you'd have after 10 years if you're averaging 10% return every quarter. Is this the same as earning 10% annually for 40 years? If so, then its possible to become a millionaire in 10 years? Are there any problems with this?

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deal dope. just be careful.

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Buy land, they aren't making any more.....Will Rogers

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Quote:

Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it.
Will Rogers

unless you have some inside info or invested in a small company that will be bought out , it's rather difficult to make 10 % CONSISTENTLY year-after-year !
over longer periods of time - say 20 years - you might well make 10 % AVERAGED out , but you'll have some ups and some downs .
i certainly would not borrow money to invest , but have invested small amounts of money over the last 40 years . i have not become a millionaire but made some extra money to supplement my pension .

solid stocks that have a long didvidend record and have a dividend RE-INVESTMENT plan are usually a good bet - they allow you to buy additional stock without paying commissions .

keep in mind : it's just my opinion - based upon some personal experience .
hbg

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What if you're able to make 10% consistently through day trading every three months. If you do that for ten years isn't that equivelant to putting your money away for 40 years? If so, then after 10 years with a ongoing investment of $1000 every month it comes out to something like 1.1 mil. What if you did day trading? building that 10% little by little?

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Just remember that it is almost always a professional on the other side of the transaction.

And don't forget to include brokerage fees in your costs.

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drewdad wrote :

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Just remember that it is almost always a professional on the other side of the transaction.

well , at least it might be a good learning experience .
IF he is lucky : good for him ; if he is unlucky : it was a lesson learned .
as long as it's not financed by borrowed money !
the lender will make sure to get his pound of flesh - whether you win or lose !
hbg

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crayon851 wrote:

What if you're able to make 10% consistently through day trading every three months. If you do that for ten years isn't that equivelant to putting your money away for 40 years? If so, then after 10 years with a ongoing investment of $1000 every month it comes out to something like 1.1 mil. What if you did day trading? building that 10% little by little?

crayon, the nature of day trading makes it impossible to earn any set rate consistently.

I dated someone for about a year who makes his income running a short term strategy hotline. I just checked on the web, and he's still doing it, about 20 years now.

I remember him practically having a stroke in one hour, celebrating in the next, then practically having a heart attack. All before lunch.

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Bi-Polar Bear wrote:

deal dope. just be careful.

I dont know.
According to the government, prostitutes are the way to go.

You can make 3000+ an hour on those things..

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You can make 3000+ an hour on those things..

rermember : crayon wants to make that kind of money CONSISTENTLY !

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I'd suggest trade school, then.

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school is out of the question, at least for now anyway. I've joined the canadian army and that's where i'll stay for the next couple of years.

Anyway, back to the topic at hand.

If you divide the year into quarters, does each quarter have enough time for a stock to complete its price cycle/trend? or is that enough time for the market to complete one cycle/trend?

If it is, then doesn't that make it possible to make decent returns? For example, I've read somewhere that it'd take about a year and a half for BMO to recover to its previous position, yet its only been about half a year and its already almost back to its previous position. Can someone explain this?

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Does the motto "a fool and his money will soon be parted" ring a bell?

Successul day trading (long term) is for the knowledgable and those with a titanium lined stomach. Anyone who sat through day trading in the recent stock market volatility over these last 9 months will tell you if you're not an expert, don't risk much if any of your hard earned money. Why do you think the industry is laying off 1000s of financial analysts and employees?These are far from predictable times....even for experts with long track records of success.

I worked for a Goldman Sachs company and sat beside financial analysts and heard tons of horror stories about day trader wannabes losing their shirts...and those were knowledgable ones. If you're an amateur day trader, you'll sink beneath the waves pretty quickly.

You need to understand this market is very volatile and may not follow statistics and paradigms of the past. It might be wiser to put aside probability distribution functions and learn a lot more about markets and securities and wait for less volatile times.

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ragman....crayon's not going to listen.

We've all said the same thing, but he is sure there is some way around it.

Apparantly, risk don't apply to him.

10% today?

I wish.

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crayon851 wrote:

school is out of the question, at least for now anyway. I've joined the canadian army and that's where i'll stay for the next couple of years.

Anyway, back to the topic at hand.

If you divide the year into quarters, does each quarter have enough time for a stock to complete its price cycle/trend? or is that enough time for the market to complete one cycle/trend?

Day trading means your cycle is ONE DAY. Day traders get out by the end of a day. Nothing like buying a stock in the morning, watching it go up $1 and then not selling it so that night they report bad news and the next day the stock opens down $10. You are doing nothing other than betting on the movement for the day. You don't pay any attention to whether the stock is a good investment for the long term. You need to get in and get out.

90% of day traders lose all their initial investment money in one year or less

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If it is, then doesn't that make it possible to make decent returns? For example, I've read somewhere that it'd take about a year and a half for BMO to recover to its previous position, yet its only been about half a year and its already almost back to its previous position. Can someone explain this?

Anyone that tells you where a stock will be on a given day or in a given time frame doesn't know what the hell they are talking about. You can throw darts to see where they will be and be almost as accurate.

Long term they normally go up but not all of them do. Some of them go to ZERO. This is why trading is NOT a sure thing. There is no guarantee.

This from the US government
http://www.404.gov/answers/daytrading.htm

Quote:

Day trading is extremely risky and can result in substantial financial losses in a very short period of time.

and here
http://www.404.gov/investor/pubs/daytips.htm

Quote:

Here are some of the facts that every investor should know about day trading:

*

Be prepared to suffer severe financial losses

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Chai wrote:

ragman....crayon's not going to listen.

We've all said the same thing, but he is sure there is some way around it.

Apparantly, risk don't apply to him.

10% today?

I wish.

I agree based on his previous posts. Sometimes people beg for abuse or financial adversity. I often heard excellent time-proven FAs at GoldmanSachs tell clients on the phone some excellent advice only to see them run off in the wrong direction...often times at full speed. You can't give people common sense - even when they ask you for it.

Reminds me of the expression "youth is wasted on the young".

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True dat.

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Oh, crayon?

Seriously, here's some pretty good Financial Advice

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warren buffet has given plenty of free advice .
one of his recommendations is : "don't buy stock in any business that you don't understand ! " .
when asked why he bought wrigley/mars , he apparently said : " i can understand their businesss better than the balance sheets of the big banks " .
why i do own some shares in a cnadian bank , i do agree with him - it is next to impossible to understand the balance sheet and various other financial statements they are publishing and printing annually on high-gloss paper - i'd prefer higher dividends instead !
hbg

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if im holding a position for no more than a year that's considered short term , and what is it if im holding a position for no more than a couple of months?

my current strategy , though i'm considering tweaking it, is basically to purchase 100 shares of a financial stock every year and to use the rest of my free cash to do short term trades in different sectors of the market. what do you think of this strategy?

my portfolio right now after 5 months of investing 1000 every month is

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List some ways to make 10% on your money

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