Thoughts? Do you think the stock market will continue to rise?

[leftyladyfrommo]

I'm trying to get a feel for how strong this surge (pun intended) is going to be. Should I cash in?

After 2000 I don't really trust the stock market any more. But I hate to pull out if this thing is just going to keep going up.

[MazeRat7]

1. I would be more concerned about which stocks your holding...

Personally, I've been moving out of some and into others that look to grow over the next year independent of what the market does as a whole.

That aside, I think we will see moderate growth over the next year, but I would be ready for a pull back late in Q1.

MZr7

I would add, I also have positions in companies that I expect to lose share value over the next year as well.

[porphyrian]

2. Put everything in long term companies and leave it alone until you retire.

Day trading is for gamblers, and the house always wins.

[Cruzan]

5. That depends on how you play it

If you try to score big on one stock, particularly if you haven't done your research, it is pretty much like gambling. However, if your choose well, and have the discipline to be happy hitting singles and doubles, day trading can provide a nice income...if you've got money to begin with since the SEC requires a minimum balance in a brokerage account of $25k to be a 'pattern day trader' -- more than three day trades per five day trading week.

For an oversimple example, if you have $30k in a margin account at IB that'll give you about $120k in 'buying power,' enough to buy say 5000 shares of a $20 stock while keeping 5% in the account so you don't get a margin call. Now if you 'choose well,' which is what technical analysis is all about, and are disciplined enough to sell after an 11 cent gain, you've just made yourself a quick 500 bucks (the extra penny pays IB's commission) for maybe an hour's time watching a chart. Research and the learning curve are of course a separate time investment. And also an experienced full time trader would take that money and split it up into a dozen or more share buys to limit the risk further.

But again, day trading is also a very quick way to lose all your money, and even though I've made thousands of dollars just last week, I would be very hesitant to recommend it except to someone who really enjoys playing with numbers and making charts and is willing to take the time to study and develop a careful strategy before putting up any money. I myself spent six months studying charts before I made my first trade: bought 500 shares of Oracle at 17.39, sold the next day 17.70, made $150 ($5 commission). BTW, those kinds of overnight 'swing trades' are of course not technically day trades and so don't fall under the SEC rule.

[michreject]

3. I hope everything rises

I want to sell my house.

[itsmesgd]

4. As long as the federal reserrve makes money and doles it out to the rich.

and as long as corporations cut corners and treat employees and the environment like shit, yes "their economy" will continue to rise as more and more of "us" fall under to poverty line due to bancruptcy reform and lack of insurance combined with sagging pay and an increased tax debt for wars and rich men's taxe cuts.