Is the stock market usually more reliable?

[Jason28]

Hello, I only began trading a week ago for the first time. I remember before the housing and credit crisis the stock market was usually in the green and had 200 point gains. Hopefully when the economy gets back on track I assume it would be a lot easier to make money than it is now? Because my stock picks seem to start out at +2, then during the day go -3, then at the end of the day finish at 0.50 to earn a $10 dollar profit :P It would be great if it were more steady where I could buy a thousand shares and when it goes up two points I can sell and earn a good profit. Thanks!

[madcowdisease]

Hello, I only began trading a week ago for the first time. I remember before the housing and credit crisis the stock market was usually in the green and had 200 point gains. Hopefully when the economy gets back on track I assume it would be a lot easier to make money than it is now? Because my stock picks seem to start out at +2, then during the day go -3, then at the end of the day finish at 0.50 to earn a $10 dollar profit :P It would be great if it were more steady where I could buy a thousand shares and when it goes up two points I can sell and earn a good profit. Thanks!

The short answer is... Yes.

In 2005 and 2006 the markets were virtually flat. If I can recall correctly there were maybe 5 triple digit swings (100+ points or more) in the DJIA. Volatility has picked up a ton within the past year and we've witnessed a few 300 and 400 point days within the past few months. I don't know if this coincides, or is a result of, the abolition of the up-tick rule in July of 2007 or not. However, the markets that I began trading in were much more stable.

We're officially in a bear market so if you are trading in a cash account and lack the ability to short stocks you may not be entering at the best time. It's tough out there though nat gas, coal, oil, agriculture, and steel seem to be working on the long side. That's where I've made my money this year - everything else has been a dud.

[Jelly]

Hello, I only began trading a week ago for the first time. I remember before the housing and credit crisis the stock market was usually in the green and had 200 point gains. Hopefully when the economy gets back on track I assume it would be a lot easier to make money than it is now? Because my stock picks seem to start out at +2, then during the day go -3, then at the end of the day finish at 0.50 to earn a $10 dollar profit :P It would be great if it were more steady where I could buy a thousand shares and when it goes up two points I can sell and earn a good profit. Thanks!

It's an exactly reliable window to the value (real and manipulated) of the local and extended economy. You are wanting less volatility and guaranteed (or at least easy profits). Ain't gonna happen.

Look into ETFs. They are like stocks. You can buy long positions or short ones and you'll not get hammered by the demise of a bad singular pick.

It could be a long, long time before your comfort zone becomes reality again.

[kingfisher]

Hello, I only began trading a week ago for the first time. I remember before the housing and credit crisis the stock market was usually in the green and had 200 point gains. Hopefully when the economy gets back on track I assume it would be a lot easier to make money than it is now? Because my stock picks seem to start out at +2, then during the day go -3, then at the end of the day finish at 0.50 to earn a $10 dollar profit :P It would be great if it were more steady where I could buy a thousand shares and when it goes up two points I can sell and earn a good profit. Thanks!

Jason28

The market seems to be in a downward trend now. There is always money to be made in the market. You are only looking at the Long or upward movement of stocks. There is another side of the coin. You can go Short/B] the play the [B]downward trend. " Betting that a stock will go down"

Read up on this before you attempt it. Its not not much difference other than direction of you bet.

[madcowdisease]

Jason28

Read up on this before you attempt it. Its not not much difference other than direction of you bet.

Or the fact you must have a margin account and are then susceptible to house interest rate charges on the borrowed amount. Keep this in mind when you sell short. You now must not only make the right pick but pick it so that you cover your interest charges.

An alternative would be short ETFs if you do not want to venture in to margin. You can also look in to short MFs like GRZZX or BEARX.

Good luck.

[Jason28]

Ok thanks guys :) I am hoping to one day pick one of those daily hot stocks that gain 4 - 6 points that would be a huge payoff imo if you have a thousand or so stocks :D