Tech Stocks

[MrSparkle001]

Originally Posted by Ruien [You must be logged in to view images. Log in or Register.]

I'll be a bit counter to the crowd but personally I don't invest by just "buying some tech company". The market is going to price stocks according to the known information, so even if a company is going to increase in business over time, that doesn't mean that that level of growth isn't already factored into the stock price. In other words, you can bet on a company getting more business and making more money, be right, and still lose money on the stock (or vice-versa).

I think it's okay to be bullish on an economy as a whole (I've been long Chinese Yuan since 2007) but for stocks I think long-term risk is quite high unless you really have the data and time needed to see what other professionals don't. I think there's actually less risk in shorter-term trades, and I'm a technical investor. In other words, it's not about what you trade, it's about how you trade. You don't invest in a stock, you invest in the skills required to correctly read and interpret the market. In this respect it's just like any other career, and you'll spend at least 5 years acquiring those skills.

If you're really interested, I'd recommend the following books:
* Trading with DiNapoli Levels (Joe DiNapoli)
* Dynamic Trading (Robert Miner)
* The Master Swing Trader (Alan Farley)

I have a quick introduction on my website here if you're interested. This is not intended to be spam - there's a lot of good information and trading examples there.

Investing well takes a lot of time, expect to put in over 2000 hours before you get the hang of it. Otherwise you're just taking shots in the dark.

Edit: The above might seem like a cop-out answer to your question, but it's not. For example, the right answer would not be "buy Amazon" - it would be more like "buy Amazon if the price drops into a fibonacci support confluence level on weekly bars shortly after getting a stochastic sell signal while a particular MACD indicator is still strong, and then closes up on the week with a reversal bar or reversal confirmation signal. Then place an initial protective stop loss at the weekly low and take 50% profits at the 62% retracement of that weekly move to lock in profit in the trade and reduce risk. Manage the trade with a 3-week trailing stop over the next month but be ready to take profits if the stochastic goes back into a buy or the weekly MACD goes negative".

Trading is a whole different beast and requires a minimum $25k balance (may have changed). Very good skills to learn but if you just have some extra money you're looking to invest I don't think you have to go that deep.

[Langrisserx]

Originally Posted by Ruien [You must be logged in to view images. Log in or Register.]

I'll be a bit counter to the crowd but personally I don't invest by just "buying some tech company". The market is going to price stocks according to the known information, so even if a company is going to increase in business over time, that doesn't mean that that level of growth isn't already factored into the stock price. In other words, you can bet on a company getting more business and making more money, be right, and still lose money on the stock (or vice-versa).

I think it's okay to be bullish on an economy as a whole (I've been long Chinese Yuan since 2007) but for stocks I think long-term risk is quite high unless you really have the data and time needed to see what other professionals don't. I think there's actually less risk in shorter-term trades, and I'm a technical investor. In other words, it's not about what you trade, it's about how you trade. You don't invest in a stock, you invest in the skills required to correctly read and interpret the market. In this respect it's just like any other career, and you'll spend at least 5 years acquiring those skills.

If you're really interested, I'd recommend the following books:
* Trading with DiNapoli Levels (Joe DiNapoli)
* Dynamic Trading (Robert Miner)
* The Master Swing Trader (Alan Farley)

I have a quick introduction on my website here if you're interested. This is not intended to be spam - there's a lot of good information and trading examples there.

Investing well takes a lot of time, expect to put in over 2000 hours before you get the hang of it. Otherwise you're just taking shots in the dark.

Edit: The above might seem like a cop-out answer to your question, but it's not. For example, the right answer would not be "buy Amazon" - it would be more like "buy Amazon if the price drops into a fibonacci support confluence level on weekly bars shortly after getting a stochastic sell signal while a particular MACD indicator is still strong, and then closes up on the week with a reversal bar or reversal confirmation signal. Then place an initial protective stop loss at the weekly low and take 50% profits at the 62% retracement of that weekly move to lock in profit in the trade and reduce risk. Manage the trade with a 3-week trailing stop over the next month but be ready to take profits if the stochastic goes back into a buy or the weekly MACD goes negative".

ladies and gentlenoobs, i give you, the banker. world can end anytime now.

[Zuut]

Originally Posted by Rogean [You must be logged in to view images. Log in or Register.]

I messed around with oil companies a couple years ago but that didn't turn out well...

In case you're at all still looking to try to give another go at oil companies, I'd recommend looking for smaller E&P companies that are moderate-to-big time players in localized hotspots for oil production. An example area would be the Bakken/Three Forks in North Dakota, where smaller companies with large presence would be, for example, Kodiak (who was really on a fast rise a while back), Continental, Whiting (WLL - I made out good on them, they're share price may have plateaued now, though), and potentially Brigham (BEXP). Brigham had been bought out by Statoil, when I made out well, but their non-competition should be running out soon and they are likely to renew operations in the near future.

Along with oil companies in North Dakota, there is also the need for increased infrastructure for transport/processing of the hydrocarbons, especially now that North Dakota has moved in to the number 2 spot behind Texas for oil production, so a decent pipeline or mid/downstream company that is active in the area could also be a place to look.

Of course this same thought process could be applied to almost any of the new shale oil hot-spots, like the Niobrara shale (hotspot: Wattenberg Field, big players being Noble and Anadarko) in Colorado, the Haynseville shale, the Eagleford shale (Texas, so there already exists a lot of infrastructure there), or more riskier plays like the Utica shale.

[Peatree]

Originally Posted by Rogean [You must be logged in to view images. Log in or Register.]

I have some money that's been sitting in a broker account and I need to invest it into some companies. Anybody here that pays attention to the market that might be able to make some suggestions?

Would be interested in tech companies but not limited to that if there are other areas I could play around with.

I messed around with oil companies a couple years ago but that didn't turn out well...

MITL [You must be logged in to view images. Log in or Register.]

I bought in at $3, is on way up past $12 possible to $20 in next two years IMO.

[Ahldagor]

invest in any public company that makes stuff for babies.

[Langrisserx]

a lot of effort going into redefining the gaming experience with VR goggles and movement platforms for consumers

oh wait sorry Bitcoins. there ya go.

[Obwin]

I work at an investment bank, don't fall for all the hype. I would stay away from AMZN, FB, TWTR and other companies at astronomical valuations without proven track records. Trading can be fun but is a suckers game. As someone that sees the "other side" they have unlimited resources, trading systems backed by 30 developer/math PhD, faster connections and can trade in and out at prices public can't even see or hours when market it closed. Only advantage us small guys have is long timelines and ability for good investments to materialize over years instead of months (in time for bonus #s).

Anyway some solid companies to look at
QCOM - big in mobile processing / tablets

GLW - makes glass for most devices you know and love. Smartphones, tvs etc

MSFT - makes money hand over fist, hopefully survives it's transition period. So intertwined with big corporations switching would be impossible or very expensive. Office 360 catching on

INTC - out of favor right now and I think under valued, lots of money to spend to stay ahead of competition. Fear they won't be able to compete in mobile / low power chips. Pay fat dividends.

AAPL - need I say more? institutional ownership on the rise again. Putting up insane sales numbers, MIGHT get real foothold in china via china telecom.

BRCM - most risky of the bunch but room to run


Market has been on a big run lately and while I would never recommend waiting to invest but I would plan to buy in chunks over 6 months - 1 yr if making significant investment and spread out over a few stocks.

Checkout seeking alpha for lots of good info. Be warned lots of amateur writers, do your own due diligence. If you are looking for the "next big thing" - I can't help you there. Slow and steady wins the race, most hyped stocks end up being garbage (as you saw with zynga)