It will be interesting, for me at least.
I made a share dealing program for the U.K stockmarket in QBasic, which has served me well. As there is such turbulance in the DOW, I tried adapting as near as possible to the DOW and got these two results.
Buy Fannie Mae at 7.81
Buy Fannie Mac at 4.41
I will keep track to see if my program works in the USA.
Reminder, you need to invest for at least a year.
I will update in a year or sooner if a sell is indicated.
Date July 11th 08.
No responsibility is taken for for anyone taking this advice.
As you will see from the two sites. When I advised they were at 7.81 and 4.41. the lowest on the day was 6.01 and 3.89. the latest I got was 9.64 and 5.91. Which would have given you a good profit for a day trader. I am not a day trader and am willing to stick with 9.64 and 5.91 for my test.
I did state that I am not a day trader but with that much profit the advice would have to be cash half of your shares at 11.23 and 8.00. giving you a very good profit on the day and still have a good stake for future gains.
You sell your worthless shares and and deduct the loss from your gains on other shares, thus reducing your tax bill on any gains for that year. It is a win you win, lose you win situation for the rich.
True, but the overall Gain still suffers with any losses
July 11 2008, 1:06 PM
The same thing is true here, but I don't know how that is handled with Futures in Oil, etc. We call them Capital Gains here. Nobody wants to lose however
I would not touch futures, too much like gambling. Win, win on shares is always the best but sometimes you have to be very patient and the win may take a couple of years. If I can beat the stock market by 5% a year, then I get some kind of satisfaction. It is not the money just the fun of beating the big boys. lol
They spread your money across various stock prices. I was up about 30K until 2000 and the Web scandal took all of that paper profit away in one swoop. Not pretty after about 5 years of holding them! Now I only buy CD's and stay out of the market. Too many computer generated buy and sell deals for me. The Rich create that problem!
If you are in a fund, then that fund should be aimed at 10 years or more. If you want to exit that fund then do so when shares are up not when the market is down. Plan ahead and decide what money you can afford to tie up for ten years or more. If you can not plan that far ahead then get the best internet rate you can for your savings. For those poor bastards that do not have any money, tough shit.lol
At 13.58 and 9.55 you have got to sell if you took my original advice. I am not going to expand into the US market because the amount of work involved is just too much. Just remember, do not follow the herd.
They are federally controlled groups that respond to the wims of the Dow and the economy in general. However you could figure how their prices could respond to the DOW, NASDAQ, and Standard and Poors indexes.
The DOW also decides what companies can even be considered in that average.
It first calculates where the stock market should be based on past results, inflation etc. Then the information for each share is entered and a calculation is made as to the reliability,previous record,dividend etc. and what the price should be based on the current market.
Once I have researched the share and entered relevent data then it is just a matter of watching for any changes that could alter the basic calculations. Each week I enter the latest inflation rate, stock market prices and changes such as dividends and debt. If a share is well below its estimated price then it is a buy. The share is held untill it goes above its estimated price. Each share has to be entered and researched individually and although Fannie mae and Freddie mac are not in the Dow I thought it would be interesting to see what came out if they were in the UK all share market.
The program has been added to over a period of twenty years and many of the original Subs are riddled with so many GOTOs that I do not know what some of them are doing now myself. lol
You said that you are not a "Day Trader", but then you would have to at least do some trades in your ten year span. You would have to really find a way to import daily stuff because you have so much information to enter manually. Just finding a prospective undervalued stock is gonna be difficult unless you pick ones to watch first.
I own 42 shares and trade an average of one share a week. In the last ten years I have beaten the stock market by an average of 6% per annum. Six months ago it was 10.5% but the program is aimed at making a profit as the stock market rises, so in the present situation it is a matter of hanging on. If I did not already own any shares then the program would be strongly recommending buying banks and builders, so long as the company was sound. In other words buy when everyone else is selling and sell when everyone else is buying. It is just a matter of timing.
SELL! SELL! Another 1K off the Dow takes you back to 2000.
July 15 2008, 6:41 PM
I think with GM, Freddy and Fanny having problems, I would gladly settle for 4 or 5 % rates in the FDIC CD market. Also a bank in California is giving perhaps 50 cents on the dollar over 100 K.
