Comments on: Try My Luck Using Zecco http://www.thesunsfinancialdiary.com/investing/try-my-luck-using-zecco/ Sat, 05 Jul 2008 04:17:23 +0000 http://wordpress.org/?v=abc By: Sun http://www.thesunsfinancialdiary.com/investing/try-my-luck-using-zecco/#comment-11682 Sun Wed, 20 Jun 2007 02:17:35 +0000 http://www.thesunsfinancialdiary.com/investing/stock/try-my-luck-using-zecco/#comment-11682 KMull: Yes, I will have to pay taxes if I make any money from trading, but I think making money is more important and that's also the whole purpose of trading. KMull: Yes, I will have to pay taxes if I make any money from trading, but I think making money is more important and that’s also the whole purpose of trading.

]]> By: XFML Keeps Marching Higher | The Sun’s Financial Diary | A Personal Finance Blog on Saving and Investing http://www.thesunsfinancialdiary.com/investing/try-my-luck-using-zecco/#comment-11669 XFML Keeps Marching Higher | The Sun’s Financial Diary | A Personal Finance Blog on Saving and Investing Tue, 19 Jun 2007 19:37:07 +0000 http://www.thesunsfinancialdiary.com/investing/stock/try-my-luck-using-zecco/#comment-11669 [...] addition to the several reasons I listed in a previous post that helped move the stock, recent developments [...] [...] addition to the several reasons I listed in a previous post that helped move the stock, recent developments [...]

]]> By: Opening A Zecco Account, Reviews On ATMs and Credit Cards: The Weekend Roundup » Silicon Valley Blog About Money http://www.thesunsfinancialdiary.com/investing/try-my-luck-using-zecco/#comment-11533 Opening A Zecco Account, Reviews On ATMs and Credit Cards: The Weekend Roundup » Silicon Valley Blog About Money Sun, 17 Jun 2007 16:39:01 +0000 http://www.thesunsfinancialdiary.com/investing/stock/try-my-luck-using-zecco/#comment-11533 [...] Diary discusses what he did when he opened a new trading account. I now wonder whether I should Try My Luck Using Zecco as well! On second thought, I probably won’t because I’d like to keep my investment [...] [...] Diary discusses what he did when he opened a new trading account. I now wonder whether I should Try My Luck Using Zecco as well! On second thought, I probably won’t because I’d like to keep my investment [...]

]]> By: KMull http://www.thesunsfinancialdiary.com/investing/try-my-luck-using-zecco/#comment-11486 KMull Sat, 16 Jun 2007 22:45:23 +0000 http://www.thesunsfinancialdiary.com/investing/stock/try-my-luck-using-zecco/#comment-11486 Won't you hit tax issues with the day trading? Won’t you hit tax issues with the day trading?

]]> By: Sun http://www.thesunsfinancialdiary.com/investing/try-my-luck-using-zecco/#comment-11401 Sun Fri, 15 Jun 2007 19:16:40 +0000 http://www.thesunsfinancialdiary.com/investing/stock/try-my-luck-using-zecco/#comment-11401 Andy: Regarding China, I agree with you that things are working in a different way in China than here in US. They have their rules and regulations that are also different. Fortunately, when you invest in ADRs, you are not exposed to the same amount of risks than investing direct in Chinese market. So there's a kind of buffer between US investors and the Chinese market that can reduce the risk. James:I agree with you that nobody can predict which price is higher and how high/low it may go. As for XFML, I feel its sharp decline has nothing to do with their business or earning and that's why I feel adding a little more when the price became attractive makes sense. Andy: Regarding China, I agree with you that things are working in a different way in China than here in US. They have their rules and regulations that are also different. Fortunately, when you invest in ADRs, you are not exposed to the same amount of risks than investing direct in Chinese market. So there’s a kind of buffer between US investors and the Chinese market that can reduce the risk.

James:I agree with you that nobody can predict which price is higher and how high/low it may go. As for XFML, I feel its sharp decline has nothing to do with their business or earning and that’s why I feel adding a little more when the price became attractive makes sense.

]]> By: Reader Responses: Buy High, Sell Higher or Buy Low, Sell High : The Sun’s Financial Diary http://www.thesunsfinancialdiary.com/investing/try-my-luck-using-zecco/#comment-11390 Reader Responses: Buy High, Sell Higher or Buy Low, Sell High : The Sun’s Financial Diary Fri, 15 Jun 2007 15:03:59 +0000 http://www.thesunsfinancialdiary.com/investing/stock/try-my-luck-using-zecco/#comment-11390 [...] other day, I posted some thoughts on why I bought more shares of XFML after the stock plummeted to below $7. I didn’t apply any *technical analysis* or anything [...] [...] other day, I posted some thoughts on why I bought more shares of XFML after the stock plummeted to below $7. I didn’t apply any *technical analysis* or anything [...]

]]> By: Reader Responses: Buy High, Sell Higher or Buy Low, Sell High : The Sun’s Financial Diary http://www.thesunsfinancialdiary.com/investing/try-my-luck-using-zecco/#comment-11391 Reader Responses: Buy High, Sell Higher or Buy Low, Sell High : The Sun’s Financial Diary Fri, 15 Jun 2007 15:03:59 +0000 http://www.thesunsfinancialdiary.com/investing/stock/try-my-luck-using-zecco/#comment-11391 [...] other day, I posted some thoughts on why I bought more shares of XFML after the stock plummeted to below $7. I didn’t apply any *technical analysis* or anything [...] [...] other day, I posted some thoughts on why I bought more shares of XFML after the stock plummeted to below $7. I didn’t apply any *technical analysis* or anything [...]

]]> By: James G. http://www.thesunsfinancialdiary.com/investing/try-my-luck-using-zecco/#comment-11282 James G. Thu, 14 Jun 2007 03:27:51 +0000 http://www.thesunsfinancialdiary.com/investing/stock/try-my-luck-using-zecco/#comment-11282 @Andy The problem with "buy high, sell higher" is that you don't know when or if something will be going higher after you buy it. You can analyze it all you want and apply several sets of criteria, but the bottom line is that the market is fickle and no one can predict with certainty and accuracy that any one stock will continue to grow. Still think that adding to a losing trade is a bad idea? Imagine this situation: stock X was at $10 per share, then plummets to $5 per share. An investor who bought at 10 shares at $10, now buys 10 more at $5 for a total investment of $150. If the investor is right and the stock eventually reaches $15 per share, his total now is $300 ($150 profit). If he is wrong, and the stock becomes worthless, he loses $150. Same investor now tries the "buy high, sell even higher" approach, buys 10 shares at $10 per share of stock Y. The stock then rises to $15 per share. He figures that the stock will go higher so he can afford to "buy high" and buys 10 more shares. He now has invested $250. Let's say he is right and the stock goes to $20 a share. He sells all and gets $400 for a profit of $150. Sounds pretty good right? If he is wrong though and the stock becomes worthless, he lost $250 ($100 more than the buy low sell high strategy). Notice the relationship here between potential losses and gains. In short, by buying stocks LOW, you can minimize your losses (since you didn't pay much) if the stock tanks and maximize gains if the stock excels. Buying high and selling higher is nearly impossible to do with any consistency and doesn't really give more advantages return-wise. Some of the greatest investors like Benjamin Graham, Warren Buffett, Bill Miller, and others have all advocated the "Buy Low, Sell High" approach, but who advocates the "Buy high, sell higher"? The guys on CNBC's Fast Money....and that is not a good thing (if it works so well, they would all be billionaires). @Andy

The problem with “buy high, sell higher” is that you don’t know when or if something will be going higher after you buy it. You can analyze it all you want and apply several sets of criteria, but the bottom line is that the market is fickle and no one can predict with certainty and accuracy that any one stock will continue to grow.

Still think that adding to a losing trade is a bad idea? Imagine this situation: stock X was at $10 per share, then plummets to $5 per share. An investor who bought at 10 shares at $10, now buys 10 more at $5 for a total investment of $150. If the investor is right and the stock eventually reaches $15 per share, his total now is $300 ($150 profit). If he is wrong, and the stock becomes worthless, he loses $150.

Same investor now tries the “buy high, sell even higher” approach, buys 10 shares at $10 per share of stock Y. The stock then rises to $15 per share. He figures that the stock will go higher so he can afford to “buy high” and buys 10 more shares. He now has invested $250. Let’s say he is right and the stock goes to $20 a share. He sells all and gets $400 for a profit of $150. Sounds pretty good right? If he is wrong though and the stock becomes worthless, he lost $250 ($100 more than the buy low sell high strategy).

Notice the relationship here between potential losses and gains.

In short, by buying stocks LOW, you can minimize your losses (since you didn’t pay much) if the stock tanks and maximize gains if the stock excels. Buying high and selling higher is nearly impossible to do with any consistency and doesn’t really give more advantages return-wise.

Some of the greatest investors like Benjamin Graham, Warren Buffett, Bill Miller, and others have all advocated the “Buy Low, Sell High” approach, but who advocates the “Buy high, sell higher”? The guys on CNBC’s Fast Money….and that is not a good thing (if it works so well, they would all be billionaires).

]]> By: Andy http://www.thesunsfinancialdiary.com/investing/try-my-luck-using-zecco/#comment-11266 Andy Wed, 13 Jun 2007 21:39:19 +0000 http://www.thesunsfinancialdiary.com/investing/stock/try-my-luck-using-zecco/#comment-11266 TY is right -- never, never add to a losing trade. Don't get stuck on the old "buy low, sell high" maxim. An equally worthy objective is to to buy high and sell higher. I don't follow any Chinese stocks after having lost $6k in one. I suggest you keep a very close watch. The Chinese market is operating on its own set of rules. TY is right — never, never add to a losing trade. Don’t get stuck on the old “buy low, sell high” maxim. An equally worthy objective is to to buy high and sell higher. I don’t follow any Chinese stocks after having lost $6k in one. I suggest you keep a very close watch. The Chinese market is operating on its own set of rules.

]]> By: Try My Luck using Zecco · Legitimate Work From Home Jobs Blog http://www.thesunsfinancialdiary.com/investing/try-my-luck-using-zecco/#comment-11257 Try My Luck using Zecco · Legitimate Work From Home Jobs Blog Wed, 13 Jun 2007 18:03:02 +0000 http://www.thesunsfinancialdiary.com/investing/stock/try-my-luck-using-zecco/#comment-11257 [...] Read more of this story… [...] [...] Read more of this story… [...]

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