Why arn't you guys following something like pic? You analyse

>>1639812
Because I make more just buying VOO every two weeks.

Because comissions, also efficient market theory.

So your not a trader and clearly don't deserve this but here:

Stocks usually don't move that much, a 0.3% or 0.1% move is huge in safe investments like blue chip stocks and sector wide etfs. The most risky securities like 3x etfs and penny stocks in the most risky sectors move 5% to 12% a day, but they aren't normal stocks and don't behave like stocks. JNUG can fall and fall and fall and not rise, UGAZ can rise and rise and not fall.

So if you tried your strategy you wouldn't make much money on safe securities unless you were already a millionaire and had the capital to dilute yourself. In the world of risky biotech shit caps this strategy would fall apart in news cycles and at best, you'd end up at the same capital you started with after months of waiting for a pop and bagholding garbage like MSTX and NVAX (plus maximum risk exposure)

>>1639820
It protects against EMH? The intrinsic value thing is more on-par with fair value and your perception if it will go up or not.

Comission is a good argument, but commision-less brokerages exist.

>>1639825
lol, I'll admit i'm quite a noob, only a year of experience.

But I'm not talking about your trash paper business stocks, I'm talking about common securities like MSFT, NVDA, TXN, QCOM etc etc.

Yes 5% is a ludicrous number, but if a news release happens typically that is the max it will move in a day. Most of your time would be analysing and figuring out technical indicators like fibonachi lines and the like for you exits and entrances.

>>1639812
its more complicated than "buying high and sell low"

sometimes, you buy in thinking its rock bottom, but it just keeps dropping.

the best traders are bagholding masters. the market has plenty of ways to ensure you dont make a good trade.

Nothing is as simple as most think

>>1639812
Its not that simple a lot of the time you have to sit out 2 earnings releases just to break even even though you were right all along. For no reasons even. May be a few big holders wanting to take profits and Invest in something stupid etc.

Half the time stock moves are completely unexplainable and unpredictable in the short term.

File: cap_rec_20121008_150239.jpg (36KB, 704x480px) Image search: [Google]

36KB, 704x480px

>>1639859
This and this
>>1639926
I suggest OP to start doing these trades and come back to /biz/ after a year o so to tell us his experience

>>1639859

I could not agree more.

>>1639859
Yes, master traders are bag holders and that is my point. You are only selling small amounts off it, basically your risk capitol. Anything you have over X in that stock is going to be sold and if it's under X it would be bought.

It's a short term strategy for long term profolios.