Seeking Alpha

Small caps getting bubbly?

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Comments (12)
  • Ralph Cook
    , contributor
    Comment (1) | Send Message
     
    I am retired from U.S. Army, Sony, and Army fleet support. I now have time to follow the stock markets and I have become an active trader, not to be confused with day trading. I hold all purchases until they are up about $1.00 or more and then sell them, usually 100 shares per selling transaction. I only trade ETF's and one mutual fund. I buy IJR, IVV, IVW, without commission or fees. If I hold less than 30 days, then I pay a commission of $7.95. I often buy fewer than 100 each transaction since there is absolutely no fee. I trade IWM, which has a commission on all trades.
    4 Mar 2014, 01:04 PM Reply Like
  • JerryI
    , contributor
    Comments (42) | Send Message
     
    You might consider an account with someone like Fidelity or Vanguard. I am retired and have all my savings at vanguard. I pay $2 per transaction after 10 or so free transactions per year. No commissions buying or selling ETFs at any time. Vanguard has a very low overhead S&P ETF (VOO). Overhead cost on the fund is only 0.05 percent annually.
    4 Mar 2014, 01:56 PM Reply Like
  • Reel Ken
    , contributor
    Comments (4807) | Send Message
     
    Hi Ralph,

     

    Thank you for your service.

     

    You have had the benefit of investing during one of the greatest bull markets of all time. Won't be so easy in the future (though I hope it lasts forever).

     

    As you progress through your knowledge acquisition phase, take a look at selling put options. They offer better returns with less risk in slow rising, flat and down markets. Though they trail direct stock ownership in rapidly rising markets, such a strategy may be more reflective of the future than the rush we've seen the last few years.
    4 Mar 2014, 02:01 PM Reply Like
  • seterk
    , contributor
    Comments (241) | Send Message
     
    Do you sell them at 1.00 more irregardless of price, or do you sell when you hit a certain percentage increase?
    4 Mar 2014, 11:44 PM Reply Like
  • kennethfine
    , contributor
    Comments (190) | Send Message
     
    Ralph: if you as a retired guy have a reasonable amount to deposit in a brokerage account (which does not necessarily compel you to invest it in securities), you might have a look around at the various options are available to you. Some brokerage account will give you a number of free trades monthly if you maintain a certain minimum -- probably more trades than you would ever need. Happy investing...
    4 Mar 2014, 01:29 PM Reply Like
  • mjtroll1
    , contributor
    Comments (1604) | Send Message
     
    the iwm/spy pair is at top of multimonth range -5 to +6 current +4.2
    4 Mar 2014, 02:36 PM Reply Like
  • BlueOkie
    , contributor
    Comments (7040) | Send Message
     
    When I hear free trades, low or no expenses; I ask myself how are they making money? They surely aren't doing it out of the goodness of their heart! How are they making a profit and off whom?
    4 Mar 2014, 03:17 PM Reply Like
  • Reel Ken
    , contributor
    Comments (4807) | Send Message
     
    Hi BlueOkie,

     

    They make money off bid/ask and management fees.

     

    The technological improvements in trading platforms allow incremental trades to be processed very cheaply.

     

    The mantra in the financial world is "get the money first, then worry about how to turn a profit". That plus a push for market share and voila...they don't need to make a lot off each account.

     

    They also offer so many other services to entice you. It's like any other business, the first step is to get the customer in the door. Then to get them to buy something, then to get them to buy more.

     

    It's all about customer acquisition in a dog-eat-dog world.
    4 Mar 2014, 03:49 PM Reply Like
  • BlueOkie
    , contributor
    Comments (7040) | Send Message
     
    Reel,

     

    I understand most of that! It is why I buy DRIPs using a transfer agent. Low one time cost. Long term investor in each of the stocks. Keeps me from trading too much
    5 Mar 2014, 04:15 PM Reply Like
  • BlueOkie
    , contributor
    Comments (7040) | Send Message
     
    Since March 2009, you could have had a monkey throwing darts and made money! The market is up over 178% since then. If you don't have a well diversified portfolio, ask yourself what happens if we get another 2008?
    4 Mar 2014, 03:18 PM Reply Like
  • mobyss
    , contributor
    Comments (2193) | Send Message
     
    The S&P action in 2014 reminds me a lot of the mid-May through August 1, 2013 period, with today being the "blow off top" similar to the very end of that strong V-shaped rally.

     

    Pull up a one year chart of the S&P and draw straight lines through the tops and bottoms of the up and down action. We've just reached very near to the top of this range again.
    4 Mar 2014, 03:50 PM Reply Like
  • seterk
    , contributor
    Comments (241) | Send Message
     
    Thoughts on SLYG? Done well with it. Too high and sell, or hold and buy more on dip? Open to opinions....
    4 Mar 2014, 11:48 PM Reply Like
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