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INVESTMENTS

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Re: INVESTMENTS

Postby Maximus » Sat Nov 03, 2018 2:51 pm

Paphitis wrote:
miltiades wrote:I stay away from currencies, highly volatile and highly risky.
The only speculative trading I do and always have done is to idendify stocks that are valued low as against thr real value of a company knowing that sooner rather than later predators will attack.
Tomtom is such a stock, a cherry waiting to be picked.
As I stated earlier Ripple ( XRP) currently at 46 us cents is a good investement for a couple months. This one should rise to over a dollar by the end of this year.
Check it out.


I know someone in Adelaide who sits in his basement looking at the graphs similar to what Max posted all day and night and inter trades between currencies, mainly USD, EURO and AUD.

He says he does alright out of it.

He explained to me what he looks for, and there appears to be a science behind it all. He reckons currency is less risky than shares.


Here are the reasons why I like currencies, I also think they are better than shares trading but both are classified as high risk instruments.

- Its a 24 hour market place. The market only closes on the weekends.
- its the most liquid market place in the world, so entering and exiting can be done with ease and there is less price gaping. In fact, if you aggregate the volumes of all the stock exchanges worldwide, they still wouldn't come close to the $5 trillion a day FX markets.
- You can earn interest every 24 hours for some currencies, unlike stocks, where you might earn a dividend every quarter depending on the company.
- They are volatile which is great if you are on the right side of it.
- You can control your risk and minimize the volatility by exchanging small amounts.
- They trade fantastically from a technical perspective if you know what you are looking for. (analysis of charts, predictable price patterns).
- The fundamentals are relatively easy to understand. (if unemployment is rising, this is potentially bad for the economy and probably negative for the currency)
- Transaction fees in the inter-bank market are relatively low. For the most liquid pairs, its about $7 to $8 per $100,000 exchanged.
- You have access to high levels of leverage. In the EU its 30 to 1. With broker outside of the EU, Like Australia, you can get leverage up to 500 to 1.
- Brokers are regulated so you have some protection (not all but i wouldn't advise trading with an unregulated off shore broker).
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Re: INVESTMENTS

Postby Paphitis » Sat Nov 03, 2018 3:06 pm

Hey Max,

preaching to the converted mate.

Both are classified as high risk because they move by the day, or even by the minute.

But that is how money is made. :D
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Re: INVESTMENTS

Postby Maximus » Sat Nov 03, 2018 3:25 pm

Paphitis wrote:Hey Max,

preaching to the converted mate.

Both are classified as high risk because they move by the day, or even by the minute.

But that is how money is made. :D


Yes and also the fact that most people cant handle the psychological aspects of it and are not willing to put in the time and effort to be successful. Making consistent profits in the financial markets is one of the most challenging things to succeed at.

Brokers in the EU have to now declare the percentage of their client accounts that are losing money. Its about 80% but some hold the belief that the failure rate over the medium to long term is about 90%. like any other business.

Most, if not all new people who start trading lose all the money in their account within 6 months. Consider it as a cost towards your education.
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Re: INVESTMENTS

Postby Paphitis » Sat Nov 03, 2018 3:32 pm

Maximus wrote:
Paphitis wrote:Hey Max,

preaching to the converted mate.

Both are classified as high risk because they move by the day, or even by the minute.

But that is how money is made. :D


Yes and also the fact that most people cant handle the psychological aspects of it and are not willing to put in the time and effort to be successful. Making consistent profits in the financial markets is one of the most challenging things to succeed at.

Brokers in the EU have to now declare the percentage of their client accounts that are losing money. Its about 80% but some hold the belief that the failure rate over the medium to long term is about 90%. like any other business.

Most, if not all new people who start trading lose all the money in their account within 6 months. Consider it as a cost towards your education.


People don't understand the markets.

they hear about a crash where the markets tumble by a huge amount but they don't realize that for the previous 7 years it was a Bull market where the index virtually doubled. So they hear people losing money in one day but disregard when the everyone was making money for years before that.

At the end of the day, I haven't heard of long term investors losing money. there is the odd corporate collapse, but if you ut in the time, you should avoid those anyway.

Apart from shares, you can trade in currencies, but also commodities - such as Oil, Gold, Silver, Copper, Zinc, Grain, Wool, Cattle, wool, Cotton, Sugar, and so on.

There is money to be made with a bit of homework.
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Re: INVESTMENTS

Postby Maximus » Sat Nov 03, 2018 3:41 pm

historically speaking a long term buy and hold strategy on the major stock index's would have made you money and it would have fared better than keeping your money in a savings account. However it is the element of risk and the possibility of not having access to the same amount of money whenever you want it which deters the vast majority of people.

Just wait for the next crash and buy with little to no leverage.... :lol:

for the average person, I believe that some of their net asset value should be in the stock market for the long term, even though i have not practiced what I preach. Instead, I choose to be more active because I believe I can make better returns trading in and out of currencies more frequently.
Last edited by Maximus on Sat Nov 03, 2018 4:22 pm, edited 1 time in total.
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Re: INVESTMENTS

Postby Paphitis » Sat Nov 03, 2018 3:45 pm

Maximus wrote:historically speaking a long term buy and hold strategy on the major stock index's would have made you money and it would have fared better than keeping your money in a savings account. However it is the element risk and the possibility of not having access to the same amount of money whenever you want it which deters the vast majority of people.

Just wait for the next crash and buy.... :lol:

for the average person, I believe that some of their net asset value should be in the stock market for the long term, even though i have not practiced what I preach. Instead, I choose to be more active because I believe I can make better returns trading in and out of currencies more frequently.


You need high volumes for currencies Max, especially if you inter trade.

What volumes are we talking about here?
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Re: INVESTMENTS

Postby Maximus » Sat Nov 03, 2018 3:55 pm

Paphitis wrote:
Maximus wrote:historically speaking a long term buy and hold strategy on the major stock index's would have made you money and it would have fared better than keeping your money in a savings account. However it is the element risk and the possibility of not having access to the same amount of money whenever you want it which deters the vast majority of people.

Just wait for the next crash and buy.... :lol:

for the average person, I believe that some of their net asset value should be in the stock market for the long term, even though i have not practiced what I preach. Instead, I choose to be more active because I believe I can make better returns trading in and out of currencies more frequently.


You need high volumes for currencies Max, especially if you inter trade.

What volumes are we talking about here?


You can exchange from as little as $1,000 with nearly all online brokers. Where a one cent move in the exchange rate would be the equivalent of a $10 gain or loss on the major currencies. Which most major currencies can do on an average day. The major currencies are quoted to 5 decimal places. There are 100 pips (ticks) in a cent and each pip would be worth 10 cents.

With 30 to 1 leverage you only need $33.33 as margin to participate and control $1,000 in the market. A one cent move in the exchange rate would be the equivalent to a 30% gain or loss on your margin if you are trading on such a shoe string budget.

If you exchange $100,000, a one cent move would be the equivalent to a gain or a loss of $1,000 on an average day. You would need $3,333.33 as margin with 30 to 1 leverage to control that much capital in the market.

You would need much, much less if you are Australian trading with an Australian broker.
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Re: INVESTMENTS

Postby miltiades » Sat Nov 03, 2018 6:40 pm

Guys, as the saying goes, idou i Rodos idou to pidima.
I dont much care for past performances, i idendify a company undervalued and likely to be pounced upon and I buy. I have thus far given you 2 stocks. Tomtom and Ripple XRP. Will give you another one.A biotec stock, Kalapagos. Currently at 93.74 euros.
This one for long term investment.
Who cares if a share was traded at 100 euros 5 years ago and now down to 1 cent.
I will buy if I think it will double my outlay.
Its realy simple.
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Re: INVESTMENTS

Postby Pyrpolizer » Sat Nov 03, 2018 7:20 pm

Paphitis wrote:
Pyrpolizer wrote:
Maximus wrote:why did it plummet so hard in one day, from about 8.50 to 5.75 mid September?

it has taken more than a month and it still hasn't recovered that sharp down move.


Because prices are manipulated!
I can't beleive Milti got stuck to this stock by just looking at the price.
What were the volumes??
Such high changes within a single day should be enough to convince you this is not a reliable stock.


I'm not sure about Ripple because I never looked at it, but Tom Tom is pretty much tier 2 Blue Chip.

It's sort after and Apple are chasing it so that they can use Tom Tom GPS maps on their Iphone and Ipad gadgets.

Stocks are manipulated by supply and demand just like the price of Oil and everything else on the market, including property. It is dictated by the price buyers are willing to pay on an open market.

Not only that, but prices are actually dictated by profits per share, profit index, and the dividends. The more profitable a company is, the higher volumes in trade it will have on its shares and share prices generally rise.


Among the top GPS software that a few years back were using their own maps be it TomTom, Garmin, Sygic, IGO and so many others, only a few survived because they couldn't keep up with the updates of their OWN maps.
Besides there were always companies that had better maps than those software, e.g Microsodt, OpenStreet Maps, and Google.
Everyone surrendered to Google today at least for street Navigation. My No1 preference was always Sygic.
OziExplorer and other software for off street positioning, waypoints and routes for military, recreational or other activities were always slaves of Google Satellite maps anyway.

So no way TomTom would have any value today for it's own maps. It may have a certain value because of old reputation and because it continues to sell, but don't expect it to ever have an upward trend.
Anyone who has the slightest idea of Blue chips should be crazy to consider TomTom as a serious candidate TODAY. 6-10 years ago yes, but not today. This a just a software in decline.
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Re: INVESTMENTS

Postby Pyrpolizer » Sat Nov 03, 2018 7:25 pm

miltiades wrote:Guys, as the saying goes, idou i Rodos idou to pidima.
I dont much care for past performances, i idendify a company undervalued and likely to be pounced upon and I buy. I have thus far given you 2 stocks. Tomtom and Ripple XRP. Will give you another one.A biotec stock, Kalapagos. Currently at 93.74 euros.
This one for long term investment.
Who cares if a share was traded at 100 euros 5 years ago and now down to 1 cent.
I will buy if I think it will double my outlay.
Its realy simple.


Yes but you said earlier that you study the financial reports of the companies and buy only those whose stock prices are undervalued.
Did you really study the financial reports of TomTom???
And If you did, what makes you so sure the books have not been cooked anyway?
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