What's a good way to predict short term swings in the market? I'm fed up with individual stocks... so many sec investigations, downgrades, earnings misses etc. keep killing my stocks. I thought if I could make just 2-3 % but do it enough times I might be better off (I have enough long term buy-and-hold funds already). i'm talking about buying the spy or other etf's for the short term.....
2006-06-27 02:26:41 · 3 answers · asked by heypbk2 2 in Business & Finance ➔ Investing
You might want to take a finance class. When you do -- pay attention to the part where they talk about efficient market theory.
If there were a way to predict short term swings in the market -- people would all jump in and take those profits away immediately.
The only way to get an abnormal return in the market is to have information that no one else has. There are three ways to get this. The first is an insider -- but it is illegal for them to trade on this information. The second is to pay for this information -- but paying for it eats up the abnormal return. The third is to gather information yourself and determine the true value of stocks. If you are efficient at doing this, you can make an abnormal return.
Otherwise -- you are asking for the impossible.
2006-06-27 02:42:51 · answer #1 · answered by Ranto 7 · 3⤊ 0⤋
Capital gains taxes will eat you up with that narrow of a margin.
2006-06-27 02:39:34 · answer #2 · answered by Jeffrey S 6 · 0⤊ 0⤋
i dont know anything about stocks sorry
2006-06-27 02:30:03 · answer #3 · answered by Anonymous · 0⤊ 0⤋