Comments on: I Just Day-Traded AIG, It’s Dangerous & Addicting

By: Wondering

Wondering — Fri, 31 Oct 2008 01:15:59 +0000

I bought 1100 shares at $2.90. Current price is around $1.70. Is there any point holding on? Is it likely these shares will gain in the long term, as it seems the short term is out. Fortunately I had been day trading on these over the prior few weeks, so am still up around $1,000 even now with the value as they are…

By: Billy

Billy — Wed, 01 Oct 2008 22:23:58 +0000

I watched as AIG opened at $3.75… I Set buy limit at 3.50, thinking it would hit my mark. I got a little to anxious not wanting to miss the action as the stock teetered back and forth, never reaching my buy limit, i Finlay changed my buy limit to 3.62 and bought 270 shares.

Not to much later, the price did hit the $3.50 mark! as i simulated punching the air and saying a few choice words. But over all i am excited! I predict doubling my money over the next week or so.

I’m a little to nervous to day trade, … I like the term that Jeremy used “Swing Trade” I will watch it for a few days/weeks and see what happens.

P.S. This is my very first trade…EVER!

By: George

George — Tue, 23 Sep 2008 02:21:35 +0000

Jim, that was a rather high risk trade. I’m surprised you made it. I remember when you seemed hesitant to do risk arbitrage on going private transactions.

I also scooped up some shares that traded irrationally low, but with much better odds. I bought BCE at $32.25 which was a bargain given that the company is being bought out for CDN$42.75 per share at the end of the year. I also almost bought shares of CEG at $23 even thought Warren Buffett’s subsidiary offered to buy the company for $26.50 a share. I scratched my head for a few minutes and by the time I decided I had all the facts, the stock shot up above $26.50! I couldn’t believe how fast things changed on the 19th. The opportunity on CEG never returned.

I really shouldn’t complain. The Special Situations Real Money Port is kicking butt, up over 15% this year.

Jim, carefully consider the difference between speculation and investing. Speculation is much sexier, addictive, and also very dangerous.

By: andrew

andrew — Mon, 22 Sep 2008 20:39:06 +0000

Yes my taxes are a bitch.

By: Mr. ToughMoneyLove

Mr. ToughMoneyLove — Mon, 22 Sep 2008 18:37:48 +0000

And another swing trader is born.

Post your Schedule D in January. I’ll hold my congrats until then.

By: Andrew Dunning

Andrew Dunning — Mon, 22 Sep 2008 18:21:41 +0000

I bought $3000 worth of AIG last week at $2.50. It dropped to $1.90 or so and I decided to hold. On friday’s rally it climbed to $3.50. I decided to hold it over the weekend and just sold it about 10 minutes ago at $5.02. So I can say that right now I am quite happy.

$3000 profit after commissions on a 5 day trade.

Keep watching.

I am 21 and have been investing/trading since age 16.

I LOVE Gordon Gecko

By: Jim

Jim — Wed, 17 Sep 2008 22:43:02 +0000

I guess I’m to conservative financially to risk real money on day trading. Day trading seems more like a form of gambling to me than investing. If I want to ‘play’ with stocks I do it in a safe way with fake money on Updown.com

By: Kit Kat

Kit Kat — Wed, 17 Sep 2008 14:57:03 +0000

It is very exciting and addictive to trade, but really no one can predict anything short term in the stock market. Happy trading.

By: jay

jay — Wed, 17 Sep 2008 14:26:47 +0000

Right now it is hovering around $2 so good to get out when you did, and take the profit you did.

Day trading is a hell of a lot more interesting then the investing I do. However, I obsess about my holdings even in my 401K so doing day trading I don’t think I would ever leave my computer!

My fear on doing any sort of day trading is the taxes you end up owing on something you only own for a couple of hours makes the return need to be that much more to turn a profit. Unless I am mistaken you have to pay capital gains on anything you don’t own for a year?

By: Cap

Cap — Wed, 17 Sep 2008 02:44:30 +0000

Gecko and “that guy” from the episode “Future Stock” in Futurama is my hero. I imagine jim was wearing similar attire as he clicked away to day trading riches….

By: jim

jim — Wed, 17 Sep 2008 02:26:26 +0000

Sun: Yeah, there was no way I was keeping it. I was kinda right about bailing them out, I just didn’t anticipate how far they’d go.

Todd A: I bet you more than half of the people reading recognize the reference, pfblog readers don’t skew young… they’re all over the map.

By: Todd A

Todd A — Wed, 17 Sep 2008 02:16:47 +0000

Gordon Gecko would be proud. (This reference shows my age, and probably doesn’t register with half the people reading this !)

By: Sun

Sun — Wed, 17 Sep 2008 02:05:57 +0000

Good you sold it today. It will be too late if you wait till tomorrow.

By: Matt @ Steadfast Finances

Matt @ Steadfast Finances — Wed, 17 Sep 2008 02:01:26 +0000

@ Jeremy

Sounds exactly like me except I haven’t graduated to those boring mutual funds just yet. I do the swing trades or bargain hunt those stocks that have recently been taken out behind the woodshed. Hold them for a few days/weeks waiting for the short term moves.

Very profitable once you learn the techniques, but also VERY boring. Decided to start a blog to pass the time.

By: DR's Money Management

DR's Money Management — Wed, 17 Sep 2008 01:37:32 +0000

Jim, you’ve gone over to the dark side! Buy and hold! Buy and hold!