Contour Enthusiasts Group Archives Forums General Common Interests Buy Worldcom Stock????????

This is how Buffet got rich: web page

Professional investment managers try and do this every day. I say stick with the industries you know, look at products that will sell well in the near future, then buy the companies that make those products or the ones that supply the companies that make the product. Its easy , you just have to know what products are going to take off; razor scooter anyone?

You better be stubborn in the market but for the right reasons and at the right price.

I wouldn't get to focused on past tops and bottoms, granted I wish Nasdaq went back to 5K so my QQQ shares would triple in value but its not something thats going to happen tomorrow or even in the next 5 years. A small portion of my money is there in the hopes that it will take off but I'm not banking on it. You can't bank on the market its a market, not a bank. IOW prices reflect perception, right now perception is piss poor. In a few years it may turn, if you look hard enough, you can find some winners, but I wouldn't be looking day to day unless you're a professional trader, and those guys have tremendous tools, I wouldn't try to compete with them.

see my comment above

but, while we are on the subject, I have a few bits to share:

on "buy them low":
I was talking to a head of a hedge fund when XRX dropped to 6.00. I mentioned that from the looks of it the crowd was overreacting so it would pay to go long and hold because there was no cause for such a drop. his response was: "Your reasoning is correct, but we are currently in the bearish market. It probably won't work". Look at the charts: he was right and I was worng. It's sitting at 6.00 not going anywhere. It may recover at some point, but this doesn't work in for a hedge fund (private investor may be willing to sit and wait, though). Oh and I believe XRX is light years away from WCOME.

If you want to invest: learn what you are dealing w/ first. Remember, when you invest 1000 and take 20 profit you actually lost money. Private investors can't trade often, so it pays to wait for a rally before investing. The rally is not here yet from the looks of it...

A very good book on the subject which I mentioned here before. I read it now and I must say it's an absolute must if you are serious about actually making money: http://www.amazon.com/exec/obidos/ASIN/0...2337457-5139356

Indeed that is ONE of the many ways of investing... But IMO the market has not been good to these type of investors... Most people are getting hurt following the traditional path...

i am not saying which way is the right way.. I just believe that sometimes some INOVATION may be the solution... who knows ??

A lot of volume comes from program trading like that of a hedge fund. They have a mathematical model that screens certain stocks and executes buys and sells based on set parameters.

I politely disagree with you BB, a lot of people have lost money NOT following the traditional path. That is they moved their money into speculative investments (read tech) instead of keeping it in the blue chips and muni bonds they had been holding for the past 25 years. The traditional path is buy and hold and I mean HOLD for years and decades. Buy smart like Buffet then hold.

It didn't help that brokerage firms lost all sense of fiduciary responsibility and didn't see the bubble for wat it was. Although they had help from every direction including companies, customers and investment banks. But this could get too long winded...

EDIT: Iknown I just read an excerpt from that book link, WOW it looks awesome. I am going to try the library though, I want to save the $50. And I think you missed the end of our last discussion on this web page

So are you saying the HIGH volume trades on WCOME yesterday and today were all computers ?? Well... weren't they programmed to make money ?? If so.. maybe I am on the right track then... becuase if a computer programmed to make money is buying WCOME at $0.10 maybe that what i should be doing...

I don't know where this High volume is coming from... but I am trying to find a pattern here...

Yesterday and Today:

They opened at about $0.16 and fluctuated from $0.10 to $0.16 all day long on EXTREMLY HIGH VOLUME (about 4 times Intel). What does that mean? I don't know..

Regarding the other issue we disagreed.. I am not even sure what is going on anymore... All I said was that there are MANY WAYS of investing.. and if you think there is only one way... I can tell for sure you are completly wrong... Furthermore.. that's way the have different categories for investors: low risk, high risk, long term, SHORT term, etc...

high volume is coming from the fact that more and more market players resort to automated or semi automated trading. there are thousands of hedge funds out there. each is a 2-3 sometimes 10 men operation pumping back and forth millions of dollars. they are not always making money either
WCOME volume is not that high today. BTW, Yahoo data has a spike of 150 mln which is not there in reality.

No BB, you're wrong! There is only 1 way to invest
1) Have money
2) Buy
3) Sell

You may vary the speed at which you do #2 and 3, that is all. j/k

EDIT: Here's a link about program trading: web page

Most of the trading you see with W-C and other 10 cent type stocks are margin traders. There investors usually represent outside buyers who invest huge sums of money so that a 3 cent increase can yield big returns.

Often, these same types of investors will play this game with monetary values (dollars versus other international forms of currency).

They play on the minute margin and can see enormous returns or crippling loses...

You guys obviously don't play the market, so I'd recommend you stay out right now, this isn't amatuer hour - The smart people are the ones trading on both sides of the market, with both long and short positions to benefit from the fluctuations in the market.

As I predicted, WCOME continues to sink lower. Forget about volume, last week it did 1 BILLION shares, while the rest of the Nasdaq did around 1.5 billion shares combined. Because it's so cheap, people are buying and selling huge quantities, but it's not an accurate gauge of what's going on.

Yes, it's only $100, but you'll be kicking yourself if you lose it. Spend it on some strippers and some alcohol, and at least you end up getting something for your money.