Comments on: No Good Can Come of This http://www.iwillteachyoutoberich.com/blog/no-good-can-come-of-this/ Personal finance blog for college students, recent graduates and everyone else -- including entrepreneurship -- for getting rich. Featured in the Wall Street Journal and New York Times. Tue, 16 Mar 2010 17:35:08 -0700 http://wordpress.org/?v=abc hourly 1 By: some body http://www.iwillteachyoutoberich.com/blog/no-good-can-come-of-this/comment-page-1/#comment-1106 some body Fri, 19 May 2006 21:03:29 +0000 http://www.iwillteachyoutoberich.com/blog/no-good-can-come-of-this#comment-1106 i disagree. let's say you have two watches, one that is off by a few minutes, one way or the other (you just don't know which way it is off). you have another watch that is broke. would you use the broke watch as it is correct at least twice a day, or the one that is never correct throughout the day? similarly, i - like your friend - will probably put a small portion of the eggs in my basket into this 'tip' and not all of them. - s.b. i disagree. let’s say you have two watches, one that is off by a few minutes, one way or the other (you just don’t know which way it is off). you have another watch that is broke. would you use the broke watch as it is correct at least twice a day, or the one that is never correct throughout the day? similarly, i – like your friend – will probably put a small portion of the eggs in my basket into this ‘tip’ and not all of them.

- s.b.

]]> By: Ash Dyer http://www.iwillteachyoutoberich.com/blog/no-good-can-come-of-this/comment-page-1/#comment-1105 Ash Dyer Thu, 26 Jan 2006 09:41:29 +0000 http://www.iwillteachyoutoberich.com/blog/no-good-can-come-of-this#comment-1105 I discussed this topic in a recent post, <a href="http://blogs.studentvc.com/ash/2006/01/posers.html" rel="nofollow">"Sniffing Out the Wannabes"</a>. Sorry for the self-promotion, but I really believe in the message - a brief lesson in the people dynamic of market movement. <br /><br />I'll also point out that if someone's only telling you about their "hot stock" after they've been holding the position for three months then something's wrong. They obviously aren't interested in sharing profits with you or they'd have told you much sooner. At this point it's just an ego trip. I discussed this topic in a recent post, “Sniffing Out the Wannabes”. Sorry for the self-promotion, but I really believe in the message – a brief lesson in the people dynamic of market movement.

I’ll also point out that if someone’s only telling you about their “hot stock” after they’ve been holding the position for three months then something’s wrong. They obviously aren’t interested in sharing profits with you or they’d have told you much sooner. At this point it’s just an ego trip.

]]> By: Freelove http://www.iwillteachyoutoberich.com/blog/no-good-can-come-of-this/comment-page-1/#comment-1104 Freelove Tue, 24 Jan 2006 21:00:47 +0000 http://www.iwillteachyoutoberich.com/blog/no-good-can-come-of-this#comment-1104 If the person has not invested in any stocks before then the upside would be knowledge and experience in doing so. Perhaps by owning this stock (even a small amount) she begins casually reading the stock quotes, news stories, and maybe looks at an annual report or two. The increased knowledge and future confidence could very well be beneficial, though I fully agree that it is a bad idea to buy based solely on the "tip" of her manager. If the person has not invested in any stocks before then the upside would be knowledge and experience in doing so. Perhaps by owning this stock (even a small amount) she begins casually reading the stock quotes, news stories, and maybe looks at an annual report or two. The increased knowledge and future confidence could very well be beneficial, though I fully agree that it is a bad idea to buy based solely on the “tip” of her manager.

]]> By: Chris Ellan http://www.iwillteachyoutoberich.com/blog/no-good-can-come-of-this/comment-page-1/#comment-1103 Chris Ellan Tue, 24 Jan 2006 01:40:40 +0000 http://www.iwillteachyoutoberich.com/blog/no-good-can-come-of-this#comment-1103 Insider tips are illegal regardless of the manner. The SEC makes a rule book that oulines every aspect of insider trading and new laws have been passed in the last two years in order to council all speculaters who "think" they know what insider trading really is. Bottom line is, if its legal, its not an insider tip. Insider tips are illegal regardless of the manner. The SEC makes a rule book that oulines every aspect of insider trading and new laws have been passed in the last two years in order to council all speculaters who “think” they know what insider trading really is. Bottom line is, if its legal, its not an insider tip.

]]> By: Jon http://www.iwillteachyoutoberich.com/blog/no-good-can-come-of-this/comment-page-1/#comment-1102 Jon Sat, 21 Jan 2006 23:26:12 +0000 http://www.iwillteachyoutoberich.com/blog/no-good-can-come-of-this#comment-1102 What company did she invest in? I'd like to do the same. :-) What company did she invest in? I’d like to do the same. :-)

]]> By: Ramit Sethi http://www.iwillteachyoutoberich.com/blog/no-good-can-come-of-this/comment-page-1/#comment-1101 Ramit Sethi Sat, 21 Jan 2006 14:52:46 +0000 http://www.iwillteachyoutoberich.com/blog/no-good-can-come-of-this#comment-1101 Insider tips come from a senior executive at the company, not the manager who sits 2 cubicles away. Insider tips come from a senior executive at the company, not the manager who sits 2 cubicles away.

]]> By: Dan http://www.iwillteachyoutoberich.com/blog/no-good-can-come-of-this/comment-page-1/#comment-1100 Dan Sat, 21 Jan 2006 13:48:12 +0000 http://www.iwillteachyoutoberich.com/blog/no-good-can-come-of-this#comment-1100 I disaggree with your article. Your friend has what is called an insider tip about the company. If the tip is true, then she should invest and then sell the stock later. She doesn't have to keep it for 20 years. For example recently I had a tip about a bank which was going to make an important announcement. I bought the stock and waited for the bank to make the announcement. The bank made the announcement. I waited for another 2 days for the stock to grow, and then sold it, and made 4X the money. That's how insider tips work. However, they may be illegal.. the SEC doesn't look at these with good eyes. I disaggree with your article.

Your friend has what is called an insider tip about the company. If the tip is true, then she should invest and then sell the stock later. She doesn’t have to keep it for 20 years.

For example recently I had a tip about a bank which was going to make an important announcement. I bought the stock and waited for the bank to make the announcement. The bank made the announcement. I waited for another 2 days for the stock to grow, and then sold it, and made 4X the money.

That’s how insider tips work.

However, they may be illegal.. the SEC doesn’t look at these with good eyes.

]]> By: jim http://www.iwillteachyoutoberich.com/blog/no-good-can-come-of-this/comment-page-1/#comment-1099 jim Sat, 21 Jan 2006 06:34:05 +0000 http://www.iwillteachyoutoberich.com/blog/no-good-can-come-of-this#comment-1099 Even at $5 per trade, she's paying 1-2% round trip in commissions... something you might want ot mention to her. Chances are her transaction fees aren't that low... Even at $5 per trade, she’s paying 1-2% round trip in commissions… something you might want ot mention to her. Chances are her transaction fees aren’t that low…

]]> By: Jonathan Radande http://www.iwillteachyoutoberich.com/blog/no-good-can-come-of-this/comment-page-1/#comment-1098 Jonathan Radande Sat, 21 Jan 2006 05:22:27 +0000 http://www.iwillteachyoutoberich.com/blog/no-good-can-come-of-this#comment-1098 Has anyone tried Gorilla Trades? I've been hearing a lot of buzz, and today, I was seriously considering membership. My mind told me to sleep on it instead of acting on impulse. Any feedback would be appreciated. Has anyone tried Gorilla Trades? I’ve been hearing a lot of buzz, and today, I was seriously considering membership.

My mind told me to sleep on it instead of acting on impulse.

Any feedback would be appreciated.

]]> By: Chris Yeh http://www.iwillteachyoutoberich.com/blog/no-good-can-come-of-this/comment-page-1/#comment-1097 Chris Yeh Fri, 20 Jan 2006 22:12:58 +0000 http://www.iwillteachyoutoberich.com/blog/no-good-can-come-of-this#comment-1097 While I agree that it's better to be decisive than to be wishy-washy, there have been great investors who took the approach of "buy a little now, buy more later on." <br />For the big guys, sometimes buying a little bit of a stock is the only way to get themselves to pay attention. It's like the way you pay more attention at a card game if you have money at stake. <br />That being said, it sounds like you're friend is being played by a classic combo of fear and greed--greed because she sees her boss making money; fear because she doesn't want to miss out, but also doesn't want to lose her money. <br />In general, I think people should realize that picking individual stocks is hard work. Fund managers do it for a living, and they have a hard time beating the market. Why should I believe that I can do better? <br />Focus instead on minimizing your expenses, saving as much as possible, and following a disciplined investment plan. While I agree that it’s better to be decisive than to be wishy-washy, there have been great investors who took the approach of “buy a little now, buy more later on.”

For the big guys, sometimes buying a little bit of a stock is the only way to get themselves to pay attention. It’s like the way you pay more attention at a card game if you have money at stake.

That being said, it sounds like you’re friend is being played by a classic combo of fear and greed–greed because she sees her boss making money; fear because she doesn’t want to miss out, but also doesn’t want to lose her money.

In general, I think people should realize that picking individual stocks is hard work. Fund managers do it for a living, and they have a hard time beating the market. Why should I believe that I can do better?

Focus instead on minimizing your expenses, saving as much as possible, and following a disciplined investment plan.

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