Quote Originally Posted by Sqwunk View Post
This is pretty much the example I use but I usually say playing poker instead. You can learn to play poker, but would you play in a high stakes game against professionals? If not then why are you gambling in the markets against professionals who do it for a living all day long.

Thats not to say the layman can't play the markets with a little ingenuity (I'm no expert by any means) but its difficult to do when you can't spend the time on it.

In relation to something you said about how the software makes those predictions of buying when something is over sold and the price is going to start an upward trend and selling when its over bought and going to start a down trend.
One thing for people to keep in mind when you're buying a stock, unless its an outstanding share that the company sold to raise funds, then its being sold by someone and that someone has a reason for selling it. It might not be an important reason maybe they just need some extra cash. Or maybe the recognize that something might be happening soon and it's time to get out of this stock. Or in the case of what Skyylya is saying, everyone else is selling so its time to get out but that might be the start of the up trend and they're fools for selling when they are.

To answer your question if we think that a companies product has anything to do with the share price. I think it does a little bit, but only in the psychological manner you mentioned. People like to see the company doing something and nakinv new things. When I had my Principles of Investing class we had to play a fantasy investing game on Investopedia.com (which is great for people to dick around on the markets without using real money and just experience how the market works a little). We all started with $10, 000 fake dollars and the kids that did the best bought lots of Apple stock immediately, this was before Steve died and I think the iPhone 4 was going to be released soon. They all bought around $430-450/share and with a month or two it was well over 600 and their portfolios were awesome looking.

So yes I think the product has a little something to do with it but only because it gives the trader confidence that the stock is going to do well, so it sometimes does do well because of that.
I played that game in high school when we had to use newspapers.

The winners gambled on penny stocks and made fortunes...


Also, software can be great. But if it were hax no one would work in the industry, just daytrade.

P.S. I put in a limit order for NOK last night that exactly matched what google says the low price of the day was, but my trading site says the low was 1 cent more, so I missed out on a 3% gain day...