Magic Beans

[hedron]

Is it just me, or is trading stocks/futures/whatever, sort of like buying some magic beans then convincing the next guy that they're worth multiple times the amount you paid for them?

 

[Doomberg]

How are you convincing someone? You just press buy or sell

 

[Barramundi]

Is it just me, or is trading stocks/futures/whatever, sort of like buying some magic beans then convincing the next guy that they're worth multiple times the amount you paid for them?

No, that's called Retailing.

 

[hedron]

How are you convincing someone? You just press buy or sell

That's not what I meant. I wasn't trying to compare the convincing. I'm comparing a stock/future/whatever to magic beans. In fact, magic beans are at least physical, if completely worthless. But a stock isn't even physical. I think yall are really convinced that they are magical.

 

[MoonRocket]

..... I think yall are really convinced that they are magical.

Yes they are magical....They can make money come and go at an alarming rate.

 

[new_trader]

That's not what I meant. I wasn't trying to compare the convincing. I'm comparing a stock/future/whatever to magic beans. In fact, magic beans are at least physical, if completely worthless. But a stock isn't even physical. I think yall are really convinced that they are magical.

What do you mean a stock isn't physical? If you are buying something like property stocks or a physical commodity ETF then you are owning something physical. What do you want to happen when you buy a stock? Do you want a dump truck to come along and drop off part of the company in your backyard?

 

[new_trader]

It's just you.

Do you know Ben Dover?

 

[tomorton]

Hi hedron - Anything can have monetary value. As long as money will actually be handed over in exchange, the value is real, even if the instrument is not. After all, money itself is just an IOU note.

 

[new_trader]

Hi hedron - Anything can have monetary value. As long as money will actually be handed over in exchange, the value is real, even if the instrument is not. After all, money itself is just an IOU note.

Not all money, only government fiat paper money is an IOU note.

 

[darktone]

Did someone mention money!?

 

[Sidekicker]

Is it just me, or is trading stocks/futures/whatever, sort of like buying some magic beans then convincing the next guy that they're worth multiple times the amount you paid for them?

and then dancing to some techno.

 

[camembert]

I've got magic beans

 

[rawrschach]

things are worth different prices to different people at different times = a market

 

[hedron]

online.wsj.com/article/SB10001424052970204573704577187062821038498.html?ru=yahoo&mod=yahoo_hs

Ok, facebook has a new IPO. I quote, "The deal, seen as defining moment for the latest Web investing boom, could raise as much as $10 billion and value the social network between $75 billion to $100 billion, said people familiar with the matter."

Right. 100 billion dollar market cap. Yea.

When ...

"It isn't known if Facebook is profitable."

Ok, so, since I know some are a little slow, I'll repeat that, "It isn't known if Facebook is profitable." Yet, the powers that run the exchange think it has a 100 billion dollar market cap. It's a friggin joke, just a bunch of magic beans.

 

[tomorton]

IPOs have less fundamental evidence to support future share price predicitons and there can't be any TA obviously. Otherise, this s a classic market: if everyone agreed on the precise value of something and that ths would not change, there would be no market. Doesn't matter if it exists yet, a 'promise' of cash at some future date is itself worth money - a more concrete proof of this would be when you work all month and expect to get salary at the end of it - that's why you handed over your hours, on the promise of the pay.

 

[Splitlink]

online.wsj.com/article/SB10001424052970204573704577187062821038498.html?ru=yahoo&mod=yahoo_hs

Ok, facebook has a new IPO. I quote, "The deal, seen as defining moment for the latest Web investing boom, could raise as much as $10 billion and value the social network between $75 billion to $100 billion, said people familiar with the matter."

Right. 100 billion dollar market cap. Yea.

When ...

"It isn't known if Facebook is profitable."

Ok, so, since I know some are a little slow, I'll repeat that, "It isn't known if Facebook is profitable." Yet, the powers that run the exchange think it has a 100 billion dollar market cap. It's a friggin joke, just a bunch of magic beans.

Probably another bubble in the making. My philosophy, fundamental, is "No profit growth in five years---no investment" Warren Beatty missed out on the hitech boom because, he said, that he did not understand the fundamentals.