Most stocks make their big moves of the day in pre-market trading. True?

Would you say it’s true that most stock issues make their big moves during the pre-market trading session (but usually NOT in after-market trading), and that said moves are the result of relatively light trading, and that in this way it can be said that pre-market trading adds volatility to the stock markets?

Is it wise to invest ALL my money into my short term municipal bond fund (FNYTX) and?

not put anything into a Roth IRA?
My reasoning for this is that the stock market is now back to where it was over a decade ago. Had I put my hard-earned money into this I would have had virtually ZERO interest.
But, if I had put that money in the municipal bond fund (FNYTX) I would have gotten several percent interest without the volatility. See where I’m going with this?
I’d rather get the modest dividend that my municipal bond fund gives me (currently @ 4.25% compounded monthly) that hope for a double-digit percentage increase in the stock market, which is unlikely to come.

What are the downsides to ETF trading?

Hey there, I’ve been in EEB following the BRIC countries since the middle of last year and while the US markets have been shamed. I’m still up pretty good considering most everything is down.

I’m loving the ETF style of investing and went with EEB because it’s just to damned hard to follow independent foreign stocks in those territories.

That said I’m seriously considering consolidating most of my US based stocks into XLG which follows the Russell 500 and comprises the biggest large cap movers. From there I’d still have my fun with spec stocks but it’s a whole lot less volatility and homework on the bulk of my portfolio, just consistent growth.

So, first question! Are there really any downsides to ETF’s? Yes, I get that I don’t get the huge growth spikes, but can save those for Spec stocks. You also don’t get the huge dives, just steady growth.

Second, any good ETF funds you recommend? And anyone done analysis on EEB vs. BIK? BIK is cheaper but EEB seems more successful.
I’m seriously thinking of growing my BRIC (EEB) investments, following the Russell 500 (XLG), buying into Gold (IAU or GDX) and holding onto a 15 – 20% for speculative and spot growth. Just seems much more secure for my ensure long-term growth while still allowing me to play the ponies (spec’s and high growth individuals) to keep it interesting. I hate my job but it affords me a wonderful lifestyle while letting me put away – k/year so hoping to ride this for 5 to 10 more years and go do whatever the heck I want!

Dividend capturing in Roth IRA – Any restrictions?

I am 16 and started a Roth IRA earlier this year and have been activity trading it (in addition to my other trading accounts) during these huge swings in our markets. However, I can’t see this kind of volatility continuing indefinitely and am looking into other high-yielding, but lower-risk trading techniques.

One that was very interesting to me was capturing dividends by buying right before an ex-div date and then selling right after. However, with typical trading you have to hold the stock for 61+ days to get taxed as a dividend.

My question is, since I have a Roth and therefore never report my gains/losses to the IRS or anybody else, do I still need to hold onto the stock for 61+ days. Or can I buy before ex-div and sell immediately after, and still receive the dividend on payment day?

Thanks!
I do have the earned income (I had over k in self-employment income this year and have contributed the max of k to my Roth).

Question about options, puts and calls ?

I’m trying to understand how this type of information affects the stock and projected pricing. Thanks. Options, puts and calls is still rather a mystery to me, and I’m wanting to learn more about how it all works and affects the market.
" Option traders piled straight into calls expiring in January as they bought strikes 17.5 through 22.5. Calls at the February 20 and 22.5 strikes were also bought. Once again implied volatility stood pat and is trading at 82%.
Ok, to clarify, does buying strikes mean they’re buying the option to purchase the stock at 22? If so, they’re betting it will go up correct?

Where's a good place to invest right now? Stocks, bonds, options, mutual funds, commodities, IPOs, metals?

My objective is high growth so I’m willing to take higher than average risk but not ridiculous risk. Liquidity is key so I won’t do Private Placements and I avoid the volatility of thinly traded Penny Stocks. I am a seasoned finance professional with a master’s in finance and a broker’s license I’ve not used in years and have merely been out of the market for a while. So this is really a call for more of an update on what’s hot out there now as I certainly intend to do my research. Yahoo! Answers can be one source for research information in that we may have a few experts capable of extending some good advice, or personal investors with some tips on what’s been working for them in this current financial environment.

I’ve held diversified portfolios of stocks where some of my winners hit doubles or triples. You can’t count on that happening every time but boy, do you remember when your picks did. Looking for a double right now if you know of any candidates. Will trade on margin
You know, you ask a serious and valid question here on Yahoo! Answers and why do some responders immediately feel this is an invitation to try to invalidate the Asker’s question with some "topper" they think they can make, noting the world is coming to an end (so they say) by global warming, so don’t even think about something as silly as investing in anything as doomed as world financial markets because you need to be burrowing like a mole and hiding from the impending Hell that is lurking.

Please, for those with rational advice versus the Chicken Littles of the world who want to proclaim "The SKY is falling!", I would appreciate a serious response.

Enron's LJM Special Purpose Entity question…?

Enron had a special purpose entity called LJM which it used to hide enrons debt off the balance sheet by buying its poorly performing stocks i understand this part because it is pretty simple the part i am having trouble with is how they used Enron’s stock as collateral, this is an excerpt about LJM taken from Wikipedia that i dont understand can someone explain this to me
In March 1998, Enron invested million for 5.4 million shares of Rhythms NetConnections, a then private broadband provider. After Rhythm went public, shares skyrocketed and Enron found itself with 0 million worth of Rhythm stock in May 1999. However, a lock-up agreement forced Enron to hold its shares until the end of 1999. Owing to Enron’s mark-to-market policy, Skilling’s worries about Rhythm’s volatility led to LJM1 carrying forth a convoluted transaction.
First, Enron transferred with severe locking restrictions 3.4 million shares of Enron stock worth 6 million at the time to LJM1 at a reduced price of 8 million. Then, LJM1 capitalized one of its subsidiaries, LJM Swap-Sub, with million of its restricted shares and .75 million in cash. Finally, Swap-Sub placed a put option on 5.4 million shares of Rhythms stock owned by Enron. Under the option, Enron could require Swap-Sub to purchase the shares in June 2004 at a share. Hence, Enron’s stock price was now tied to Rhythms’ stock price. If Enron’s stock did well and Rhythms’ sank, then Swap-Sub could reimburse Enron using its Enron shares and provide Enron a profit. More importantly, the deal allowed Enron to use this "trapped" value of the Rhythm put option to bolster its income statement and keep its stock price inflated.

TPX (Tempur-pedic) Good investment?

I’ve been following Tempur-Pedic for a while for investment purposes, but I can’t decide and here’s why.

The financials are market-beating and their products are amazing, but their stock is so damn volatile! There have been several times where it has gone up or down by as much as 3 or 4 dollars!.

What do you think is the cause of this volatility? Why isn’t the stock as stable as the company itself, and do you think this is truly something to be worried about?
(3 or 4 dollars in a single afternoon!)

How should I allocate my 401K among these 3 options?

I am 31 years old and have saved about 6, 700 towards my retirement. Most of this money is in CD’s and savings accounts and I am now participating in my company’s 401K. I have zero risk tolerance and cannot handle the volatility or downswings of stock funds. I have 3 options to invest in since stocks are not something I will invest. My choices are a money market fund yielding 0.04%, PTTAX, which is the pimco total return bond fund, and sghsx, which is a high yield junk bond fund. I’d like to go into the bond funds for yield but are they safe? Will I be able to handle the volatility of a bond fund? How risky are these 2 funds? If you are going to type about investing in a stock fund save your time and your fingers—I won’t do it. How should I divy my 401K amongst these 3 options? Are bond funds a bit risky here if interest rates start rising? Should I just stick with the money market fund? Is 6,700 a good place to be at age 31 or do I need to begin investing more?

How should I divy up my 401K?

How should I allocate my 401K among these 3 options?
I am 31 years old and have saved about 6, 700 towards my retirement. Most of this money is in CD’s and savings accounts and I am now participating in my company’s 401K. I have zero risk tolerance and cannot handle the volatility or downswings of stock funds. I have 3 options to invest in since stocks are not something I will invest. My choices are a money market fund yielding 0.04%, PTTAX, which is the pimco total return bond fund, and sghsx, which is a high yield junk bond fund. I’d like to go into the bond funds for yield but are they safe? Will I be able to handle the volatility of a bond fund? How risky are these 2 funds? If you are going to type about investing in a stock fund save your time and your fingers—I won’t do it. How should I divy my 401K amongst these 3 options? Are bond funds a bit risky here if interest rates start rising? Should I just stick with the money market fund? Is 6,700 a good place to be at age 31 or do I need to begin investing more?