Investing megathread extravaganza

[DaFace]

A place to talk about investing stuff.

[mr. tegu]

Originally Posted by DaFace

It's a "get rich quick" play under the belief that eventually it will cause a short squeeze and go through the roof (though we've been waiting for that for like 6 months now).

Beyond that, some are just trying to make a little money on the volatility. It's basically cycled back and forth between ~$30 and ~$50 for months now, so if you figure that can continue, you can buy on the low end and sell on the high end. Of course, it's probably truly only worth about ~$2, so you run the risk of it crashing down to earth at some point.

I get the volatility aspect but there are plenty of big movers to consider that aren’t talked about as much. Seems like maybe it consists of people upset they missed the huge growth.

[Hammock Parties]

Originally Posted by lewdog

That makes no sense. Buy stocks in uptrends for trades, don’t guess on a stock trending down for when it will reverse as that’s much more difficult to time.

It is very hard to guess when a stock is going to KEEP rising.

You buy it when it's going up it might get dumped shortly thereafter. Good way to become a goddamn bag holder.

I'd rather play it conservatively. I'll buy at 52-week or 6-month lows and bet on it going up in the short term. That has worked well for me.

[petegz28]

I am not liking this market at all. Heavy selling into every up move. Market internals look like shit, overblown fear about Omicron......

If you are a long term investor I would be ready to start dipping in but I would go slow....

[petegz28]

we push much lower and we are going to have an outside day which can be good but yet still not good..

What is an outside day, you ask??

https://www.investopedia.com/terms/o...dereversal.asp

[lewdog]

Originally Posted by Hammock Parties

It is very hard to guess when a stock is going to KEEP rising.

You buy it when it's going up it might get dumped shortly thereafter. Good way to become a goddamn bag holder.

I'd rather play it conservatively. I'll buy at 52-week or 6-month lows and bet on it going up in the short term. That has worked well for me.

That’s not playing conservatively, that’s more risky than my trading.

It’s what most people think and it’s why 90% of traders lose. A “cheap” stock is many times cheap for a reason and it’s harder for individual stocks to reverse a trend than continue a current one. That’s why you buy stocks while they trend higher and set stop losses on moves up to decrease downside risk and lock in made gains.

It’s ok if you don’t want to learn though. I’ve provided plenty of education in here and some people just prefer guessing without a plan, which is how you become a bag holder.

[lewdog]

Originally Posted by petegz28

I am not liking this market at all. Heavy selling into every up move. Market internals look like shit, overblown fear about Omicron......

If you are a long term investor I would be ready to start dipping in but I would go slow....

Originally Posted by petegz28

we push much lower and we are going to have an outside day which can be good but yet still not good..

What is an outside day, you ask??

https://www.investopedia.com/terms/o...dereversal.asp

Pete, you are very on point in this thread.

Makes me wonder if your posts in other threads are jokes.

[Hammock Parties]

Originally Posted by lewdog

That’s not playing conservatively, that’s more risky than my trading.

It’s what most people think and it’s why 90% of traders lose. A “cheap” stock is many times cheap for a reason and it’s harder for individual stocks to reverse a trend than continue a current one. That’s why you buy stocks while they trend higher and set stop losses on moves up to decrease downside risk and lock in made gains.

It’s ok if you don’t want to learn though. I’ve provided plenty of education in here and some people just prefer guessing without a plan, which is how you become a bag holder.

As always you know everything.

[petegz28]

I should say if we get another outside day and we are about too...this will make the 2nd in 3 days and the 3rd since the sell off started which actually started with an outside day

[lewdog]

Originally Posted by Hammock Parties

As always you know everything.

Nope, just trying to educate you. Trading isn’t about knowing everything. It’s about having a system where you only need to be correct 50% of the time to make money. And it surly isn’t guessing or buying stocks in a down trend.

I’m sorry you won’t listen to any advice that’s trying to help you.

[petegz28]

Originally Posted by lewdog

Nope, just trying to educate you. Trading isn’t about knowing everything. It’s about having a system where you only need to be correct 50% of the time to make money. And it surly isn’t guessing or buying stocks in a down trend.

I’m sorry you won’t listen to any advice that’s trying to help you.

The "good traders" will tell you that you only need to be right 33% of the time. I call bullshit unless you are seriously funded to be able to scale in and out of several positions.

Day trading or swing trading stocks is tough because you have several factors to consider:

Screen the stocks
How is the overall market in relation to the stock
How is the overall sector in relation to the overall market
How is the overall sector in relation to the stock
Analyst "Recommendations" that move a stock quickly one way or the other

That's why I don't do it anymore. Finding the stocks is a pain and time consuming. If I do dabble in it I try to do it with a buy-write call spread or something.

I'd rather focus on the overall market, e.g. SPY, QQQ, etc.

[petegz28]

If you want to gamble today, right now is a good time to buy the SPY if you think we will head back up towards the close. Seeing a good buying spot.

My concern though is people selling into the close not wanting to be long over the Omicron weekend....

[Hammock Parties]

Originally Posted by lewdog

It’s about having a system where you only need to be correct 50% of the time to make money. And it surly isn’t guessing or buying stocks in a down trend.

In your opinion, Mr. Know It All

My system works just fine for me.

[lewdog]

Originally Posted by petegz28

The "good traders" will tell you that you only need to be right 33% of the time. I call bullshit unless you are seriously funded to be able to scale in and out of several positions.

Day trading or swing trading stocks is tough because you have several factors to consider:

Screen the stocks
How is the overall market in relation to the stock
How is the overall sector in relation to the overall market
How is the overall sector in relation to the stock
Analyst "Recommendations" that move a stock quickly one way or the other

That's why I don't do it anymore. Finding the stocks is a pain and time consuming. If I do dabble in it I try to do it with a buy-write call spread or something.

I'd rather focus on the overall market, e.g. SPY, QQQ, etc.

I’ve made money in months where I’m 40% accurate, but not lower than that. Goal is to always have win/loss ratio be of 2:1 or greater. It’s all about managing risk.

I trade on Mark Minervini principles. I pay for a screener that I can manipulate to look for stocks that meet certain rules. I can scan through a list of 700 stocks in about 30 minutes looking for certain patterns.

Best book I’ve ever read.

Think & Trade Like a Champion: The Secrets, Rules & Blunt Truths of a Stock Market Wizard https://www.amazon.com/dp/0996307931...J5N4CX5K0MQ44A

[lewdog]

Originally Posted by petegz28

If you want to gamble today, right now is a good time to buy the SPY if you think we will head back up towards the close. Seeing a good buying spot.

My concern though is people selling into the close not wanting to be long over the Omicron weekend....

No way I’m holding over the weekend given current conditions.

[petegz28]

Originally Posted by lewdog

I’ve made money in months where I’m 40% accurate, but not lower than that. Goal is to always have win/loss ratio be of 2:1 or greater. It’s all about managing risk.

I trade on Mark Minervini principles. I pay for a screener that I can manipulate to look for stocks that meet certain rules. I can scan through a list of 700 stocks in about 30 minutes looking for certain patterns.

Best book I’ve ever read.

Think & Trade Like a Champion: The Secrets, Rules & Blunt Truths of a Stock Market Wizard https://www.amazon.com/dp/0996307931...J5N4CX5K0MQ44A

I might have to check it out