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Stock-Age: Stocks, Options and Dividends oh my!

BigBooper

Member
Something I've been wondering, if you think a bubble burst is imminent, doesn't it make sense to just hold cash? It seems like you'd have to have some pretty massive gains to make up for the sale price you can get stocks for afterwards. This is if you're a relatively short term seller. I general, I know the big companies will ride it out and be okay.

Point against that being it's impossible to time when exactly it will happen.
 
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ManofOne

Plus Member
Is that chart showing P/S, or something else?

Chart is showing total market capitalization (i.e the sum of each company on the NASDAQ 100 capitalization) divided by total revenues. It's a simple indicator for showing the formation of bubbles.

If you have Linked In in follow Ed Yardini or buy his book. Good info there on market.
 
Something I've been wondering, if you think a bubble burst is imminent, doesn't it make sense to just hold cash? It seems like you'd have to have some pretty massive gains to make up for the sale price you can get stocks for afterwards. This is if you're a relatively short term seller. I general, I know the big companies will ride it out and be okay.

Point against that being it's impossible to time when exactly it will happen.

Yeah, every month it doesn't happen is a month you miss out on gains, and potentially depending on what you are invested in dividends. People seriously study these things and still are wrong about when bubbles burst, they are often wrong by years.


There is also a question of your time horizon. I'm young, I plan to hold most of what I buy for 30 years. If I kept all of my money in my account and never invested waiting for some huge bubble to burst, I would miss out on a lot. Also, when it does burst, people are almost always wrong about how far the market will fall. I bought a lot of stock last march when the market was down, I thought it was going to keep going down, I was wrong. I'm really glad I bought what I did, but I would have bought a lot more if I knew it was going to go back up in a few weeks.
 

ManofOne

Plus Member
Something I've been wondering, if you think a bubble burst is imminent, doesn't it make sense to just hold cash? It seems like you'd have to have some pretty massive gains to make up for the sale price you can get stocks for afterwards. This is if you're a relatively short term seller. I general, I know the big companies will ride it out and be okay.

Point against that being it's impossible to time when exactly it will happen.

Bubbles are fairly hard to predict. Our analyst did NOT predict the March drop they prepared for it. You saw bond yields on the 10 year drop to lows for 5 consecutive Friday's before the big drop.

This indicated that people were buying protection against the market drop through bonds (bond prices rise as, demand rises, yields fall).

So its good to watch the economic indicators particularly bond yields and credit swaps.

But a good way to ensure that you can still participate in the market even though you think a bubble is imminent is buying mega cap or growth stocks.

Their annual rate of return is 25.0% - 30.0% on average, their down side risk is limited, volatility in sell offs are VERY limited, and they often outperform the market since they are the market because of their weighting.
 
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ManofOne

Plus Member
Seems SEC won't be able to do anything after all
Yet for the Securities and Exchange Commission, fighting online commentary that hypes stocks is an uphill struggle, mainly because it’s hard to prove such posts are part of an illicit scheme to manipulate the market. Rather, successful enforcement cases typically hinge on the SEC showing that investors knowingly spread false information to dupe other traders into buying or selling a stock.

“It’s an enforcement nightmare for the SEC,” said James Cox, a professor at Duke University School of Law who focuses on securities regulation. “The question is: where does the manipulation start and when does trading on your own hunches and publicizing your hunches start?”

As of now, GameStop has been a market success, its main victims being professional speculators like hedge funds who shorted its stock. But the SEC has been sensitive in the past to the risk of mom-and-pop investors getting caught up in buying frenzies that end in steep losses should the market turn.
 
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ManofOne

Plus Member
I guess we will see. I'm retarded and said that from the beginning. Gamestop is dead also because of digital.

Not be condescending with my inital reply.

AMC is just one of the those company's whose model is outdated. Read its financials, its reporting mechanisms barely has ever changed and its growth is just opening new theaters which is just compounding its CAPEX costs.

Company is sadly an aging dinosaur. It needs to innovate and re invent itself. If it streamlines the movie exprience you will see an improvement.

Its prime for a buyout thou, if anyone wants it.
 

HoodWinked

Member
D

Deleted member 17706

Unconfirmed Member
I asked in the Gamestop thread, but how do people actually identify how much of a stock is being shorted (% of the available stock being borrowed and sold)? And how do they know when those short sells are coming due? People keep talking about the squeeze not even having happened yet, but what are they basing that on?
 

ManofOne

Plus Member
I asked in the Gamestop thread, but how do people actually identify how much of a stock is being shorted (% of the available stock being borrowed and sold)? And how do they know when those short sells are coming due? People keep talking about the squeeze not even having happened yet, but what are they basing that on?

Market Chameleon you'll thank me.
 

quickwhips

Member
Not be condescending with my inital reply.

AMC is just one of the those company's whose model is outdated. Read its financials, its reporting mechanisms barely has ever changed and its growth is just opening new theaters which is just compounding its CAPEX costs.

Company is sadly an aging dinosaur. It needs to innovate and re invent itself. If it streamlines the movie exprience you will see an improvement.

Its prime for a buyout thou, if anyone wants it.
I know they got cash infusion. I didn't think it was condescending. I'm just having fun gambling.
 

ManofOne

Plus Member
just incase anyone wants to know about GME put/call ratio

gjfX2aT.jpg


Open Interest Analysis Indicators​


Long Liquidation happens when there is a decrease in open interest along with a decrease in implied volatility, indicating that traders are trying to sell out of their long positions in the option.

Long Buildup is an increase in open interest along with an increase in implied volatility, indicating that traders are adding to long positions in the option.

Short Buildup is an increase in open interest but a decrease in implied volatility, suggesting that traders are selling more contracts on short positions in the option.

Short Covering is a decrease in open interest but an increase in implied volatility, suggesting that traders are buying back to cover short positions in the option.
 
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D

Deleted member 17706

Unconfirmed Member
just incase anyone wants to know about GME put/call ratio

gjfX2aT.jpg


Open Interest Analysis Indicators​


Long Liquidation happens when there is a decrease in open interest along with a decrease in implied volatility, indicating that traders are trying to sell out of their long positions in the option.

Long Buildup is an increase in open interest along with an increase in implied volatility, indicating that traders are adding to long positions in the option.

Short Buildup is an increase in open interest but a decrease in implied volatility, suggesting that traders are selling more contracts on short positions in the option.

Short Covering is a decrease in open interest but an increase in implied volatility, suggesting that traders are buying back to cover short positions in the option.

Why is the change blurred out? Seems like that would be very relevant information given the current situation? Correct me if I'm wrong.
 
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JORMBO

Darkness no more
What’s everyone’s thoughts on buying APPL at this time? I bought a bunch in my 401k portfolio a few years back and it’s treated me very nicely. Mostly decent and steady gains. I’m thinking about grabbing some to start off my personal portfolio.
 

12Goblins

Lil’ Gobbie
just incase anyone wants to know about GME put/call ratio

gjfX2aT.jpg


Open Interest Analysis Indicators​


Long Liquidation happens when there is a decrease in open interest along with a decrease in implied volatility, indicating that traders are trying to sell out of their long positions in the option.

Long Buildup is an increase in open interest along with an increase in implied volatility, indicating that traders are adding to long positions in the option.

Short Buildup is an increase in open interest but a decrease in implied volatility, suggesting that traders are selling more contracts on short positions in the option.

Short Covering is a decrease in open interest but an increase in implied volatility, suggesting that traders are buying back to cover short positions in the option.
confused good burger GIF
 
What’s everyone’s thoughts on buying APPL at this time? I bought a bunch in my 401k portfolio a few years back and it’s treated me very nicely. Mostly decent and steady gains. I’m thinking about grabbing some to start off my personal portfolio.

AAPL is a great company. Forever hold stock in my portfolio. Super bullish on them.
 
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BigBooper

Member
What’s everyone’s thoughts on buying APPL at this time? I bought a bunch in my 401k portfolio a few years back and it’s treated me very nicely. Mostly decent and steady gains. I’m thinking about grabbing some to start off my personal portfolio.
Safe bet. Supposed to be teaming up to design electric car. Should keep growing.
 
What’s everyone’s thoughts on buying APPL at this time? I bought a bunch in my 401k portfolio a few years back and it’s treated me very nicely. Mostly decent and steady gains. I’m thinking about grabbing some to start off my personal portfolio.
They won't net you huge gains (that's for penny stocks and growing companies); but they're great to have in the portfolio.

I don't see a world where Apple doesn't increase its' market share. They can't seem to make a wrong move.
 

StreetsofBeige

Gold Member
Well, the January trend of heavy hitting stocks seems to be any stock pigeon holed with the anti-short organized pump job.

GME, BB, AMC etc....

For sake of knowledge, fun and helping each other out to make a buck, if anyone knows of similar orchestrated efforts, let's all post them.

I didn't know about how GME and the anti-Melvin attacks came from reddit stuff.
 

haxan7

Volunteered as Tribute
Well, the January trend of heavy hitting stocks seems to be any stock pigeon holed with the anti-short organized pump job.

GME, BB, AMC etc....

For sake of knowledge, fun and helping each other out to make a buck, if anyone knows of similar orchestrated efforts, let's all post them.

I didn't know about how GME and the anti-Melvin attacks came from reddit stuff.
I've been balls deep in WSB all day and planning to go in heavy for the foreseeable future so I'm likely to report it here due to my neogaf addiction. Assuming I don't go broke with gamestop.
 

StreetsofBeige

Gold Member
I've been balls deep in WSB all day and planning to go in heavy for the foreseeable future so I'm likely to report it here due to my neogaf addiction. Assuming I don't go broke with gamestop.
Just the past 10 min, I finally skimmed WSB for the first time.

Any info or teasers you get from WSB, please post the Haxan. Much appreciated. And no, I'll never go crazy on these huge reddit slingshots, so even if I take a dip and lose money, I'll never hold it against anyone posting a tip.

I forget who posted it pages ago, but what a tip AMC was at $2. Now at $8-9 after hours.
 
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mckmas8808

Mckmaster uses MasterCard to buy Slave drives
I've been balls deep in WSB all day and planning to go in heavy for the foreseeable future so I'm likely to report it here due to my neogaf addiction. Assuming I don't go broke with gamestop.

Just the past 10 min, I finally skimmed WSB for the first time.

Any info or teasers you get from WSB, please post the Haxan. Much appreciated. And no, I'll never go crazy on these huge reddit slingshots, so even if I take a dip and lose money, I'll never hold it against anyone posting a tip.

I forget who posted it pages ago, but what a tip AMC was at $2. Now at $8-9 after hours.

My wife and I are officially small retail investors now. And it's 100% due to WSB, this GME stock craze, and you guys on GAF that alerted me to all of this.

You guys have opened my eyes to a whole new world over the last 5 days. So I'm all end. I want to go to the moon with some of these horribly shorted stocks, yet buy long on some smart buys too.

So please when you hear a tip, drop it by here. Together we can all make each other some good money.
 
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EviLore

Expansive Ellipses
Staff Member
My wife and I are officially small retail investors now. And it's 100% due to WSB, this GME stock craze, and you guys on GAF that alerted me to all of this.

You guys have opened my eyes to a whole new world over the last 5 days. So I'm all end. I want to go to the moon with some of these horribly shorted stocks, yet buy long on some smart buys too.

So please when you hear a tip, drop it by here. Together we can all make each other some good money.
Are you maxing out your IRA contributions and any employer-matched 401(k) contributions?
 

StreetsofBeige

Gold Member
My wife and I are officially small retail investors now. And it's 100% due to WSB, this GME stock craze, and you guys on GAF that alerted me to all of this.

You guys have opened my eyes to a whole new world over the last 5 days. So I'm all end. I want to go to the moon with some of these horribly shorted stocks, yet buy long on some smart buys too.

So please when you hear a tip, drop it by here. Together we can all make each other some good money.
Cheers. Good luck.

Just make note today's market is really amped up and all the crazy GME stuff is once in a lifetime stupidity. If you still catch getting on the the train and get off making money thats great, but watch out.

Every person will have different advice, but here's some personal advice:

1. Only invest/gamble what you can afford to lose. If I lose $10,000, it sucks but not the end of the world. I still got a job, only a mortgage left, and got lots of money in other stuff. I can absorb a $10k hit. So put this thinking into your situation

2. Do not do calls, puts or short a stock unless you know what you're doing. Just go long the normal way. Since you are just starting, your trading account probably only lets you go long anyway until your account is granted access to more options

3. Pre-market and after hours trading. I don't do it. Prices can whipsaw hard but normalize during normal trading hours

4. Avoid sketchy stocks, low floats, penny stocks, OTC (over the counter) stocks trading at 24 cents running on fumes

5. Most volatile stocks are weird penny stocks, small bio-techs, tech in general, electric vehicle companies

6. In the modern age, BE NIMBLE. The days of Warren Buffet buying old school companies like Coke and Gillette 40 years ago and holding forever is over. Even he has shifted. He used to be anti-tech, yet look at that. Now he has tons of Apple. That worked back then with traditional companies, zero internet trading, and stock prices didn't fluctuate much

7. Yes, you can sink money into a startup like Amazon and pray it goes from $10 to $3,000 if you patiently hold for 20 years, but those are rare. Most people won't ride the ship the whole way. That's how dreams are made, but most people wake up to reality and sell after its doubled

8. Never borrow money to buy stocks. Only invest what you got to invest in cash
 
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longdi

Banned
My wife and I are officially small retail investors now. And it's 100% due to WSB, this GME stock craze, and you guys on GAF that alerted me to all of this.

You guys have opened my eyes to a whole new world over the last 5 days. So I'm all end. I want to go to the moon with some of these horribly shorted stocks, yet buy long on some smart buys too.

So please when you hear a tip, drop it by here. Together we can all make each other some good money.
Tbh you sound more like wanting to traders than investors. Be careful and not get fomo with what you seen with gamestop. Most retails get burnt while trading. Better start safe with etf and hold longer and punt whatever you can afford to lose

You definitely want to be investing longer term through etf and mega stocks like msft. Putting money in banks are going to be worthless for long time now
 
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oagboghi2

Member
Tbh you sound more like wanting to traders than investors. Be careful and not get fomo with what you seen with gamestop. Most retails get burnt while trading. Better start safe with etf and hold longer and punt whatever you can afford to lose

You definitely want to be investing longer term through etf and mega stocks like msft. Putting money in banks are going to be worthless for long time now
I made 10k today.

It isn't FOMO when it's actually happening
 

EviLore

Expansive Ellipses
Staff Member
I was last year, but I had to get a loan from my 401k, so I'm not maxing that out now. :(
Ah. It's usually a good idea to max those out first (in a low fee total stock market index fund or s&p 500 index fund) before concerning yourself with individual stock plays, since they have strong incentives and relatively stable long-term outcomes that leverage compound interest. As long as the economy is growing, you're growing with it, and you don't have to worry about whether you picked Friendster or Facebook for your portfolio.

Nothing stopping you from making some stock trades as well, but short term trading typically underperforms long-term investing by a lot. Always have to remember that any gains you make in short term trading (holding under a year) are taxed as regular income, while gains from holding longer than a year are taxed as long-term capital gains (15% for most people). Long-term holding also insulates you from emotional buying and selling which can really screw you. Emotional trading always leads to buying high and selling low, e.g. letting fear of missing out drive you to buy into a parabolic event like the current GameStop one after most of the gains have already happened, and then selling after it falls back to Earth.

I'll also note that it's human nature for short term traders to talk about their winning picks and not mention their losing picks. This will always give the perception that it's easy money; it's not, and many people lose in short term trading. Investing > trading, most of the time.

That being said, the stock market is fun and there is the potential for major upsides if you play your cards right. My personal preference is for long-term time horizons.

Not financial advice.
 
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