Stock Market

Handymans342

Anyone have any Gun stocks?

Dream_Inn

Handymans342 said:

Anyone have any Gun stocks?

SWBI (Smith & Wesson) - wish I had bought it a year ago!

Handymans342

VSTO. 

randy56

USB is banning it's sales people from pitching SPAC stocks. SEC issued a warning also.

A SPAC stock is _ Special Purpose acquisition company's. A couple example's would be CCIV, AONE,  They are for raising money for acquisitions, they own nothing, they are not a really company making a product or providing a service.....

@Willhound a few weeks ago you mentioned in your past, involvement in the stock market. And most of the stocks we are playing with you would not even consider.

What was the criteria, of stocks? Size of company? Volume? pays dividend?  the company you worked for must have had a set of rules, what were they? 

Willhound

@randy56 you pretty much hit them. Volatility was another. Also had to trade on the main exchanges. And price. Pretty much nothing in penny stocks. If it wasn't on the list but hit some of the criteria we could request it and after a team of analysts looked at it we might be able to trade it after the client signed a set of documents an inch thick staying that it was entirely their call and we would not reccomend it.

randy56

Still learning. They probably select, company's that the stock is at least $20, with a market cap on at least 1 million. Trying to balance my little portfolio, some are high risk, some are steady longs, 

Analyst research, is sometimes confusing. one may say strong buy and the next say's Hold, and in the same stock one says sell. I've been told that there reasoning is if they are promoting that stock, because they are already loaded up with it. And wanting you to buy. So they can dump. Then the guys that want you to sell is so they can load up on it. At a lower price. Not really analyzing the company. But manipulating the market.

Seems just when I have a stock figured out, I'm riding it out, with steady growth. someone buy's 200,000 shares, then dumps 5 days later, mucking up the whole system. But I guess they made $1 per share. Sharks are everywhere. 

Dream_Inn

I agree Randy, lots of manipulating for that 2% immediate profit.

Willhound

Yes, there is a difference in an analyst that works for a mutual fund or hedge fund that holds investments  and one that works for a brokerage with no holdings. Company I was with does not hold any investments. Just a broker. Also does not accept any promotional fees. Analysis was mostly on things like P/E ratios, company fundamentals, possible effects of legislation, liquidity, assets vs liabilities etc.

boatman37

Some brokerage platforms won't like you buy certain stocks like OTC (Over the Counter) and Pink Sheet. Scottrade was famous for that but TDA is also pretty restrictive with those. When I traded penny stocks we were using eTrade because they didn't restrict you from anything.

randy56

Anyone have an explaination of the drop today?

halifax212

I bought in yesterday. Every time I buy in the market tanks the next day.  My bad.

Handymans342

My broker has advised me to have a cash position 

Dream_Inn

Handymans342 said:

My broker has advised me to have a cash position 

It's a great time to have cash 5o buy in on some dips or corrections.  I'm waiting for a couple more days like this.  If you look back, there has been several nice dips. I grabbed up a bunch on March 5th.  I think we'll see a little lower than that coming up.  But, I also believe we'll be higher by year end.  

boatman37

I was too busy with work to look at charts today so no trades for me today but did hear something about Yellen and feds speaking today. Heard the market dropped after they spoke. No idea what was said.

randy56

Handymans342 said:

My broker has advised me to have a cash position 

There are many differant opions on this 20% is one recomendation. 

randy56

Another dip today, Looking at buying this dip, the two have been on my radar for while just might be the right time. They are SNE, and MGA

mattie

Sometimes it's good to place further back in the pack.

Aqua_Aura

Never has a loser been paid so much 

boatman37

^ Thats awesome...lol

I was on the road all day so no trades again today. Sounds like it would have been a good day for puts again

Dream_Inn

boatman37 said:

^ Thats awesome...lol

I was on the road all day so no trades again today. Sounds like it would have been a good day for puts again

I think you may still have your chance again today.  I may be buying some dips today.  About the only thing I was heavily green on yesterday was AMAT.

randy56

can the average investor make money in stocks?

checking on some stock market stats. Only 20% of the people investing in penny stocks make money. not doing enough DD is the reason most fail.

If you're a good trader with a solid strategy and pick the right growth companies at the right time, you should be able to average 10–30% a year. In the long term, with losses and profits, most Hedge Funds/Institutional Traders report around 8% annual gain.

Willhound

Penny stocks are a gamble. Period. You can use whatever software, algorithm or crystal ball you want but (my opinion) anybody that tells you they can predict pennies is full of sh!t. Only time I've ever seen anybody make serious coin on pennies is with insider knowledge. I am very familiar with mining penny stocks growing up in a big gold mining community. 90% of the trading is in stocks from companies that have never dug a hole in the ground. They do some drilling, announce some good results (can drill 100 holes that are duds and 2 that hit a vein, and they only report the vein) which results in all the wanna get rich quick guys to dive in, driving the stock up and then all the senior guys in the company dump the stock at huge profit and pocketing all the money the little guys put in. Because most of the initial "pay" for executives in these companies is in stock options and rewards. They pay nothing up front, get hundreds of thousands or even millions of shares awarded and when they hit 50 cents, get out and pocket the money. The little guys might buy a thousand shares at 20 cents, but the big guys and their cronies that they "hinted should buy" already own 100's of thousands. Price drops back to 20 cents causing more speculators to "buy in low" drive price back up, big guys dump again. Wash, rinse, repeat. Because they know that the only value in the company is the stock price, not the property, not the gold that they don't have any intention of mining because it's too cost prohibitive. 
Tech and bio-medicals work exactly the same way. Announce some "new discoveries", "potential contracts", potential buy outs" etc. Drive price up, dump.  Which is why only 20% of investors ever make money at pennies.

randy56

Well said, I think you can add oil, in with it. New company's just found the mother load, million's of barrels in the ground.
There should be a law that hang's those guy's up by the gonads. They have no intention of starting and running a company. 

boatman37

Most that make money on penny stocks are front running. They buy cheap then alert their 10,000 followers then dump it after they get in. There is so much manipulation in penny stocks that typical chart reading isn't that accurate either. There are companies out there that will pay a trader $10,000 to pump their stock (called pump and dumps). When I first started trading in 2013 I was trading penny stocks and did ok at first then got my clock cleaned. After that I moved to options and dabbled in futures. Too hard to manipulate AAPL and NFLX with such large market caps. Charts are much more predictable. Yesterday I made 40% on ORCL calls on an inside week break to the upside. Made a bunch of trades today. Some winners, some losers but ended the day green. The last few weeks have been tough but I'm holding my own.

randy56

Watching PLTR the stock is reseasonal price now. Looking like a 3-5 year run. There a big part of America 2.0 They did 1.1 billion in 2020, forecast to do 1.5 billion in 2121. 

boatman37

A couple mods in the one room I'm in have been hitting PLTR alot lately. Mainly holding a few days to a week or so. I made a little on it but haven't been following those guys very closely. But I think the one guy is up about $50,000 on it this year already. They have traded the commons but most of the money they have made has been on options. Look up @T_Money610 and @TraderKarthik on twitter. T Money made $650,000 last year trading. Showed a screenshot of his account at the end of the year. Full-time trader. A little too risky for me but he makes it work. I have seen him lose $10,000 in a day but have seen him make $100,000 in a day.

The room is EFO Edge. I'm a subscriber but haven't been watching them much lately. I do want to start following their option spread trades though. Looking for stuff I can get into and let it sit for awhile and day trade from my smaller account.

boatman37

Bought April CAT calls on an 2 up, 2 down, 2 up reversal. Entry was when it broke 229.84. Target is 237.78 but may sell before then. Hope to be out of this trade by tomorrow or Wednesday. YUM was another one that went inside week up but the option spreads were too large for me so didn't take that trade. Other 2-2-2- reversal to the upsides I'm watching are DE, SBUX, UAL, JPM, BA, IWM, QQQ, and inside week ups are MA and YUM. Didn't see many setups to the downside that I liked over the weekend.

These 2-2-2 setups I'm talking about are based on Rob Smiths 'The Strat'. Basically the ones I listed have to break over last weeks high to be in force. Same with an inside week break. Once it breaks the previous weeks high then it is triggered.

These work most of the time but if they don't you need to get out quick. I entered CAT twice earlier today and stopped out when it didn't hold. Lost about $60 total on those 2 stops. If it does work I would probably make about $200-300. If it doesn't then I stop out again and move on. In better market conditions these will usually work the first time but market is crap right now and very choppy today.

This is not trading advice, just an explanation of my trade

randy56

Options fall into the category of derivatives because their value is “derived” from a different (underlying) asset, such as a stock, index or ETF.

Never attempted options, may not. Just do not understand it. I understand there is money's to be made that way.

market was nasty today. Don't know why, thursday and friday were up days. 

boatman37

If you look at S&P futures (/ES), Nasdaq futures (/NQ) and Dow futures (/YM) today was an inside day of Friday. Anytime you have an inside day, week, 60 minute, etc, you will likely have choppy conditions. If we break over todays high on either of those we have a pretty good chance of a nice pop. Not guaranteed but conditions will be right for it. Same thing if we break todays lows though. Volume was light today too so that didn't help. 

MarkB

Bitcoin on the move again. After a dip to 50k last week, it's up to 59k today ... that's almost 20% in a few days.