Stock market dealing

[DiyNutJob]

Did you have a large proportion of your assets with them?

Nope, just some play money. They wanted a major wealth check on me. They wanted statements from all my investment accounts. They wanted bank statements. They wanted a letter from the employer.

 

[Justin Passing]

Blimey.
So you won on the short, and left the cash there earning interest?

Did you ask why they wanted all that info?

 

[DiyNutJob]

They don't pay interest. They wanted the info to update their system. They can f-off with their system. For a betting shop to demand this stuff is stupid.

 

[Justin Passing]

Stupid, yes - so what was it they didn't like you doing?

Some letters - I wonder how these will do in a week.
I'm expecting a bit of a rally...

5qqq, 3nvd, AMC, BBIG.

 

[Justin Passing]

There wasn't much of a rally today, and the mood is changed towards caution now, mostly for tech stocks but that may broaden.. No matter - as long as things go up and down it's "interesting" - the ratchet wheel keeps turning.

I had more in the bottom two, I've left themfor tomorrow with a stop loss, but they'll have done their moving. Glad the homework paid off on those, I bought them Friday, I though they'd be good. BBIG may have a little more to run.
If you had £1k in each:
up:

5qqq...........-1.29% ...... £12.90
3NVD.........-0.19% ...... -£1.90
AMC...........32.95% .....£329.50
BBIG...........52.38% .....£529.38

Forex and spread fees for the top two come to around £40, as a one-off, so it's best hang on to them for a while. Nvidia is in the dumps, I'm hoping it'll spark up. If it rises 10%, 3NVD rises 30%.

20% in a day..

Ocado stock has gone bonkers - it's quite interesting if you look into why. A major legal agreement is in their favour. Their stock was already boosted amidst takeover rumours, so those waiting for it to fall before closing their "short" positions before they expire, will be desperate. ( A "Short" is where you bet the price will fall. If it goes up you lose a great deal more than your stake.) Some will be forced to buy stock to limit their losses, so there could be a further rise. Same with Tupperwate, of all things! It's called a "Short Squeeze".

 

[Eccles]

The problem with all this kind of activity is that it is totally unpredictable irrespective of "doing the homework", i.e. it is not investing it is gambling. People like Warren Buffet do not do it for that very reason.

 

[DiyNutJob]

The problem with all this kind of activity is that it is totally unpredictable irrespective of "doing the homework", i.e. it is not investing it is gambling. People like Warren Buffet do not do it for that very reason.

Buffet is a business man and understands business. He started out as an asset stripper because he could see value in failing businesses due to poor management. This translates well in stock trading. Because when the price moves to an unjustifiable level, it presents buying opportunity.

Day "traders" believe there is magic in price patterns and bet on those - head and shoulders, etc. They might be right, or they might be wrong. I have never found the patterns to be useful and don't bother. I was all into pattern magic after college and didn't know better. Now I find studying of bookies more interesting. If I win, I'd be taking money from them. Their behavior pattern is of utmost importance. To me, their new ability to shut you down through regulatory administrative means is a game changer.

 

[Justin Passing]

The problem with all this kind of activity is that it is totally unpredictable irrespective of "doing the homework", i.e. it is not investing it is gambling. People like Warren Buffet do not do it for that very reason.

Speaks a man who hasn't tried.
Of course it's gambling, but it isn't entirely unpredictable. It's about as predictable as the height of the water on the harbour wall.
It's absolutely predictable in that it goes up and down a lot.....

Do you think I plucked AMC and BBIG out of thin air?

I do find the whole way the money washes around with people trying to make money out of money, unsatisfactory, like I find gambling on houses unsatisfactory, but it's the way the world works. I already proposed one way where it works out all bad. Quite soon it'll be entirely AI driven - many outcomes from that are possible.

Yes I know about bullish buramis and descending hawks, tthe support and resistance levels, and half a dozen other "indicators". There's no magic about it, some help a lot, others not.
YOu don't even need indicators. You can just watch the price and the clock.. The volume helps.


Here's a randomish bit of chart from HSBC.
You buy when it turns blue for a couple of bars, and sell when it turns red for a couple. Ignore a single if it's the "other" direction.
You can make money out of the descending, if you "sell short", but many don't bother.
YOu can be a little more sophisticated to refine the technique, but it works pretty well.
If you look at a finer timing on the change for example, then you don't "lose" a whole bar. All these bars are 4 hours wide - plenty of time. You can use daily ones, and juspend half an hour od half a dozen stocks once a day. It doesn't make much difference.
You put in "stop losses" so if it collapses when you aren't there it catches .
Bottom to top of this is about 7%
This is a couple of months. You would get about 5% out of the rising bits, even though there's almost no overall rise.
WHere else are you going to get 5% interest in 2 months.? A kid could do it. When you get to 10%, take 5% out and put it under the mattress, in case there's a tsunami.

 

[Justin Passing]

Now I find studying of bookies more interesting. If I win, I'd be taking money from them. Their behavior patter is of utmost importance. To me, their new ability to shut you down through regulatory administrative means is a game changer.

If you want to take umbrage and stand on your principle because of one event, ok.
I'd just go to another platform.
Calling them bookies is far off the mark. You can buy the shares direct, it makes essentially no difference unless you want to use CFD. You aren't betting on a horse, you're owning a piece of the company.

 

[DiyNutJob]

you're owning a piece of the company.

I don't want to own a piece of the company. I want to sell a piece of the company I don't own.

 

[Justin Passing]

WHat's stopping you selling it?

 

[Justin Passing]

5qqq is up 3% on the day, though it'll slide a bit because Microsoft weakened.
3nvd up 4.9%
so +£80.

The other two hit the stop losses so are closed.

 

[Mottie]

AMC...........32.95% .....£329.50
BBIG...........52.38% .....£529.38

Blimey, they’re getting into the realm of JohnD sized returns there. Surprised he hasn’t chipped in on this thread.……

 

[DiyNutJob]

WHat's stopping you selling it?

At reputable brokers, can't sell unless you own it. Bookies, being gamblers that they are, will let you sell thinking you will lose. When their thinking goes wrong, they refuse to take more bets from you.

 

[JohnD]

Blimey, they’re getting into the realm of JohnD sized returns there. Surprised he hasn’t chipped in on this thread.……

I am an investor, not a trader. I do not seek excitement. Nor daily effort.

You will be disappointed to hear that FEV is only up another 21% in the past year.

One of my other biggest long-term holdings is up 64% in 12 months, but IMO it is now overvalued, and riskier because it is now overly concentrated in a single business, so I have halved it. Perhaps I will look back and see I got out too soon. Better than being too late.

Nothing else remarkable happening.