This is something Iāve just started to get my head into. Most of my activity is in CFD, and Iām finding the tax side of things a bit daunting as it doesnāt even seem to be clear what kind of trader I am (in the eyes of HMRC)
Can you at least explain to @Team212 and @David how they can go bankrupt due to stock growth?
I think you should tell them how this phenomenon works so they can prepare and save money.
Thatās decent, how you make most of that Phil, swing trading?
My two key tools are Stocktwits and Tradingview with these indicators for buy/sell signals.
Biggest problem I have is lack of time, you really need to on the ball watching the story unfold, see where the support and resistance is etc. Also it takes time to properly DD, and then follow as news/earnings are released and seeing how that will affect it.
I need to work on taking profit when I see something is clearly over bought. Iāve had many missed opportunities where I should have trusted the charts. I think MARK is one of those cases that Iāve been Ā£50 or Ā£100 up and then Ā£0 the next and back up the next day or so to the same point. Currently at one of those points, I could have Ā£50 if I had realised my profits on Friday close. Do I think itāll continue up from here on Monday without dipping back, probably not so I should have sold. I know earnings are just around the corner so theyāll be a buy the rumour next week or so, so itās a tough call and then looking back at how earnings affect the SP etc and if itās worth holding some through it.
One thing I havenāt got is L2 access but I might as itās incredibly useful to see where the buyers and sellers are at and you can set the limits at those places to catch the low.
T212 have had a fucking annoying bug/feature where you couldnāt set the limit near to the current price which has been doing my head in for the last few months falling to market buys and it doesnāt move before executing.
It was mentioned in the other thread it should be removed as of Monday so you can place any limit you wish which should be a breath of fresh air.
Hats off thatās impressive, what risk reward ratio do you go for and do you always try and hit say min 10%?
I think simplicity is key and mixing your technicals with some fundamentals can go a long way. What do I know though, Iām about as useful as a chocolate teapot.
Iāve identified Graftech as a possible bull so Iām going long on that bad boy Monday.
Yep usually 10% - 20% Iāll either sell all or some and let the rest ride.
Same with loss to a certain extent.
Two key lessons Iāve learnt is know when to cut your losses, and donāt go chasing.
If youāre too stubborn and keep averaging down you could get stuck, same if a stock has run 50% donāt dive in without really checking whatās going on as the pump could be coming to the end and youāll be left holding a bag buying in as itās ending. You gotta either walk away or check if you want to risk a second run on the pullback if you think it could run another x% from there. Usually best to go well I missed that one theyāll be more. Recent one for me was KODK so I ended up just it
Iāve never averaged on a swing Iāve always read plan to make an entry with a stop and target not to alter as you go. Not that there is anything wrong with that just a different system.
Minimum risk reward of 2
It depends on whatās going on. I try and avoid going in heavy unless Iām very confident itās at itās lowest like on all the SMAs.
Intraday I like to make loads of smaller Ā£50 buys throughout, seeing how itās moving and working out the support.
BIOC was a could example on Friday where I cocked up not getting 1.01 from my eagerness.
Overall itās in an ok place, and Iām ready to catch if it dips on Monday open to average down.
With this one the charts arenāt looking great however I can see is intentionally keeping it above $1 which is needed.
What do you mean by the whale, pump?
Big money the ones which play with millions
When bears are trying to bring the price down they will keep eating the shares up.
what tool is that?
Beat the market is very easy, even a monkey picking stock randomly will do it (some researches had showed that), the key is consistence, beat the market multiple times on 10, 20, 30 years⦠sorry⦠itās to just very investors (thousands), there are decades of statistics showing that.
and yes⦠I do hold individual stocks
https://www.fastgraphs.com/fast-graphs/
True about consistency, but then again we can discuss what was average Joeās access to information 10/20/30/40/50 yrs ago vs today, but anyway I doubt anyone who wants to be passive investor will join community such as this.
I would say consistency in buying great business , for great price aka sub 15 p/e usually brings good results.
Obviously you need to take in account growth rate of company before investing, but historically by buying sub 15 you were entitled to earnings growth in years to come.
We had many times in past when folks touted p/e 15 is obsolete, growth stocks tralala. But if you check any recession in past, stocks always revert to fundamentals, amazons, Microsoftās, appleās all pulled back to about 15 PE or sub.
But yea this time will be different, big tech and all high flyers ā¦
Just a small view on current market valuation:
Absolutely. Continuous exponential growth tends towards infinity.
Again though as Iāve been saying all along, this doesnāt happen in reality. Best to lock in gains when wild upward swings come however, as others have said above.
Problem is the gains can be wiped of if the stock price goes down. I think bank your profits and either re invest it or just reinvest the initial capital amount when that stock goes back down. Because it may go down at some point or it may
Yes exactly. See Kodak as a prime and recent example. It went up 500% and is now back down to reality. Who in their right mind would choose holding over realising a sudden gain of 500%. Good luck to those who would hold and expect the stock to behave in a compounding manner, but Iām taking my big wins when they have come and are in front of me.
Perfect answer to me Joey
I think he means sell to lock in profits and then buy the dip:
- day 1 => buy 100 stock for £1000 (£10/share)
- day 37 => price goes up by 20% (look for exponential move up) => £12/share
- day 37 => sell to lock in profits => you now have £1200 cash in your account
- day 50 => Trump gets COVID or Apple/Tesla goes bankrupt or some big news that makes the market dip => the price goes down by 10% => £10.8/share
- day 50 => You buy with £1200 a total of 111.11 shares. This way you now own with the same amount of initial investment more shares
In order for this to work you need to be very invested in the market and keep an eye on price fluctuations and use a lot of alerts
Alert for All time highs are very useful to lock in profits
A better strategy is to take the £200 you made on day 37 and invest in another company that way you now have £1000 in Company A and £200 in Company B instead of having your entire hold only one
=> diversification is
as the simple buy and hold for 20 years works on the assumption that Company A will be here in 20 years and as you can see on WSJ even big companies fall sometimes
No I didnāt mean that but if you could time that, that would be great. That is very difficult though. See my example on Kodak right above your post for what I meant!
Iām talking about taking wins when they come. And Iām talking about you canāt guarantee your stocks will grow in a manner which reflects compounding. The original post for this thread was saying that stocks do grow in a compounding manner. This is only partially true - they can, but not always, and I think itās better to take wins when they come and reinvest to increase your position and therefore gain more cash.
Pipo, you can do whatever you want. Your money but whoever that person is, they are spewing bullcrap.