This is quite rightly named âcatching a falling knifeâ
before attempting to do so, one should weigh pros and cons. The approach I take in high frequency trading is the âcowards doctrineâ When I create a position, I immediately assume I am wrong until/unless the market proves me correct. The terms âuntilâ and âcorrectâ should have quantified meanings depending on the size and risk indicators.
on long term holds, the entry value is seldom the most important thing, if you have money and the stock is in your shopping list, buy it. Changing behaviour due to price timeline fluctuations are usually unfavourable especially for retail investor.
democracy is an illusion and very much overrated. Iâve participated in 2 very big life changing referendums, neither was on the side of my vote. I live in a constituency that votes 90%+ labour so that vote is one way or another meaningless as well. but yeah democracy, the tool that gives the majority the right to step on minority (regardless of how big or small it is). Any time you wince or grimace they now have the right to say âhey we voted this wayâ
Physically and practise every day average Joeâs life is not much different.
I am semi-trolling you but meanwhile genuinely feel like my vote means and changes nothing, and Iâm not certain how to quantify that which âchanges nothingâ is less or more
I have come across him before and personally donât trust much he says. I would argue he contradicts himself somewhat as I see BABA as a 1 foot hurdle, a profitable proven company with lots of previous growth, compared to 7 foot hurdle very growthy SAAS names yet to turn a profit. Its all perspective not one hard and fast rule.
However, for arguments sake if it imploded then yes I personally can cope with BABA going to $0, I donât want it nor do I think it likely but it wonât affect me long term
One question, are Alibaba shares on the Hong Kong stock exchange actual shares (eg. like buying a normal plc on the LSE) or just beneficiary shares (like an ADR) where an intermediary institution holds them?
Shares on HKG are secondary listing, primary listing for alibaba is NYSE and only tradable in ADSs. The company is incorporated in Cayman Islands and each ADS represents 8 ordinary shares of this incorporation.
This video is very informative. I donât see BABA going anywhere soon and the recent intervention seems an important reason for the price to be discounted. I will be adding some to my position .Alibaba vs Amazon, What Stock Should I Buy? - YouTube
Heading down into the 180s today, in HK even went down into mid 170s but up a touch from then.
I am actually excited to see how the anti monopoly rules change, I think worse for Tencent than Aibaba, Alibaba now can sell on Tencents âwalled gardenâ of Wechat. with announcements last day or so.
Also other opportunities like this after recent music rights issue for Tencent:
Of course it will swing both ways so Alibaba will face more competition, but both are strong companies and will thrive unless govt completely wants them gone which is unlikely.
Thanks god it is like that. Imagine if people/hedge funds/banks/etc with algos/machine learning were able to be accurate. They will clean all the good opportunities, not leaving anything to the small fish.
