Let's talk about investing! Stock market, ETF, etc.

[gbear]

tschile, I agree saying "AI" is a very general, almost meaningless term.  When I read the description of how it was programmed to look for trends, I just liked how similar it is to programs we use to look for patterns.  I was also fairly impressed with the computational power they are throwing at the task. If there is an optimal pattern...

 

There was an ETF that simply tracked number of news stories looking for key words which I think beat the S&P 500 for while too.  I don't remember that one though.  That one had a list of key words for which it looked.  The stock I listed uses a much more open search for patterns, not just with types of stories but also looking at stock data like PE ratios and cash on hand, debt, etc.  Like I said, I will be curious to see how it performs.

 

Edited January 27, 2021 by gbear

[TradeTheBeal!]

 

[techboy]

26 minutes ago, Renegade7 said:

 

When I choose to get more into this, similar approach.  Two cousins, one warned me of his early lumps and the other warned about time invested.  It doesn't scare me off at all, jus doesn't drive me to want to dive in.  Prefer stability, can see self being more involved once time permits, being more careful what I make time for these days.

 

This is actually an underappreciated benefit of indexing, and one I myself don't often mention or consider, since I consider personal finance a hobby, which is weird. 

 

Even if you accept the extremely dubious premise that an individual investor would be able to consistently and predictably beat the index after costs, and would be one of the ones that can manage it (since mathematically it's not possible for all or even most to pull it off... that's how averages work, and indexes are averages), most of the people that even somewhat plausibly claim to try use methods that might as well be a full time job... reading company statements, looking for pricing errors, figuring out when to get in AND when to get out (have to be right twice), writing and maintaining software, whatever.

 

Most people would almost certainly be better off putting more effort into their labor capitol and just indexing, even accepting the above (again dubious) assumptions for the sake of argument.

[Ball Security]

1 minute ago, TryTheBeal! said:

 

I didn’t have any difficulty getting into my E*Trade a count about 15 minutes ago.  If he meant my balance was down, then yeah, he would be correct.

[techboy]

3 minutes ago, gbear said:

 If there is an optimal pattern...

 

... it will be arbitraged away fairly soon after it is discovered?

[steve09ru]

man this is annoying - vanguard site won't let me do anything - at least got my sell order through on Target at open.

[techboy]

5 minutes ago, steve09ru said:

man this is annoying - vanguard site won't let me do anything - at least got my sell order through on Target at open.

 

Jack Bogle is rolling over in his grave. 😄

[Springfield]

Whole portfolio is up 273% so far today and I'm feeling greedy.

[tshile]

1 hour ago, Renegade7 said:

 

When I choose to get more into this, similar approach.  Two cousins, one warned me of his early lumps and the other warned about time invested.  It doesn't scare me off at all, jus doesn't drive me to want to dive in.  Prefer stability, can see self being more involved once time permits, being more careful what I make time for these days.

Yeah ultimately I feel like I’d need to devote more time to it to do it... that’s just my personality. It would consume me. And I don’t have time for things like that right now

 

[tshile]

48 minutes ago, gbear said:

There was an ETF that simply tracked number of news stories looking for key words which I think beat the S&P 500 for while too.  I don't remember that one though

Hah. Yeah. Not saying this is the same one, but I recall a story where a few of these drove the market artificially down very hard because Twitter went nuts with some negative stories one day. 
 

I think it may have caused a halt in trading. I want to say it was around 2012. But I’m not sure I’m recalling the details right (and it doesn’t matter)

 

[Corcaigh]

1 hour ago, TryTheBeal! said:

Let’s all go to the movies!!

 

Pick up a video game from GameStop on your way there in case the movie sucks

1 hour ago, Renegade7 said:

 

When I choose to get more into this, similar approach.  Two cousins, one warned me of his early lumps and the other warned about time invested.  It doesn't scare me off at all, jus doesn't drive me to want to dive in.  Prefer stability, can see self being more involved once time permits, being more careful what I make time for these days.

 

You can always bet on companies whose products you love. Buffet does this to an extent.

 

My daughter has done this with play money related to some fashion brands and done very well.

[Springfield]

Nokia!!!

[Corcaigh]

17 minutes ago, Springfield said:

Nokia!!!

 

Enron!!!!!!

[Springfield]

1 hour ago, Corcaigh said:

 

Enron!!!!!!

 

Blockbuster Video!!!!!!!

 

(More exclamation points makes it a better buy)

[Dr. Do Itch Big]

I too am a boring trader. Index funds but I occasionally drop money in other things. I have a decent return. Proud all things considered. 

Edited January 27, 2021 by Dr. Do Itch Big

[Llevron]

Someone explain to me what these market restrictions are doing to my AMC stock. Does this mean people aren't allowed to buy? And if so I'm assuming i should sell and just take the profit I have? 

 

I need you smart and less reckless people to share some info! 

 

Obviously i want more, but if these restrictions are going to screw me I might as well take my profit 

[ExoDus84]

2 minutes ago, Llevron said:

Someone explain to me what these market restrictions are doing to my AMC stock. Does this mean people aren't allowed to buy? And if so I'm assuming i should sell and just take the profit I have? 

 

I need you smart and less reckless people to share some info! 

 

Obviously i want more, but if these restrictions are going to screw me I might as well take my profit 

 

I'd suggest setting stop-loss, or trailing stop orders in profit. This kind of squeeze will end, and when it does, it's going to pop violently. You don't want to be left holding a heavy underwater bag, unless you really think the below chart is a sign of healthy market activity.

 

 

[Llevron]

Yea I will for sure update my stop-loss settings. I just don't want to sell before I can get close to max value. If this thing trends like GME did then i can make literal hundreds of thousands, but i don't want to have something obvious like market restrictions messing me up. 

 

I guess part of my problem is that i did all of this on a whim and have no idea what im doing in reality. I had to google the terms you used just to send this amateurish response. 

[Llevron]

Dont laugh at me help me lol @tshile

[ExoDus84]

11 minutes ago, Llevron said:

Yea I will for sure update my stop-loss settings. I just don't want to sell before I can get close to max value. If this thing trends like GME did then i can make literal hundreds of thousands, but i don't want to have something obvious like market restrictions messing me up. 

 

I guess part of my problem is that i did all of this on a whim and have no idea what im doing in reality. I had to google the terms you used just to send this amateurish response. 

 

No worries...we all are noobies at one point.

 

You can lock in profit by setting your stops. I'm not sure what brokerage you use, but you can also lookup how to set trailing stops, which basically increases the price of your stop loss order as the price goes up, so you lock in more profits. Stop loss just triggers when the market price hits whatever price you set it. It's insurance if the price moves against you, so if AMC stock nukes it'll close it out and you can still capture profits. Just move your stop loss up as the price increases, so you capture more of the profits.

 

The problem with doing that with AMC today is its obscene price activity. I mean, AMC price has ranged from $20 to a low of $12, which makes placing stop loss orders strategically impossible.

 

edit: From a trading standpoint, I'd put a stop loss below $15.50. That was the last pivot area where price started to expand again. If price rips below $15.50, it's probably going to dip much further. Take what you want from that info.

Edited January 27, 2021 by ExoDus84

[Mr. Sinister]

I'm terrified of dipping my toe in these waters, but at the same time I feel like this is my destiny.

[Llevron]

5 minutes ago, ExoDus84 said:

 

No worries...we all are noobies at one point.

 

You can lock in profit by setting your stops. I'm not sure what brokerage you use, but you can also lookup how to set trailing stops, which basically increases the price of your stop loss order as the price goes up, so you lock in more profits. Stop loss just triggers when the market price hits whatever price you set it. It's insurance if the price moves against you, so if AMC stock nukes it'll close it out and you can still capture profits. Just move your stop loss up as the price increases, so you capture more of the profits.

 

The problem with doing that with AMC today is its obscene price activity. I mean, AMC price has ranged from $20 to a low of $12, which makes placing stop loss orders strategically impossible.

edit: From a trading standpoint, I'd put a stop loss below $15.50. That was the last pivot area where price started to expand again. If price rips below $15.50, it's probably going to dip much further. Take what you want from that info.

 

Its much appreciated. I put in a stop-loss for half of the shares I own, at a rate that would double what I put in as profit....I think. Though the trailing thing sounds like the best option. 

 

But it makes sense that the volitivity would make this near to impossible. The only good news is since I got is so low double what I bought it for is ~8.50 so I'm good for a small fall. And I would still have shares left. 

 

Does any of what I said make sense? 

[ExoDus84]

Just now, Mr. Sinister said:

I'm terrified of dipping my toe in these waters, but at the same time I feel like this is my destiny.

 

I've watched crypto markets with this kind of price activity. Prices can rip 2-3x in a few days, people get euphoric, start picking out their favorite BMW's, etc. Then, inevitably, the bubble pops. All is well and good until you see a -70% daily candle.

 

This kind of price activity in traditional markets is a huge red flag. It's not organic growth. It's literally a massive short squeeze, which is not sustainable long term. I'd say if you are already in an AMC/GME position before the rip, then that's awesome. I'd be very careful about chasing a price pump, though. If you do, take my advice and set stop loss orders. Protect yourself.

[Llevron]

1 minute ago, Mr. Sinister said:

I'm terrified of dipping my toe in these waters, but at the same time I feel like this is my destiny.

 

God honest the only reason I did this was cause I had money to play with and AMC was so down bellow where it looked like it normally should be back in march, I think. I wouldn't suggest knowing nothing like i currently do cause its a ****ing lot of catch up on in a short period of time. Its kinda stressful 

[ExoDus84]

1 minute ago, Llevron said:

 

God honest the only reason I did this was cause I had money to play with and AMC was so down bellow where it looked like it normally should be back in march, I think. I wouldn't suggest knowing nothing like i currently do cause its a ****ing lot of catch up on in a short period of time. Its kinda stressful 

 

You did the right thing. Buy up stocks at good prices. AMC is a healthy company under normal circumstances. COVID has made their share price tank, into oversold territory. Buying at a discount is always what you want. Enjoy your big profits my man.