Anyone Here Play the Market?

[Jolly Blue Giant]

I've always had my foot in the market, but only through mutual funds in the last few years. However, I pulled my money out of the fund and started playing the market regularly in November last year. I've gone from having 20 stocks on my watch list to having closer to 200. I'm not legally a "day trader", but I buy and sell several times a day - I just can't buy and sell a stock the same day...well, I can but I get warned and if I do so three times in 5 days my account gets suspended (on TD-Ameritrade anyway). So anyway, I'm up 50% in 10 weeks and having a lot of fun studying, researching, buying and selling. Mostly small and mid-caps. Just wondering if there is anyone else on here that does the same thing. I've spent so much time playing with stocks in the last few weeks that I've not had much to say on here about the Giants or other subjects. That will change as we get closer to draft day.

[squibber]

I do. I don't have a lot of patience so I bet on microcap stocks that are usually OTC.  I had one nice hit but most of my picks didn't pan out. One went dark. One was poorly managed and was ran into the ground. Another one was kicked off of the OTC and now trades on the grey market.

I have only two stocks now and I like my chances. I learned something in my bad picks. One of my stocks is not a microcap and it soon won't be a small cap. I like the business model. The chairman and CEO is from India the country and he manages retirement accounts for 35k Indians. He also has connections with billionaires. His company is focused on buying companies at value or distressed prices. His company does intense research around the world. He either buys companies for his own group using the mentioned retirement funds or he locates companies for other companies or billionaires to buy. He gets a nice 13% commission.  These are not 1 to 2 million dollar transactions. They are up to a billion dollar transaction. They are growing fast. There are only 6.9 million shares and only a 350k float.

The down side is they have yet to file financials with the SEC so that is one reason the are trading at $3.50/share. That's about a four year time span. One investor told me the reason they have not filed yet is because they were focused on building the company and only started having revenue months ago. The CEO swears up and down that all the financials will be filed with the SEC by the end of this month. He plans to apply for the NYSE in the spring.  The CEO was once a market maker in the Indian exchange so he is a market man and knows how to get the story out there. Most of the 6.9 million shares are with family and friends so the motivation is there to unlock shareholder value. The book value of the stock is projected to be $300/share in the not so distant future(not sure of time frame). So this could be a 100-300 bagger some day but obviously many things can go wrong. The shorts are betting the company won't file the financials by the end of this month. The company didn't follow through on filing the financials before so there is skepticism but the CEO sounds convincing to me that this time is different. So my 6k investment could be 300k-900K somewhere in the future.  Wish me luck. If it hits, I will buy steak dinners at the next BBH get together.

[LennG]

We use a financial advisor for quite a few years and are pretty happy with him. We are VERY conservative in our approach now that we are older and retired, but we were always sort of that way. I don't care if I make a bundle, I just want to sleep quite comfortably at night. We are very happy with our slow but sure approach. Won't become rich but will also stay off the window ledge.

[Jolly Blue Giant]

I do. I don't have a lot of patience so I bet on microcap stocks that are usually OTC.  I had one nice hit but most of my picks didn't pan out. One went dark. One was poorly managed and was ran into the ground. Another one was kicked off of the OTC and now trades on the grey market.

I have only two stocks now and I like my chances. I learned something in my bad picks. One of my stocks is not a microcap and it soon won't be a small cap. I like the business model. The chairman and CEO is from India the country and he manages retirement accounts for 35k Indians. He also has connections with billionaires. His company is focused on buying companies at value or distressed prices. His company does intense research around the world. He either buys companies for his own group using the mentioned retirement funds or he locates companies for other companies or billionaires to buy. He gets a nice 13% commission.  These are not 1 to 2 million dollar transactions. They are up to a billion dollar transaction. They are growing fast. There are only 6.9 million shares and only a 350k float.

The down side is they have yet to file financials with the SEC so that is one reason the are trading at $3.50/share. That's about a four year time span. One investor told me the reason they have not filed yet is because they were focused on building the company and only started having revenue months ago. The CEO swears up and down that all the financials will be filed with the SEC by the end of this month. He plans to apply for the NYSE in the spring.  The CEO was once a market maker in the Indian exchange so he is a market man and knows how to get the story out there. Most of the 6.9 million shares are with family and friends so the motivation is there to unlock shareholder value. The book value of the stock is projected to be $300/share in the not so distant future(not sure of time frame). So this could be a 100-300 bagger some day but obviously many things can go wrong. The shorts are betting the company won't file the financials by the end of this month. The company didn't follow through on filing the financials before so there is skepticism but the CEO sounds convincing to me that this time is different. So my 6k investment could be 300k-900K somewhere in the future.  Wish me luck. If it hits, I will buy steak dinners at the next BBH get together.

Sounds like the kind of company I'd roll the dice with. Now that I've made quite a bit, I'm getting more and more nervous as I think the market is quite overblown. I've had Tesla, but I'm out now and don't trust it. The stock is literally trading as if the car company is several times more valuable than all the other car companies in the world combined. That scares me. Trading at 800+ and I've read it will go to 1200 as well as drop to 200. Financially, it makes no sense.

I am not into the FANG stocks, although if I was going long term, I'd have a bundle in Amazon and Walmart. But I follow the small cap/ mid cap tech sector and with a Biden Presidency I like all green energy stocks (except Tesla and Nio). The semi-conductor industry and the new gene editing companies are also fun to watch. Crypto stocks have heaped rewards for me as well as kicked me in the rear end. Staying away from crypto for awhile. Anything in the EV world is going nuts as well as the Fuel Cell (Hydrogen) stocks - they've been running wild; however, very volatile and not for the faint of heart, LOL

[squibber]

Lenn, I know what you mean. 90% of my money is in very conservative investments. I like to swing for the fences a little because it could mean lots of fun travel, etc..

[squibber]

Jolly Blue,

I lost money in a gene editing company. They are on the grey market now. They came out with a Covid test and shortly after, the SEC came down on them. No one seems to know if there was any wrong doing but the stock is still on the grey market after 9 months.

I think the market is quite overblown too. If I make money on my two gambles, I will sit on the money for a while. If there is a big correction down the road, I probably will buy some undervalued stuff.

I'm sure you know the Federal Reserve is a big reason why the market is holding it's value but how long can the FR do that?

[Jolly Blue Giant]

Jolly Blue,

I lost money in a gene editing company. They are on the grey market now. They came out with a Covid test and shortly after, the SEC came down on them. No one seems to know if there was any wrong doing but the stock is still on the grey market after 9 months.

I think the market is quite overblown too. If I make money on my two gambles, I will sit on the money for a while. If there is a big correction down the road, I probably will buy some undervalued stuff.

I'm sure you know the Federal Reserve is a big reason why the market is holding it's value but how long can the FR do that?

In general, I stay away from pharm/health stocks (including gene editing). They seem to lose money day after day and suddenly pop 20% only to lose it all the next day. I am incredibly interested in gene editing though. Gene editing is supposed to be the most incredible discovery of the 21 century and by reprogramming genes will be able to defeat cancer and pretty much every other disease. But you are spot on - you'd never know it by watching their stock. It will be an incredible addition to medical care that borderlines a "God-like miracle". I figure I will die just before the process is perfected, LOL

Trying to figure out when the next big correction will be is tough. It could be tomorrow or months from now as a bull market runs wild. I'm sure that once the bond market picks up as well as the first real signs of the inevitable coming inflation. I kind of think nothing is going to change though until this damn pandemic is under control. Once life returns to normal things will happen rapidly and probably not in good ways for growing a cash reserve. I just hope I have my money on the sidelines once the big correction hits!

[Sem]

I've personally only bought stock one time, and it was on a whim. Luckily I hit a home run. Back in the fall of 2007 MGM was selling for around $100 a share. By 1Q09 is was under $2 a share. Believing it couldn't go much lower, and once the recession was over it would likely go up as people start spending money once again, I convinced my wife we should jump on it, and we did - several thousand dollars worth. Last year it hit $36 a share and we sold some. Got all our money back and a bunch more. Today it's sitting around $30 a share and we still own more than half of what we bought. It's our rainy day fund that, no matter what happens from here on out, we've already made money on.

[Jolly Blue Giant]

I've personally only bought stock one time, and it was on a whim. Luckily I hit a home run. Back in the fall of 2007 MGM was selling for around $100 a share. By 1Q09 is was under $2 a share. Believing it couldn't go much lower, and once the recession was over it would likely go up as people start spending money once again, I convinced my wife we should jump on it, and we did - several thousand dollars worth. Last year it hit $36 a share and we sold some. Got all our money back and a bunch more. Today it's sitting around $30 a share and we still own more than half of what we bought. It's our rainy day fund that, no matter what happens from here on out, we've already made money on.

That was a great play. The dream of every investor.

[MightyGiants]

We use a financial advisor for quite a few years and are pretty happy with him. We are VERY conservative in our approach now that we are older and retired, but we were always sort of that way. I don't care if I make a bundle, I just want to sleep quite comfortably at night. We are very happy with our slow but sure approach. Won't become rich but will also stay off the window ledge.

Len,

You are being very smart.  Here is the thing, the older you are the more conservative your investing should be.   When you are younger you can easily ride out a market downturn (or two).   As you get older and you are often cashing out investments a market downturn could cost you a lot of money. 



JBG,

To answer your question, I am an investor, not a trader.  I buy stocks I like and hold on to them.    Recently I have been looking at ETFs over individual stocks as I can get the benefits of what I believe to be a good market to invest in without the risk of betting on a single company.


I have had some hits, but I have had stocks that seriously bellied up.   My research was thorough and yet it never uncovered the danger or warning signs.   


As for beating the market, I am mindful that three are experts with more knowledge, experience, education, and resources than me.  That's why I prefer to just invest.

Also I remember a saying-  "for every trade there is a person that thinks they are doing the right thing buying, while there is another person who thinks they are doing the right thing selling"

[Jolly Blue Giant]

Len,

You are being very smart.  Here is the thing, the older you are the more conservative your investing should be.   When you are younger you can easily ride out a market downturn (or two).   As you get older and you are often cashing out investments a market downturn could cost you a lot of money. 



JBG,

To answer your question, I am an investor, not a trader.  I buy stocks I like and hold on to them.    Recently I have been looking at ETFs over individual stocks as I can get the benefits of what I believe to be a good market to invest in without the risk of betting on a single company.


I have had some hits, but I have had stocks that seriously bellied up.   My research was thorough and yet it never uncovered the danger or warning signs.   


As for beating the market, I am mindful that three are experts with more knowledge, experience, education, and resources than me.  That's why I prefer to just invest.

Also I remember a saying- "for every trade there is a person that thinks they are doing the right thing buying, while there is another person who thinks they are doing the right thing selling"

That's a few great sayings about the market. Another one is, "Value stocks are about as exciting as watching grass grow, but have you ever noticed just how much your grass grows in a week?"

"The stock market is a device for transferring money from the impatient to the patient"

"More money has been lost selling in fear of a decline than actual money lost in a decline"

"Buy when everyone else is selling and hold when everyone else is buying. This is not merely a catchy slogan. It is the very essence of successful investments"

"Many people rush into the game of investing thinking they are predators. When they get to the middle of the game, they then realize they are the prey"

"No price is too low for a bear or too high for a bull"

Anyway, I have bought into a couple of ETFs and it's definitely a safer (albeit slower) move. But the turtle always beats the rabbit in the end, LOL

[MightyGiants]

this is a troubling new trend

https://www.huffpost.com/entry/in-battle-over-gamestop-shares-two-big-players-flinch_n_60119c83c5b67848ee7d4deb


It's also why I am glad I am an investor and not a trader. 

[Grime Time]

I trade everyday.  What happening right now with GME and other stocks it

[Jolly Blue Giant]

this is a troubling new trend

https://www.huffpost.com/entry/in-battle-over-gamestop-shares-two-big-players-flinch_n_60119c83c5b67848ee7d4deb


It's also why I am glad I am an investor and not a trader.

The new "Robinhooders" (those who trade on Robinhood) are millennials who are driving traditional stock professionals crazy. The youngsters treat it like it's a game and try to outsmart the big guys. They certainly did with GameStop, which is now trading as though the little store is twice as valuable as WalMart. They understand how big guys set up computers to automatically buy and sell using the "short selling" method. In fact, the computers do all the work for them and the computers simply mine money from the market and at night time, the big guys look at how much money was siphoned off the system for the day before heading home to their mansions. So a huge group of the Robinhood 20-something kids communicated via a website to target them by pushing up the price of GameStop forcing the big guys (well...their computers do it automatically) to buy the stock because it doesn't short as long as the stock doesn't fail (go lower); therefore, the computer automatically buys it back. Hence, some big hedge funds have nearly gone bankrupt while some kids have become millionaires overnight and at least three guys have made over a billion dollars from it. Since the stock has been sitting around 5.00 a share for the last couple years and the company just went into debt to keep the company afloat, it made sense for the big guys to short it betting on it to fail. So if you bought a thousand dollars worth of stock, it would have been worth over 9 million dollars at the close yesterday. Gotta hand it to the kids, they took down some fat cats and became very wealthy. And it was all legal. And quite frankly, genius.

I am sure the SEC will come up with new regulations to keep that from happening again. Protect the big cats!

I've read some complaints by the fat cats on Wall Street hating on the Robinhooders. One guy wrote, "go ahead kid - you're so smart - nothing could go wrong....and make sure to use all your margin...etc., etc."

One kid responded, "my grandfather left me 100,000 dollars and I turned it into 800,000 in the past year. Now I've gotten a professional trader and have diversified 75% of it into a variety of options like precious metals, various energy companies, tech, EV, etc., but have taken 200,000 to purchase real estate in a growing area near Phoenix that has nowhere but to go up. Make fun of me all you want, I am going to be a millionaire before I turn 30".

Crazy world in the stock market right now. And I love it! Keeps the big guys on their toes, LOL

[MightyGiants]

The new "Robinhooders" (those who trade on Robinhood) are millennials who are driving traditional stock professionals crazy. The youngsters treat it like it's a game and try to outsmart the big guys. They certainly did with GameStop, which is now trading as though the little store is twice as valuable as WalMart. They understand how big guys set up computers to automatically buy and sell using the "short selling" method. In fact, the computers do all the work for them and the computers simply mine money from the market and at night time, the big guys look at how much money was siphoned off the system for the day before heading home to their mansions. So a huge group of the Robinhood 20-something kids communicated via a website to target them by pushing up the price of GameStop forcing the big guys (well...their computers do it automatically) to buy the stock because it doesn't short as long as the stock doesn't fail (go lower); therefore, the computer automatically buys it back. Hence, some big hedge funds have nearly gone bankrupt while some kids have become millionaires overnight and at least three guys have made over a billion dollars from it. Since the stock has been sitting around 5.00 a share for the last couple years and the company just went into debt to keep the company afloat, it made sense for the big guys to short it betting on it to fail. So if you bought a thousand dollars worth of stock, it would have been worth over 9 million dollars at the close yesterday. Gotta hand it to the kids, they took down some fat cats and became very wealthy. And it was all legal. And quite frankly, genius.

I am sure the SEC will come up with new regulations to keep that from happening again. Protect the big cats!

I've read some complaints by the fat cats on Wall Street hating on the Robinhooders. One guy wrote, "go ahead kid - you're so smart - nothing could go wrong....and make sure to use all your margin...etc., etc."

One kid responded, "my grandfather left me 100,000 dollars and I turned it into 800,000 in the past year. Now I've gotten a professional trader and have diversified 75% of it into a variety of options like precious metals, various energy companies, tech, EV, etc., but have taken 200,000 to purchase real estate in a growing area near Phoenix that has nowhere but to go up. Make fun of me all you want, I am going to be a millionaire before I turn 30".

Crazy world in the stock market right now. And I love it! Keeps the big guys on their toes, LOL

JBG,

Big cat or little cat, it makes no difference to me.   I abhor market manipulation as it effectively screws over everyone not "in the know".    I have heard the arguments that try to justify wrongdoing (like manipulating the market) by saying it's okay because it harms the big cats and how the big cats are "already manipulating the markets".   I feel very strongly that two wrongs don't make a right and when market integrity is breached it harms all of us who invest.   

I think a good analogy would be approving of refs throwing a game in the Giant's favor because they were playing the hated Cowboys.   Sure you destroy the integrity of the game, but boy do we hate the Cowboys and love to see them lose.   For me, that isn't how I roll