Fiddling about with stocks, funds, etc. No conspiracy theories, please.

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I have been shorting Norwegian ( airline )  since Wednesday ( or at least my broker has for me. )

They had a pretty crappy 4th Quarter result announced yesterday

Currently down to 177NOK

They will probably drop a touch further but I  am now out

 

A tidy profit ;)

 

 

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6 minutes ago, RenegadeFurther said:

FFS.

 

We get it. You have money. Congratulations.

 

It's a thread about investments, what do you expect? If you want, I can balance it out. As I mentioned earlier in the thread, a month ago I started investing for the first time ever. Turns out this was terrible timing. I'm about 4% down so far B)

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1 minute ago, theGman said:

I'm about 4% down so far

 

I think most people are down over the last month, Gman. Hang in there. It's all just on paper for now.

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2 minutes ago, fraufruit said:

 

I think most people are down over the last month, Gman. Hang in there. It's all just on paper for now.

 

Oh indeed FF. This is presumably just the start of a long term thing for me so I'll be hanging in there for a while yet. Would be nice to see the colour green in my depot account for once though...it's just been different shades of red since day one :D

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14 minutes ago, fraufruit said:

Really, RF? Is that all you have for your one post on this thread?

 

 

 

Could be worse, he might have sent GSG9 to raid the finanzamt ( again )

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58 minutes ago, fraufruit said:

LeCheese, how about a short tutorial in shorting?

 

I've never done it.

 

On a basic level

I call my broker and get him / her to " borrow" a stock that I believe will fall, say 5000 shares of  xyz corp. I sell those right away and buy back 5000 shares  when the stock has hopefully  dropped to a lower price and return those.The difference is your profit.

It is not for the faint hearted as you are committing yourself for a period of time to "replace " the borrowed stocks. If you get it wrong, and the stocks go up, you are commited to replacing the borrowed stocks ( buying ) at a higher price, meaning you are going to make a loss. 

 

Here is a horror story of how badly it can go wrong.

 

It is simply gambling and not something I would advise as an investment strategy. Holding stocks long term, the worst that can happen is that you lose your investment ( say if company you hold stocks in goes bankrupt for example )

Selling short, you can lose not only your investment, but end up with substantial losses / debt ( see the example link above. )

 

I like to gamble if I see what I think is a good opportunity ( you win some, you lose some of course )

 

 

 

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1 minute ago, fraufruit said:

Thanks. What does "borrowing" stocks mean?

 

Exactly that. Your broker ( A)  borrows X number of stocks / shares from broker (B) with  a contract to replace them by a specific time. Broker A pays a premium to broker B for the priveledge

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Just now, fraufruit said:

Thanks again. Nice and simple just for me.

 

:P

 

 

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3 hours ago, LeCheese said:

I have been shorting Norwegian ( airline )  since Wednesday ( or at least my broker has for me. )

They had a pretty crappy 4th Quarter result announced yesterday

 

A tidy profit ;)

1 hour ago, fraufruit said:

@LeCheese, how about a short tutorial in shorting?

 

I've never done it.

 

Isn't "shorting or as I understand it, profiting from the misfortune of a company, although not illegal, somewhat questionably poor ethically?

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If it's all so unethical and you wouldn't touch shares with a barge pole, why are you even posting here other than to judge people?

 

A company's stock going up or down a few dollars does not spell misfortune.

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49 minutes ago, fraufruit said:

A company's stock going up or down a few dollars does not spell misfortune.

 

A few dollars? Do you know how much damage has been made to decent companies by lawless share dealing the last few decades? 

 

I refer you to a brilliant book "Cityboy" where the guy describes warts and all, the share dealing way of life. I am really glad I never went to live anywhere near London. Our economy in the UK is soley dependent on just this gambling on companies rising and falling. In the 1980s entire public utilities were sold off to this kind of share dealing, and the people have suffered ever since. Not to mention insider dealing which the author of City boy states is endemic in the UK. 

 

These days, as I understand Zero Hedge, there are not humans trading, but complex computer algorithms which trade with each other in nanoseconds. How is that right? It has been estimated on Zero Hedge that 75% of trading today is done not by humans but by "algos".

 

And how many shares today are traded unethically, i.e., supporting military companies such as Lockheed Martin who profit from war?

 

Absolutely nothing wrong with shares per se, but the last few decades they are insane.

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5 hours ago, jeremytwo said:

 

Isn't "shorting or as I understand it, profiting from the misfortune of a company, although not illegal, somewhat questionably poor ethically?

 

No, you don`t, no and No

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4 hours ago, jeremytwo said:

such as Lockheed Martin who profit from war

 

Just like GE and thousands more companies. Get real, dude. The war machine is the biggest business in the world and has been for decades.

 

You read your Cityboy and let us play with our stocks.

 

Thanks.

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16 hours ago, fraufruit said:

how about a short tutorial in shorting?

Simply buy a put option i. e. the right to sell a stock at the strike price. Should the price of the stock dive you can exercise your put option and cash in the balance between the strike price and market price.

 

Alternatively, sell a call option i. e. give someone the right to buy a stock from you at the strike price. Should the stock not reach the strike price he won´t exercise that right.

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Most investors lose money in the stock market and it's the reason why people like @Starshollow is smart to recommend low cost ETFs. If you want to learn how to be a better investor I highly, highly recommend reading Andrew Hallam's Millionaire Teacher. He does the impossible, he wrote an investment book that is funny, readable

 

For myself I've stuck to what I know which is Canadian dividend stocks, mostly REITs and such. The only negative is they tend to over correct, it's not easy opening up your statements and seeing all your stocks down 25-30%, but as long as the dividend keeps coming in I'm worried

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