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

721 posts in this topic

6 hours ago, fraufruit said:

GE, my biggest loser has been falling for a long time. I picked up more shares on the way down and it still fell.

You're right, it's not always true.  Not always.  I sat on GE too for a long time, but ended up selling even and took the money elsewhere.  It happens.

The logic I was expressing is that IF you did your homework on a particular stock (not some tip) and bought at 100, you did so thinking 100 was a good value.  All things being equal, if the stock dropped to 80 why wouldn't you buy since you thought 100 was a good value?  "All things being equal" means that the soundness of the company remains the same, but the market has dropped.

 

Regarding brokers:  the markets and trading have changed so dramatically that their usefulness has diminished considerably.  You can use them as a sounding board, but they usually take credit for the gains and say "the market is unpredictable" when there's losses.  Wealth management is a different story all together and that's a different topic.  For me, the lion's share of my portfolio is in index funds and the rest is "mad money" devoted to individual stocks.  I've lived thru enough cycles to know they're coming, I just don't know when; so I sell a chunk on the "high" and hold until the "low" and then splurge like I did this time.  What I've learned: when you think the market won't go higher, it does.  When you think it'll never drop again like last time; it does.  For me, everything in the middle is a waiting game.

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2 hours ago, fraufruit said:

 

I disagree. First, I've never heard of buying tip sheets but there are tips all over the internet which I pretty much ignore.

I do not dis-agree or agree, Later on you say there is no right or wrong way - that's the way I see it as well

 

for your man, if he is investing in shares, where does he get the idea on which shares he wants to buy from ?. Well I have with friends and sometimes we use pay for tips from maybe  https://www.investorschronicle.co.uk/ , which is a tips sheet, friends say they have made a lot of money following some of the tips in there. I just do not have the imagination or time or interest  to find the the right shares by myself

 

2 hours ago, fraufruit said:

My broker has plenty of his own investments. Our calls are recorded. When he recommends something, I alway as if he has any. It is usually yes. He cannot lie (and he wouldn't anyway) or he could lose his job.

My very first investments were made through broker recommendations, and there is nothing wrong with it !, if you find someone to take the work out of buying shares its a good idea.

 

2 hours ago, fraufruit said:

If his interest was having me buy and sell, he sure has a funny way of showing it. Probably 2 or 3 transactions in the last year. I do pay regular fees, though. That is his and his company's bread and butter. I have also bought a lot of no load shares and funds over the years. No fees to buy and no fees to sell after holding for one year.

As long as you are happy with it, its a perfectly valid way to make money, by the way stock broker buying and selling to make money is normally called  churning.

Some brokers do it, some not, if you are paying a regular fee, then there is no need for him to churn your stocks - which is good.

 

2 hours ago, fraufruit said:

Nobody can predict the market. Everyone knows that. 

For me, its more easy to buy a share, but its very difficult to decide when to sell it,  like I should have sold my Tesla shares a couple of days ago :wacko:

 

 

 

2 hours ago, fraufruit said:

There is more than one way to invest for your future. No right. No wrong.

Cannot agree more

2 hours ago, fraufruit said:

 

I have bought a lot of tracker stock funds in the past, but never really got in to ETFs, because trackers basically do the same job as ETF, but have zero operating costs, however its possible to set up ETF to be a lot more tailored to what you want - again no right or wrong way. Never been in to normal mange funds because they are too expensive to run and generally do not do better than a track fund, which has no cost

 

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5 hours ago, catjones said:

Wealth management is a different story all together and that's a different topic.

 

I should probably clarify, my broker is a wealth management officer, not just a broker. A complete financial adviser. He works for Morgan Stanley, formerly for Merrill Lynch. I followed him when he moved quite some years ago.

 

Might go shopping if we have another day or two like today.:D

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On 4/27/2020, 7:18:07, fraufruit said:

I'm not a day trader.
 

49 minutes ago, fraufruit said:

Might go shopping if we have another day or two like today.

6 hours ago, yesterday said:

friends say they have made a lot of money following some of the tips in there.

 

Wins have many parents; losses are orphans.

 

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I have never done day trading. It seems to me that day trading is a direct gamble, you have no time to analysis data relevant to a stock - your just watching things going up and down and gambling on what will happen next.

 

I do know a few people who do day-trade and I have seen them making money during this crisis. I have picked 2 or 3 stocks and might try it with small sums of money if they meet my expected ranges.

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TBH my prediction was $1000 by the end of 2020, even before the Corona issue. This was driven by the upcoming battery day, Model Y sales, Chinese factory and significant advances in self driving. All of them still to materialize or make a significant impact (except recent traffic lights update). So on that perspective, anything above ~$500 is probably temporarily overvalued.

 

For me it is not very important as I am long on Tesla. I would actually prefer it to drop again sub- 500€ so I add up more.

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4 hours ago, yesterday said:

I have never done day trading.

4 hours ago, yesterday said:

but could not resist making a few bucks on them

 

The term 'day trading' need not be taken literally.  Back in the dot.com days, a co-worker adhered to a regimented formula for trading: I may not recall the exact %, but the point is still the same.  He would buy a stock that showed consistent, erratic behavior.  If it went up, say 20%, he would sell it.  If it went down, 20%, he would buy.  He never regretted selling at 20% when it actually went up higher and the same if he bought at 20% but it went lower still.  He did zero research on the company and basically plugged in limit orders.  The more volatile; the better.

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Anyone recommend buying Wirecard shares??

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Probably need to kick start this thread.

 

So we are in the midst of a pandemic, rioting in the US, Hong Kong Security Law, Tensions between the US and China,.

 

yet the stock market is approaching its record high.

 

It now looks like the stock market is completely detached from economic reality.

 

Surely this is not good at all.

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47 minutes ago, RenegadeFurther said:

 

It now looks like I am completely detached from economic reality.

 

Surely this is not good at all.

FTFY.

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I think the market is easing back up on talks of a vaccine and because places are opening up and getting businesses running again.

 

It is often a mystery, though.

 

I believe it is currently down about 3.3% since the beginning of the year and around 7% since the Feb. 19 all time high which seemed unreal at the time.

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On 5/27/2020, 2:02:17, dom said:

Anyone recommend buying Wirecard shares??

 

Wirecard just plunged 50%.

 

 

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On 6/5/2020, 9:49:02, RenegadeFurther said:

Probably need to kick start this thread.

 

So we are in the midst of a pandemic, rioting in the US, Hong Kong Security Law, Tensions between the US and China,.

 

yet the stock market is approaching its record high.

 

It now looks like the stock market is completely detached from economic reality.

 

Surely this is not good at all.

Market is flooded with printed money as never before. As there is no underlying economical cause for the virus, it is of course up.

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40 minutes ago, MikeMelga said:

Market is flooded with printed money as never before. As there is no underlying economical cause for the virus, it is of course up.

 

so wait 12 m until buying stock?

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Unless there is a treatment or a vaccine in the next 3 months, I think things will go really bad in US, with strong lockdowns again and that might create a dip.

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19 hours ago, RenegadeFurther said:

 

Wirecard just plunged 50%.

 

 

 

 

Maybe you should read this, before putting your money in.

 

It looks like becoming one of the great rags to riches to rags again stories in European corporate history.

The payments firm Wirecard, a member of the DAX 30 index of leading German companies, is fighting for its life after admitting that €1.9bn (£1.7bn) has gone missing.

 

https://news.sky.com/story/wirecard-fighting-for-life-after-admitting-eur1-9bn-has-gone-missing-12009809

On 5/27/2020, 2:02:17, dom said:

Anyone recommend buying Wirecard shares??

 

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35 minutes ago, yesterday said:

The payments firm Wirecard, a member of the DAX 30 index of leading German companies, is fighting for its life after admitting that €1.9bn (£1.7bn) has gone missing.

Have they really admitted that 1.9 billion are missing? That´s not what I understood from a radio broadcast yesterday evening (I think it was Deutschlandfunk).

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The company, based in the Munich district of Aschheim, has had to postpone publication of its financial results for the fourth time this year because EY, its auditor, refused to sign off on the accounts.

I have a friend that does it for living. He once told me that when this happens, it´s because there is a massive fraud in the books.

In 2014, the same happened to the largest bank in Portugal. He told me immediately that something was very wrong and that the bank was in deep trouble, just by knowing that the auditor refused to sign it. 6 months later it collapsed, although all the authorities said it was reliable until the last minute.

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