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All-In [27300]
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Anyone with stock market knowledge
Jan 30, 2021, 3:26 PM
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I’m sure you’ve seen the big squeeze going on with a few stocks. Mainly GameStop and AMC. I’m young and had some capital and approval of my wife so I jumped in. I’m now holding 1000 shares of AMC @$12.50. AMC closed Friday at 13.26. People have said the hedge guys needed it to drop below $9 for them to cover. Does it seem like AMC is indeed for a big pop on Monday? Should I ride it out a few days before cutting out? Or am I screwed and gonna lose most of it? Or do I hold forever and hope after COVID AMC becomes a profitable business again?
Any advice or expertise is welcomed
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All-In [40100]
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Re: Anyone with stock market knowledge
Jan 30, 2021, 3:39 PM
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Orange Blooded [2002]
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Re: Anyone with stock market knowledge
Jan 30, 2021, 3:40 PM
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Hold. Im holding mine.
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Rock Defender [51]
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Re: Anyone with stock market knowledge
Jan 30, 2021, 3:41 PM
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You can add a trailing stop to prevent a loss at whatever % you deem appropriate.
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CU Medallion [58410]
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Great suggestion.***
Jan 30, 2021, 3:44 PM
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Mascot [22]
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Re: Anyone with stock market knowledge
Jan 30, 2021, 11:03 PM
[ in reply to Re: Anyone with stock market knowledge ] |
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Trailing stop not going to be a good idea for a stock swinging 50% or more each day one way or the other. You’re going to get stopped out. Also so much activity pre and post market where you can only use a limit order. It can gap down overnight (and will eventually) and you’re toast. Don’t over leverage, buy in chunks at different prices that you are comfortable entering when it’s going down and same thing to exit. Good luck
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CU Medallion [58410]
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Better to get out sooner and make some money, than hold
Jan 30, 2021, 3:43 PM
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on too long and go in the hole. Buying in anticipation of a short squeeze is not a long term strategy, but rather a very, very short term play. Once the price is driven up high enough and the shorts have been squeezed out, the run up is basically over, and the price can plunge quickly; you don't want to be holding then. I haven't really kept up with Gamestop or AMC, but it's almost impossible to predict the exact top, so it's best to sell on the way up and leave some on the table and don't worry about it. Just take your profit and be happy about it - this is not a situation to get greedy.
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Freshman [-99]
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Re: Better to get out sooner and make some money, than hold
Jan 30, 2021, 4:02 PM
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Couldn’t have said it better myself. This is daytrading stuff not buy and hold. I would take the profit and run because the fundamentals do not support any of the stocks going up. This was a situation where a large group of people saw hedge fund managers deep into the short and took advantage. But this is going to turn around and these companies are going to drop like a rock. Even with a stop loss by the time you get your trade executed your profits could be gone! Electronic trading has changed everything which is one of the reasons the system is rigged against the little guy.
I think it’s great that these hedge funds got squeezed and they should have been hurt worse, but that’s another reason the system is rigged against a little guy. The big guy can make a few phone calls and trading gets stopped so they can cover their shorts without losing more money.
People think RobinHood is out there for the little guy, but really RobinHood‘s customer is the hedge funds. They are buying the data and that’s where RobinHood makes their money.
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CU Guru [1059]
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Re: Better to get out sooner and make some money, than hold
Jan 30, 2021, 4:16 PM
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I will throw in mu .02. Have been a financial advisor for over 20 yrs.
What is going on it pure speculation. Nobody knows for certain what the heck will happen. I do think the stocks (GME, AMC, etc) could continue to rise but somebody at sometime will be left holding the bag.
How would I play if I am speculating in AMC or GME? Play a partial position game....example...I buy 100 shares at $10. If stock goes to $11 i would sell 1/4 position (25 shares) and i just locked a profit of 10% hoping my remaining 75 shares goes up. If they do I sell another 25 shares at $12 and have locked in 20% gain on that portion, etc, etc.
I much prefer to book gains along the way as it gives me peace of mind.
The trailing stop loss is a decent idea but be careful as you couls still lose all your profits or principal.....example.....AMC you buy ar $10 and is now $14. You are up 40% so you place a stop loss at say $13 meaning shares would not sell until went down to $13. Well, AMC could close one day at $14 and something could happen overnight before market open (regulation, etc) and stock opens at $10 the next day. You sold at $10 and you lost your 40% profit.
I utilize the partial profit taking on most of my stocks. Never go broke taking profits off the table and it gives me capital to invest elsewhere.
Good luck
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CU Medallion [58410]
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Exactly - stops provide limited protection against gap downs
Jan 30, 2021, 4:42 PM
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overnight. I appreciate just as much as anybody that these "little guys" are bucking the big hedge funds who routinely manipulate the market with the billions of dollars at their disposal, but people who are jumping on board need to understand that this thing is likely to turn around and plunge, leaving many unsuspecting newbies with big losses. This is more of a play for day and short term swing traders, and not an investment opportunity for the inexperienced investor.
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All-TigerNet [10631]
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Re: Anyone with stock market knowledge
Jan 30, 2021, 3:58 PM
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I would get out as soon as I had made some profit, or to cut any losses. The underlying stock values of these companies is not anywhere near what the stock is selling for (Game Stop anyway ..... don't know about the other one). Some dudes that know a lot more more about what is going on than you or I are going to sell, if they have not already, when it gets high and those that do not are going to be holding the bag. There is going to be the same number of winners and losers .... be a winner and get out with a profit.
The probelem is that you are "betting" on a stock where the big boys (hedge funds) are not betting ..... they are manipulating ...... big difference.
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110%er [6223]
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Re: Anyone with stock market knowledge
Jan 30, 2021, 4:45 PM
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Yes, it's a zero sum game, for every winner there is a loser. As you said get out as a winner, eventually it will become the bottled imp.
Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it.
-Will Rodgers
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Orange Blooded [3974]
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You remember “musics chairs?” That’s the game you’re playing
Jan 30, 2021, 4:53 PM
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At some point, almost assuredly a point that won’t seem obvious or be worthy of anticipation, the music will stop and there won’t be enough chairs for everyone to sit down.
This is gambling, and anyone who acts like they know what they are talking about with regard to how long you should hold it or what price you should get out at is full of crap.
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110%er [5482]
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Re: Anyone with stock market knowledge
Jan 30, 2021, 5:25 PM
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Took me 30 years of chasing stocks to figure out my money was better off with CFP.
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Legend [16132]
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Good Lord, you're coming to Tigernet for investment advice?
Jan 30, 2021, 5:27 PM
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You'd be better off just setting your money on fire, at least you will be warm for a second
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CU Medallion [52826]
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Don't think for a minute that the
Jan 30, 2021, 6:17 PM
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big hedge fund guys are losing.....it's the working peoples 401's and such that taking a beating. And yes, I stayed in a Holiday Inn Express last night.
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All-In [27300]
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Re: Don't think for a minute that the
Jan 30, 2021, 7:11 PM
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Yeah my 401k has been hit. But it’ll comeback like always and I have time to wait. I definitely wouldn’t have put myself in a position where if I lost it all I would be screwed or even hurt a little bit. I knew it was a gamble. I just figured it may be easier than scratching 10k worth of lotto tickets. Ha! Well keep an eye on AMC guys. For every dollar over 12.50 it goes it’ll be worth an extra $1000 bucks. For every dollar less well let’s hope it just goes up!
Thanks for the input. I like you guys but not enough to bet my financial future on haha. I do respect everyone’s opinions as it creates different perspectives for me to think and see. Much appreciated friends!
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110%er [8049]
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Re: Anyone with stock market knowledge
Jan 30, 2021, 7:11 PM
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In my opinion, who have already lost, unless your brokerage account allows you to do premarket trading. My expectation is that it will fall below your “entry price” by the time the market opens for regular trading. Everyone is saying the little guys beat the “suits” with GME. They may have for a brief moment, but don’t think for a second that as soon as other hedge funds figured out what the reddittors were doing that they also didn’t step in to bury the hedge funds that went short.
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All-In [27300]
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Re: Anyone with stock market knowledge
Jan 30, 2021, 7:14 PM
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Yeah I figured GME was squeezed out. I put my bet on AMC. Hopefully I can make a quick buck. Paying off the kids private school tuition for a year would be awesome!!!
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CU Guru [1534]
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Warren says..
Oct 1, 2019, 1:21 PM
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The really rich people bet big on a few stks and won. The really poor people bet big on a few other stks and lost.
The fairly rich people bought and held market index funds for 30 years.
The Bank of Wall Street has the best CD's if you have enough patience.
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All-In [27300]
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Re: Warren says..
Jan 30, 2021, 9:30 PM
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That’s true. And I have a much larger position in the broader market. However this market is nothing like warren buffets market. Now it’s much harder for the poor to get rich and much easier for the rich to stay rich. It’s a different market but his long term strategy still works. Buy and hold forever
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Legend [17573]
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If you're going to aggressively attempt to make money
Jan 30, 2021, 9:37 PM
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Study and buy cryptocurrency for bigger faster riskier gains. Consider Ethereum, Cardano, Polkadot, and even Unisap and Aave. And study.
What you are doing with AMC and others with Gamestop is just as risky. Be careful especially with family money.
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Orange Blooded [2780]
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Re: Anyone with stock market knowledge
Jan 30, 2021, 11:04 PM
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My dad made a ton of money in the market with one simple rule: "pigs get fat and hogs go to slaughter."
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Rock Defender [53]
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Re: Anyone with stock market knowledge
Jan 31, 2021, 1:23 AM
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If u r an investor, take your profit and sell all shares Monday AM.
If u r a trader, keep playing games and see what happens. Don’t be surprised if u end up catching a falling knife.
AMC’s situation is very different than GME. Look at the % of shares shorted. GME is in a unique position.
Egbbfb03’s suggestion of selling portions at different times could make sense as long as u sell all shares before the bottom falls out. The bottom should fall out at some point as most of these stocks in the news recently have little intrinsic value.
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