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Stock-Age: Stocks, Options and Dividends oh my!

kathode

Member
Holy shit! I just idly typed in CNN.com to see yet another "sad trader" image and thought "WTF, we were up big today." Wow, what a turnaround.

Where did RSTEIN go? That mofo better be suffering like the rest of us! :D
 

Ether_Snake

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ATVI down 9% in after hours!

Damn, and I thought I wouldn't want to buy something else soon. Might have to buy some ATVI tomorrow...
 

ArtG

Member
Ether_Snake said:
ATVI down 9% in after hours!

Damn, and I thought I wouldn't want to buy something else soon. Might have to buy some ATVI tomorrow...

At this point I'd be worried about catching a falling knife if I were you. Unless, of course, you're looking at a long-term position.
 

Ether_Snake

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I'm always looking at long term.

ATVI is my only winner right now, and I'm fairly confident that ATVI at 10$ is a good purchase. The only thing that IMO could make it a bad move is if we had an actual depression, but then what the fuck am I gonna do with my money anyway!:p

It's only down 4% now in AH, but still I find it fairly cheap. At this point there is not much factored into the price, all weak hands bailed out. I'm not saying I'll buy, but right now if I had to do a move it would be that, I see nothing else worth buying now.
 

Ether_Snake

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Nikkei jumping up and down like crazy so far. That's not too bad right?
 
Holy shit guys, Im about to jump into the stock market for the first time, and Im scared.

Im buying Activision, Embraer, Wendys and News corp. I feel that makes me diversified
 

Tarazet

Member
jamesinclair said:
Holy shit guys, Im about to jump into the stock market for the first time, and Im scared.

Im buying Activision, Embraer, Wendys and News corp. I feel that makes me diversified

Embraer? A Brazilian maker of lightweight executive planes? Seems like an odd choice given the current conditions.
 
sonarrat said:
Embraer? A Brazilian maker of lightweight executive planes? Seems like an odd choice given the current conditions.
Theyre number 3 in the world in airplanes.

And yes, I realize that no one will be buying planes this month, but....

erj



Looks like buy time for me
 
lil smoke said:
the only problem with paper stocks is that you make decisions that you wouldn't normally make, if you were using real money. But it probably is good for just learning the process.

I don't know much, but I would rather have a small amount of $$ ready to throw away... and play with that. I think I'd take it more seriously, and learn what it's like to lose real money.

I began looking at this thread and this post was something I wanted to respond to.

I'm entirely new to investing but I have managed to help myself in regards to bridging the gap between paper investing and true investing.

If you're going to paper invest, you should set some money aside out of what you currently hold and treat it as if it is actually being used (In real investing). There should be some consequence to your decisions; if you paper invest $100, you should freeze that $100 in your mind and pretend as if it isn't accessible. If you lose it all, you shouldn't allow yourself access to it until a certain period of time has passed (Perhaps a month). If your paper investments do well, you can either add that amount to the $100 or you can access it for real-life needs.

Of course, you know it's there and you still have the money...but restraining yourself from spending it does provide some incentive to invest wisely (Even when you're only paper trading).
 

Tarazet

Member
jamesinclair said:
Theyre number 3 in the world in airplanes.

And yes, I realize that no one will be buying planes this month, but....

erj



Looks like buy time for me

Every stock looks like that right now. And yes, it will likely come roaring back at some point, but the question is when? You don't want to put major money into the stock market until nobody even wants to talk about stocks anymore. When they stop reporting it in the media, that's the bottom.
 
sonarrat said:
Every stock looks like that right now. And yes, it will likely come roaring back at some point, but the question is when? You don't want to put major money into the stock market until nobody even wants to talk about stocks anymore. When they stop reporting it in the media, that's the bottom.

Its impossible to know what the bottom is. You never know until its too late.

Will the bottom be tomorrow? Probably not, but Im willing to take short term losses on the assumption that 1-2 years from now, theyll be back at 50.

And I dont have major money to invest, I just want to dip my toes in now and not hit myself in 6 months for missing out on all these great companies at dirt prices.
 

Tarazet

Member
jamesinclair said:
Its impossible to know what the bottom is. You never know until its too late.

Will the bottom be tomorrow? Probably not, but Im willing to take short term losses on the assumption that 1-2 years from now, theyll be back at 50.

And I dont have major money to invest, I just want to dip my toes in now and not hit myself in 6 months for missing out on all these great companies at dirt prices.

The market isn't going to come back all at once. The DJIA has never in history gained 30% in a single session, and it never will. All of the top three one-day percentage gains, including the record of 14.87%, occurred during the Great Depression and were followed by further, steeper declines. You will see it coming when it's coming back, at least if you have some money in the market to tip you off.
 

Ether_Snake

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jamesinclair said:
Theyre number 3 in the world in airplanes.

And yes, I realize that no one will be buying planes this month, but....

erj



Looks like buy time for me

You can't just look at a chart. Any chart right now looks exactly like that :lol

Look at the foundations/ratios of the companies; do they have a debt? do they have cash on hand? do they have competition? are mergers likely? how did they fare over the last year, a time during which most companies lost value? etc.
 

Ether_Snake

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STP and CGT up 9% and 8%.

Those two fell a lot recently, it hurt my feelings.
 

lil smoke

Banned
WickedAngel said:
I began looking at this thread and this post was something I wanted to respond to.

I'm entirely new to investing but I have managed to help myself in regards to bridging the gap between paper investing and true investing.

If you're going to paper invest, you should set some money aside out of what you currently hold and treat it as if it is actually being used (In real investing). There should be some consequence to your decisions; if you paper invest $100, you should freeze that $100 in your mind and pretend as if it isn't accessible. If you lose it all, you shouldn't allow yourself access to it until a certain period of time has passed (Perhaps a month). If your paper investments do well, you can either add that amount to the $100 or you can access it for real-life needs.

Of course, you know it's there and you still have the money...but restraining yourself from spending it does provide some incentive to invest wisely (Even when you're only paper trading).
That is a great idea, if you are disciplined enough to follow thru. I know that if I made a huge blunder, I would probably tell myself "fuck that, let me try this again" and pull from my restricted money.

Still it is an worthy excerise in discipline and understanding how to keep money in a safe place, untouchable. Some people should just do that, regardless of whether they paper trade or not.

gkrykewy said:
Allright! NTDOY up 13% overnight. Finally a green day.
Certainly helps a little! :D
 
Ether_Snake said:
You can't just look at a chart. Any chart right now looks exactly like that :lol

Look at the foundations/ratios of the companies; do they have a debt? do they have cash on hand? do they have competition? are mergers likely? how did they fare over the last year, a time during which most companies lost value? etc.

I know. Ive been wanting to buy Embraer because they have good stats everywhere and a promising future. Im just showing the chart because theyve been steady at 40-50 for so long.

As I said, I understand they wont be getting orders this month, but theyre a strong company, only behind Boeing and Airbus in the global airplane market.
 

Tarazet

Member
I just bought some more puts (which I should have done three days ago) so you can bet there'll be a rally this afternoon.
 
So um, Ford and GM....

How low should I let them go before I buy?

These companies will not fail, the US gvt will not allow it. Theres too much pride.
 

Tarazet

Member
jamesinclair said:
So um, Ford and GM....

How low should I let them go before I buy?

These companies will not fail, the US gvt will not allow it. Theres too much pride.

They didn't let WM "fail" either, but it went into the pink sheets. Ford is already a penny stock and GM will be by tomorrow at this rate. Any advisor will tell you to be very, very careful once you get into that range.
 

dionysus

Yaldog
jamesinclair said:
So um, Ford and GM....

How low should I let them go before I buy?

These companies will not fail, the US gvt will not allow it. Theres too much pride.

They have absolutely no redeeming qualities right now. I bought gm at around 16 and sold it at 11, so glad I woke up to reality there. There is a reason they went begging to the government, no sane investor would give them any money right now.

Edit. Also, I highly doubt they will get much more of a government bailout than they just got. And if they do, it will follow the trends of other bailouts where they wipe out shareholders but save bondholders. *grumble grumble* AIG.
 
So even at $4 its not worth buying into them?

I feel that in 2010-2011 theyll be doing better, but Im unsure what a bankruptcy in the enxt year would do to any stock Id hold.

Theyd delete it and start over?
 

kathode

Member
jamesinclair said:
So even at $4 its not worth buying into them?

I feel that in 2010-2011 theyll be doing better, but Im unsure what a bankruptcy in the enxt year would do to any stock Id hold.

Theyd delete it and start over?

It can ALWAYS go lower. I had a stock worth .025 of a single cent once, and I've seen plenty lower than that. A bankruptcy would decimate the value of your stock.
 

dionysus

Yaldog
jamesinclair said:
So even at $4 its not worth buying into them?

I feel that in 2010-2011 theyll be doing better, but Im unsure what a bankruptcy in the enxt year would do to any stock Id hold.

Theyd delete it and start over?

GM has a book value per share of -100. Moreover, they have negative earnings growth of 18%. And huge negative cash flow.

Really, they should be paying you to own the stock.
 
jamesinclair said:
So um, Ford and GM....

How low should I let them go before I buy?

These companies will not fail, the US gvt will not allow it. Theres too much pride.
They just got $25 billion loans, didn't they?
 

Xisiqomelir

Member
As ACAS tanks, the dividend yield looks more and more outrageous. At a legally enforced 1:1 Debt:Equity, they can't really be in too much trouble, can they? I'm getting really tempted, and I think I'll bite if they drop below $10.
 

gkryhewy

Member
Tamanon said:
Huh....we're seeeing a couple of late-day selloffs in a row....hrm.

Hedge funds unwinding for redemptions? I dunno - I'm still holding. This day in particular seems rather irrational.
 
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