Board 8 > Stock Topic 8

(+) Yeah! (+)

Moonroof posted...

Took a grand total $11k hit

Ouchy
My record is a $6k hit

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Wouldn't be the worst idea to pull your money out of the market and see what happens in early August. That's when the extra unemployment benefits run out, and who knows what affect on the economy that will have if jobless levels remains in the double digits.

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Hey gnus bag holders I got some good news for you

https://www.google.com/amp/s/finance.yahoo.com/amphtml/news/scott-scott-attorneys-law-llp-172300393.html

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Fairly good earnings report for AMTD and IBKR. Beats analyst expectations by a wide margin on both earnings and revenue.

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Thought today was a red day but turns out it was just NASDAQ being red
Uh, ok

I mean..profit from yesterday is still great but all of my stocks being red today sucked (besides KO which I sold at 3%)

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https://seekingalpha.com/article/4359753-american-virtual-cloud-technologies-2-ways-for-investors-to-win

They're catching on.

God I want to go long long here so bad but I have to be responsible and secure profits if this thing pops 7 soon like the last run. That'll bring my account to like 40k (I've put a bunch more in it though so I'll only be like 4k above post GNUS and LK runs). Either release huge forward guidance now or hold off and allow for another dip plz dear corporate cloud overlords.

Also LK could make some serious moves in the near future, if you're still paying attention, Lopen! Thought about diversifying and throwing some money in them this morning, but I no longer make big trades without serious conviction anymore. But I'd bet anything it'll hit 4 again soon, where it was briefly trading at earlier this month.

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Ugh I kinda want to go LK but Robinhood doesn't OTC.

I guess I can move over to E-Trade I THINK they finally accepted my application at some point

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I've been checking in on LK every day. I kinda want to trade the pattern of buying below $2 and selling above $4 but don't have high confidence that the bouncing pattern it's been in since the trading halt will continue.

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AVCT shot up to 4.70 this morning and is back down to just over 4 now. She'll be back!

Does anyone else here borrow on margin? If you sell for a loss on Ameritrade, even if it's a tiny one, they make you wait for funds to settle. But if you sell a winning trade, again, even a tiny win, you can immediately use those funds on something else. Not waiting for the settlement period is why I like margin trading as long as you carefully calculate risk. I just wonder if every broker has these rules or if it's only a TDAmeritrade thing.

Basically I should just make multiple accounts.

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greengravy294 posted...

Hey gnus bag holders I got some good news for you

https://www.google.com/amp/s/finance.yahoo.com/amphtml/news/scott-scott-attorneys-law-llp-172300393.html

Don't think there's any of those here! We were all smart enough to get in and get out, but this is hilarious.

And speaking of GNUS, it went up like 20% this morning...naturally.

Dumb people keep buying that stock. I'm just going to assume anything below 2 is buy territory for day trading and quick cash. Maybe I'll actually do a swing trade myself if it goes to 1.50 soon.

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Yeah I don't think anyone in this topic lost money on GNUS or LK. Speaking of swing trades, HTZ jumped like 30% this morning before falling back the majority of the way on news that they've reached a deal with creditors to keep their cars and continue operating. Of course, that doesn't mean the bankruptcy isn't going forward, just that a liquidation probably won't.

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StartTheMachine posted...

AVCT shot up to 4.70 this morning and is back down to just over 4 now. She'll be back!

Does anyone else here borrow on margin? If you sell for a loss on Ameritrade, even if it's a tiny one, they make you wait for funds to settle. But if you sell a winning trade, again, even a tiny win, you can immediately use those funds on something else. Not waiting for the settlement period is why I like margin trading as long as you carefully calculate risk. I just wonder if every broker has these rules or if it's only a TDAmeritrade thing.

Basically I should just make multiple accounts.

Saw an ad for a margin interest rate below 1% from IBKR and am considering opening a margin account. The appealing thing about it is you can pyramid (when your stocks go up, you can borrow more and use the funds to buy more shares). In a rising market with this strategy you can make a lot more than 2x what you make without margin. For example:

Suppose you bought 10 shares of Tesla at 200, using $1000 of your own money and $1000 from the broker. The stock rises to $400, and you now have 10 shares of Tesla worth $4000 and owe $1000 to your broker. You can now borrow an additional $2000. Now you use that to buy 5 more shares of Tesla. Now you hold 15 shares of Tesla, worth $6000, and you owe your broker $3000.

Then Tesla doubles again to $800. Now you have 15 shares of Tesla worth $12,000 and owe your broker $3,000. This entitles you to borrow another $6000, which you again use to buy 7.5 more shares of Tesla. Now you have 22.5 shares of Tesla worth $18,000 and you owe your broker $9000.

Finally Tesla doubles to $1600. Now you have 22.5 shares of Tesla worth $36,000 and you owe your broker $9,000, leaving you with equity of $27,000, and you would have 27x your original capital. Notice how if you didn't use margin you would have 8x and if you used margin but didn't pyramid you would have 15x.

The scary thing about it is that if you use a max pyramid strategy, one -50% fall will wipe you out, even if you previously made absurd amounts of money, as long as you keep going with the pyramiding strategy.

So to continue the example, suppose you borrow an additional $18,000 and buy another 11.25 shares of Tesla at $1600. Now you have 33.75 shares worth $54,000 and owe your broker $27,000. Now suppose Tesla falls back to $800. You get a margin call and are completely wiped out! Whereas with no margin you would still have 4x your original capital, and with only one use of margin with no pyramiding you'd still have 7x your original capital.

So yeah, pyramiding is lucrative but super risky and if you keep repushing the leverage no amount of success will protect you from future risk.


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Didn't gravy lose his house on GNUS

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That's what makes me scared to get a margin account

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I use my margin account purely for getting around the fund settlement waiting period. Then I don't have to be worried about losing too much.

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Yeah I'm never going to use a margin account. Like for me the stock market can never be a source of expense because I only put what I can afford to put in there.

I try to be aggressive with "what I can afford" to effectively get some margin in a sense but it's too scary to be swinging around thousands of dollars and suddenly being charged interest on effectively nothing if I pick wrong. Selling in the red sucks but at least you see the loss and can deal with it.

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I used margin in my latest round of AAL buying.

Wish me luck.

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Oh no

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I only use margin account to not wait for funds to settle. Id never use money I dont have though.

Chris you must have some ridiculous amount of AAL shares by now. Oh AAL earnings is tomorrow morning isn't it? Good luck!

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Is 5178 shares ridiculous

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Honestly at this point AAL should upgrade you to first class every flight.

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Funny enough I was looking at flights to vegas next year when we are moving and the best deals are american airlines

<_<

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Tesla turned a profit. Above $1700 we go.

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red sox 777 posted...

Saw an ad for a margin interest rate below 1% from IBKR and am considering opening a margin account. The appealing thing about it is you can pyramid (when your stocks go up, you can borrow more and use the funds to buy more shares). In a rising market with this strategy you can make a lot more than 2x what you make without margin. For example:

Suppose you bought 10 shares of Tesla at 200, using $1000 of your own money and $1000 from the broker. The stock rises to $400, and you now have 10 shares of Tesla worth $4000 and owe $1000 to your broker. You can now borrow an additional $2000. Now you use that to buy 5 more shares of Tesla. Now you hold 15 shares of Tesla, worth $6000, and you owe your broker $3000.

Then Tesla doubles again to $800. Now you have 15 shares of Tesla worth $12,000 and owe your broker $3,000. This entitles you to borrow another $6000, which you again use to buy 7.5 more shares of Tesla. Now you have 22.5 shares of Tesla worth $18,000 and you owe your broker $9000.

Finally Tesla doubles to $1600. Now you have 22.5 shares of Tesla worth $36,000 and you owe your broker $9,000, leaving you with equity of $27,000, and you would have 27x your original capital. Notice how if you didn't use margin you would have 8x and if you used margin but didn't pyramid you would have 15x.

The scary thing about it is that if you use a max pyramid strategy, one -50% fall will wipe you out, even if you previously made absurd amounts of money, as long as you keep going with the pyramiding strategy.

So to continue the example, suppose you borrow an additional $18,000 and buy another 11.25 shares of Tesla at $1600. Now you have 33.75 shares worth $54,000 and owe your broker $27,000. Now suppose Tesla falls back to $800. You get a margin call and are completely wiped out! Whereas with no margin you would still have 4x your original capital, and with only one use of margin with no pyramiding you'd still have 7x your original capital.

So yeah, pyramiding is lucrative but super risky and if you keep repushing the leverage no amount of success will protect you from future risk.

Seems dumb to me because not very often are companies going to just sit there and double and double over and over. A lot of you guys got in at an extreme low and rode the rise to a lot of money, but now I am seeing some of those who rode that wave starting to lament some losses now.

A good gambler knows when to quit.

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LVS reports a 97% revenue drop in Q2. Wow! And they're diversified between 3 markets (Vegas, Macau, Singapore). Looks like all 3 of them got wrecked.

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TSLA rising in After Hours while Microsoft dropping
O Lord, how long shall the wicked triumph?
Seriously this is stupid. I refuse to take part in Tesla celebrations. I was making a smart investment in Microsoft and avoided the meme that is Tesla and look who won
The stock market is fucking unfair

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Nanis23 posted...

TSLA rising in After Hours while Microsoft dropping
O Lord, how long shall the wicked triumph?
Seriously this is stupid. I refuse to take part in Tesla celebrations. I was making a smart investment in Microsoft and avoided the meme that is Tesla and look who won
The stock market is fucking unfair

You know the proverb. "The market can stay irrational longer than you can stay solvent."

In other words don't ever try to short a bubble stock like TSLA or GNUS. The bubble will eventually burst but if you short it you'll probably lose your house first.

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TSLA is the easy money that were all avoiding for some reason

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red sox 777 posted...

You know the proverb. "The market can stay irrational longer than you can stay solvent."

In other words don't ever try to short a bubble stock like TSLA or GNUS. The bubble will eventually burst but if you short it you'll probably lose your house first.

I don't short stocks. Ever. at best I buy some SQQQ or PSQ. But never taking the chance of losing plenty of money
And I am annoyed mostly because of Musk tweet a few weeks ago when he called the stock "too high"
Plenty of people lost money due to panic selling because of that tweet. This is not funny. You just don't do something like that.
And no, I did not hold Tesla stocks at that time. And it still annoyed the hell out of me and I am not forgiving him.

Sadly, I should have realized it wasn't a manipulation to kill the stock, but rather a manipulation to make people buy it cheaper before a massive surge

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neonreaper posted...

TSLA is the easy money that were all avoiding for some reason

I have had my own experience with bubbles stocks
I always buy at the top and suffer heavy losses

But hey, I am a swing trader usually, not a day trader and I am not getting near penny stocks and the likes unlike you guys. TSLA is much less scary than whatever people here are investing at (NKLA, INO, NIO, IBIO, LK etc)

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I agree that there is very little in terms of good advice in this topic


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If anyone is confused, the ticker symbol ERI is now CZR. If you owned a share of ERI, you now have a share of CZR. If you had a pre-merger share of CZR, you should now have some amount of cash and a fractional share of the new CZR (which is the old ERI). It's weird they kept the CZR symbol even though ERI is the surviving company, but I think it's because CZR is a bigger and more well known company.

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Nanis23 posted...

I don't short stocks. Ever. at best I buy some SQQQ or PSQ. But never taking the chance of losing plenty of money
And I am annoyed mostly because of Musk tweet a few weeks ago when he called the stock "too high"
Plenty of people lost money due to panic selling because of that tweet. This is not funny. You just don't do something like that.
And no, I did not hold Tesla stocks at that time. And it still annoyed the hell out of me and I am not forgiving him.

Sadly, I should have realized it wasn't a manipulation to kill the stock, but rather a manipulation to make people buy it cheaper before a massive surge

Honestly.....people who are inclined to panic sell stocks are probably going to lose money no matter what. If you find that you cannot resist the urge to panic sell or the urge to buy just because it's in the middle of a moonshot up you're probably going to lose money. Best thing if your decisionmaking is governed by fear and greed is to let someone else manage your money.

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Nanis23 posted...

penny stocks and the likes unlike you guys.

rude, ive never hawked penny shit tbqh!!!!! go amzn

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neonreaper posted...

I agree that there is very little in terms of good advice in this topic

true so this means you owe me a nice steak dinner at Strega rich boy when I go broke

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LK, NIO, INO, and NKLA are not penny stocks. They all have a market cap of multiple billions or had it in the recent past. Also no one in this topic is a day trader.

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red sox 777 posted...

Saw an ad for a margin interest rate below 1% from IBKR and am considering opening a margin account. The appealing thing about it is you can pyramid (when your stocks go up, you can borrow more and use the funds to buy more shares). In a rising market with this strategy you can make a lot more than 2x what you make without margin.

Oh yeah, this is exactly what I've been doing with AVCT. Well, not quite to the extremes of your Tesla example, but I have used the gains to buy a modest amount of additional shares along the way.

The key for me in minimizing risk is just to set stop losses for the amount of shares I buy. I bought another 2300 AVCT shares at 3.80, and I set a stop loss slightly above it to even account for margin interest (though I haven't actually calculated my exact margin interest, but the interest is never much). Of course doing this can wipe away shares if there's a dip and sudden surge, but I'm pretty sure as long as I'm selling ahead of where I bought those additional shares I'd immediately be granted the margin back to add. (At least, I really hope this is the case, because I'm still down in this stock overall, but I think if your sell share count matches your buy share count, it will grant you the margin back immediately since for those specific shares it's a winning trade.) So yeah, I'm hoping that if there is a dip, the dip would continue and I could just get even cheaper shares for a stock I'm long on.

I've been really lucky to be buying right before breakouts and the support has always stayed decently ahead of where I bought more shares. Soon as the breakout happens, boom stop limit set and don't have to worry much about it prematurely triggering.

Hopefully it won't hit tomorrow since it's nearing closer to it. Honestly I wish I had sold those additional shares today when it hit 4.75 and bought back in now, but I didn't want to chance losing them. I may very well do that tomorrow though. I think the stock has attracted too many day traders and not enough investors now and it might remain flat with daily breakouts and dips back for a bit before it hopefully reaches the next inevitable leg up closer to ER. That would be perfectly fine with me; just flip my extra shares for gains and keep my baseline 5000 shares intact! Then if the stock loses steam before August ER hype kicks fully in I'll already have made enough money to not worry about holding bags like last time.

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good advice:
buy blue chip stocks at discount prices
idle accounts tend to beat active accounts
if you feel FOMO don't do anything

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Thank god I got out when I did. I am waiting for a good time to get back in.

Moonroof posted...

Thank god I got out when I did. I am waiting for a good time to get back in.

literally sell low buy high

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Thats been my MO lately.

Huh, Twitter stock is pretty cheap. I need to pour in some research. Looking for some value stocks like APPL and AMZN with more upside potential to take winnings to eventually.

Of course I'll probably just regret not buying Tesla again when it somehow hits 3,000 for no reason.

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neonreaper posted...

good advice:
buy blue chip stocks at discount prices
idle accounts tend to beat active accounts
if you feel FOMO don't do anything

I made tens of thousands on gnus and this is now my strategy <_<

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What blue chip stock should I put $90k into and when

StartTheMachine posted...

I'm pretty sure as long as I'm selling ahead of where I bought those additional shares I'd immediately be granted the margin back to add. (At least, I really hope this is the case, because I'm still down in this stock overall, but I think if your sell share count matches your buy share count, it will grant you the margin back immediately since for those specific shares it's a winning trade.)

Happy to report this is exactly the case. As long as your buy and sell orders match share amount, it doesn't matter where your gain/loss is in a stock overall. Stop limit hit this morning on 1,000 shares, which still made me profit, and gave me a bunch of margin to spend again.

So naturally I'm trying to buy AVCT warrants! They CAN be sold just like common stock. But my broker is having some serious trouble filling the order. So far only 200 filled. Hmmm, I guess they're just not available... fair enough. The amount of money that can be made off these warrants is insane. Seems there's way more potential gains in buying and selling the warrants themselves and not exercising them, even if exercising them became extremely profitable.

E: Actually, even when the stock was trading over $10 pre-Covid the warrants remained well under a dollar. So never mind. Would still take the guaranteed profits if the warrants double in price and hit their peak again, but potentially more upside holding them super long term.

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Alternatively the ask price on the warrants may have just gone up as I placed the order and Ameritrade's flash updating was slow. How disappointing. They were so cheap!

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Moonroof posted...

What blue chip stock should I put $90k into and when

If I had 90k to invest...

65k into VOO
find 10 stock that I like and put 2 grand into each. like NEWR, A, CLX, AAPL, MSFT, ABBV, PFE, XOM, BK, etc.

pretty much leave all of that alone (maybe sell XOM because I think clean energy is a 'concern')

Then the final 5k into growth or meme or whatever. Don't FOMO stuff - if people made money on GNUS the day before, don't buy GNUS today. Buy some TSLA, if it bursts, oh well. it's a small % of your money just used for growth and for keeping you busy. It was fun to say "yeah I invested in MRNA cha-ching!" even if it wasn't very much money.

I'm honestly just "neonreaper" on gamefaqs.com. for all you know I haven't invested in a single thing.

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Moonroof posted...

What blue chip stock should I put $90k into and when

Don't put it all into one stock and do your own research so you have enough confidence to know when to sell.

Actually Moonroof, I think you were doing well with smaller companies- it's the bigger ones you were losing money on. Mainly (only) Amazon and AAL. If you've been losing money on Amazon it means something is wrong on the timing strategy, not the stock selection. So I'd suggest: don't FOMO. If you feel the urge to do it just don't. Or buy a different stock so you don't have tens of thousands in cash begging to be invested.