Hot stock tips
- Thread starter Rain City
- Start date
cracked_ribs
Well-Known Member
That's a really interesting point - I hadn't thought about the market consciously responding to the massive injections of capital that have been happening, and are continuing to happen for who knows how long, by choosing to price in the consequences of those injections, but of course that has to happen.
Getting into cash means losing maybe 2% a year, depending on what numbers you like for inflation...personally I think it's closer to 3% at the moment but maybe I'm being pessimistic.
At any rate, it's a tough call...I don't like being too heavy in cash because it's losing money just sitting there, and I'm happier with the market risk of being in a dividend stock on my "cash reserve" fund. That's how I'm using SJR right now. But if there's a real crash I'll take a beating that a person in actual cash, won't. I had about 25% cash in March last year and made a lot of money that way, but it was more luck than anything: I had just transferred a bunch of money from one account to another, and liquidated the securities in one account to do the transfer. I was lucky and had a good pile of cash when things started to get sketchy, and so I bought a bunch of AMZN at ~$1980.
If I'd had to liquidate my SJR to get that cash, I wouldn't have made the money I made. I guess the observation is that in volatile times, dry powder is good to have, so how much you want is going to hinge on how much volatility you expect.
I personally think we're looking at a little less volatilty going forward - the Americans are doing pretty well at vaccinating people, and it's their market that runs the world still. Once things start to really open back up I think they'll go on a tear and there'll be real money flowing for a while, and indices will soar.
Not like I have a crystal ball or anything, though.
wishiniwasfishin1
Well-Known Member
These guys are hilarious
23Hourston
Well-Known Member
It’s world wide.. when people are buying just one share to hold it’s not about the money it’s about screwing the man. This is a movement and people want to be apart if it against the establishment. And she’s going full tilt. This will never happen again. Get in on the Monday dip and hold . This is going down in the history books
fish brain
Crew Member
It's part of the GME play as are NOK, BB and BBY. I had shares in NOK before this started, and bought some AMC on Wednesday. I thought about buying GME, but I already have all the exposure to this that I am comfortable with. I might sell my AMC and buy GME, we will see. I dont have a great track record with trying to time things, so I am just as likely to let it ride.
Breakin"even
Crew Member
New mission, everyone buy one share of GME and never sell.
fish brain
Crew Member
And one BitcoinNew mission, everyone buy one share of GME and never sell.
Unreel
Well-Known Member
Heres my take on the gamestop thing. This will come crashing down at some point, its inevitable, just depends when. And when it does there will be thousands of people if not millions, mainly very young first time gamblers, yes gamblers, this isnt investing, its not trading, its gambling, that lose everything. Ive seen so many posts on reddit and stocktwits from young kids saying they are putting everything into buying one or 2 shares of gme. Others ive seen taking their entire paychecks and buying no matter the price. People saying their rent can wait, there food can wait, can i buy with my credit card etc. So many posts asking how they buy game shares, asking what shares are, where to buy a share etc. Kids need to be taught about finance and the markets in school, which they aren't, they dont need to learn like this, its pure gambling, and the longer you play the more chance you have to lose it all. Some of these people have made tons of money and cashed out, good on them, no one ever got hurt taking a profit. This all started by this group on reddit seeing game as a massive short squeeze opportunity and they could make tons of money and destroy the main short holder. Done, they won, you shot the price up 1000% in a week and the major short folded. Now the goal posts move again, now its about this, its about that, we need to double, triple the price from here etc. Endless false info is now being pushed on reddit and other places trying to convince these people they will hit the jackpot friday, oh now its monday, maybe tuesday, now weds etc etc. Saying set your sell limit to $1000 and monday they will pay you $1000 for your shares, saying shorts have to cover on monday, no now tuesday, now thursday and on and on. Those short positions have no cover by date, they can hold for months and years as long as they can pay the interest. This whole thing is about buy and hold right, well that only works if you continually bring in new buyers, and at some point the buyers will dry up and the selling will take over. I watched a thing on CNN last night about a guy who put $4500 into gme and options about a year ago, his account is now worth over a million dollars. This is a 30 year old that lives below the poverty line. Hes a millionaire now, but he hasn't sold any, I couldnt believe it. Hit the sell button and your a millionaire, but no, he wants to make more and see how much more he can make. Maybe im the dumb one and it will double again, or triple, but my god greed is not a good thing and will hurt many many people here. Ive watched people in the casino go up $5000 off $100 on blackjack and not know when to walk away, then they lose it all and put more money down. And for those that say oh they know what they are getting into and prepared to lose it all? Bs, most have never lost any money in the market let alone every bit of savings they have. Ive been down 60% on my portfolio before and also taken big loses financially in life, its a horrible feeling and don't wish it on anyone.
wildmanyeah
Crew Member
Unreel I don’t no how much you have paid attention to the chatter about bitcoin or what was going on with pot stock in 2019 but the chatter really Is not all that different.
The bag holder comments, the back and forth really not all that different.
I wouldn’t worry to much about it
The bag holder comments, the back and forth really not all that different.
I wouldn’t worry to much about it
23Hourston
Well-Known Member
This is different very very different
wildmanyeah
Crew Member
Yeah it started off different, fascinating story but now it’s the typical hysteria about holding for life and all that crap. Like a pyramid sceam trying to get every last person to throw a dollar at it.
Unreel
Well-Known Member
Lets think outside the box for a second. Who stands to gain from this the most, a bunch of retail traders, some will, or the funds that hold big stakes in companies like gamestop. Who are the biggest holders of gme? Blackrock, Fidelity and Vanguard. Three of the biggest in the world. Blackrocks made almost 3 billion. Worlds biggest fund made 3 billion. And everyone is saying were screwing the hedge funds and this is a big money transfer to the little guy, nope big money is just making bigger money off this and at the end who will be holding the bag? Retail.
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cracked_ribs
Well-Known Member
That's the best possible outcome though - I love that a couple of hedge funds got smoked in that deal and that it put a bunch of big money guys on notice: you can get wrecked. You're not the only people who can collude to bring down a business for money.
But in general, being anti-giant investment fund would be ridiculous. We want those funds to make huge money, because if they don't, think about what happens to our taxes when government-guaranteed public employee pensions have to get paid out. Those are the biggest beneficiaries of hedge funds, not the wall street banker types.
So big hedge funds making money is good. But big hedge funds that make money, but are afraid of the power that regular people wield, is even better. You never want one side to hold all the power, but you want to be able to reap the benefits of hedge funds. They aren't just about putting wall street guys in houses next to the Obamas in Martha's Vineyard, they make average people much wealthier too.
But in general, being anti-giant investment fund would be ridiculous. We want those funds to make huge money, because if they don't, think about what happens to our taxes when government-guaranteed public employee pensions have to get paid out. Those are the biggest beneficiaries of hedge funds, not the wall street banker types.
So big hedge funds making money is good. But big hedge funds that make money, but are afraid of the power that regular people wield, is even better. You never want one side to hold all the power, but you want to be able to reap the benefits of hedge funds. They aren't just about putting wall street guys in houses next to the Obamas in Martha's Vineyard, they make average people much wealthier too.
Deewar25
Well-Known Member
sorry for getting at this late...i'm catching up - traded since 1999, traded with Questrade for most of that. By for the best canadian option. All banks are dinosaurs, the new ones like wealthsimple that offer no fee, well, just research Robinhood to see how well that is going. Interactive Brokers is a good option too for serious traders but its american and I think there may be weird tax filing required with it so I never got around to it.
Deewar25
Well-Known Member
note if you 'trade' it actively and make 'too much', the tax man will come after you. From what I was told over 300k is getting into that area that you will show up on their radar (this was not the point of the TFSA so they are starting to ding people). If you did that from long term swings/low frequency trades, no prob, but if you are actively daytrading, expect a letter one of these years.
Deewar25
Well-Known Member
you laugh, but it went 5000%!
Deewar25
Well-Known Member
uhm, are you kidding? Spacs have been the focus for almost a year now - HUGE gainers there and they have been way better investments than IPO's because we get to pay the same price ($10) as 'the guy'. IPOs are all gapping 100% and making it hard to actually make anything at retail level. Many spacs though have been pulling 200-500% all year long. Now the hot 'buzz' is CCIV - high odds its Lucid which is a direct competitor to Tsla - if/once confirmed, it will likely walk up into the 100's. Of course its still at 'rumor' stage though so risk is still on table.
Howzer
Active Member
1 bitcoin.... that'll cost you $34k.
Breakin"even
Crew Member
I will have to look closer at Spacs.
Deewar25
Well-Known Member
examples of hot ones from 2020 DKNG QS DNMR LAZR OPEN TTCF XL VLDR HYLN DMTK (i made so far up to 9000% on warrants), NKLA made about 75k on options (before they got exposed mind you). Before these reddit kids became a thing, traders world was spacs.
