Nice to see some broadening in the market today. Last thing you want is the index to keep moving off of 5-10 large companies. More than 50% of my 52 holdings are up between 1% and 7% today…..while the S&P is flat
OT: Stock and Investment Talk
- Thread starter RU-05
- Start date
The lesson to be learned is its very easy to buy but hard to know when to sell.
WOLF isn't really a stock for me (not profitable) but out of curiosity I took a look. It's broken a LT moving average definitively and looks like lower highs and lower lows. There was an attempted retest and it was rejected as well. It took about 2 years to break back above. It's been blow the 200MMA about 5 months now.
For me, I won't say very easy but I'll say easier because I'll look at charts and things to find potential buy points. I'll do that for selling as well but when a stock is breaking new ground to ATHs etc..that's a little more murky for me of when to sell.
Like in the last few years, I accumulated (painfully) many of the big tech stock when they were tanking and charts helped me figure out points to buy and somewhat similar for points to take a little profit when they reversed. But now when quite a few are charting new territory and breaking out to ATHs, selling points become murkier for me. Personally, in general when I accumulate a stock (mostly high quality companies not speculative/non profitable ones etc..) I'll essentially forever hold the cheapest acquired shares (assuming they became cheap enough) and add it to whatever cheapest price shares I may have accumulated in years past. That stays as a core position for the most part. The higher priced shares in an accumulation phase are the ones I'll look to sell. But again these are what I consider high quality companies like say MSFT, META, PG, KO, PEP, WMT, JNJ etc...dividend payers (utilities/staples etc..) are all the better too...so I have a comfort level with what I'm holding. I couldn't do that with some of the names that get tossed around in this thread lol...beyond my risk tolerance and comfort level.
Selling is tough, especially when very good companies are pumping. I read somewhere.....paraphase....."everyone talks about buying low and selling high, but most money is made by buying high and selling higher".
That's a good thing to keep in mind. Momentum and sentiment matters a lot (and yes, technicals). Stuff going up has a good chance of going up more. Remember, the market goes up 70-75% of the time.
Yea I’m generally not big momentum guy when it comes to buying on the upside. It goes against my conservative nature.
I’m more likely to be a strategic knife catcher (suppose you could say a momentum guy to the downside lol) than buying something that’s been on a tear.
My biggest returns come from when a stock or the market in general I suppose are hated. I’ll step into the breach one toe at a time lol.
I always try to catch falling knives and find bottoms or close to them. I normally buy with a very tight stop loss order of 5-8% (depending on the next round number). Sometimes I get stopped out the next day. LOL!. But if it keeps falling so quickly, I assume it will fall a bit more. I keep watching and then try again if I want. I recently did this with SNOW. I originally bought around $180, got stopped at $175. Waited and picked it up at $146, which I still hold today.
I guess this makes sense? :)
Wonderful quarter for Chipotle! Typical quarter for SNAP. Ug, should have thought about puts for SNAP. LOL!
www.cnbc.com
www.cnbc.com
Chipotle earnings crush estimates as restaurant traffic grows 7.4%
Chipotle blew past earnings estimates and topped revenue expectations as it said traffic grew 7.4%.
Snap plunges 30% on revenue miss and light guidance, as company says Middle East war creates 'headwind'
Snap reported weaker-than-expected sales for the fourth quarter and issued a forecast that came in a bit light of Wall Street's expectations.
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Stop loss orders are useful. I do use them occasionally but not all the time. Like I said I stick with high quality names so I usually accumulate (with the help of charts) even when it hurts lol and figure it will find its way back. The financials in the crash was the one time I've been burned with that strategy and so like a Joe Retail would do lol, I don't touch them anymore outside of things like V, MA etc..which have no credit risk.
Personally, I think they can be really useful with higher beta names because of the volatility, although you may use a little wider berth also because of the volatility or it could trigger and unwanted sale. But anyways, limiting risk in those kind of names is a good thing. Say you had 5 trades. You know you could lose some money on say 4 trades but if you've limited the downside, that 5th one can be the one that carries the day for everything because you've limited risk on the other 4. A bunch of small losses can be far outweighed by 1 big gain.
Charts are useful here too. You can see support levels and trendlines and if stock breaks with whatever margin of safety you choose, you get stopped out.
Trailing stops are good too not just for limiting downside risk but for helping to maximizing gains. Actually, it's probably not a bad thing for what I mentioned about stocks breaking into a new territory and ATHs and the murkiness of selling. Your stop will just tag along for the ride and keep moving behind it and if there's a pullback or trend change you'll be stopped out but have gone along for the ride.
ESPN, Fox and Warner Bros. Discovery to launch joint sports streaming platform this year
Disney, Fox and Warner Bros. Discovery plan to launch the service as media companies move away from traditional cable viewing of sports games.
This type of trading will generate wash sales and have tax implications.
Excellent point about trailing stops. Works really well for these FOMO and meme type of stocks.
Yes it does. However, Fidelity's tax info automatically uploads to TurboTax, so whatever. LOL! But I do keep track of tax info as the year goes on.
Nice day for PLTR! Hope it sticks above $20.
Well, they certainly don't know how to scale EVs, but I guess only one company has figured that out so far.
Do hybrids count as EVs? If yes, then two companies! TL just sent out his daily video breaking down the earnings season. Pretty damn good with strong revisions upwards. The financials got smacked a bit, but only due to a FDIC special assessment (not sure what that is about). Still thinking we get to 5,000 then experience a modest and temporary correction.
I thought I knew the wash sale rule but recently ran into a situation that completely puzzles me - even Fidelity rep is confused. Basically went like this: bought 100 shares…another 100…another 100 all in one week. Two weeks later sold 100…sold 100…sold 100. Total loss no gain in any transaction. According to my YTD tax calculator it’s a wash sale. I was always under the impression that if you sell at a loss and then buy it back within 30 days you are subject to wash sale rule. But here I bought it all…then sold it all (no mixing of buy/sell transactions). Yet I’m being told it’s still subject to it which makes no sense to me given the intent of the rule.
I thought a wash sale was only an issue UNTIL you sell the entire position. Then it becomes only about losses, regardless of timing of purchases.
Well I did sell the entire position. But it was three buys followed by three sales. I didn’t mix buys/sales. Now if I were to re-buy tomorrow then yes I would def get hit with it. But I bought 3 times then sold 3 times. Doesn’t make sense to me.
Okay, I think since you bought and sold within a 30 day period, you have to wait 30 days for the wash sale to "clear out". There is a 61-day rule about buying and selling (Google it). My impression is that if you don't rebuy within another 30 days, the disallowed wash sale will convert to a normal loss.
I think. LOL!
Wash sale applies to purchases made 30 days BEFORE or AFTER the sale. It all depends on when you bought your tranches, at what price you bought them and how you sold them (FIFO, etc). You may have to look into at all those factors closely.
This is what I originally thought…not looking that way…I guess I’ll see.
Yeah it’s the “before” that I can’t seem to wrap my head around because I was always under the impression that as long as I don’t re-buy within 30 days after the sale/loss I’m in the clear. So if I buy a stock on Thursday and sell on Friday that’s wash sale? Isn’t that just normal trading?
We need to see it hold above $20 for the next few days/weeks. Between META, NVDA, PLTR this has been an incredible start to the year for 3 of my top 10 holdings. This maybe a better year than next year. Next up would be call options in YINN. I have lots and lots of runway to take losses. Time to go big.
That's generally true, but the before part is needed in the wash sale argument to prevent folks from buying a similar security before selling another one for a loss. Think about someone looking to take advantage of the tax system by purchasing VOO and then a few days later selling SPDR for a loss.
I hear you but from a tax perspective when I buy same stock three times in a row then sell same stock three times in a row closing out the position, all of which results in a loss, why shouldn’t I be able to use that for tax loss harvesting. I understand the wash scenario where stock drops from $10 to $5 so I sell and book a loss. Then within 30 days I buy it back when it drops to $2 and ride it back up.
Are you ready to roll with YINN? I jumped in last month and got stopped out (just shares). Been eyeing YINN, KWEB, and FXI for a call option play. Is Xi finally getting on board with juicing the market?
Hedge fund billionaire Bill Ackman to launch a NYSE-listed fund for regular investors
Pershing Square's Ackman will offer a new investment vehicle listed on the New York Stock Exchange, aiming to leverage his following among retail investors.
Guess the smart money is getting too smart.Hedge fund billionaire Bill Ackman to launch a NYSE-listed fund for regular investors
Pershing Square's Ackman will offer a new investment vehicle listed on the New York Stock Exchange, aiming to leverage his following among retail investors.
Disney beats earnings estimates, hikes guidance as it slashes streaming losses
Disney reported earnings after the bell. Here are the results.
Arm shares soar as much as 41% after chip designer gives strong forecast, says AI is boosting sales
Arm's intellectual property is in nearly every smartphone, many PCs, and thousands of miscellaneous other chips.
I'm not that familiar with closed-ended funds. But I know someone who is!Hedge fund billionaire Bill Ackman to launch a NYSE-listed fund for regular investors
Pershing Square's Ackman will offer a new investment vehicle listed on the New York Stock Exchange, aiming to leverage his following among retail investors.
@ScarletNut - any thoughts on this?
Long workday! I guess we missed 5,000 by a whisker.
Holy crap, that's crazy. Guidance much have been NVDA good!Arm shares soar as much as 41% after chip designer gives strong forecast, says AI is boosting sales
Arm's intellectual property is in nearly every smartphone, many PCs, and thousands of miscellaneous other chips.
My DIS trade is looking great, but I'm kicking myself that I didn't stick with leap calls.Disney beats earnings estimates, hikes guidance as it slashes streaming losses
Disney reported earnings after the bell. Here are the results.
Too soon for an opinion on his CEF. 2% fee is pretty high. A few factors to look at is what is the goal of the fund. Lots of CEF's are interest sensitive (real estate, mortgage backed securities, etc). You don't want the fund to be highly leveraged (30% is about the max that I would consider), and you need a track record of distributions that are mostly dividends and interest and not artificially high with ROC which will reduce your NAV and basically be returning your investment instead of real income. You also want to see if its primarily income producing or looking for capital appreciation (that's a personal choice, I look for income with principal preservation at this point in my life). To get almost all the info you want on a particular CEF, bookmark https://www.cefconnect.com/.
