Anyone investing heavily this year??

How much money did you lose/gain this past week?

  • I have been looking at the payout on my wife's life insurance policy...do I still need her?

    Votes: 2 6.7%

  • I guess I will postpone paying off the mortgage for a few more years

    Votes: 19 63.3%

  • I knew this day would come and was shorting the hell outta the market

    Votes: 9 30.0%
  • Total voters
    30
  • Poll closed .
DC_Dude said:
www.marketwatch.com

Diversify? Almost half of Warren Buffett’s Berkshire Hathaway portfolio is now composed of a single stock

Warren Buffett once said that “diversification is protection against ignorance. It makes little sense if you know what you are doing.” The takeaway: Load up...
www.marketwatch.com www.marketwatch.com
Click to expand...

I feel like this is what makes the game so interesting: different strategies based on ones position and resources. Be it DCA, options, or loading up on value stocks. Seems sound to research, re-evaluate and keep an open mind to maximize what you have on hand.
 
Had a little bit of cash on the sideline and bought back into JETS and XSPA since they're both down today. Trying to build a position around those two and lie in the weeds for when the travel sector kicks back in. I was eyeing GNUS but didn't pull the trigger on adding to that. I did buy a few more shares of FDVRF, even though its up...based on future growth.

CLSK up today...
 
Ecgq1ASWsAAlaK9
 
Tito_Jackson said:
Today will be a good day to buy a near in the money option contracts on Facebook and Microsoft and ride the wave until it peaks today. Sell as soon as it starts to decline.

Some money is better than no money.
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I’ve started watching some vids on options and I see how you can amplify the money with a smaller investment. Gonna start paper trading this soon to understand more.

I’m still a bit confused on exactly where the profit is coming from though. When you trade the contract is the profit you receive the value of the stock + increased value + the premium paid by the next buyer? Or is it just the difference in premium x number of contracted shares?
 
sickwidit said:
I’m still a bit confused on exactly where the profit is coming from though. When you trade the contract is the profit you receive the value of the stock + increased value + the premium paid by the next buyer? Or is it just the difference in premium x number of contracted shares?
Click to expand...



4:47 - Basic Call Option Example (With a House)
10:13 - TSLA Call Option Example
15:43 - Do You Have to Exercise an Option to Make a Profit?

I recommend checking the complete video and then start practicing with a paper account opening and closing option positions
The latter was very confusing for me since it differs per trading platform
 
sickwidit said:
I’ve started watching some vids on options and I see how you can amplify the money with a smaller investment. Gonna start paper trading this soon to understand more.

I’m still a bit confused on exactly where the profit is coming from though. When you trade the contract is the profit you receive the value of the stock + increased value + the premium paid by the next buyer? Or is it just the difference in premium x number of contracted shares?
Click to expand...
I started watching options videos yesterday. I believe the guy said you have to hold your contracts (at least) overnight if you don't have $25k in your account.
 
HellBoy said:
I started watching options videos yesterday. I believe the guy said you have to hold your contracts (at least) overnight if you don't have $25k in your account.
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You can sell on the same day if you want. That is considered a day trade. Buy then sell or sell then buy the same stock, this is a day trade. You can only do this 3 times every 5 days if your account is less than 25k.

If you hold it overnight, you avoid this. Most of the time, ots not a big deal. It becomes a problem when something happens overnight or during AH or PM.

Still this is the exception, not the norm.

In my advice thread, I am going to propose a couple of option trades which will be less than $100.00. This will help you understand what is happening and the depreciating nature of options.
 
Tito_Jackson said:
You can sell on the same day if you want. That is considered a day trade. Buy then sell or sell then buy the same stock, this is a day trade. You can only do this 3 times every 5 days if your account is less than 25k.

If you hold it overnight, you avoid this. Most of the time, ots not a big deal. It becomes a problem when something happens overnight or during AH or PM.

Still this is the exception, not the norm.

In my advice thread, I am going to propose a couple of option trades which will be less than $100.00. This will help you understand what is happening and the depreciating nature of options.
Click to expand...

Give me a heads up so I don't miss that example.... thanks in advance

EDIT: Pretty sure this is the thread
 
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Efkie said:


4:47 - Basic Call Option Example (With a House)
10:13 - TSLA Call Option Example
15:43 - Do You Have to Exercise an Option to Make a Profit?

I recommend checking the complete video and then start practicing with a paper account opening and closing option positions
The latter was very confusing for me since it differs per trading platform
Click to expand...

Thanks this helped a lot! Basically the profit for the stock increase is imbedded in the option when you sell it. That’s the part that wasn’t clearly explained in other vids.
 
sickwidit said:
Went shopping today results were mixed will see how these end up playing out this week. Also, copped MU for a quick swing tomorrow.
Click to expand...

Update: My picks are kinda trash right now but all are still within 1 ATR so will see how they fare next week before closing out positions

In Play
BIMI - up about 5%, probably should take profit with my luck but its showing some life up so will hold through next week
IHRT - fake reversal and continued downtrend through support
MU - Oscillating, doing ok, still room for more will see what happens
NOK - Longer play
CHMA - Was testing the RSI Crossover and it went back under
 
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sickwidit said:
Update: My picks are kinda trash right now but all are still within 1 ATR so will see how they fare next week before closing out positions

In Play
BIMI - up about 5%, probably should take profit with my luck but its showing some life up so will hold through next week
IHRT - fake reversal and continued downtrend through support
MU - Oscillating, doing ok, still room for more will see what happens
NOK - Longer play
CHMA - Was testing the RSI Crossover and it went back under
Click to expand...

..I feel you. I finally had a green day with my M1 portfolio, but it's been underwhelming for a few weeks. Besides the itty bitty buys I made yesterday (XSPA, FDVRF, JETS) I'm just tryna hold tight until next week when I make another deposit.

Gonna cram on options trading until then. But right now that's like drinking from a firehouse for me..
 
Madrox said:
..I feel you. I finally had a green day with my M1 portfolio, but it's been underwhelming for a few weeks. Besides the itty bitty buys I made yesterday (XSPA, FDVRF, JETS) I'm just tryna hold tight until next week when I make another deposit.

Gonna cram on options trading until then. But right now that's like drinking from a firehouse for me..
Click to expand...
Yea options seems really interesting but feels like all or nothing kinda plays especially if you are off on your current predictions. Given my streak right now it would be very unwise of me to get into options. So taking it slow, learning as much as I can and will do some paper trading later in the month when I feel like I got a decent grasp. Still everyday I’m learning even from the mistakes and losses.
 
A little something from my studies:

The videos I watch always stress on having a trading strategy, instead of just jumping into a position. Make yourself a spreadsheet that will calculate your gains and losses based on BID PRICE, SELL PRICE, STOP LOSS, STOP LOSS PRICE, SHARES, MONEY SPENT on POSITION. This way you can visually see when you want to jump and and plan to get out.

PdVhl4O.png

*Fictitious example budget for scalping a penny stock.
 
sickwidit said:
Yea options seems really interesting but feels like all or nothing kinda plays especially if you are off on your current predictions. Given my streak right now it would be very unwise of me to get into options. So taking it slow, learning as much as I can and will do some paper trading later in the month when I feel like I got a decent grasp. Still everyday I’m learning even from the mistakes and losses.
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I would advise starting with steady and more stable stocks. Even I tend to shy away from penny type stocks that are pump and dumps. With options, you do need to be more attentive and up-to-date on business news. You watch for mergers, bad news, good news, anything that will affect that particular stock for the next day, days, or weeks.

You can quickly learn to read basic indicators such as rsi or moving averages to determine when or if you shouod enter into a contract.

I mentioned this in another thread, you can realistically average $100 a day starting with a $1500 account. Netting approximately $25,000 per year with no draws.
 
sickwidit said:
Yea options seems really interesting but feels like all or nothing kinda plays especially if you are off on your current predictions. Given my streak right now it would be very unwise of me to get into options. So taking it slow, learning as much as I can and will do some paper trading later in the month when I feel like I got a decent grasp. Still everyday I’m learning even from the mistakes and losses.
Click to expand...

Right and exact. I think it might be easier for me to wrap my head around one aspect of it first instead of learning every different way to trade in that arena... whatever it takes
 
Madrox said:
Right and exact. I think it might be easier for me to wrap my head around one aspect of it first instead of learning every different way to trade in that arena... whatever it takes
Click to expand...
sickwidit said:
Yea options seems really interesting but feels like all or nothing kinda plays especially if you are off on your current predictions. Given my streak right now it would be very unwise of me to get into options. So taking it slow, learning as much as I can and will do some paper trading later in the month when I feel like I got a decent grasp. Still everyday I’m learning even from the mistakes and losses.
Click to expand...
Brothers, take this as an opportunity to learn lesson number one regarding options: Mitigate your losses. You can literally controll how much you lose. I'm not kidding. Say you buy an options contract for $1.00. Since each h contact is for 100 shares the cost to you would be $100.00. Once the purchase is confirm you monitor the progress. You need to establish from the beginning what your loss tolerance is. For me, its 10% - 15%. So, as I am watching, if the contract price drops to .9 or .85, I sell with no hesitation. I do not play the "it might go back up" game. I can always buy on the way back up. Nonetheless, I only loss $10or $15.

You can even do vertical spreads to further reduce you potential for loss. What many new traders do not know is that you can make money when the stock goes down by selling puts.

So, for me and other experienced traders, it does not matter if the stock is doing well or not, we still make money.

You can do it to bro.
 
Tito_Jackson said:
You can even do vertical spreads to further reduce you potential for loss. What many new traders do not know is that you can make money when the stock goes down by selling puts.
Click to expand...

...this is actually a concept that I think I'm beginning to understand.

So say I wanted to buy 100 shares of Acme stock currently trading at $12/ share, but don't want to pay more than $10/ share. Instead of waiting for (or hoping) the price goes down, I can sell a put for a premium where I agree to buy 1 contract (100 shares) at a $10 strike price?

1) if the price falls below $10 and the buyer exercises, I have the obligation to buy the shares at $10 a share and I get to keep the premium. Which is fine because I wanted the shares at discount anyway; or

2) if the contract expires and the price doesn't dip, then I still get to keep the premium.

Is this correct?
 
Tito_Jackson said:
I would advise starting with steady and more stable stocks. Even I tend to shy away from penny type stocks that are pump and dumps.
Click to expand...
That makes sense. The RSI Crossover strategy I am testing this month seems to be more appropriate for more stable stocks. I will reevaluate next week and adjust after taking notes from this last set of trades.
 
Madrox said:
...this is actually a concept that I think I'm beginning to understand.

So say I wanted to buy 100 shares of Acme stock currently trading at $12/ share, but don't want to pay more than $10/ share. Instead of waiting for (or hoping) the price goes down, I can sell a put for a premium where I agree to buy 1 contract (100 shares) at a $10 strike price?

1) if the price falls below $10 and the buyer exercises, I have the obligation to buy the shares at $10 a share and I get to keep the premium. Which is fine because I wanted the shares at discount anyway; or

2) if the contract expires and the price doesn't dip, then I still get to keep the premium.

Is this correct?
Click to expand...
Yep. Except, most of us do not ever exercise the option. When we see the profit, we let it go. For most people, we use options a a vehicle to increase cash on hand and not equity in stock.
 
Over/Under on shares of $W being traded tomorrow:

Float = 47.5M
Avg. volume = 3.4M (3 month avg.)

Over 111.5M -110
Under 111.5M -110

place your bets now!
:popcorn:
 
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