Dow Down 666 Points

stocks

#541

Yes. that’s right. And that’s why I enjoy the stock game. I didn’t quite play it right–should’ve sold AMZN at 1390, but I’ll take this.

Big question is where to jump back in with AMZN and QCOM (if at all). Will AMZN drop below 1200?

Even after taxes, I make a profit. that’s what this is all about. Only have to cover the commissions.


#542

Don’t jinx Terri, market is re-bouncing hard, AMZN is trading below her selling price, so is good.
Be nice to women, only curse men :slight_smile:
NVDA refuses to drop in price, re-bouncing very hard.


#543

Crazy volatility in the market. Any of you day trading to make money from this volatility?


#544

Yes… will be nice to her… :rofl:


#545

Bouncing does not mean a change in trend


#546

For last two years, I have been buying stocks when there was a dip, right from BREXIT…etc, but this time I sold entire stock portfolio acting opposite way.

My Reason/guess work for my reverse thinking:

Until Oct 2017, QE money was flowing freely, but FED starting rewinding QE money. This has reduced money flow for MBS and other funding sources that resulted all rates including short term, long term and mortgages. This was what happened in the last two months, directly affects all credit based companies.

Market making a big surprises such as 666, 1000+ are clear indications that Hedge Funds, Mutual funds (and big banks) are shedding away peak reached products.

Mr.Market always makes a surprise move - suddenly - when no one expects it.

Initially, I delayed 2 days selling as I wanted to complete research before calling a sale. This two days dropped my 10% YTD profit to 7%, but I am still happy that I can pay taxes on my profit and still be positive.

I was hesitating to sell my dividend payers, appreciated 70% or above, but finally made a call.

Today, I expected market be positive, but it went down and came back as positive now. I am also confident that i can get back once all the volatility is settled.

I am expecting a major show down in stocks.


#547

好男不跟女斗


#548

Every second, I regret that I didn’t follow your step immediately. By the time, I decide to unwind sCap, it already down by so much… so no action for now… My worry is sCap are all small caps, not like AAPL. Revenue of sCap might decline drastically. AAPL at least have a big cash hoard that… earn interest which would earn more interest if rate goes up… drum roll… many didn’t realize that. In addition, Apple is now paying 10% less tax. More drum roll… also borrow cheap debt, earn higher interest… more and more drum roll… the lady from Black Rock rocks.


#549

It is really hard to decide, but I am used to take such hard decision once a year. That is why I am not a logn term holder like you or wuqijin. Everyone has different comfort and different way of handling.

For your AAPL, it is done deal life term holding.

During the middle I noticed some of your picks are options calls/puts and those are short term and will hit hard.

Appx end of Dec 2017, I moved all my money to profit margin > 10% companies even in SCAPS leaving IRBT, SHOP, TSLA stocks. Rate hikes will hurt bottom lines, but profitable ones will survive than loss making.

The big question is “What if I am proved wrong next week?” I am ready to absorb such as I need to pay tax in 2019 for all my short term gains. It depends on case to case.


#550

Actually less impact than holding shares. For example, holding 1000 shares in UBNT cost $70k, drop 10% becomes lose $7k. If hold LEAPS, say $18k to leverage 1000 shares, only lose $2k.

Long call = Long underlying + Long puts (this mitigate the drop :slight_smile: )

That is, instead of holding 1000 shares, I hold 10 LEAPS calls. This is called call replacement, is to reduce risk in case of drastic decline like now. Only hit hard, if I buy $70k worth of LEAPS calls.


#551

To be clear, I didn’t sell in a panic, I’m selling to take advantage of what looks like a correction in the market. I agree you shouldn’t sell in a panic, but when the “experts” say expect things to fall to 22000, I expect people will make it happen when they panic.

But, if I can make even a teensy contribution to what looks like panic, then GREAT. Stock falls = RE falls, and I’ll make way more money if RE falls and I can get in on a dip. Another reason to sell AMZN–a good portion of my stock was there, and I might need it for a down payment.

I have no regrets. It is how I think the game can be played and won. Occasionally you guess wrong and lose. That’s part of playing the game.

Not quite day-trading, but my version of it. And frankly, I’m playing with small enough amounts, it’s not really something to angst over…


#552

Market has changed, I would sell now instead of later.


#553

But you have nothing to sell… :smile:


#554

OK, who else liquidated to prepare for the mother-of-all Black Monday??? :scream: :scream: :scream:


#555

I haven’t yet. Instead have been making small buys all week. Wondering if that’s a bad move given the gloom and doom prediction from JIL


#556

It’s coming back!!!


#557

So your bet is this dip will not be like Feb 2016!


#558

Is there anything which is creating recessionary conditions in the economy in the next year? I do not think so. Hence, bear market declines(definition 20%+ decline) in my mind is least likely.


#559

Ha! I just checked my trade notices. I actually got $1373 for Amazon :slight_smile:

Nooooooo!!! Too soon.


#560

You can see the fear and greed in these stock and bitcoin threads the most.

WQJ made an outlandish claim about Bitcoin and he ended up being right more or less.