That sucks. How long ago was it at $1?I canceled a buy for AMD at a buck each the day before it spiked. It's up to 94 now.
Stocks/Investing
- Thread starter AssBurns
- Start date
PNW Pineapple
Slim-Whitey Official Fact Checker
Damn it I missed FSLR at 70 a share a few months ago. I just checked my watch list and it’s at 105+
I dunno, year or two. I've got a few shares at 4 bucks that I picked up long term 10 or so years ago so it's doing pretty well for me. Just need to decide when to cash out.
That's the hardest part is knowing when to cash out. Pretty much everything I own is to hold for long term gains, but I don't have much of a clue as to when I should put a trailing limit stop on my holdings.
PNW Pineapple
Slim-Whitey Official Fact Checker
That’s the big problem. Forecasting can be expensive.
Yep. AMD is looking good long term. Hasn't hit 100 yet, but it should. If it starts to dip I'll get out. It's all profit at this point.
I'm going to say this twice because it's that important.
Do not use trailing stops on long term holds.
Do not use trailing stops on long term holds.
The reason is something called getting stopped out. The timing of this couldn't be better because it happened to a lot of people yesterday. It also provide me with the chance to make a very fast buck. I'll explain.
I got a call yesterday from a buddy at about 11:45 am. He let me know there was armed protesters that where in the Capitol Building. A quick look at my trading accounts showed that it was affecting them in a big way. I finished up what I was doing and went home. It's not every day you can watch this type of shit on CNN. In fact it hasn't happened in over 200 years.
The real reason I rushed home was so I could watch the last 45 minutes of the market. I trade NVDA a lot. I know it very well. Because of that I knew that it was ready to break out from it's $520 base. It tried Monday and Tuesday and was holding support in the $525 range. I pulled up a chart and watched. It went down to about $520 and held that until about 12:45. Then it plummeted. Down through $515. Down through $510. The reason is that stops where triggered and the market got flooded with NVDA shares. At 12:58 it hit $205 and I put in an order for 9 call options.
This was a calculated risk on my part. If that kept crashing today I would have lost a lot of cash. I was also watching live feeds from the Capitol building area. I was damn sure that shit was going to be brought under control by dark. It was a real event but it was also blown way out if proportion in typical media style. I took the gamble with a fairly confident feeling. The Dems won the Senate. Biden was coming and so was more stimulus. The market was going to shake this off and quickly.
I went to bed and watched futures rise pretty good. I got up and they where still up. By market open the all major indices where up at least a half percent. By close the they where up even more. Yep, the market shook it off. Everyone who got stopped out, if they had waited a day, would have been back to exactly, or more, then when the crash started. Those NVDA options made me a 58% return in 8 hours. lol
Good move. I could not believe how the market reacted so quickly. I sold my GUSH shares yesterday and did good but if I had sold it today it would have been 9k more. Who would have known.
Good to know! I'm still learning all this stuff, so I'm always open for some advice. Pretty wild how the market reacted so quickly. Sounds like trailing stop is a good short term thing, but not long term. I'll have to do some more digging and learning on this stuff.
Nice job. Profit is profit. Your trading some large chunks if today's move would have swung you 9k. lol
I'm happy to offer up advice and you will always be learning.
First step is to figure out how you want to trade. It seems. right now, your looking for long term. That's a great strategy and one most people use. It's a set it and forget it strategy. It works and will usually get you close to the market average return a year. For the last 20 years the DOW has an average annualized return of 7%. Compound that over x amount of years and you get an idea of where you "should" be on the trade.
Stay away from day trades for now. It's fun but it's also a great way to loose a lot of money very quickly.
Swing trading options is what I tend to do. I hold options for less then a month. I use charts to try and determine when a stock is set to break out. Then I put some money on the line. If you want to try it start looking up things like MACD and Bollinger Bands. Once you get an idea of how to use those and read candle sticks it almost makes you feel like you can "time" the breakout. Here's the thing with breakouts. They can go in either direction. Setting trailing stops here is critical. If I'm wrong and it breaks down instead of up I limit my loss by having a stop in place.
I got MARA and FCEL a couple weeks ago. Huge gains man. Im stoked. Stocks and crypto are treating me good.
FCEL should be a great long term hold. Watch your ass with MARA though. Take a look at it's 5 year chart. If bitcoin falls it will fall hard and fast.
Thanks!
Yeah right now I am just putting money away for long term while I watch and learn. There is so much to learn and easy to lose your ass if you aren't careful. I was talking to my loan partner today about options trading. I'd like to take the time to learn how to do it and understand how to take calculated risks. I'm not someone that likes to gamble, but I am willing to take calculated risks.
I'll look into the MACD and Bollinger Bands. Anywhere in particular to watch/read to learn more about this stuff?
Google and read about it to get a basic idea. It doesn't really matter what source you use. Once you have an idea of them and candlestick charts go to this site:
https://tradingrush.net/
By far the best resource for how to learn chart based trading. That dude deserves a fucking medal for all the testing he does on strategies. What I like about him is it's just fact. No bull shit. He's not selling anything or trying to get you to pay for some "secret" system. He's legit.
Yes. I need to get comfortable with calls so I don’t have to go so grande.
Im pretty convinced bitcoin gonna be around while and grow so ill keep it through the big dips if they come.
Yep. It's really not as complicated as it seems at first. The leverage it gives is truly awesome. You have to be fairly risk tolerant to trade them. With the leverage small price moves equal big premium moves. You can easily loose 5k in a day. Then get 10K back the next day. It's pretty hard to watch sometimes. lol
Good stuff! I like the way he proves strategies and isn't trying to sell you on shit. I subscribed.
Sure. I can take 10k and make some great profit. From my living room. lol