Investing

Sanrith Descartes

Get off my fucking lawn!
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I'll admit I'm guilty of that.

Between the cost per share, and not getting in early, it becomes hard for me personally to buy into things like Amazon

Even tho I know it's likely a great investment
Blazin and I discussed something similar to this recently. I feel i am personally pretty good at examine a company's financials and finding undervalued/oversold companies but I am not that good at figuring out how to add to a good stock once I already own it and it is going up.

Best advice is to do basic technical analysis and look for an entry point on a pullback. I am going to use MSFT as an example since it hasn't had any crazy spikes lately to throw off the averages. If I wanted to add to MSFT, or buy in for the first time, I would look at the following numbers. its 20-day avg price is $207.34, its 50 day average is 197.01 and its got a 40 day level of support at $202.01. it has an average analyst price target of $231.23

Using all this I would look at 15% below the price target at $196.55 (I would like to have an estimated 15% growth potential from entry), the 50 DMA is $197.01, and its got technical support at $202.01. I figure it will dip below the 50 DMA slightly and then bounce as buy algos kick in off the technical so I would look for a price around $196.50 to $197.50 as an opportunity to enter. I actually did this this morning and have an order in to add more at around this price point.


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Sanrith Descartes

Get off my fucking lawn!
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Lame. Should just ban it. Don't give China all that money for something that will undoubtedly be repro'd here. Give them a taste of their own medicine.
Looks like Trump is telling the owners to divest Tik-Tok or it will be banned in the US.
 

Big Phoenix

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Why would you buy that? Just make your own platform. I cant imagine it costs a whole lot of money to develop a similar app and its not like Microsoft doesnt already have massive datacenters to host the content.
 
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Sanrith Descartes

Get off my fucking lawn!
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Why would you buy that? Just make your own platform. I cant imagine it costs a whole lot of money to develop a similar app and its not like Microsoft doesnt already have massive datacenters to host the content.
if I had to guess its because of its massive existing user base. But.... kids have notoriously short attention spans and are always moving to the next shiny new thing. Not sure its a good move, but the stock took off when it was announced. So yay me!
 

Pharazon2

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Yes its undoubtedly the user base, and the fact that Microsoft has no inroads currently on young social media. So they'd be willing to pay more than say Facebook or Google who already have tons of young eyeballs and probably their own similar platforms tied to Youtube and IG / FG. (I don't know exactly, don't pay attention to this garbage.) I'm sure FB and Goog are both just sitting back and hoping it gets banned.
 

TJT

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Sanrith Descartes Sanrith Descartes I've used Etrade for years now and I never thought of switching as Power Etrade is similar enough to Fidelity's offering. However I now realize that you can't fractional buy on Etrade and you made a very poignant point about it.

I have a fidelity account from my 401ks though. I might have to put money there so I can take fractional positions and be more aware of position cost rather than share price.

Another anecdotal story about how I gained my uh perspective on the stonk market:

In my hometown of like 9000 people or so the wealthiest investor (not the wealthiest person overall) was a mailman. Guy was from the WW2 generation so figure he started working in the 50s and retired in the early 80s or something. He never had another job other than being a mailman. He had an interest in stocks despite being from a backwater like our town. So every month he bought a few stocks on a mailman salary. By 1975 the investment firm he worked with opened a branch in our hometown explicitly to cater to his needs. Before that, he had to just call or drive 150 miles to the larger city where he could talk to them in person.

I knew the guy's grandson and his current (the early 2000s) investment manager was also a part-time teacher at my high school. At some point the teacher was explaining his best client and I had heart about the guy from his grandson and my father because it was a small town. I liked that he told my teacher from day one of working for him that if he ever recommended that he sell a stock under any circumstances he'd fire him on the spot lol. Which was really hard for the teacher as he came from Chicago/working at the Merc for like 15 years.

I never learned the true amount but estimates were always that it was high 9 figures.

Not sure why this particular story stuck with me but it did and I applied that consistency strategy from day one. So far it has served me very well.
 
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Jysin

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My only gripe with Power E*Trade is it's abysmal for day trading. Even with the "Quick Trade" window and the "auto send" button ticked, it has a very noticeable couple second lag between order processing and fulfillment. This is partly due to how the free commission trades work. E*Trade (as well as other commission free brokers) don't route you directly to the exchange, but sell your orders to 3rd parties (ie: hedge funds) who actually handle the order / routing / +clearing house details. At least that is my understanding of it.

It's kind of meaningless if you are simply swing trading, or long term investing. But when you are trying to capitalize on the Robin Hood frenzy crowd and playing with momentum trades, those seconds really count. I made 24% in seconds on KODK this week, but it was butt clenching watching Power E*Trade take its sweet ass time.

I am starting to dabble more into day trading and using pure simulators / paper trading for the time being. It is abundantly clear that I will need to use a different brokerage. Likely will pay the fees and commissions to use Lightspeed if my paper trading strategies pan out. Still doing a lot of studying and sims, but when I can consistently hit a solid month of in the green profit weeks, I will switch over to live trading.
 
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Jysin

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I watched this guy live stream two back to back days of nearly $130k in profit (each day). It was like watching Neo plugged into the matrix. The guy is definitely FAR above the average day trader. I do think if anyone is suited to this type of hyper technical analysis / reactive twitch clicking hotkeys, it would be this forum of decades old MMO vets.

 
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karma

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I use ThinkorSwim (TDAmeritrade) (I have a webull account, but havent really used it much and it has a tiny amount of money in it. While throwing google searches at using the platform when I first started I came across a video that explained a few settings that they recommended changing. It removed several "delays" in quotes, and order submission rates. Might be worth looking into on your platform? The ToS platform had these set to something other than 0 as the default.

Ross is fun to watch. I came across a few of his videos when I caught the momentum trading bug when I first started. I started my account with the intent to swing trade a small amount of money while learning more about the market and investing. One morning I happened to be looking at a ticker that had a bunch of volume pre-market when the market opened. Of course, with the bell it started spiking. Me being the dumb newbie I was, and not having ANY idea what I was doing, Jumped in with about half the value in my tiny 500 dollar account. Closed that trade less than a minute later with almost 200 dollars profit. I spent the next week trying to absorb ever bit of info I could on momentum trading. Now, I know how lucky I got, and havent been doing it as much, but I still do it every so often. Not on Ross' level of course, bu I am playing with a MUCH smaller account. I enjoy it, but I also keep TIGHT stop losses. It's pretty exciting.

One of the random videos I came across was a fund manager discussing the various types of traders his company employed and he specifically pointed out he looked for traders with backgrounds in gaming for his successful momentum traders.
 
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LachiusTZ

Date the ban will be lifted: Never
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I watched this guy live stream two back to back days of nearly $130k in profit (each day). It was like watching Neo plugged into the matrix. The guy is definitely FAR above the average day trader. I do think if anyone is suited to this type of hyper technical analysis / reactive twitch clicking hotkeys, it would be this forum of decades old MMO vets.

Not sure my balls are big enough for that
 

Sanrith Descartes

Get off my fucking lawn!
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Sanrith Descartes Sanrith Descartes I've used Etrade for years now and I never thought of switching as Power Etrade is similar enough to Fidelity's offering. However I now realize that you can't fractional buy on Etrade and you made a very poignant point about it.

I have a fidelity account from my 401ks though. I might have to put money there so I can take fractional positions and be more aware of position cost rather than share price.

Another anecdotal story about how I gained my uh perspective on the stonk market:

In my hometown of like 9000 people or so the wealthiest investor (not the wealthiest person overall) was a mailman. Guy was from the WW2 generation so figure he started working in the 50s and retired in the early 80s or something. He never had another job other than being a mailman. He had an interest in stocks despite being from a backwater like our town. So every month he bought a few stocks on a mailman salary. By 1975 the investment firm he worked with opened a branch in our hometown explicitly to cater to his needs. Before that, he had to just call or drive 150 miles to the larger city where he could talk to them in person.

I knew the guy's grandson and his current (the early 2000s) investment manager was also a part-time teacher at my high school. At some point the teacher was explaining his best client and I had heart about the guy from his grandson and my father because it was a small town. I liked that he told my teacher from day one of working for him that if he ever recommended that he sell a stock under any circumstances he'd fire him on the spot lol. Which was really hard for the teacher as he came from Chicago/working at the Merc for like 15 years.

I never learned the true amount but estimates were always that it was high 9 figures.

Not sure why this particular story stuck with me but it did and I applied that consistency strategy from day one. So far it has served me very well.
Re: Fidelity. They have three platforms. Active Trader Pro, Website, and App. For some odd reason, they havent rolled out all aspects across all platforms yet. For instance, you can only fractional trade on the app. Its as if they are testing these new aspects on a single platform to make sure there is no issue before adding it to all three. Or they are just lazy. Probably a little of both. That being said, it doesn't bother me because I'm used to it. 99% of my time is spent in ATP and I like how it functions. If I want to fractional or extended hours I just use the other platform. Truth be told during the day I usually have the website up for stock research in addition to ATP.

I have heard that anecdotal story before I. Some iteration about the client who said "if I ever get told to sell a stock, ill move brokers". I want to say I read it in a book somewhere. And it really comes to the heart of investing. Is it a trade or an investment. I dont sell investments (unless something fundamentally changes). Pre-2020 I had been operating under an outdated approach to investing. I had failed to allow that the investing landscape had changed and my formerly acceptable ideas were just behind the times. This put me in a position entering 2020 with nearly 90% of my portfolio sitting in cash. When Coronachan hit, I was incredibly lucky to be near total liquid. I took my new and updated investing philosophy and got to build my long term portfolio from scratch at bargain basement prices.

I have about 20 positions (ETFs and individual stocks I wont sell, baring some crazy black swan event). I agree with the anecdotal story that the key to building wealth is long term investing and the power of compounding interest (and dividends). I have a small percent of my portfolio I use for speculative trading. SPACS, options and one-off events (like the INTC sell-off) i try to make money on over a short time horizon.

Tldr: I agree with the anecdote. Buy high quality stocks and hold them for life.
 
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