This is clearly not the answer you’re looking for, but you went wrong by trying to pick stocks and time the market. It’s been shown to be a fool’s game.
Furthermore: if you picked several stocks, and think you did something wrong because one of them went down, then you have some rough days ahead of you. There will be long stretches where most or all of ...
It's important to remember what a share is. It's a tiny portion of ownership of a company.
Let's pretend we're talking about shares in a manufacturing company. The company has one million shares on its register. You own one thousand of them. That means that you own 1/1000th of the company.
These shares are valued by the market at $10 per share. The ...
Stephen's answer is the 100% correct one made with the common Economics assumption, that people are rational.
A company that never has paid dividends, is still worth something to people because of its potential to start paying dividends later and it is often better to grow now and payoff later.
However, the actual answer is much more disapointing, because ...
The vast majority of people that day trade lose money. Of those that make money, most aren't going to beat an index fund. Of those that actually beat an index fund, very few do so without investing so much time that they'd be better off working elsewhere. If you have a $1 M portfolio and you can reliably beat an index fund by 1%, that's worth $10,000. If ...
The stock market measures how things change from what we predicted. If only things we predicted happened, the prices of stocks wouldn't really change.
You might think, "But Apple went from a tiny company to a giant company."
Sure, but if that was predictable, we all would have bought Apple stock back when it was a tiny company (since we knew it would ...
You bought the stock at some point in the past. You must have had a reason for this purchase. Has the recent change in price changed the reason you bought the stock?
You must assume your losses are sunk costs. No matter what action you take, you can not recover your losses. Do not attempt to hold the stock in the hopes of regaining value, or sell it to stop ...
If one could build a model for accurately predicting future stock prices then:
Why would anyone share it?
Wouldn't there be some individuals cornering the market, making people like Peter Lynch, Warren Buffet and a host of very successful hedge fund managers look like amateurs?
There are many commercially available tools such as you describe. They are ...
Refresh the report. You'll probably see that dip gone. It was likely just a glitch in the reporting data when you happened to run it. Oddities like this happen from time to time. When you see something extreme like this, it's best to check multiple sources and re-run the reports again a bit later.
The first thing that pops up when you open your link is a disclaimer:
66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
66% isn't a very reassuring number for blindly following anonymous strangers ...
It's tech-heavy because I am a tech guy and I always feel comfortable investing in a tech company.
First, no you do not feel comfortable. You invested in an incredibly volatile company in a volatile industry and you're complaining about it on the internet to strangers in just a couple of months after investing when you've hit a relatively small decline. Re-...
Well, consider it from the other side. Why would a trader be willing to share trades? Consider the following scenario.
The reference trader makes a trade in a low volume market.
The trade is published so that everyone can see it.
Multiple people copy the trade as best they can, but ...
The price moves due to the uncommon level of demand.
These tools exist (see Nelson's answer), but they aren't available for purchase because once they become publicly available, they cease to work. The logic goes something like this.
Suppose the stock of company A is currently trading at $100 each.
The software predicts that it will go up to $120. Therefore you buy.
Once you buy, you move the market. You can ...
To expand on the comment made by @NateEldredge, you're looking to take a short position. A short position essentially functions as follows:
Borrow a share owned by someone else
Sell that share
Wait for the price to fall
Buy a share after the price falls
Return the share to the owner from which you borrowed.
Here's the rub: you have unlimited loss ...
I am voting you up because this is a legitimate question with a correct possible answer. Yes, you shouldn't buy penny stocks, yes you shouldn't speculate, yes people will be jealous that you have money to burn.
Your question: how to maximize expected return. There are several definitions of return and the correct one will determine the correct answer.
If you think about, most of the things we do in a day are pretty predictable.
You never oversleep.
deciding what sites to browse,
Not sure how many people plan that in the morning. I do not.
So if we have a good model about how. People behave on a day to day basis, why can't
his be transferred to stocks?
You do ...
Mild vs. Wild Randomness:
Focusing on those Risks that
Matter and A focus on the exceptions
that prove the rule are copies of the original article referenced by the Wikipedia page. The authors are well respected academics so I assume that they have some support for the statement but the article doesn't appear to explain exactly what they assumed.
For a ...
It's very simple.
The low cost index funds are generally the best investments for investors, but - because of the low fees and the fact that the offerings of different companies are nearly identical - they are the worst for the investment houses. Therefore, the investment houses spend a lot of money convincing investors to choose other funds.
If you ...
Many news outlets ... are reporting that the current US stock sell-off is due to a stronger-than-expected jobs report in January...
Had the market done well in the last few days those same people would have claimed it was due to the stronger than expected jobs report, and in fact oftentimes a strong jobs report does lead to a bump in the market. Furhtermore,...
It seems to me that your main question here is about why a stock is worth anything at all, why it has any intrinsic value, and that the only way you could imagine a stock having value is if it pays a dividend, as though that's what you're buying in that case.
Others have answered why a company may or may not pay a dividend, but I think glossed over the ...
Nassim Taleb is remarkably brilliant. It's his work that's cited in the article. In my opinion, there are 2 choices, a misquote, if the article is wrong, or a misunderstanding on the part of the reader. There are a few things going on. Thanks to member Justin, I fixed the Wikipedia article link. I recall his assertion from the book "The Black Swan" (p275). ...
It is not unusual for the acquiring company's stock to fall in any time of merger announcement. Some of it has to do with the fact the acquirer is going to either take on new debt to pay for the cost of the acquisition or they will need to issue new shares. Either is dilutive to shareholder value, so this is "baked into" the process.
In the instant case, ...
tl;dr: The CNN Money and Yahoo Finance charts are wildly inaccurate. The TD Ameritrade chart appears to be accurate and shows returns with reinvested dividends. Ignoring buggy data, CNN most likely shows reinvested dividends for quoted securities but not for the S&P 500 index. Yahoo most likely shows all returns without reinvested dividends.
Thanks to a ...
You are misunderstanding what makes the price of a stock go up and down.
Every time you sell a share of a stock, there is someone else that buys the stock. So it is not accurate to say that stock prices go down when large amounts of the stock are sold, and up when large amounts of the stock are bought. Every day, the amount of shares of a stock that are ...
This is an excellent question, one that I've pondered before as well. Here's how I've reconciled it in my mind.
Why should we agree that a stock is worth anything? After all, if I purchase a share of said company, I own some small percentage of all of its assets, like land, capital equipment, accounts receivable, cash and securities holdings, etc., as ...
Hope springs eternal in the human breast.
No actively managed fund has beaten the indices over a
long period of time, but over shorter periods,
actively managed funds have beaten the indices quite often, sometimes
quite spectacularly, and sometimes even for many years in a row. Examples
from the past include Fidelity Magellan and Legg Mason Value Trust.
You are interpreting things wrong.
Indian Infotech and Software Ltd (BOM:509051) clearly has volume and trades.
The MoneyControl site says
Your words like "Nobody is selling the stock" and "no trade going on" are completely unfounded.
Check your price to earnings ratios and your price to book ratios for each of your assets. It has been an upward ride, so "foolish" stocks like Alphabet tend to rise faster. I would begin to consider purchasing, if it were me, at $225 per share. Whether I would pay that much would depend on a deep investigation of the firm's financials. I could see an ...
They exist, but it's not for you to buy.
Here is a story about Ke Xu, quantitative analyst.
Basically, the algorithms exist, but they are closely guarded secrets. Someone tried to steal them and got sued into the ground, along with travel bans, extradition, repeat jail time, private detectives tracking their parents in CHINA (Company was in UK). The legal ...
Instead of giving part of their profits back as dividends, management puts it back into the company so the company can grow and produce higher profits. When these companies do well, there is high demand for them as in the long term higher profits equates to a higher share price.
So if a company invests in itself to grow its profits higher and higher, one of ...