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Stop-loss order sounds straightforward, but the execution by the broker is quite complicated. Because there is plenty of room for exploit as explained by stop-loss trap, so some broker may use a delay algorithm to prevent exploitation, especially towards some low activities stock.


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I think you have to let what D Stanley wrote in his first sentence really settle in: it's a market order. You may want to consider a stop-limit order, as Schwab explains: An order that becomes a Limit Order once the security trades at the designated Stop price. A Stop Limit Order does not guarantee an execution. To enter a Sell Stop Limit Order,...


4

A "stop-loss" order is an order to enter in a market order if the price goes below a certain point. It doesn't guarantee execution at that price. Where this can go bad is if the price drops dramatically in after-hours trading or if the price drops so fast that by the time your market order is placed the market price is well below your stop price. I can't ...


34

Most "billionaires" have their wealth in companies that they grew into multi-billion dollar entities that they own a significant portion of. If the government then says "you own too much - you must give us 6% of what you own", then they likely don't have enough liquid assets (cash) to pay that bill, so they will be forced to sell shares of that company (or ...


0

Now, hypothetically, assume that the U.S. produces no GDP growth at all in the future due to population declining. Would this mean that the stock market (index) would also stay close to the same level in the long term, making it a bad investment? You are forgetting several key things. Firstly, many companies in US stock market are actually internationally ...


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Theoretically, the growth in stock prices is highly dependent on GDP. Stock prices are largely determined by their earnings and earnings are largely dependent on the economy. If the economy is good, people buy more of a product which increases earnings and thus decreases the P/E ratio which makes the stock more attractive to investors which causes people to ...


1

"Technically strong" means the market is trending upward. Fundamentals deal with value. Technicals deal with trend. However there is no agreed upon way to determine technical strength. Moving averages and support/resistance seem fairly reliable however there are far more esoteric technical indicators whose value remains up for debate.


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Only at most partial truth. People often use this saying to justify not selling stocks of companies that have lost their competitive advantage. If you hold on to such stocks too long, eventually the companies can go bankrupt, or at least the ownership will change so that creditors will own the company in its entirety due to debt restructuring. So, in that ...


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Re "patience often pays out", do you happen to remember (most recently) 2008-09? Or any other significant stock market decline? If you sold your holdings whenever there was a significant market decline, I doubt that you would be doing very well. As for whether it's not a loss until you sell, that depends on how you look at it. From the standpoint of ...


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There is a lot of truth in that, especially where taxes are concerned. You can write off a loss against capital gains and if you don't have any gains, you can reduce your income by $3000 a year until you recover your loss. Investors will often hold on to an unrealized loss until they have a reason to sell and then it becomes a realized loss.


1

Yes. You are correct. You can use margin like this no problem. Just my opinion, you should go to a reputable brokerage like Interactive brokers. You know they will never make problems for you and they have the highest credit rating. It’s the safest brokerage in my opinion. I have not heard of the brokerages you mentioned... maybe it’s good but I wouldn’t ...


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Using an offshore broker circumvents the PDT rule. Trading in a margin account in the US allows you to use unsettled funds, avoiding settlement date violations that could happen in a cash account. It's a de facto line of credit while waiting for trades to settle. I assume it's the same offshore.


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It’s not a loss until you sell. In my opinion, thats completely not true. Let me take the example to the extreme. You bought one stock. 1000 shares ABC at $50. Now it’s at $5. Then you see a new incredible investment. XYZ at $50. Can you still buy 1000 shares of XYZ? no. You can only buy 100 shares. (if you sell the first investment) Otherwise you can’t ...


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"It's not a loss until you sell is a rationalization that people use to negate reality. An UNREALIZED loss results from holding onto an asset after it has decreased in price, hoping that asset price will eventually recover. Selling the stock converts it to a REALIZED loss. For example, if your 100 shares of a $50 stock goes to $10, you have lost money. ...


0

Am I missing something? Yes... Any losses -- or gains -- are all (metaphorically, in 2019) just scribbles on a ledger sheet until you actually sell the asset. That's because you can't spend shares of stock (or bonds, or Beanie Babies, or your house or anything else you buy which you hope will appreciate in the future). For example, Bill Gates does not ...


2

Your money is lost when you buy a stock, and gained when you sell it. In the sense that it is no longer liquid or legal tender in exchange for other goods. You should think of investing in this way so you are only ever willing to invest what could be lost forever (although it is extremely unlikely a diversified investment would lose all or even most of its ...


0

The number of locked-up shares are generally found in regulatory filings and many research platforms will provide this--i.e. Bloomberg. Your guess is generally good; however, your number will include other shares like ESOP. If the owner has more than 5% ownership or is otherwise considered an insider. Every lockup period is different; generally, though the ...


0

The part article of the article slightly misstates its own earlier statement According to this article from CNBC: Passive investing, made up of funds tracking market barometers, has now taken over nearly half the stock market as more investors shun stock-pickers and flock to index funds. If this literally means that half of all ...


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Frame Challenge half of all stocks on the market are owned through index funds and ETFs, ... most regular people with a 401(k) aren't going to move out of index funds "Type of fund" (active or passive) is orthogonal to "type of account" (taxable or tax-favored).


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I think that some of your conclusions are wrong. Apart from the fact that market crashes are rare (1929 and 1987), bear markets occur because of a recession. They aren't causal. The majority of trading today is institutional. When earnings start to contract in the early stage of a recession, the big boys will sell off holdings regardless of whether they ...


1

active traders/funds are selling loads of stocks Every trade has both a buyer and a seller. Limited liquidity magnifies the market impact of an order. people don't want to lock in losses In some circumstances, there are tax advantages to realizing losses. Some people also panic sell to limit their losses. Others own shares with borrowed money and are ...


1

I'm unclear on what you're asking. Do you just want stock prices for different companies? If so Yahoo finance has an interactive chart that lets you compare funds over different time periods. If you want to look at new companies that aren't publicly traded though I'm not sure how you would do that as that information is usually restricted to investors.


3

It's not just possible, people are already doing this for years. It's called an automated trading system. In fact the majority of trades on stock exchanges are performed by fully automatic systems nowadays, especially in the area of day-trading (holding stocks for very short amount of time to benefit from small price fluctuations). There is a whole ...


1

The short answer is yes. But it won't make you rich. You would expect in a liquid market that profitable trading opportunities based on predictions of future prices would be eliminated by competitive trading which is more or less the case. And to the extent that you have the same information and same technology as other players you can make forecasts too. ...


-1

This link is an example of statistical analysis applied to the financial markets: https://en.wikipedia.org/wiki/Renaissance_Technologies A simpler ranking system could be developed based on the economic reports that currency traders follow. But investor emotion would be missing. For instance the current investor emotion is that interest rates are being ...


3

You can exercise an American option at any time, including immediately after you buy it. However, in if there is any time premium remaining in the option, it would make no sense to do so because you are throwing away time premium that could be salvaged by selling the option to close (unless the time premium is less than your closing costs). Exercising a ...


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You can, but it is easier just to throw your money away. The process you describe can never result in profit, as the option is priced according to the underlying security and the risk. Of course, something relevant can happen 3 milliseconds after you successfully buy the option, and there is a profit (or loss) possible. But even then, selling the option ...


0

You can often find Canadian based funds which track US equities. VUN is a Vanguard fund that is based in Canada but tracks the US total stock market. Alternatively if you want to trade specific US equities that don't have a Canadian counterpart you can open a CIBC investor's edge account. They currently offer free currency conversions. Norbert's Gambit is ...


1

Imagine a company is worth $10 million. In order to buy back its shares, it would need $10 million. In other words, it would need to consume its entire value in order to buy all its shares. That would leave the company with nothing left. So that would effectively be a dissolution of the company. If there's nothing better a company can do with its value than ...


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