46
votes
Does it make sense to repeatedly increase your limit order price in small increments until your order fills?
"If the price dips .01 before I hit enter, my method saves me .01!"
And what happens if the price bumps up .01 before you hit enter? And then you raise it a smidgen, and the price bumps up ....
- 37k
36
votes
Why should I hold stocks for the long term when the risk of more companies going bankrupt increases over time?
Whenever I see advice for "long term investing" it usually includes the caveat of making those investments into diversified index funds such as VOO or VTI. As opposed to investments into ...
- 7,998
23
votes
How to know who bought the shares I sold
Since you didn’t specify a jurisdiction/market, I will use mine:
For U.S. exchanges, the Depository Trust and Clearing Corporation is the seller for every buyer and the buyer for every seller. So, ...
- 818
23
votes
Does it make sense to repeatedly increase your limit order price in small increments until your order fills?
I don't see how your approach achieves anything.
If the current price is 21.9, then offering to buy at a limit of 21.8 will always fail. Even 21.89 will fail. You'll end up increasing the limit bit ...
- 8,293
20
votes
Why should I hold stocks for the long term when the risk of more companies going bankrupt increases over time?
While some companies go bankrupt, some continue to exist, paying dividends until they ultimately liquidate or get bought out by another company. 'Nearly all companies go bankrupt' is an incredibly ...
- 37k
17
votes
Does it make sense to repeatedly increase your limit order price in small increments until your order fills?
You're basically emulating what a market order will do. Thought at a much slower timescale.
You can claim that you're saving pennies here and there, but you have to remember that every time you change ...
- 414
11
votes
Accepted
Why should I hold stocks for the long term when the risk of more companies going bankrupt increases over time?
Your reasoning might make sense if you buy a specific set of N stocks and then leave them completely untouched. Eventually, one of them will go bankrupt and then you are invested in (N - 1) stocks. ...
- 28.1k
9
votes
Why should I hold stocks for the long term when the risk of more companies going bankrupt increases over time?
According to Goldman Sachs, 10-year stock market returns have averaged 9.2% over the past 140 years. From 2010 and 2020, the S&P 500 has returned of 13.6% in the past 10 years.
Companies have been ...
- 73.6k
8
votes
Accepted
What happens to public shares if a company is bought out?
If the company is bought out, all the public shares are acquired. At some point remaining shareholders are compelled to sell. This is known as a squeeze out and leads to the new owner owning 100% of ...
- 2,584
8
votes
How to know who bought the shares I sold
In the past there were actual physical share certificates that stock owners held. So many people still have that idea of what modern "holding stock" in a company means.
It's analogous to ...
- 3,203
8
votes
How to know who bought the shares I sold
Your question reminds me of a quote from IRS pub 550 I recently stumbled across:
Indirect transactions.
You cannot deduct your loss on the sale of stock through your broker
if, under a prearranged ...
- 117k
7
votes
Are “restricted stock units” equivalent to money printing?
No - issuing stocks (or options) does not create wealth or money - it transfers it. Stock represents a partial ownership of an entity. If a company gives stock to its employees as a bonus, that is an ...
- 113k
6
votes
Does it make sense to repeatedly increase your limit order price in small increments until your order fills?
I do not see how your mechanism is beneficial for a couple of reasons.
First, when you place a limit order, it is an upper (or lower) bound. If the market maker can improve upon it, they are ...
- 3,868
5
votes
Why should I hold stocks for the long term when the risk of more companies going bankrupt increases over time?
When you invest long-term, you don't invest into startup companies that might go bust any moment. Many companies have been around for decades, some have been around for over a century. It is unlikely ...
- 1,823
4
votes
Why should I hold stocks for the long term when the risk of more companies going bankrupt increases over time?
Companies don't go bankrupt at random. If a company is in trouble, there are usually warning signs, and you don't hav to keep holding it if things look bad. And well-run companies are often able to ...
- 1,660
4
votes
Accepted
Profit and revenue increased but organic growth decreased made stock decrease 20% in a single day
Ok, this is a mistake that a lot of investors make day to day and is so easy to avoid. Prices aren't governed by performance but by expected performance. Look at analyst estimates for the fundamental ...
- 8,482
4
votes
Does it make sense to repeatedly increase your limit order price in small increments until your order fills?
For normal trading where you're looking for price improvement on a wide bid/ask spread, if your broker offers it, you can use a Pegged-to-Primary order.
You select a maximum amount that you are ...
- 73.6k
3
votes
How to know who bought the shares I sold
Generally you can't tell. Your instruction goes to the broker, the broker transacts with one or more counterparties to complete the sale. The broker might know the counterparty's participant (other ...
- 636
2
votes
How to know who bought the shares I sold
The information is not just unknown, but in large parts unknowable:
Your shares are not necessarily the only ones traded at a trade - there are often dozens of traders participating in a single ...
- 36.8k
2
votes
Why should I hold stocks for the long term when the risk of more companies going bankrupt increases over time?
Stocks on average go up, but sometimes they go down. So when one invests in stocks, one is accepting risk in exchange for a positive expected value. You're making a trade of a benefit (positive ...
- 8,753
2
votes
Why should I hold stocks for the long term when the risk of more companies going bankrupt increases over time?
You don't buy stocks and then ignore them.
Either you or your advisor needs to either keep up on trends and news, buying and selling stocks dynamically on a "best bet" basis... this is ...
1
vote
Why should I hold stocks for the long term when the risk of more companies going bankrupt increases over time?
As Nosjack pointed out, passive investment is more wisely done on a diversified group of large well-managed companies than on a small selection.
If you really want to focus on a small selection, you ...
- 109
1
vote
What does the '+' symbol mean at the end of a stock ticker?
They seem to be warrants (essentially call options) that are exercisable at $11.50 per share. Since IONQ is trading at $6.23 right now it would take a pretty good rally (>100%) for them to be worth ...
- 113k
1
vote
How to know who bought the shares I sold
Though another answer emphasizes the lack of share certificates in modern trading, think of it a bit like this system for trading tickets:
Suppose Disney World is having a special event at Magic ...
- 2,904
1
vote
Formula to buy and sell using candlesticks data
If this existed the stock market would be completely different. There are companies that employ hundreds of people that are "really good at math" and they still are lucky if they beat the ...
- 11
1
vote
What happens to public shares if a company is bought out?
But currently the price for Twitter is sitting at $52. Doesn't this
guarantee a gain of $2.20 per share? If so, why aren't investors
buying in?
Even if the sale ultimately happens, it can take weeks, ...
- 117k
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