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If I may paraphrase the OP without profanation, the accumulation of knowledge is helpful in building perspective, or to make one wittier at social-gatherings, but it is not actionable. Today I know more than I knew 30 years ago, but how to monetize that knowledge? In other words, being able to better discern what's under the proverbial hood, doesn't make one a better driver. Success seems to be more a result of fortitude and patience, than of having deep understanding.
I've been able to pull above S&P returns for the last year with about similar levels of volatility! We'll see how long I'm able hold on outperforming, but I believe there's opportunity for people who do research to beat the index on volatility or return.
Some of my observations:
1. Nothing in economics is symmetrical. If rates go up, one thing happens, if they go down, the result won't be the inverse.
2. The market functions like a ratchet, slowly going up but when it drops and there's corrections, it usually drops quickly.
3. Pundits are worth reading. Reputable sources like Schwab or Fidelity publish articles that offer good actionable insight, like sectors to avoid or look at.
4. Find a niche to specialize, an industry, a time horizon... For me, I like looking at shorter term (month to quarter) movements between sectors. Limits the amount of information to digest and makes investing less work.
5. Mutual funds can be worth their fees. ETFs ate away the indexed funds, but for areas that haven't been as analyzed, areas like international or small / micro caps, mutual funds can really beat the etf competition.
can anyone explain t o me what do the Robinhood and Reddit gang see in AMC and GME to bid them up so much?
It’s really rather simple - the ability for a bunch of people on social media to coordinate a short squeeze on a stock that is very highly shorted and has a fairly small market cap. Nothing more to it than that.
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Quote:
Originally Posted by mojo101
can anyone explain t o me what do the Robinhood and Reddit gang see in AMC and GME to bid them up so much?
Quote:
Originally Posted by mathjak107
There is nothing
"There is nothing" about said it.
HedgeFunds shorted the stock when there are more shares than lendable shares.
Option calls (naked, no money to execute the call) are going to be buying more shares (ITM) than there are saleable shares.
When you do both, as some trading houses (as some pundits are suggesting) disaster becomes a really possibility. One can also do either Shorting or Options to bring down these players and/or the US monetary system.
On one side, the Shorts & Options are playing what they thought was a no risk, no loss situation, using imaginary shares and other peoples' money(shares). On the other side, the Gorillas are "calling" the Shorts and Option players, that substantial risk exists and real. Gorillas are playing with their own and real money. We are playing "mumbley peg" but using the other guy's precious as the target. We are only using small rocks but the baseballs and cannons are known to exist.
Last edited by leastprime; 06-06-2021 at 03:11 PM..
I've been able to pull above S&P returns for the last year with about similar levels of volatility! We'll see how long I'm able hold on outperforming, but I believe there's opportunity for people who do research to beat the index on volatility or return.
Some of my observations:
1. Nothing in economics is symmetrical. If rates go up, one thing happens, if they go down, the result won't be the inverse.
2. The market functions like a ratchet, slowly going up but when it drops and there's corrections, it usually drops quickly.
3. Pundits are worth reading. Reputable sources like Schwab or Fidelity publish articles that offer good actionable insight, like sectors to avoid or look at.
4. Find a niche to specialize, an industry, a time horizon... For me, I like looking at shorter term (month to quarter) movements between sectors. Limits the amount of information to digest and makes investing less work.
5. Mutual funds can be worth their fees. ETFs ate away the indexed funds, but for areas that haven't been as analyzed, areas like international or small / micro caps, mutual funds can really beat the etf competition.
The thing the passive index crowd doesn’t seem to understand is you don’t have to beat the index year after year. If you can make a big beat once or twice that’s life changing money. They just won’t accept the fact there is more than one way of doing things. If you can make a few trades that do well and then roll that into an index fund you will do better than passive traders.
The past three years what I have done has shaved a decade or so off of what would have been in the SPY.
They don’t seem to understand you can use short term trading as an accoutrement and compliment to long term investing. As you said this isn’t too hard if you have one thing you specialize in and then start doing the rotation stocks as trades when they are hot.
Not everybody can do this but they tend to assume that nobody can do it. They come with some made up number like more than 90% of people fail at trading. That means 10% are able and thats a lot of people.
The most successful people at investing have short mid and long term goals.
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