Stock traders....please pm ASAP!

[Dash]

All experienced stock traders..I am planning to buy a large amount of certain stock in the next week and i need to know if its a wise decision - so any experienced stock traders out there - pm me - so i can get ur input before i make this risky move involving a large sum of my cash

[rubmeister100]

Of course it is a good investment.... traders make their commission whether you win, lose or draw.;)

[VERYBADBOY]

Only invest what you can afford and don't put all your eggs in one basket.

Are you basing your decision on fundamental and/or technical analysis ... or are you doing this based on a "HINT"? If you know this proprietory info how many other do as well and is it already factored into the market price.

If you are buying stock, is it option elligable so that you can hedge any downside risk for a minimal premium ? Why not go long the calls, control more stock with less investment and make a larger ROI.

Why not just use option strategies long call and put at the same strike? trade off the volitility.

You did say buy, but if you are really planning on shorting the stock, do you have enough margin to cover, are you going to hedge as well or go naked with the options as above.

Of course, the use of options means that they are not only option eligible but that there is a liquid maket for them.

There are a whole lot more questions to ask and just diving in without a broker behind you in the first place is not sound advice.

Asking another board member for advise only means that they will know that info as well. Being connected as most are they will probably act before you do. Since you are not their client the KYC - Know Your Client rule does not come into effect as are other due dillegence rules.

No PMs.

VBB :cool:

[Martin Blank]

I always use these whack boards for my investment advice. That's why I currently live in a shelter.

[Fuzzy Thumper]

If you are buying stock, is it option elligable so that you can hedge any downside risk for a minimal premium ? Why not go long the calls, control more stock with less investment and make a larger ROI.

What??? Dude is obviously looking at a serious kick to the berries here, and you're suggesting he hand out steel-toed boots... you really are VERY BAD. :p

Options are highly levered, and very dangerous in inexperienced hands. If he is coming here asking for investing advice, he's got no business messing around with options....


Why not just use option strategies long call and put at the same strike? trade off the volitility.

Straddles (the name for your recommendation), like most option strategies, require a serious mispricing of options in the buyer's favour. In the case of a straddle, the mispricing of the call or put needs to be big enough to cover the premium of BOTH options, and all transaction costs.

These kind of mispricings... at least those in the retail investor's favour... are extraordinarily rare.


Only invest what you can afford and don't put all your eggs in one basket.

Now THAT he should listen to - forget this "large amount of a certain stock" stuff.

Good luck, Dash....

[JANDA]

All experienced stock traders..I am planning to buy a large amount of certain stock in the next week and i need to know if its a wise decision - so any experienced stock traders out there - pm me - so i can get ur input before i make this risky move involving a large sum of my cash
Dash, I can help with some financial assistant;)

http://terb.ca/vbulletin/showthread.php?t=99800

[VERYBADBOY]

What??? Dude is obviously looking at a serious kick to the berries here, and you're suggesting he hand out steel-toed boots... you really are VERY BAD.

I know that I am Very Bad .... the point was that there are many options, not derivatives, that he would have to consider and the KYC would have to be applied based on his investment knowledge, which it would seem to me is very limited ... therefore the different variations proposed based on his risk level. Steel toes sums it up nicely.

I am quite familiar with option strategies, most markets are fairly efficient therefore there is rarely a chance of mispricing, it is a matter of incurring the cost that is more than offset by the gain and that is where volitility comes into play once again and a temporary mispricing based on the underlying price movement. Don't really wish to get into a long discussion when there are many texts that deal with this stuff.

Like I said many questions ...

VBB :cool:

[KBear]

If the stock you intend to buy is being pushed by someone who is trying to sell it to you, then Janda’s deal is likely a better investment.

[great bear]

I always use these whack boards for my investment advice. That's why I currently live in a shelter.

But I bet you live in the executive condo of the shelter.

[wrong hole]

What's a stock?


</love going to escort review boards to ask for investment advice>

[great bear]

What's a stock?


</love going to escort review boards to ask for investment advice>

Its what you base your soup on.

[i_am_good]

...VBB is righ on!

Why be in such a hurry? Follow VBB's advice and you'll be on the right road.

[xarir]

- pm me - so i can get ur input before i make this risky move involving a large sum of my cash

If you need external input before making a risky move involving a large sum of your own cash, you're out of your league. Don't do it.

[great bear]

If you need external input before making a risky move involving a large sum of your own cash, you're out of your league. Don't do it.

Xair is correct. Give the money to me so I can redecorate my den.

[sbbohm]

Dash,

No one with the exception of a corporate accountant at the company or an solid analyst that just completed a thorough review of the company would be able to give you any real direction on the direction of the stock.

And while using an option strategy in conjunction with your stock purchase (writing a call, buying a protective put, etc) might help to minimize some of the downside risk in case the stock moves against you, not every stock is optionable, and that might not even be a option that you have if your trading account isn't approved for using those strategies in your account.

Basically, my hope for you is that you make sure you're not putting more money into this investment than you're prepared to lose if things don't go your way. If you buy the stock and it turns against you, make sure that it means that you're taking a few months away from the clubs and not a few months hiding from your mortgage company or your landlord.

And make sure that you've done enough research into the company (and that's REAL research, not just heeding the advice of the slickest talker on an investment conference board or the guy in the newly leased sportscar with the great 'stock tip' that he heard or even from everyone's favourite bald guy on CNBC). If you're investment is based around earnings, try to look at the history of the stock and see how it's behaved in the past with good earnings news and with bad earnings news. Do your homework and if you decide to go in, know what price you're getting out at if it goes up and what price you're getting out at if it starts to tank. Good luck, buddy.

[Esco!]

Dash, buy low and sell high :p