/biz/ - Business & Finance

shameless self bump for replies, trying to learn here

oh, i also put a cover stop limit 7.50, ive never done a short before, did i do that right? a trade that gets me out if the price jumps up too much? (of course if im in the profit i plan to pick my selling point manually)

>>11411725
Lmao OP I bought your shares and then made 10%

>>11411725
It wasnt a lot of money because I wasn't super confident (bought late in the day and knew I didn't want to hold overnight) but 30 dollars is 30 dollars.
I'm doing homework right now but if you keep this thread alive for the next few hours I'll be back.
In the meantime what I want you to do is write out your thesis for me in detail, why you entered the stock, what time frames you looked at, etc. Then go on youtube and search for True Trading Group. Then start watching videos in no particular order until I return. I'll be back to give you a detailed response

I am playing with funmoney. fake money. you didnt buy my shares, they didnt exist. But as far as who what where when and why, i saw that it was WAY above the ~.40-1.00 mark that it had been holding at FAIRLY STEADY for the last.... 15 months or so? since the pop in febuary of last year. I have never done a short before, but as i understand it, you short a stock you expect to fall. Every time this stock has mooned in the past it has fallen very shortly after, and it came from a huge volume flux. it typically falls back under a dollar. If it starts falling i dont know when to cover my short, but i expect in the next 2-3 days (if not tomorrow) that it will be down to 2 or 3 dollars, no clue what it will do after that. Im honestly considering covering at 3.50, just to be safe, but then i miss profits on it going back to its norm, could be cutting half my profit out from waiting that long, but also cutting the risk if it stagnates here for some reason. The stock has a high beta, i expect flux, but i dont expect it to rise any more, due to the trend of falling after a spike. I know that i didnt get in at the top but im nearish to it. Not sure if you have any more info you want to know. As i said im new to this, dont have all the technical terminology down yet, but i have a basis to my thoughts. I am doing fake money to learn from my mistakes before actually putting my money on the line and losing big. like buying amazon a few days ago. that was pretty dumb and i have learned.

i forgot to mention that i also did a bit of research before i shorted, looking for any particular reason the stock would have gone up today, couldnt fine one other than the huge green volume right at the spike at the start of the day/end of friday. I looked for indications that the company has actually increased substantially in valuation, couldnt find any.

does this true trading group guy stream? if so what platform?

>>11412203
The reason the stock spiked today was because it had a reverse split. This brings volume into penny stocks very often. Volume is key and that's all you need to know. Yes fundamentally this stock is shit and will probably be down to 2 or 3 dollars like you say but you don't know if this is tomorrow or next week. And this stock might go to 10 or 30 dollars before it goes to 3. Thats dangerous. Your goal as a trader is to get in and out quickly and with profit systematically. I would never hold this stock overnight or for days, especially not short. Google the etrade guy who lost 100k shorting EBIO because it mooned like 1000% overnight. I wasn't interested in this stock all morning. Not until about 2pm. That's when I saw volume coming in. When it spiked so high on volume I knew there was a lot on interest pushing the price higher. Yes the guy has a chatroom that you have to pay for, Google him. The software is TC2000 while I use the TD Ameritrade app. Will answer more later

>>11411725
You will rip yourself a new one. The market doesn't care if you think a certain stock is too high.
Markets are driven by supply/demand and also the Federal reserve funds rate, which determines the interest rate that big banks get money.
This money is then lended out to big companies at low interest rates.
They are allowed by law to buy back their own stocks which inflates the price, then they dump it on the markets, pay back the low interest rate loan, and keep the profit.
The Dow Jones has been going down because the Federal reserve funds rate has been rising, meaning it is no longer profitable to borrow money for stock buybacks, and the buying volume evaporates.

>>11412767
i understand that my cover stop limit will get me out by a certain point, i am capable of cutting losses and moving on. This was the first thing i did when i bought it. Apparently my google needs some polishing because i didnt find anything about the reverse split in time to make a decision on the stock. That would certainly have lead to a more informed decision, considering its 1:10, i incorrectly estimated the over valuation of the stock. considering that im now short on this overnight, with 7.50 stop, do you think i would be best off to cover asap, cover at a certain price range, or keep my short until i hit my desired range? if 1 stock got combined into 10, 10 .40 cent shares are equal to 1 4 dollar share, then i would expect the value to be around the 4-6 dollar range except that it seems to suck overall and may go lower. As for the guy who got JUST'd by Shkreli, wouldnt a cover stop loss have prevented this?

i guess at this point my real question is.. since im not expecting the same margin as i was before, should my cover stop be lower also? considering moving it to 6.80 or so.

>>11411725
Paper trading and real trading are fundamentally different, because in paper you know subconsciously that your actions have no real consequence. My only advice is to try this: Paper trade as if it was real, and if you lose an amount, transfer that amount to your 401(k)/Savings/Withdraw it into cash/Whatever and then after a while look at how much you lost. Bonus if it's in cash so you can physically feel the disappointment. Mega bonus for putting it into a 401(k) because then you've really lost it until you're 59 1/2 years old.

>>11413086
Theoretically your stop limit will work during normal market hours but after hours Your stop limit might not work if there's not enough liquidity. Just because you want to cover your position up to and including 7.50 does not mean someone has an order to sell your those shares up to and including 7.50. That guy who got Shrek could have had a stop loss or stop limit, doesn't really matter which, but in after hours the order book gets cleared out and there's simply no shares for sale to fill at the price you may want.
Yes you're right about he reverse split being 10 for 1, if the previous price was 40 cents then it should be 4 dollars after the split. But today the price action made it go up to 6.50. It's very difficult to guess overnight what will happen that's why I didn't hold my shares overnight and I won't give you advice because I don't want to be held accountable. But let's just say if the stock is 4 or 8 dollars at market open tomorrow, I would not be surprised either way. If I see it gapping up, I will try to buy on a pullback before the next move up.

>>11413111
Oh yea I should mention too, shorting in stocks is different than places in bitmex. You can lose more than you deposited because "real" life brokers suck ass. If you want to bet that a stock goes down, I would actually recommend using options over just shorting in general. Buy a put, sell a credit spread, whatever. But always have a defined risk if you want to bet that a stock goes down.

>>11413111
pic related is a real margin call issued to a real person. Yes, they owe 6 figures ON TOP OF losing their deposit. Always have a defined risk.

>>11411725
Fake money doesn't count you have to be in the game to have the skin

>>11413142
ah, and in this i am learning. I was not consciously aware of the possibility that the market could simply open significantly over my limit.

>>11413117
I am attempting to treat this as real, but i am aware that i know nothing and will not learn if i do not take stabs when i think i am in the right. My eventual plan is to use 40-50% of my worth to try to make spending cash and build a moderately respectable portfolio. i am treating this as a "if i had started this today, how would i do", and just started on the 10th. I have to make some mistakes to learn, but i am not by any means not taking each position into consideration.

>>11413166
The random fakemoney site i signed up for when i started this gives buy sell short and cover, doesnt touch puts. :/

>>11413189
Yes, i saw this as the other anon mentioned it, martin shkreli essentially bought controlling interest in the company and it skyrocketed overnight. oof.

>>11413227
Open an account with Td Ameritrade, put 1 dollar in it, then look into their paper trading platform on Think or Swim, it's very good and you can play around with charts all day.
Now I want you to Google Investors Underground ABCD pattern and read the 1st link and watch the video. Then compare it to today's chart from 1pm to close and tell me what you see.

>>11413117
> if you lose an amount, transfer that amount to your 401(k)/Savings/Withdraw it into cash/Whatever and then after a while look at how much you lost.
That's a great tip. Are you active on any other forums?

keep shorting this trash op.
it'll go bankrupt one day anyway

>>11413260
i see that pattern much more clearly between 9:30 and 2pm than after. with 9:30 being a, 10 being B, 10:45 or 12:15 being c, and the 1:30 support level of $4.7x. after that i see a new high at like 2:30, followed by a support level of around 5.45, but this entire time i missed the reverse split and was figuring some whale had bought the price up to there and it was due to go down. I incorrectly read the volume increase as someone simply buying out 12x the stock worth of support levels.

>>11413412
OK true i see it too. However I see a mini version from 2pm to close which is more important because of volume. The volume was so pathetically low between 10am and 1pm that I would not have traded it. 1 big sell order would've crashed through that 4.20ish support area and the stock would've been done for the day. That's why I originally said I wasn't even interested in the stock until 2pm when volume picked up. Volume is everything. You do not ever trade stocks with low volume compared to usual. Volume means there's interest, so people are buying. If a penny stock usually trades 100 or 200k shares per day and today after the first 5 minutes or half hour it's traded 5k shares, you don't touch it. If it normally trades 100 or 200k and in the first 5 minutes it trades 50k shares, then you know today is gonna be a big day. Go check out the daily chart for Eara. 75 million shares traded today. Way above normal. And when you have high volume like that, you have a lot of buyers smashing through resistance levels pushing the price up.

>>11413742
EARS*
Look at the gray volume bars. Much higher than normal. And that corresponds to the massive increase because the order book on the ask gets eaten up. Whale buying is great news. Big investors spoke the price because they generate interest.

>>11411725
go to the /smg/ thread, everyone else is basically all crypto all the time. prepare for a flood of namefags though.

>>11413790
responses there seem to be 85% troll. and it doesnt look very friendly to the guy saying "help me learn, im a complete idiot, and btw, im playing on fakemoney so im not really losing anything" when some people are actually nursing wounds from the day

>>11413784
my thought process was, it depends when the whale dumps, im not sure why but i expected some hedge fund jumped on this stock, followed by a selloff once interest drives price up a tad, for clean profits, kind of like pump and dump, but with money backing it and a lack of words.

>>11414065
well to be honest, now is not exactly the best time to be getting into the stock market. a decade of bull run without a correction is kind of a red flag.

>>11414130
another great reason to be learning on fake money