When I trade, I use stops. When I invest I don't use margin, so if I see a bargain I invest. Don't keep all eggs in 1 basket. I usually invest in 5 solid stocks whenever there is a good opportunity. What are solid stocks? I like GOOG, META, AMD, TSMC, INTC, AAPL, QCOM.
META Likely bottomed
- Thread starter Master Pu
- Start date
When I trade, I use stops. When I invest I don't use margin, so if I see a bargain I invest. Don't keep all eggs in 1 basket. I usually invest in 5 solid stocks whenever there is a good opportunity. What are solid stocks? I like GOOG, META, AMD, TSMC, INTC, AAPL, QCOM.
I don't differentiate. The objective is to make money. I buy stocks that are increasing in price. My risk control is to have a method of getting out of a falling market. I'm content to wait for a stock turn before I speculate. No shorting, too much risk.
There are many ways to skin a cat. To each his own. You chase, I accumulate when price falls. The objective is always the same though, is it not?
More than likely although I think my focus is more on protection of capital. I attempt to keep drawdowns to a minimum. I've never averaged down. Don't hold losers in my portfolio.
Works for me but not for everyone.
Equity curve tells the story.
It seems that you don't follow financials when you buy stocks, so a declining stock you perceive as a losing trade when in drawdown. I have the same principle when trading index futures, I have no idea if it will reverse or not, so I always use a stop. Investing is different. You must understand WHY you are investing for long holds.
That's the problem I have I don't know who to believe. It's not the fundamentals so much as how investors perceive the fundametals. So I believe the only guy out there who hasn't lied to me yet. Price. If price moves in my direction there is no reason to sell so the position ends up being held for a long time.
And every so often a what is perceived to be a great stock hits bottom and stays there. Even the indexes cull the weak.
That.
And NYPost had this this morning:-
"Meta shares were down nearly 2% in early trading Tuesday ahead of a critical earnings report on Wednesday. The company is in danger of posting its first-ever quarterly revenue decline for the second quarter after reporting its slowest growth since going public in the first quarter."
Why not wait till dusts settles I say, if price is not important (somehow)?
Ok I’m done here. You need to read up about FA. Yes, it’s realistic expectation of weak earnings. But stock is heavily discounted and nobody will ring no bells at the bottom, wherever it will be. Most of tomorrow’s weakness in Q2 has been priced in most likely. So even if earnings are weak tomorrow, META can spike upwards and if you chase, you then could get ripped by volatility. Apart from all of the positive fundamentals, where is competition coming from? It’s pretty much a monopoly.
It's not something I would trade. No liquidity.