Tell me where I'm going wrong

Snarelure
Snarelure

Tell me why people who only have 5,000-10,000 to invest with buy a stock like disney that goes up 5% like once a year instead of a 5 dollar stock that goes up 5% within a week/month? they could be making so much more profit from buying a stock at $5 and selling it for $5.25? that's a 500 dollar profit from investing 10,000?
Surely I'm missing something & if it's just risk, if a trade did go bad why not hold your money in the position you bought in at till a few weeks/months down the track and sell at the same price or for higher profit when it bounces back up?

Burnblaze
Burnblaze

@Snarelure
Tell me why people who only have 5,000-10,000 to invest with buy a stock like disney that goes up 5% like once a year instead of a 5 dollar stock that goes up 5% within a week/month?
VOLATILITY NIGGA

Emberburn
Emberburn

@Snarelure
and when I say they could be making so much more profit I meant they could be making more profit alot more often

Firespawn
Firespawn

@Emberburn

because most people don't actually watch the markets and just buy some shit that won't bust overnight

Flameblow
Flameblow

@Burnblaze
yeh but why not just watch the market during the day wait for it to go up to even 3-5% and just sell whilst the market is open?

TechHater
TechHater

@Flameblow
because you are never sure if its going to go up 3-5% or go down 3-5% and you are tying up your money into the market

like what if you are waiting for a return to 'normalcy' and the stock keeps dropping? when do you sell?

Crazy_Nice
Crazy_Nice

@Firespawn
yeh but isn't investing in resources and stuff like energy/mining really cheap like some prices at 0.50? I've seen mining go from 0.42-0.56 within a day of trading on the ASX
why not buy 5000 dollars worth even at 0.42 and sell at 0.5 that's 900 dollars profit in a day after shitty aus brokerage fees?
and yes I see how people invest more than 5k and are scared about losing their money but most of the time in the future it does bounce back up to the price you buy at if it's a good company and if you read into the company/reports can't you risk that money depending if you feel it will go up more than it will go down and maybe put a stop loss on it?

viagrandad
viagrandad

@Snarelure
risk
investing in a shitty penny stock is far more risky than established and dominant companies
look at ADV. they released a good announcement and their sp is down by like 30% if not more. who could predict that?

consider these two points
- the majority new of businesses fail
- if you buy a $10 stock and it drops 50% to $5, it now needs to go up by 100% just for you to break even.

massdebater
massdebater

@Snarelure
Firstly, time horizons of invesment. Sure, it could go up a lot, but if you need that money in 18 months for a house deposit and it goes down, you're fucked. You can either sell at a loss or delay your plans further in the hopes it goes up.

Secondly, you answered yourself - risk. I've been hit by a few small cap firms which have dropped to less than a quarter of their value and stayed that way for years, and I have a long investment horizon so I was willing to hold for a long time - but eventually it became ridiculous to hold some of these companies that had lost so much value and were clearly not going to get it back.

Inmate
Inmate

@Crazy_Nice
That micro-cap shit can just as easily lose 20% in a week.

TurtleCat
TurtleCat

@Snarelure
You are right, if your trade on a $5 stock goes bad just hold on and if it goes down you buy more. Most you will lose is $5 but $5 stocks don't just go to zero. If it works out you make thousands.

So $5 loss versus $2000 profit

TechHater
TechHater

@massdebater
This post nails most of it. The thing you need to consider is some of these companies do not come back for a very long time or ever again. Even a legitimate commodity company like Horsehead Holdings ($ZINC) can disappear in a matter of months and take investors with it.

Crazy_Nice
Crazy_Nice

i'm curious about this as well after 12 months of solid research and playing the ASX share market game i think i could make about 2000 a month by placing 10000 grand on weekly dips.
I don't need the money, i have inherited 200000 which i just 150000 in basic bitch vanguard.
i'm aware this is gambling, but it feels far less risky and more moderately profitable.

i'm positive the ASX share price will go back up 2 dollars with in a fortnight.
i am just to scared to bet on it.

Fried_Sushi
Fried_Sushi

@Snarelure
High risk vs low risk.

iluvmen
iluvmen

@Snarelure
You are retarded lmao.

Carnalpleasure
Carnalpleasure

@Snarelure
everyone in here has covered it

if you could make $500 when it goes up just $0.25/share
you could lose $500 when it goes down only $0.25/share

Burnblaze
Burnblaze

@Snarelure
Also, dividends.

Emberfire
Emberfire

Who's got some plays for Monday?

Soft_member
Soft_member

@TechHater
Gotta put in a stop-loss where you're comfy being wrong

Flameblow
Flameblow

@Carnalpleasure
@viagrandad
yeh but investing in a company with a high volatile stock it's normal for it to go down and up but if do your research and think it has more chance of going up can't you just hold your position even if it you bought in at $5 and it went down to 0.20 for some reason and all of a sudden goes to $10 a share ( extremely unlikely just a exaggerated example ) than I would double my initial investment because I bought in at 5 and now it's 10 regardless of how far it went down?

StonedTime
StonedTime

@Crazy_Nice
a lot of things need to happen for a movement of that size at that price. You'd be best off throwing it into the higher risk side of things with that mentality. a share at 0.001 can double or triple in a single movement, that doesn't mean you'll be able to sell it though at 0.003. You need a buyer. Some chump to offload it too.

Now if you had the Disney mentality of set it and forget it, and didn't want to kill the wife and kids, burn down the house and hang yourself from the jacaranda in the garden if you lose the investment, setting it in high volatility could be the solution for long term gains - value investing.

TechHater
TechHater

@TurtleCat
Average down, this is the strategy of smart men. I've seen too many whinge about stock owing them, when if you constantly average down you make more as it exceeds your entry... got to wonder some times.

Burnblaze
Burnblaze

@viagrandad
ADV
don't remind me ;_;

askme
askme

@StonedTime
is there a way to see if a stock is classed liquid? to see if a stock is easier to sell than other stocks?
also if the buyers are at 0.455 and the sellers are at 0.470 and the stock at the time is sitting on 0.6 would the stock have to be 0.47 for those sellers to succesfully purchase the shares? also what if it randomly spiked during the night and opened on the market for 0.59 would the sellers orders still be availiable and they would lose all that money unless they canceled their order before people bought their shares?
would it have to rise up to

likme
likme

@askme
would it be easy to sell a stock at 0.5 if the price was at 0.51 per stock?

Evilember
Evilember

@Burnblaze
I kinda doubt they're paying dividends to housewives in Nebraska.

GoogleCat
GoogleCat

You can't just buy random stocks and make money

ZeroReborn
ZeroReborn

ASX opening today after the brexit news, whats our expected outcomes?

I think we will see a bit more panic selling, hopefully anyway.

Dreamworx
Dreamworx

@GoogleCat
Why not

SomethingNew
SomethingNew

@GoogleCat
but you can. it's just called gambling. so you can lose money with the same odds: 50%

Inmate
Inmate

@Snarelure
Something I am trying to do when buying stocks now, look at the highs and lows for a day and put in an order below market value within the twiddledick price movements of the typical day

Methshot
Methshot

itt i watch mad money nightly and admire maria bartolomo's big dick sucking lips. what is investing?

Methnerd
Methnerd

@Snarelure
Because trading like that requires work and becoming knowledgable about markets. It's like playing poker if you want to get a bit of money play tight but the higher profits are in playing a looser play style, but to make money playing loose you really have to know what you're doing and be ultra discplined.

w8t4u
w8t4u

AEE damn

New_Cliche
New_Cliche

@Inmate
what stocks are you watching atm?

AwesomeTucker
AwesomeTucker

@Snarelure
Because they don't know the 5$ stock will go up.

If you know what will go up investing is really easy.

lostmypassword
lostmypassword

I am going all in on AKK and AKKOA tomorrow

kizzmybutt
kizzmybutt

@lostmypassword
and then just going to wait for something to happen.

BunnyJinx
BunnyJinx

@kizzmybutt
what price are you buying in at? just had a look at it and on my broker it sais the lowest offer is at 0.007 but the last position is 0.006
do you have an idea of what price the stock will open at tomorrow or have you already placed a buy order at a specific price?

Supergrass
Supergrass

@BunnyJinx
AKKOA at 0.003 and I am going to average down my AKK with an order at 0.06 I hope.

cum2soon
cum2soon

@Snarelure
They have a warped sense of what investing really is, as such, they don't know how to diversify risk. They think it's "cool" to invest in stocks, but they don't understand that the mere act of "putting your money in the stock market" does shit all for you. It really boils down to a complete misunderstanding of life itself.

DeathDog
DeathDog

@TurtleCat
if it goes down you buy more
Most you will lose is $5
I've never read anything this fucking stupid on Veeky Forums.
And that's saying a lot.

hairygrape
hairygrape

@Flameblow
if you do your research
if you think it has more chance of going up
hold your position
all of a sudden goes up

Yeah, sure. And if I buy a lottery ticked and my numbers come up, I make millions on a $10 investment. So that means putting all my money into lottery tickets is the best investment ever, right?

People don't do research. People don't want to hold on to tanking stock. People don't like volatility as @Burnblaze
mentioned in the very fist response. People don't want to check their investments daily. The markets are not rational. Economics is not a hard science, you can't just "figure it out" with enough research. Unless you do insider trading, you can't know which penny stock is going to surge. And as @viagrandad
mentioned - down is always faster than up.

You're a believer. You don't see the risk, only the upwards potential. Create a mock portfolio on one of those free sites. Trade for a year without real money. You're exactly the type who's going to lose a life's worth of savings on hunches and make-belief. Try it with fake money first, get back to me after a year. I'd be surprised if you broke even and very impressed if you managed to finish with +20%.

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