What is going on today? - Megathread

Yes I agree.

SMT IS like ARK Innovation.

Oil pay a good dividend which should be reinvested.

Imagine you had 10k and the market went down wild and if u sell u make a 3k loss.

Its not that hard with 2 3 shares but when you have a lot :cry: it’s different

It’s a difficult one. When a stock or ETF is falling off a cliff my first thoughts are to get out with a loss and reenter later on at a cheaper price, but there’s no guarantee of that so you have to be careful if you’re sitting on a 3k loss. Buying 2 shares was to test the waters. If I’d invested the majority of my money in green energy, SMT and EWI a few weeks back when I started I’d be wishing I never started. I’m sure longterm those will work out and £3k losses will turn green eventually, but the last thing I want as a new investor is to have a 20-30% drop in my portfolio at the beginning.

So whilst I’m happy to listen to advice on buying into ETFs over stock picking, I’m happy to continue as is for the next couple of months to see where the ETFs I’m interested in go. Best thing to do is to keep an eye on the stocks that make up ETFs (or at least the high weighted ones) and ask yourself if you’d be happy investing in those companies. If the answer is not yet then best to stay away from the ETF for the time being.

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Is this what they mean by outperform the market? :sweat_smile:

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But you’re throwing money into the wind…

If you keep selling at a loss then ‘buying in when it’s lower’, only to sell again at a loss you’re better off just giving us the money instead! :stuck_out_tongue:

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Exactly - constantly trying to time the market is not a good plan.

My advice is to average your investments monthly into funds and shares you like and keep 10% of your portfolio for my speculative and short term plays.

Look at it this way. If I buy a share at £10 and I sell it for £9, I lose £1. If I buy it back at £8 I have the same share I originally had plus £1 spare.

If the share then goes back up to £10, I have the same £10 share I originally had (and bought back at £8), plus the £1 spare from earlier. This also means my break even point is £9 rather than £10.

So selling at a loss isn’t always bad, if you believe a share is in free fall and will go lower, as is the case with the green energy ETF.

Yes it’s timing the market, but sometimes that is wise. Holding is best for normal ups and downs, but what we’re seeing in some sectors like US tech and green energy is a crash of over valued stocks, not normal ups and downs.

The smartest thing to do is to not buy an over valued stock in the first place and then pick up the original stock for £8 rather than £10. But we can’t predict how far the falls are going to be.

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Yes I tried doing that.

Its called scalping.

Scalping is a trading style that specializes in profiting off of small price changes and making a fast profit off reselling.17 Feb 2021

[image]

www.investopedia.com › trading › s…

Scalping: Small Quick Profits Can Add Up - Investopedia

You need to be able to read the candles, volume macd and keep at it all. The time!

Don’t do more than 10 individual shares your power of focus cannot cope with more.

It is profitable short term but long term if you get comfortable with this stulyle at some point you can make a mistake and erase 2 years of work like I did.

We are different but we are long term on core and would prefer scalping still with my satellite allocation.

This is what the others are saying.

That’s a good point, and certainly that’s the biggest risk. That’s why I don’t see this as a longterm strategy. Once we are through this difficult market period I will probably switch most of my funds to ETFs rather than single stocks. At this current point I still have a lot of funds in cash anyway, I don’t want to put too much into the market at once with the way things are going.

As for individual shares, I have 15 of them and my only risky one is MXC. I tried the averaging down strategy with that one rather than selling losses, but the price keeps falling and averaging down means I have more invested than I would have liked. Still, it represents a small fraction of my portfolio.

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Yes I was faced with this problem when I was scalping.

The market will fall, I would wait and buy say 10% of my assets.

Then the market would rally and I would still think it had way to go down and I missed the trend.

Hence that is why they keep saying you can’t time the market and can’t beat the maker with individual stocks.

If you wanted to you can just put in a mutual fund with 1.1% fees that would beat the NASDAQ100and that would be it.

Or you can do index funds and mutual active funds and still have a 10% to do your scalping.

But once you know what your strategy is, stick to it.

See I already complicated it by throwing in all these options.

But if you are going to buy a house in 2 years then stocks would be very risky, if you are going to fund your retirement then they are safe as long as you de risk before you get closer to the term as a crash then cannot be overturened as you would not have sufficient time.

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As expected

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What does it mean for the markets ?

Any insights?

Good to see, but fairly disappointing that politics is still so ridiculous over there. Objecting over unemployment support is such a bizarre thing to object over tbh.

I guess I shouldn’t be surprised, they’d call me a communist if I lived in the USA. :stuck_out_tongue:

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A post was merged into an existing topic: Deliveroo

An answer here. Nothing is sure yet, as the fear of inflation and rising interest rates is still around.

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A survey showed that many beneficiaries will use up to 37% of the stimulus to buy stocks.

https://www.bloomberg.com/news/articles/2021-02-25/-170-billion-of-retail-cash-could-hit-stocks-deutsche-team-says

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And then sell them a week later… :roll_eyes:

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Fun times. I’ve just joined the ride and am deciding when and where to jump In with my first proper purchase of ETFs.

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Best time would be now - I been investing with Individual Share (Made abit of a Profit) but with all the headache of watching it every day (trust me it happens when you invest with individual shares) I just gave up and shove all my money in VWRL

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