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broke 500 this morning on heavy volume (11am already almost at average vol for the day)

ramped up a bit after that, probably from a lot of stop loss orders at the 5 bill mark.
 
If I gained anything from Bitcoin investing, it's that this thread now makes sense to me!
 
Analysts are basically setting stock prices these days. It's nuts.
 
This shit happens to my company every quarter. Analysts predict 10% growth, we hit 9%, and people dump shares. Invest in infrastructure...dump shares...pay down half a million in debt with less than 1% of your profits...dump shares.

I mean don't get me wrong, I like making money just like the next guy, but I'd actually like to be able to sell my stock at the price it was a week before the earnings call rather than the week after. Grrr. One of these days....
 
Due to insider trading BS, I've found it basically impossible to play with the stock of your own company. I own 0 shares of my firms.
 
well lets say you have $5.

Company A says, if you give them $5 dollars now, they'll give you a piece of paper tied to the value of the company...currently worth $5, if the company is doing well, that piece of paper could be worth $8.

The reason people freak out is, if that company says, 'that piece of paper is going to be worth $4' instead, why would you give them $5 for something you could get for $4 later. Instead you can take that $5 and give it to someone else who's going to make their piece of paper worth more, and then with the money you've made, get that old piece of paper for $4, and let it go up in value to $5.

Hope that makes a bit of sense.

i follow what you are saying, and i can understand it a little from day traders, but for long term investing. if you have a good amount in a stock that is worth over $500/share then im assuming you arent a day trader.

if that company states: give me $5 for this piece of paper that will in a few weeks be worth $8. but then states the following week that that paper is now worth $4, but still looking good for long term, why do people panic and dump?

like stated above, why are the analysts and fear mongers basically dictating what a stock is worth.
seems to me that most investors that are halfway smart know that there will be up trends and down trends and thats just part of the game. i mean, you still get dividends from stocks even if they show a small 7% drop in stock prices?
 
because that's not how it works at all :) That's a small portion of the stock market.

You can bet on the stock market by taking a position and holding it 'long' in hopes the price goes up. This is what the 'average' investor does.

However, day traders and people with money don't do just this. They make their money on what Is called shorting.

http://www.investopedia.com/university/shortselling/shortselling1.asp

is a pretty good description of it.


Beyond that, there's also things called puts and calls.... AKA options trading.

Buying these also don't buy you the stock. You are buying the 'potential right' to buy or sell a stock at a later time. Kinda like a 'deposit' with intent to buy or sell. But you don't HAVE to. You can eat the price of the option and chose not to perform the action you reserved for yourself too.
http://en.wikipedia.org/wiki/Call_option
http://en.wikipedia.org/wiki/Put_option


It's these 'bets' against/for a stock that move prices far quicker than the longs do.
 
also, apple doesn't pay dividends. they paid one special one when it hit peaks a while back but thats it. in fact, most stocks don't. maybe 10-20% do. Therefore the only thing dictating value is the stock price it self.

Many stocks that pay dividends don't move much in price. The drop on ex div day (record date of those owning will get paid) is usually about what the div payout is. Then over the next xTerm, it rolls back up to about the same price it was before... if things are going well of course.
 
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