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Bewarse Talk Discussion Board * Finance & Investment - Stocks, Real Estate, et. al * Stocks - Trading Strategies < Previous Next >

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Entrepreneur
Kurra Bewarse
Username: Entrepreneur

Post Number: 3140
Registered: 05-2011
Posted From: 65.35.45.47

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Posted on Wednesday, January 20, 2021 - 7:04 pm:   Insert Quote Edit Post Delete Post Print Post

So you are not really betting on it's new technology. You are just trying to ride the momentum for short term profits but since you wanted a comforting reason for your decision, you just attached it. So coming back to your original question, you are not actually asking about my thoughts about this company. You are asking me to predict the stock price in near future. If someone answers this question, you should run away from them and never see them again.

Bottom Line: If you believe in this company and it's future prospects of this company, invest some amount based on your risk appetite and leave it for few years.

If you want to trade short term, you don't ask anybody. You learn the technicals and daytrade.
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Entrepreneur
Kurra Bewarse
Username: Entrepreneur

Post Number: 3139
Registered: 05-2011
Posted From: 65.35.45.47

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Posted on Wednesday, January 20, 2021 - 7:02 pm:   Insert Quote Edit Post Delete Post Print Post

Why I never fear a market crash

1. The number of times market made a full recovery after crash - 100%

2. I am in 30% cash when the market is in bubble. If a crash happens the sectors most affected will lose more than 70-80% of the value. For example- oil stocks, cruises, airlines, entertainment sectors during covid crash. When you deploy your 30% cash in these stocks they will grow 3X-4X because a stock that lost 80% in value makes a full recovery it's a 4X. Sure it will take 1 to 2 years. But 4X in 2 years is fantastic

3. After every crash, there will be a bull market for extended period of time. So your annual returns will be much higher compared to the years before the crash.

But the most important things is you don't invest in companies you don't know. Because some companies go bust during tough times and some may not recover forever. That's why you don't hold garbage in your PF unless it is a small pre-allocated money for gambling purposes
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Entrepreneur
Kurra Bewarse
Username: Entrepreneur

Post Number: 3138
Registered: 05-2011
Posted From: 65.35.45.47

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Posted on Wednesday, January 20, 2021 - 6:58 pm:   Insert Quote Edit Post Delete Post Print Post

Bro.. This is not even about holding that many penny stocks. It's fine as long as it aligns with your risk appetite. It's the trade strategy that ultimately matters. Entry points, position and portion sizing/frequency, exit and hold strategies. Stocks don't move in straight line. PLUG was under $15 exactly 3 months ago. Now instead of hitting $73 on Jan 13th and pulling back and trading at $61 today, lets assume if it moved in straight line without pullbacks and trading at only $45 today, every single person would be in profits no matter whatever date they took a position in the last 3 months. Even though it is trading way above $45 today, there are quite a few people who are down because they entered above $61. The initial gains is so important when you enter a potential multibagger. you need to act like a most stingy person on the earth in this phase. Only then you will be able to ride these home without worrying whenever there is a pullback
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Entrepreneur
Kurra Bewarse
Username: Entrepreneur

Post Number: 3137
Registered: 05-2011
Posted From: 65.35.45.47

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Posted on Wednesday, January 20, 2021 - 6:57 pm:   Insert Quote Edit Post Delete Post Print Post

Pillar Basket: (30%)
AAPL, AMZN, NVDA, ADBE

Growth Basket (40%)
TSLA, SHOP, DOCU, PYPL, NET, ETSY, PINS, FCEL, PLUG, NIO, EDIT, PACB, TDOC, TTCF

Recovery Basket: (15%)
MAC, MS, CCL, SAVE, CLR, CNK

Dividend Basket: (10%)
ABBV, FRT

Multibagger Potential: (5%) (very risky)
ISR, BNGO, BLU
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Entrepreneur
Kurra Bewarse
Username: Entrepreneur

Post Number: 3136
Registered: 05-2011
Posted From: 65.35.45.47

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Posted on Wednesday, January 20, 2021 - 6:56 pm:   Insert Quote Edit Post Delete Post Print Post

@Executor

There is a technical stop loss and a theoretical stop loss. Technical stop loss is the stop order we place in the trading app. Theoretical stop loss is you position yourself that you don't lose your own money no matter what happens to the stock. Ideally we shouldn't ever have to use a technical stop loss unless you are daytrading(which is a must). I don't have a stop loss set up for even the penny stocks(very few) I own. I don't hold a penny stock overnight until it becomes a conviction buy. By the time it makes it to my PF, I would have made at least one-third of the position in daytrading and I initiate the position with that one-third. You keep adding other 2 installments on certain eventful negative days. You keep taking profits until at least 80% of your stock is house money. You should never consider that you made any money until it hits your target however long it takes. You don't give a shit even if the stock goes up 50% and then became zero. House money is not yours until it either reaches the target or it vanishes. If you are worried about losing your profits, that stock should have never made it to your PF. The minute it made it into your PF, it's like you adopted a kid.. you gotta keep him in your home until he becomes an adult. If you don't daytrade, obviously your first one-third will come from your pocket that you are willing to lose. So it's very very important how and when you make the first entry. You have to take the first one-third trade based on the charts and price action. If you don't know how to read these, take help from someone who knows.

This strategy is not for folks who just buy bunch of stocks based on FOMO and trying to ride the momentum and get rid of it after making some profits. This is for folks who want to adopt a penny-kid into your PF-home after you are convinced that it has long term potential.

also, you should never have to put a stop loss for regular stocks. Just sell it if you want to get rid of it or make room for a new stock.
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Entrepreneur
Kurra Bewarse
Username: Entrepreneur

Post Number: 3087
Registered: 05-2011
Posted From: 65.35.45.47

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Posted on Thursday, January 07, 2021 - 8:45 am:   Insert Quote Edit Post Delete Post Print Post

There isn't a simple answer. You can skip to second paragraph if you are only looking for straight answer.It depends on individuals' risk appetite, goals and overall strategy. The most common mistake traders do with penny stocks is getting in early. I know it sounds dumb.


Big money is made by holding top runners for longer periods. For example, there are several people who traded NIO at 2. How many are holding the stock till now riding from $2. People are scared to hold penny stocks as there is no guarantee that they will make it to the big league. Big players skip the initial phase and get on the board after it gets out of the woods. So they would get in NIO at $20 after they got the all clear and ride it to 100+.

The advantage of this strategy is they can safely deploy huge capital as it is no longer a penny stock but there is still a huge potential left. and they won't panic during the days it drops 10 to 20% as they only see the final destination. But retail trader psychology won't allow to buy it at $20 as they have already traded the stock at $2. BNGO will go to 200+ in next 2 years if the product takes off or it will be stuck at 2 if it fails. When they get all clear you may have to get in at 20 but it will still be a 10 bagger.

But the million dollar question is how many will buy this at 20 when they traded at a buck. I know I still haven't answered your question but I thought this insight helps.

There are 3 ways to trade penny stocks. DayTrading, Swing trade with stop loss, total gambling. I guess I don't need to explain Daytrading. Swing trade is to take a position with an initial stop loss. If the stop loss gets hit, you keep trying until you survive the initial stop loss and get into profit zone. Once you make significant gains (such as double) you take your original investment and ride with the house money. You keep doing it for every 100% gain(of the initial investment) going forward. Gamble is you deploy significant amount of money right away that you are prepared to lose and exit after you reach your set target. So decide if you fall into 2nd or 3rd type and play accordingly.

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