# the stock market



## Desolan (Nov 14, 2011)

You sell equity in your company in exchange for money as stock, a little like getting a loan completely on your own terms, with no expectation of every paying back the principal. The stock market then allows that equity to trade hands in exchange for whatever perceived value it currently has.

The perceived value that a stock is worth however is a very fickle thing and often changes as much through rumor and perception as it does through earning and revenue potential.


----------



## Desolan (Nov 14, 2011)

Sinsinity said:


> Oil has gone down 55% in the last 6 months. The question isn't if a 20% bounce will happen, the question is when. If you for some reason think this is the bottom, you go in. If after a few days nothing fun has happened, you exit and perhaps take a small loss. You wait until a similar pattern happens again, and you repeat the process, until the bottom actually happens. And then if all is well your gains are bigger than your losses, even if only 50% of your trades are successful, because when you gain you gain more than you lose when you lose.


You make it sound like you'll invest in oil on the stock market but you can't just invest in oil on the stock market as that would be commodity and futures trading which is different than the stock market as it deals in real products, but the stock market only trades in ownership shares of companies. To relate with your example, you would have to find several oil extraction companies and buy their stock before the oil prices go up because at such a time their perceived value would likely also start to rise, although the two would not necessarily need to be tied together.


----------



## Sinsinity (Nov 14, 2014)

@Desolan Sure sure, I simply forgot about that because oil was on my mind, and the principle for me is 99.9% the same.


----------



## TurtleQueen (Nov 8, 2014)

I don't know a lot about stocks, but it would make more sense to look at some kind of stock over a long period of time to see how much it goes up or down depending on the market. If a company survived multiple recessions and especially terrible things like the Great Depression, it might be a company that could be more stable than most other companies and know how to survive the next recession. It would also make more sense to invest in industries that people feel like they need to survive. Investing in some company that provides relatively inexpensive food at a grocery store makes more sense than investing in some tech company that doesn't make something really basic needed to do work like a computer. When push comes to shove, people might not want to use some app if they can't eat decent food. Also, don't invest in any company that does weird shit like provide homebuyers houses they can't afford with loans. Investing in a company that has business practices that seem illogical or shady to you seems like a recipe for losing your money at some point. It would also make sense to invest a relatively small percentage of your money that you could feel comfortable losing the next day because you could lose it the next day if any of your calculations about how much a company could grow were incorrect.


----------



## bigstupidgrin (Sep 26, 2014)

Impavidus said:


> Also known as shorting a stock. Playing with margins is one heck of an adrenaline ride.
> 
> A simple analogy of shorting, for anyone who is interested:
> 
> Your neighbour owns a lawnmower. You know that particular model of lawnmower will be going on sale next week. So you pay your neighbour $10 to borrow his mower for the week, then turn around and sell it on Kijiji for $500. A couple of days later you head down the hardware store and buy the same model on sale for $250. You give your neighbour back the new lawnmower, and you're $240 richer.


Insider trader :laughing:


----------



## Death Persuades (Feb 17, 2012)

I have very limited knowledge on how stock market works, as in the complex parts of it, but I have enough knowledge to know the basics behind it. I actually made 200 bucks in stocks once, but I had to put 5k in to make 200 over 1 month. I actually got pretty lucky cause I sold and the next day they dropped 10% and six months later were bankrupt :shocked: I'd rather not share which company it was.


----------



## Impavida (Dec 29, 2011)

bigstupidgrin said:


> Insider trader :laughing:


Only if the lawnmower sale wasn't publicly advertised :wink:


----------



## IronTwinkle (Feb 17, 2015)

Exactly.. you are pretty sure about investment in oil but i dont think its good idea to invest in oil or commodity, perhaps you have strong knowledge of market research especially commodity market since last a year. Well I suggest you to invest in oil companies to buy their stocks or best investment in gold.


----------



## Theorist (Mar 3, 2015)

thismustbetheplace said:


> So the stock market is really just a massive, eternal battle between a herd of bulls and a pack of bears?
> 
> *MOOOOOO* *ROAAARRRR* *cash register noise*
> 
> ...



Many people, including value investors (think Warren Buffett) will argue that hype is a temporary obstruction or effect on the price of a stock, but its value will eventually show. 

In reality, there is a constant degree of separation between the financials of a stock (assets, revenue, etc.) and the price shares are worth. 

A great example is Blockbuster. People could buy shares in Blockbuster for less than the comparative value of its assets - in other words, the market cap (total shares * price per share, or total value of all the company's stock) was less than the company's real assets. Despite this, nobody wanted to invest in Blockbuster because it had no vision or future. 

In the other direction, Tesla Motors has rarely if ever posted anything but losses, yet they're worth around half of BMW already. People see a future in them that they're eager to invest into.

How this degree of separation is exploited depends on the investor. Some may look for companies that have a lower market cap than what their assets are worth - those would be the value investors, searching for undervalued companies. On the other hand, there are people who will exploit this separation by spotting trends before they're big, and capitalizing on hype. Finally, there are investors who will just look for companies that they believe will grow over time and ignore the degree of separation altogether.


----------



## GrumpyVampire (Mar 3, 2015)

The stock market is something than no one can give an exact surety about. Its like you are gambling but there are articles online which can help in actually understand how it works and how to go along with with it. If you are looking for as small investment and steep returns i would suggest to look out for penny stocks. A lot of oil and gas companies have also started checking in penny stocks. this year really seems to be interesting regarding to it.
I am not an expert though this site helped me in thinking about my investments this year.
profitconfidential, bloomberg


----------



## Impavida (Dec 29, 2011)

GrumpyVampire said:


> The stock market is something than no one can give an exact surety about. Its like you are gambling but there are articles online which can help in actually understand how it works and how to go along with with it. If you are looking for as small investment and steep returns i would suggest to look out for penny stocks. A lot of oil and gas companies have also started checking in penny stocks. this year really seems to be interesting regarding to it.
> I am not an expert though this site helped me in thinking about my investments this year.
> profitconfidential, bloomberg


Guaranteed way to lose your money ^^^^

Unless you're an insider, the only way to make money on penny stocks is blind luck. If any sort of "professional" gives you a tip on a penny stock, you're being scammed. Pump and Dump is one of the oldest tricks in the business.

If you have limited capital and want big returns, you're better off looking at options trading.

Internet articles do provide accurate information, but it is usually so superficial that it is of little value. To be successful at investing (particularly at trading) you need to treat it like a full-time job and educate yourself. If you only want to dabble in the markets, you would be better off taking the money you planned to invest and going to Vegas for the weekend.


----------



## Razare (Apr 21, 2009)

Impavidus said:


> Guaranteed way to lose your money ^^^^
> 
> Unless you're an insider, the only way to make money on penny stocks is blind luck. If any sort of "professional" gives you a tip on a penny stock, you're being scammed. Pump and Dump is one of the oldest tricks in the business.
> 
> ...


No, you can make money on penny stocks.

Penny stocks have to report their financial results just like any other company.

They are no different than other stocks, other than, their company has generally suffered something terrible in its past. The key is spotting stocks which are destined for the turn-around.

Things to look for in a penny stock turn-around:

- New management, that doesn't blow investor's money
- Managed cashflow statement, where the company is not bleeding to death, heading for bankruptcy

When the market crashes like in 2008. A lot of companies become penny stocks, just from the general market sell-off which occurs.

A good example of a penny stock turn-around is AVNR. I first looked at AVNR in the 40 cent range. New management had come in. The management fired the R&D department, which drained the company's cash. Then they focused 100% of their effort on developing their primary drug which needed phase III approval. They had become a penny stock because their Phase III approval was rejected the first time. Yet if you listened to their conference calls, they explained why it was rejected, and they were doing the studies required by the FDA for approval.

Then the only question remained, would they not go bankrupt before the approval? The approval was about 80% guaranteed.

The risk reward analysis on a stock like that is easy... downside is 100%, the upside is 500%.

I eventually owned AVNR around $3 per share. At that time, I estimated the value of their approved drug to make them worth at least $4. Yet they were bought out for $16, so my estimate was very conservative. The drug turned out to be worth much more.

The key with stocks like this is diversification. You cannot dump 100% of your money into them. You can dump 10% or maybe 20%.

Look at it this way. If the stock market crashes tomorrow, expect to lose 20%. Well, if your penny stock goes to zero, expect to lose 20%

Yet if it pans out, expect to gain 50%.

Though, most penny stocks aren't worth even looking at. You need to understand accounting and business principles if you even want to invest in them.


----------



## Razare (Apr 21, 2009)

So who thinks facebook is going higher?

I bought some yesterday. My analysis was not too detailed, because ultimately stocks like this depend on future results and sentiment, rather than present-day fundamentals.

Yet my analysis is this:

- We are nearing the end of one of the longer bull markets; and facebook is part of the Nasdaq's resurgence in this bull market in terms of psychological condition of the market. This means, toward the end of the bull market, expect prices for stocks to be highly inflated beyond any fundamentals. And also, expect the stocks who are part of the psychology to lead the charge toward absurd valuations.


- Yet even if I can expect prices to go way beyond fundamentals, Facebook has not gone beyond fundamentals yet. I've followed Jim Cramer off and on for 10 years. I know when to listen to him, and when to ignore him. One thing he is amazingly good at is pricing hyped growth stocks. He correctly forecasted the rise of Google's stock into the powerhouse it is today. From my point of view, Facebook fits this model. All it matters is that they continue to grow by monetizing their resource. The resource is already there, growth is just a matter of monetizing it.

That would put its market cap around 280 bil. I think that is deserved when considering Google is 391 bil. Google, though, is not an apples to apples comparison because it's no longer one of these hyped growth stocks. The stock has matured, so is valued more conservatively than facebook.


----------



## Impavida (Dec 29, 2011)

Razare said:


> No, you can make money on penny stocks.
> 
> Penny stocks have to report their financial results just like any other company.
> 
> ...


AVNR was never a penny stock. It was an undervalued micro-cap. Similarly, your statement about securities becoming penny stocks when the market dropped. Not true. They simply become undervalued. People throw around the term "penny stock" far too loosely and it leads a lot of rookie investors down a very risky road.

Generally speaking, if it's trading on one of the major exchanges, it is not considered a penny stock, even if it's priced under $5. There are exceptions of course, but they are usually companies that are on the verge of being booted off the exchange anyway. Penny stocks usually trade on the OTCBB or the pink sheets. The reporting requirements for the OTCBB are not as stringent as the major exchanges. They are non-existent for the pink sheets.

What you're talking about is value investing. It's generally not possible with penny stocks because the information necessary to make an informed investment is simply unavailable to the public. As always, there are exceptions, but it would take a lot of research or a sweet search algorithm to find them.

It is always possible to make money on penny stocks. However, the risks are significantly higher than with regularly traded securities.


----------



## Impavida (Dec 29, 2011)

Razare said:


> So who thinks facebook is going higher?


I love FB. It has provided some of the easiest and most predictable returns of my investment career. I played the downside for the first month, sat on the sidelines for a while, then bought in just after it bottomed out. I expected that the FB IPO would look very similar to GOOG. It was a bit rockier, but otherwise it has so far followed exactly the same pattern.

Google plateaued at about $100 for a year or so before it really started to take off. FB has been plateaued at around $80 for about 6 months now. I plan to increase my position over the next couple of months.

As it's a hype-based security, I haven't really delved too deeply into FBs financials. Obviously I'm paying attention to them, but I've relied more on technical analysis than fundamentals. 

I agree that as long as they continue to find ways to monetize across the different platforms, they will continue to grow.


----------



## Razare (Apr 21, 2009)

I think I'm going to invest in some biotech. I just finished doing the homework on one, and I got a limit order placed for it.

The thing I like about small-cap start-up biotech stocks is that they are easy to value. They have no earnings. So you just take their lead drug, and estimate its market share compared to other drugs selling. That will be their future earnings, so long as they don't run out of cash, and the drug which gets approved is better than what is available. Then you go find a biotech that has earnings, take their FPEG and apply it to your start-up biotech to get a share price.

It eliminates having to predict economic factors such as federal reserve rates and GDP growth.

It only took me a couple hours to do the homework for just one stock. It's like investing made easy! You just got to know about ratios, and calculate the cashburn combined with share dilution estimates.

Which I am employed doing accounting, and part of my job is doing 1 year cashflow projections for my company, so that is easy stuff!


----------



## Impavida (Dec 29, 2011)

There's always a lot of upside potential with biotech companies. Unfortunately, there's also the risk that the clinical trials will fail or the FDA will sink it, which is nigh impossible to predict. Not a sector I like to spend much time in, but it's definitely a good one for long-term investors.

Apart from a few notable exceptions like FB, I'm more of a trader than an investor. I typically don't hold a position for longer than a month (usually more like a week). However, at the moment I don't have the time to do the necessary research for active trading, so I'm parked in some dividend stocks. They pay more than the bank, so it's as good a place as any to hold my money until I can start to trade again.


----------



## Razare (Apr 21, 2009)

Impavidus said:


> Apart from a few notable exceptions like FB, I'm more of a trader than an investor. I typically don't hold a position for longer than a month (usually more like a week). However, at the moment I don't have the time to do the necessary research for active trading, so I'm parked in some dividend stocks. They pay more than the bank, so it's as good a place as any to hold my money until I can start to trade again.


I was thinking dividend stocks, but then changed my mind on it. Like the utilities, they're basically a bond. Then if interest rates go up, the dividend stocks go down... or at least not as up as much.

I was considering Chevron, just because I think oil will probably turn around eventually. In the meantime you get a 4% dividend that looks safe.

What really stinks are the interest rates out there. I have to park a few million at my job, and the best investment I found was a savings account with a 0.4% yield. Bonds? 0.7% ... it's like why even bother to invest. Stocks are too risky for work because then we'd become a hedge fund instead of a business.


----------



## GrumpyVampire (Mar 3, 2015)

Well, investing in stock market isn't like you learn in a book or has a certain formula to it. It has zillions of attributes and factors changing the parameters to an extent where companies and people go to bankruptcy or to being Dan Bilzerian. Google it and you wont find a definite answer to it. But just because of its uncertainty one should not be afraid to start investing. Start slow, learn fast! 
In simple words it is Global Gambling


----------



## aendern (Dec 28, 2013)

@Razare @Impavidus @KindOfBlue06

what advice would you give to a college student who has never traded before but would like to one day be a day trader?


----------



## 7rr7s (Jun 6, 2011)

emberfly said:


> @_Razare_ @_Impavidus_ @_KindOfBlue06_
> 
> what advice would you give to a college student who has never traded before but would like to one day be a day trader?


Find out what you're going to be trading; stock market, stock options, Forex, ect. There's advantages and disadvantages to each. Then study all you can about them. Whatever money you are gonna be trading at first, invest that into your education first of all. Then when you feel comfortable with that, get a demo account. It's the same thing as a real account, except it's not real money. When you can make consistent gains with the demo account then move on to an actual account with live money. 


A great place to start with learning stuff is TD Ameritrade's Think or Swim.


----------



## aendern (Dec 28, 2013)

KindOfBlue06 said:


> Find out what you're going to be trading; stock market, stock options, Forex, ect. There's advantages and disadvantages to each. Then study all you can about them. Whatever money you are gonna be trading at first, invest that into your education first of all. Then when you feel comfortable with that, get a demo account. It's the same thing as a real account, except it's not real money. When you can make consistent gains with the demo account then move on to an actual account with live money.
> 
> 
> A great place to start with learning stuff is TD Ameritrade's Think or Swim.


Do you have any recommendations for the demo account? Have you made one of those before? Which one did you do?


----------



## Word Dispenser (May 18, 2012)

Lectures: Ackman - Floating University


----------



## Razare (Apr 21, 2009)

emberfly said:


> @_Razare_ @_Impavidus_ @_KindOfBlue06_
> 
> what advice would you give to a college student who has never traded before but would like to one day be a day trader?


Use the simulator on investopedia for a few months. Investopedia - Educating the world about finance

It's not setup for day trading, but short-term trading it can do. If you want to try short-term stuff, I suggest experimenting with multi-day / multi-week swing-trades. Certain stocks bounce within ranges, so you can buy at the bottom of the range and sell at the top. If something funny happens, you cut your losses and sell.

When you start out trading real stocks, if you have a large amount of capital, I would suggest starting with 10% to 20% of it. My experience is unless you lose your shirt on bad trades a number of times, you don't learn valuable lessons.

One of the first valuable lessons you will likely learn is not to trade on emotions or "hunches". Whatever style you end up using for investing or trading, emotions and hunches cost you money.

One of the next big lessons I learned was how to gauge the market emotion. Rather than trading on your own emotions, you then trade around the emotions of participants in the market. It's not something you can peg 100% of the time, but like the 2009 bottom, I knew when it had happened just by what a commentator on TV said, "The guys on the floor are looking for a bottom."

"Looking for a bottom" combined with recent data, meant when translated into non-wall-street talk... "The bottom has already formed, just no one realizes it yet." So I knew the bottom was in place, and stocks would likely increase dramatically over the next year, as what usually happens when bottoms form. In that moment, I gauged the crowd mentality of the market correctly. You learn to do this by watching CNBC, and as much other stock related news as you can absorb.

It's not that CNBC knows what is going to happen in the market and they tell you... no, it is more like, they tell you a story which is usually totally wrong, but from their ignorance you can make an educated read of what is actually going to happen in the market because they convey sentiment quite well.

Though, this lesson isn't necessary for making money in the market, but it will increase your probability of success, and/or increase potential gains. It really depends what strategies you use, as some types of strategy wont benefit from this knowledge. 

When you finally develop a strategy, it is important to stick to it completely, and not modify it during the trade. If a good trade turns bad, you just sell it and follow the original plan you had. If you get into justifying a trade that has gone wrong, "hoping" it is going to improve, you have moved into the realm of emotions rather than trading.

A successful short-term trader is only right perhaps 60% of the time if they are good at what they do. Yet if they can quickly identify when they are wrong, selling immediately, and then hang-on to the gains they make when they are right, on average they will do very well. This is the concept behind short-term trading, from what I know of it. There are of course, other ways to make money with trading, like one gentleman mentioned arbitrage.


----------



## hyunski (Mar 21, 2015)

highly recommend tradingsim.com for day trading. it's not perfect and you won't see the entire market dynamics but it will get you up to the point where you will break even as a day trader if you try hard enough. then you can open up a real account.

important rule: always review your trades and actively try to get better.

also try to learn from traders who have a genuine track record of success and dissect their strategies. if your goal is to maximize profitability, there is nothing more wasteful than trying to reinvent the wheel on strategies. i thought this wouldn't be the case, but you reach the same conclusions in the end developing a strategy of what works. i suggest:

- anton kreil
- nathan michaud
- BNF (japanese day trader)
- a korean trader but you probably can't find him


----------



## Impavida (Dec 29, 2011)

emberfly said:


> @_Razare_ @_Impavidus_ @_KindOfBlue06_
> 
> what advice would you give to a college student who has never traded before but would like to one day be a day trader?


Late to the party, but what the heck, I'll chime in anyways 

Study, study and study some more. Read every finance and investment book you can get your hands on. You will be playing with professionals who are paid to trade and take advantage of uneducated retail investors. The more you know, the better you will do.

You need to understand how all the different aspects of the market and the economy are related. However, to be really successful you'll want to pick no more than a couple of different strategies and become an expert at them. It could be forex, options, futures, commodities, bonds, long-term investing, etc. It doesn't matter which you choose, you can make money at any of them as long as you understand what you're doing. 

Personally, I recommend starting at the macro level and working your way down to the micro. Start with general personal finance books. Once you understand the big picture, then you can start to drill into more specific strategies.

As for investing, it can be broadly broken down into two main types:

Fundamental Analysis

This is the traditional old school method of investing. This is Warren Buffett's claim to fame. With this type of investing, you learn everything you can about a company. You're reading financial statements, studying their earnings. You're looking for companies that are financially sound, but undervalued on the stock market. You get to know the company so well that you can accurately predict how it's going to respond in different market conditions and make your plays accordingly.

Technical Analysis

This is the heart of day trading. In its purest form, it's based entirely on reading the charts. This is where you get into indicators like candlesticks, bollinger bands, moving averages, channels, triangles, head and shoulders, gaps, etc. The basis of this type of trading is pattern recognition. You're looking for patterns in stock movement and using those patterns to predict where the stock is going to go next. 


Everyone develops their own style when it comes to trading/investing based on preferences and risk tolerance. Over time you will find that you fall more into either the fundamental or the technical camp. However, the best investors/traders learn to incorporate both fundamental and technical analysis. They should complement each other not compete with each other.

Further to what @Razare mentioned about the emotion of the market. Really understand what that means. Stock price is not just a measure of a company's financial success. It's a measure of how people feel about a company. Similarly, the stock market isn't a measure of the health of the economy, it's a reflection of how people feel about the economy. You need to learn to recognize that and incorporate that into your trading. 


*Random Tips*

-Use a simulator and paper-trade before diving in with real money. 
-Keep a trading log/journal, with notes about why you chose to make the trade that you did. It will help you see where you're making mistakes and start to recognize patterns and strategies that are working for you.
-Be wary of "experts" and the talking heads on TV. The information they provide may be correct and useful, but it shouldn't be taken as gospel. Learn to trust your own research and trading skills.
-Keep your emotions out of it. Set up the parameters of your trade before you go in and stick to them. 
-Expect to lose money and to lose a lot of it. Nobody is right all the time. The trick is just to be right more often than you're wrong.


----------



## Razare (Apr 21, 2009)

Impavidus said:


> -Be wary of "experts" and the talking heads on TV. The information they provide may be correct and useful, but it shouldn't be taken as gospel. Learn to trust your own research and trading skills.


This one is really good advice. I got interested in the stock market from watching Jim Cramer's show. It's a great show, I think. It makes the market exciting, while being informative, and entertaining.

Yet I started out by just doing what Cramer said, he said buy a stock, so I bought it. It seemed like common sense. Then my little stock account rolled over dead one day because the stock he had told me to bought was garbage... they had internal fraud. 

After that, I read one of his books on stock investing (Real Money). In that book I saw the rules, thinking, and homework he performed before he bought a stock. It was the outlines of a basic strategy for investing. It was that sort of system I ended up adopting which contributed to the later successes, I had.

After I had this mentality, I spotted situations where Jim would make bad calls on TV. For a while he was saying, "When a proven CEO has a bad quarter, just buy their stock!" Yet, this contradicted one of the rules he had authored in his book, that when a company has a bad quarter, you just have to sell it and wait for the smoke to clear. Sure enough, the rule that had made him proven money in the past turned out to be the correct course, and Jim had to come on air with some of his choices repenting; turning his buy recommendations into sells.

I point this out because as great as anyone is on TV, it all boils down to rules and strategy. No investor is better than the system they use to buy and sell. That system is way, way more important than what anyone thinks about a stock on a given day.

And really, from a talking head, what they think on a given stock is mostly meaningless. If you find some that share their strategies of how they did it, that is a lot more useful.


----------



## hyunski (Mar 21, 2015)

This is for INTPs:

First thing I want to add: measure everything. Take a painstaking effort to analyze the market movers for the week and measure their theoretical gains if you bought it at the beginning of the trend (which you can identify easily in hindsight). For example, small cap stocks with super themes will usually multiply about 4x from the very beginning (LAKE, DGLY) and crash 70% from the top within 3 months. There is a weird tendency for stocks to move in multiples and ratios. When there is no structure in the fundamentals, structure is found elsewhere, in this case, price.

Measure how many days there are remaining in a major catalyst. When there is a definite schedule behind a catalyst, buy and hold until it's over. An example is general elections and marijuana stocks. On the day of the general elections, these stocks started going down. Another example is BABA. The IPO failed to rally at the beginning because the market was crashing. But there was too much hype around it to let it die. The stock picked back up as market rebounded and it made a new daily high, and everyone jumped on. It stopped going up briefly exactly when the quiet period was over and investment banks started pumping the price up with first time recommendations: professionals took profits by taking advantage of this liquidity. The second sell point was 11/11/2014, or the Chinese pseudo-holiday where everyone goes on a shopping spree and that was expected to improve earnings. Again, no one knew at what price BABA was going to die, but they knew the psychological reference points of "when" that most people would use.

Things are slightly more complicated for stocks without a scheduled catalyst, but I won't give up all the answers. Besides it's boring that way 

Second thing I want to add: don't focus just on the price. The stock market is more sophisticated than that. It took me a very long time to realize this but moving prices put you in some kind of a money losing trance. The jack of all trades is better on the stock market. Don't focus just on the price, or the fundamentals, or the macroeconomy. Get the gist of what everyone else is thinking and when everyone else is thinking the same thing, you can expect tremendous buying pressure to develop. This is what you should really be analyzing: observing the system, breaking it down, and exploiting it. Trading boils down to this: anticipate the move and jump on it at the right time. 

I think I saved new traders about two years of costly self reflection. But trading is really some sort of philosophy. It teaches you humility, the value of money, human irrationality and lead-coated life lessons that are difficult to find elsewhere. The market, unlike people, will always tell you when you are wrong.


----------



## Razare (Apr 21, 2009)

So when a stock shoots straight up after I buy it, I have a tendency just to sell it and take my gains.

I just traded RCPT, bought last week at 131.01 and sold today at 164.30... I think the stock will eventually go to 180+ should they meet their goal with their main drug. Just I wasn't expecting it to arrive at 180+ until 2018 not in a couple weeks... well it just seems if it wants to go that high right now, it is a bit early, so I sold. They wont even have significant revenue from the drug until probably 2019.

So does anyone have good advice for when your stock is on a rampage higher? How do you know when to sell based on higher price?


----------

