Any thoughts y'all would like to share?
Amc up 120% today
BB up 20% today
GME up 10% today
Over the last week it's even more.
"Durandal, I'm here with local entrepreneurs and part time pedophiles the Redditors, Redditors what are your thoughts on the situation?"
"WOOOO! I LOVE CAPITALISM IN THIS PARTICULAR MOMENT! DIAMOND HANDS FOREVER!"
"Scintillating as always, back to you in the studio Durandal."
My thought: y'all should learn what a squeeze is because it's not "stock price goes up".
I’m just happy I was able to sell my GME at the same price I bought it. I will now only invest in stable ventures, like coconut futures.
Whenever you feel comfortable doing so. This is the highest it's been for 5 years.
Nothing wrong with selling right now. Personally I would take the profit and never look back, you've already achieved a 500% gain, which is phenomenal, especially without using options.
You should get an idea of that when you do your DD before buying. I know people are jumping on meme stocks because it's fast and easy. But you should still do some kind of DD on your own.
Set aside a maximum amount of money to invest. It can be $50, it can be $100. Just realize that with anything that low, it's very hard to manage risk. It locks you in to penny stocks if you want to also properly handle risk on every trade. You set up a floor for every share, a maximum amount you're willing to lose. For example, if you have $100 to invest and you buy a stock for $1, you set up a stop-loss at $0.95. That means the stock will automatically sell if it hits $0,95. So you know that, at worst, you're losing $0.05 per share. If you're willing to lose $2 (2%) of your total amount to invest, then you can buy 40 shares. That's $0.05 per share * 40 shares = $2. You have risked 2% of your account. You should always, no matter how much you have, keep your risk around 2%, go to 1% if lower. So you buy 40 shares at $1, that's $40. 40% of your total money is now tied up in one play. If it hits your stop-loss then you get back $38. You lost $2.
This works the same way for taking profit. You decide what amount of profit is acceptable. I think the safest long-term stock investments make 8% annually? So making 10% on a single trade is pretty good. You invested $40 so that means you should start looking to exit when it turns into $50. People don't want to do that because it's too slow. They want to turn $40 into $200. That's much riskier and unlikely to happen in an acceptable time frame. It's like crawling through a minefield. You can do it inch-by-inch, the safer way, or you can YOLO and just prance through it. But I think the official stats are that even the best traders only win 55% of the time, at most. So even when you're careful and get lucky, you're still going to lose almost as much as you win. Therefore turning $40 into $50 looks a lot better. If you do that then you now have $110. Do it again and you have $120. It won't be long before you have a real shot at doubling your money. You'll have setbacks for sure, not every trade will pay off. You might gain 10% and then lose 3%. Then gain 5%. Then gain 3%. Then lose 2%. etc. But as long as you can win a little more than you lose, you make money.
The trick here is to have more capital to begin with. All this talk people do about meme stocks lifting people out of poverty doesn't really jive. More people are going to lose than win, especially when working with such low amounts of initial capital. Because they can't manage risk and are relegated to pennystocks, as I said. But if you start out with $5000 or $50000, you can do a lot more. Now you can afford higher-priced stocks that may be more stable and have better payouts. Plus turning $100 into $110 is different than turning $5000 into $5500. You can do a lot more with that $500 than $10, even though it's 10% on both. So starting out with more money makes it easier to win. This is something we know intuitively because it's capitalism. But still, it's important to write out why.
You might know all this already, and are asking a question specific to AMC. But on the chance you're asking a general "when do I pull out?", I thought I'd try to answer in a technical way. If you don't have a take-profit point in mind already, I'd say cash out when you look at your account and the first reaction is "that's a pretty nice return." Because from personal experience, waiting until after that point pretty much means the stock will go down and you lose that opportunity. The second best time is when you realize you messed up and waited too long, before the price gets too low. The kicker is that if you do sell now, and tomorrow it hits $100, you'll be mad at the money you could have made. But it's important to not take the future for granted and to realize everything is simpler in retrospect. You'll never have as a much money as the amount you could have had. If you get too caught up in "I should have waited" and then wait too long on your next trade, you lose again. It messes with our brains because we're pattern-seeking animals and we expect the future to follow directly from the past. So of something doesn't work on one trade, it must work on the next trade. But that's not how it works. Waiting too long on one trade doesn't mean you shouldn't wait as long or longer on the next one. Even when it's a trade on the same stock. Waiting on GME in March is different than waiting on GME in April, for example. In March, you were slightly ahead of the curve and waiting was good. In April, the price fell and waiting just meant losses if you sold.
Meme stocks are dogshit buy Uranium, Aluminum, and Cobalt.
You can gamble your checks on AMC, GME. Steady performers are more my speed. Fractional shares of NVDA are dope. Why not HD? PDD? So many better choices that don't involve dubious pump and dumps. Ultimately, you gotta like the stock. Why like GME? They spent a decade+ like ripping people off on their second-hand dealings. AMC genuinely is a dinosaur business that should have been put out to pasture years ago.
I would pick up PLUG, F, even fuckin TSLA over GME and AMC
I dunno about everyone else, but I pick meme stocks not because of the shitty corps behind them but because they're shorted in large quantities. It's nice for shit like this to hit the news and for normal people to gradually realize just how fucked the stock market is.
I'm sure the ones you have are good long term investments and would be great for a savings or retirement account. I'll look into NVDA when the memes die down.
Do I look like I care about the stock market? I just wanna make some meme money of Redditors hyping up stock, that's it.
I sold my AMC stocks waaaay too early at $23. Apparently I could have sold them for $60-70 a piece!
Robinhood is even halting trading for AMC on and off, that's how you know shit is wild.
It's not Robinhood, the stock market has circuit breakers that halt trade when price movements fluctuate too wildly
My thoughts: Don't gamble your money on stock market speculation fueled by reddit memes, you're going to lose it. House always wins
AMC is up because of the holiday weekend and people seeing movies again. It was predicted months ago that it would go up if vaccination went well and covid restrictions were removed. Reagal reached all-time high recently, but has dropped a little since the beginning of May. It's a more expensive stock (~$150) and hasn't been memed all spring. But, at least where I am at, Cinemark closed down their theaters for good. That leaves AMC and Regal to split the market. If people keep going to the movies and the box office blueballs gets released into record-setting opening weekends, it'll probably go up more. I don't think it has anything to do with a short squeeze though.
GME is up because r/superstonk has been hitting r/all several times a week for a while now. No doubt that when people buy up a stock in bulk and few sell, the price will rise. I still think a lot of r/superstonk's DD is dubious though. Everything isn't a squeeze, which is the problem that has arisen out of the GME thing. Every new retail investor thinks everything is a squeeze. And every time the price falls it's shorts manipulating the market. Stocks go up, stocks go down, lots of things are always shorted to some amount. When buyers are in control, price goes up. When sellers are in control, price goes down. It's not a conspiracy.
No idea why BB is up, I haven't looked into it. I thought everyone dipped out on it in April. Though BBBY is up too so I guess the old memes are still around.
People are finding stocks that are shorted, hyping them up, buying massive amounts, and then not selling. Regardless of the shorts, that alone is enough to raise the price. You can do that with unshorted stocks as well. You have to ask why this "short squeeze" thing works on everything from a company shorted less than 10% to one over 100%. It turns out that when thousands of people jump on a stock and then refuse to sell, the price goes up. It's almost like when buyers dominate the market, the price rises.
The market as a whole should do better in the next two months. We're still hitting all-time highs in the Dow and S&P. Hospitality and any in-person entertainment should do well. I'll be curious to see how long it lasts. It would be funny for everyone to anticipate the moment when thing are back to normal and then the boost from that only lasts a week or two.
AMC is $11 billion in debt, made about $5-5.5 billion in revenue in a good year with about $5 billion in expenses, little asset growth, little revenue growth. If things go back to normal and they are able to make a profit again, they're probably at about 55 PE ratio, but they also have twice as much debt now so maybe worse. This is probably a zombie at best. They're doomed if interest rates go up. So since stocks always do the opposite of what I predict, it's definitely a "Buy". Note that they have $11 billion in debt and they recently made news by raising $230 million by issuing shares. Their interest expense for 2020 was $356 million. This company is absolutely fucked therefore I think their stock could definitely double several times over in the next few months.
:stonks-up:
My half a share of GME stock is almost at the buy-in water mark. (line went down, line went up)
I bought 100 shares and sold a 73$ weekly covered call. If it blows past 73 I still net over 2k, if it doesn't go lower than 52 I still profit. Haven't really gambled since making a decent nestegg on gme.
Capitalism is idiotic. I'd like to say that right now isn't a great time to play the market (2020 was stupidly easy), don't emulate me I just haven't traded in months and I decided to run a big gamble here mostly for old times sake.
And just to iterate: AMC was doing horribly before covid, this valuation is absolutely bonkers. Truely the year of meme stonks
I don't know what any of this means but line goes up so porky must be happier.
