Trading the stockmarket (NO Referrals)

If you sell you still have something, cash.



Could be selling at the bottom. Could be selling at the precipice of a serious crash. Good thing this is a thread for discussing the stock market right? I think we're not at the bottom, we could see drops to values seen several years ago. Let's see how it plays out eh.

I'd imagine most people in here aren't traders and have a long term view.

Earlier you said come back in a few months, how about come back in a few years?
 
I'd imagine most people in here aren't traders and have a long term view.

Earlier you said come back in a few months, how about come back in a few years?

Alright, lets play.

FTSE 6583
Dow 25766

$1000 on the dj, GBP1000 on the ftse at today's rates.

You're holding. I've cashed out, I'll post again when I'm buying in, see how we do over time.
 
This isn't real money you know? We're setting a baseline to see if holding through this period ends up being the right call versus me calling the bottom.

How can there be a comparison if you don't know both purchase prices?

Unless you're suggesting we both buy today at the price and you sell but I hold?
 
Where I'm sat, my 'meaningless' claim about an impending big selloff event is looking pretty meaningful....

The markets were overheated and fragile, any kind of shock was going to trigger a meltdown.

Well I guess we'll have to agree to disagree on that - IMHO the sell off is the result of an event that had nothing to do with your claim. I'm not buying into any narratives about "overheated" etc.. this is just the stuff of pointless talking heads on CNBC and not anything objective/data driven beyond a subjective call based on perhaps a glance at a chart etc..
 
Alright, lets play.

FTSE 6583
Dow 25766

$1000 on the dj, GBP1000 on the ftse at today's rates.

You're holding. I've cashed out, I'll post again when I'm buying in, see how we do over time.

That's nonsense though - what we'd really need to look at is multiple "calls" re: market timing over time vs someone steadily investing via some buy and hold approach.
 
Iv been considering buying two or three good dividend paying stocks. Ideally ones which are priced right and have potential to go up in value too, obviously. Objective is to hold for 5+ years and take the annual divi payments.

Wouldn’t now be a good time to buy such shares as pretty much all stocks are massively down now?

I’m thinking Shell for example. Open to other suggestions.
 
Advising people to cash out (when they could have already made a paper loss) and speculating wildly about large drops isn’t helpful at all.

Such talk feeds into fears and amplifies them, and is one reason price crashes/corrections occur.
 
The market has been irrationally positive for a long time now, there was inevitably going to be a period of irrational panic at some point. Although with the looming economic impact of Covid-19 it's not all that irrational.
 
I trend to agree with mid_gen.

If you cash out and in frequently, over the long term you will still be on a better place that someone that holds and weathers events.

Who saw this coming? Every day I read doom And gloom overvalued stocks, when with they crash, it's time for a correction.

Well here it is. It's going to be like this for another week hemorrhaging 3% a day at least, then it will ease to smaller daily loses and just hover. +/- when it reaches whatever correction amount some a-hole decided is correct, and off we go again.

I have zero knowledge on short markets but I know and am learning how people think.
 
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I trend to agree with mid_gen.

If you cash out and in frequently, over the long term you will still be on a better place that someone that holds and weathers events.

Is this backed by any trends/research? Genuinely interested. How frequently? Surely you'd only do this with a % of your portfolio?
 
Is this backed by any trends/research? Genuinely interested. How frequently? Surely you'd only do this with a % of your portfolio?

It would be a pretty sensible hedge against the potential of covid-19 to throw the world into recession to move a % out of equities.

Obviously if you're a buy once and leave it for decades investor, you might not care. But this is the 'trading the stockmarket' thread...
 
The market has been irrationally positive for a long time now
Exactly. If interest rates weren't still at 'avoid depression at all costs!!!!!!!' levels, shares would not be in Wil-e-Coyote territory. Of course when money printing starts again (in a more public fashion), shares will go straight back up again. It won't mean it makes sense long term, it's just the money has to go somewhere, and it's not going to build infrastructure like they used to do in old fashioned economic times. Pesky old folk, what did they ever know?
 
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