Stock trading for a rookie

McDirkale

McDirkale

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Ok...so lately got interested in stocks. Know very little but I have a question.

Downloaded Robinhood as I saw it talked about on here.

I was looking at crypto just trying to learn. Ran across a very cheap one, Dogecoin

Robinhood says right at this moment it's worth this....

Screenshot_2021-01-28-23-07-52.png

Nasdaq says at 11:07 pm today it's value is this...

16118935925768437506387104106640.jpg

Look...I understand Robinhood has to make a profit but that quite a difference in spread.

Or am I just dumb anf have zero knowledge of how to read this?
 
I follow coinbase for prices on crypto. I’d recommend staying away from both dogecoin and robinhood. Dogecoin was created as a joke in reference to a meme and is similar to the USD as there is no cap on how many dogecoin can be produced.
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Can't help you with dogecoin but I'd highly adise you to do some research on Robinhood. They are a snake of a company. Look around at whats going on with Gamestop (GME) and AMC stocks. Check out the games robinhood played today. Class action lawsuit filed against them in NY today. Its a mess.
 
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Yea....just saw the head guy on Fox News (that's what's on in the office)......and he looks like he is 12.....which really concerns me.
 
I don't think many had negative things to say about them up until today. I thought about playing around with it as well but things don't look too good with them right now. Tomorrow should prove to be interesting. I've learned more about the stock market this week than I think i've ever known just by trying to keep up with this fiasco.
 
I'd advise strongly against robinhood after today. I've used them, webull, and td for over a year, but I'll be closing my account with them after tomorrow. Webull is good, but Chinese owned. If you plan to just invest, And have no plans of actively trading, most any of them will be fine. If you plan to actively trade and want to learn about charting and indicators, etc, start with webull.
 
As far as doge coin goes, I've been playing it for two days and have done well on it. If you get a dip anywhere around .05, today or early tomorrow, you could probably count on a cent or two run back to the. 07 mark. I've bought my final amount with a small part of the profits, and I'll sell it off if I see .09. They'll be heavy heavy selling at .10 if it ever gets there.
 
This all started with a discussion of picking up some carnival cruise line stock.....whenever these travel restrictions lift I see that going straight up....but, what do I know?
 
slow is slow said:
I'd advise strongly against robinhood after today. I've used them, webull, and td for over a year, but I'll be closing my account with them after tomorrow. Webull is good, but Chinese owned. If you plan to just invest, And have no plans of actively trading, most any of them will be fine. If you plan to actively trade and want to learn about charting and indicators, etc, start with webull.
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there's already a class action starting against them over this mess
 
IrishCannon said:
Its absolutely criminal what Robinhood and TD Ameritrade did regarding GME and AMC.

Sent from my Moto G (5) Plus using Tapatalk
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Can someone explain what they did? Or post a non-CNN link?
 
kcult said:
Can someone explain what they did? Or post a non-CNN link?
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Prohibited trading certain stocks, like game stop, that are heavily shorted to prevent people from buying them up and squashing the “guaranteed” profits of the hedgers. Market manipulation is fine only as long as your one of the club.
 
noway2 said:
Prohibited trading certain stocks, like game stop, that are heavily shorted to prevent people from buying them up and squashing the “guaranteed” profits of the hedgers. Market manipulation is fine only as long as your one of the club.
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Thought I saw some posts about Robinhood also liquidating (forced selling) people’s shares in those stocks as well??? Was this true or just internet BS?
 
willpgn said:
Thought I saw some posts about Robinhood also liquidating (forced selling) people’s shares in those stocks as well??? Was this true or just internet BS?
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There were a lot of people talking about that yesterday. Some accounts who’s shares were forced to sell were set up to trade on margin (which was allowed) but there are others who were not that claim their stocks were sold at yesterday’s low.

TD Ameritrade is just as guilty as Robinhood.
 
Some hedge fund guys play games, one well known guy trash talked Marriott and made billions selling short positions, he covered his shorts with purchased at lower price.
 
Dave Portnoy was ranting about these dudes yesterday.
 
Equities market is controlled by the "institutional investors" (crooks). I only have one common stock position and it's part of my wife's former employer retirement plan. Buy and hold is for suckers until they put all the wall street firms in jail.
 
Button Pusher said:
www.investopedia.com

Short Squeeze: Meaning, Overview, and FAQs

A short squeeze occurs when a stock moves sharply higher, prompting traders who bet its price would fall to buy it to avoid greater losses.
www.investopedia.com www.investopedia.com
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I don’t short stocks so I have a question. The premise is that I believe GameStop is a company without a bright future. Long term, wneeds a chain of brick & mortar stores in a 5G world? Everything will eventually go to the cloud and online sellers will rule game hardware sales. This was clearly the belief of the market up until recently. Robin and the Merry Men crushed the shorts and that caused the stock price to go vertical. Now, the question...

When all the shorts (who are forced to buy shares at ANY price to cover their shorts; meaning the higher the price, the greater their losses) are covered, won’t the share price eventually return to something close to their fundamental value? A stock that perhaps has a fundamental value in the single digits is now selling north of $300. What will keep Robin and crew from being destroyed? Who will be there to support the crazy price?
 
Jeppo said:
I don’t short stocks so I have a question. The premise is that I believe GameStop is a company without a bright future. Long term, wneeds a chain of brick & mortar stores in a 5G world? Everything will eventually go to the cloud and online sellers will rule game hardware sales. This was clearly the belief of the market up until recently. Robin and the Merry Men crushed the shorts and that caused the stock price to go vertical. Now, the question...

When all the shorts (who are forced to buy shares at ANY price to cover their shorts; meaning the higher the price, the greater their losses) are covered, won’t the share price eventually return to something close to their fundamental value? A stock that perhaps has a fundamental value in the single digits is now selling north of $300. What will keep Robin and crew from being destroyed? Who will be there to support the crazy price?
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From what I understand once the Hedgefund goes under the debt goes to the bank that underwrites them and then if they go under it kicks up to the Fed.
 
Jeppo said:
When all the shorts (who are forced to buy shares at ANY price to cover their shorts; meaning the higher the price, the greater their losses) are covered, won’t the share price eventually return to something close to their fundamental value?
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I think that a large part of the issue here is that these hedge funds are buying on margin, meaning that they're using money they borrowed to make the purchase. They are required to maintain a certain percentage of cash to cover their account. See: margin call. What's more is that they are trading not the equity itself, but on the derivative of the price, which acts like a high gain amplifier meaning they either win (or lose) big. So what happens is as the price of the stock moves away from the direction they're betting, their exposed risk increases and the loan holder demands that they cover their bets which in turn forces them to (buy or) sell assets to do so, resulting in a loss. It's pretty complicated and I don't fully understand it, but basically as the price of Game Stop went up, the hedge funds had to cough up money to cover the loans used to make their bad bets.
 
The hope is that in covering their short positions, hedge funds are buying your cheaply purchased shares. Yes, the stock will eventually return to what people believe it's worth, not what it is actually worth. The rub lies in getting out when you think the short sellers are covering, but rest assured many retail investors will lose plenty on this.
 
When short selling was explained to me 40 years ago, I said "that's no different from counterfeiting. It's dishonest and should be illegal."
I was told that short sellers benefit the market by adding "liquidity".

Fast forward to now. The market has experienced a growth of "True Liquidity" which hurts the counterfeiters, and I LOVE IT!!!!!!
Watching short sellers face a short-squeeze is like watching an attempted purse snatcher getting kicked in the balls, very satisfying!!!!
 
McDirkale said:
Ok...so lately got interested in stocks. Know very little but I have a question.

Downloaded Robinhood as I saw it talked about on here.

I was looking at crypto just trying to learn. Ran across a very cheap one, Dogecoin

Robinhood says right at this moment it's worth this....

View attachment 295778

Nasdaq says at 11:07 pm today it's value is this...

View attachment 295780

Look...I understand Robinhood has to make a profit but that quite a difference in spread.

Or am I just dumb anf have zero knowledge of how to read this?
Click to expand...

You downloaded Robinhood yesterday? Immediately after the screwed their retail customers? 🧐

Maybe take up another hobby? This one might not turn out well. Good luck.
 
Jeppo said:
I don’t short stocks so I have a question. The premise is that I believe GameStop is a company without a bright future. Long term, wneeds a chain of brick & mortar stores in a 5G world? Everything will eventually go to the cloud and online sellers will rule game hardware sales. This was clearly the belief of the market up until recently. Robin and the Merry Men crushed the shorts and that caused the stock price to go vertical. Now, the question...

When all the shorts (who are forced to buy shares at ANY price to cover their shorts; meaning the higher the price, the greater their losses) are covered, won’t the share price eventually return to something close to their fundamental value? A stock that perhaps has a fundamental value in the single digits is now selling north of $300. What will keep Robin and crew from being destroyed? Who will be there to support the crazy price?
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Pyramid type situations. Last one out is fubar. But there is more to this than making money. It is showing the hedge funds, brokerages and all of Wall St to be corrupt. You are correct. At some point Gamestop is worth what it is worth and will find the price.
 
CZfool68 said:
Pyramid type situations. Last one out is fubar. But there is more to this than making money. It is showing the hedge funds, brokerages and all of Wall St to be corrupt. You are correct. At some point Gamestop is worth what it is worth and will find the price.
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So, those that couldn’t buy yesterday on Robinhood, but are buying today at 80% above yesterday’s close, will eventually get creamed.
 
Jeppo said:
So, those that couldn’t buy yesterday on Robinhood, but are buying today at 80% above yesterday’s close, will eventually get creamed.
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Probably some of them. At some point people either run out of money to pour into an unprofitable company and cash out or more buyers don’t come into the market to support those values. Smart people will cash out first and the price will fall. But this seems more like a crush the Hedge Funds move to it might take longer to pan out. It is certainly fun to watch though. Wish I was in at $4. I’d be shooting classic firearms in the sun somewhere right now instead of working and posting on CFF.

It all reminds me of a line from a Roomful of Blues tune. It ain’t how you fly, it’s how you land.
 
CZfool68 said:
Pyramid type situations. Last one out is fubar. But there is more to this than making money. It is showing the hedge funds, brokerages and all of Wall St to be corrupt. You are correct. At some point Gamestop is worth what it is worth and will find the price.
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This is the big point...it's less about making profit and more about crushing Wall St into the dirt for being a POS for manipulating our lives via GovCo.

Sent from my Moto G (5) Plus using Tapatalk
 
InvisibleOne said:
When short selling was explained to me 40 years ago, I said "that's no different from counterfeiting. It's dishonest and should be illegal."
I was told that short sellers benefit the market by adding "liquidity".

Fast forward to now. The market has experienced a growth of "True Liquidity" which hurts the counterfeiters, and I LOVE IT!!!!!!
Watching short sellers face a short-squeeze is like watching an attempted purse snatcher getting kicked in the balls, very satisfying!!!!
Click to expand...

money changers.....

9654D136-D22C-45FC-97FC-D4D4625B8907.jpeg
 
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