I think it's very difficult to imagine what the person on the other side of the trade has in mind. You could be a value investor who buys something that has gotten cheap. The seller could be a trend follower who is shorting the stock because it's been going down. Some people will sell a stock that no longer pays a dividend. The person on the other side may have found something he or she liked better. The seller could be an algorithm (with a bug?). I remember reading about an algorithm of a quant fund that had a value hard-coded by mistake instead of obtaining it from the market and this caused the algorithm to make bad trade. It's not something the person on the other side can easily guess. Sometimes, the seller received a Margin call and has to sell something he'd rather not sell. When people are guests on a TV show and they get asked for a stock tip, the interviewer always forget to specify for whom the recommendation would be: A swing trader ? A trend follower ? A long time buy and hold investor ? A young person or someone about to retire ? That's an important distinction to make before answering such a question.
Almost everything they tell you it's exactly the opposite. Even back in the Peter Lynch deal days he said don't add to losers cuz he was doing deals in the debt market behind equities back.
For instance raising interest rates that little really just raise the cost of margin and borrowing $PLx Option contracts just got smoked you should be looking at a target of at least five not bad from $1.50
Wow, Beautiful Upload friend. keep it up. Thank you for sharing this to us. Greetings from Korea
I think it's very difficult to imagine what the person on the other side of the trade has in mind. You could be a value investor who buys something that has gotten cheap. The seller could be a trend follower who is shorting the stock because it's been going down. Some people will sell a stock that no longer pays a dividend. The person on the other side may have found something he or she liked better. The seller could be an algorithm (with a bug?). I remember reading about an algorithm of a quant fund that had a value hard-coded by mistake instead of obtaining it from the market and this caused the algorithm to make bad trade. It's not something the person on the other side can easily guess. Sometimes, the seller received a Margin call and has to sell something he'd rather not sell.
When people are guests on a TV show and they get asked for a stock tip, the interviewer always forget to specify for whom the recommendation would be: A swing trader ? A trend follower ? A long time buy and hold investor ? A young person or someone about to retire ? That's an important distinction to make before answering such a question.
$PLx
Option contracts just got smoked you should be looking at a target of at least five not bad from $1.50
Thanks for the wonderful lessons
You're welcome Harish, and thank you for checking out Excess Returns.
Great informative video!
Glad it was helpful! Appreciate you checking out Excess Returns.
👏👏
Almost everything they tell you it's exactly the opposite.
Even back in the Peter Lynch deal days he said don't add to losers cuz he was doing deals in the debt market behind equities back.
Mine would be oversold low float.
For instance raising interest rates that little really just raise the cost of margin and borrowing
$PLx
Option contracts just got smoked you should be looking at a target of at least five not bad from $1.50
I hope you steer them the same way that you would invest
These guys can’t hold a candle to Nancy Pelosi’s stock picks. She all time greatest trader woooo
Bahahaha
$PLx
Option contracts just got smoked you should be looking at a target of at least five not bad from $1.50
Actually none of the fangs including Amazon ever made a f****** penny out of the com crash until they were handled gracious Federal contracts
Best comment i have read this week.