Register a SA Forums Account here!
JOINING THE SA FORUMS WILL REMOVE THIS BIG AD, THE ANNOYING UNDERLINED ADS, AND STUPID INTERSTITIAL ADS!!!

You can: log in, read the tech support FAQ, or request your lost password. This dumb message (and those ads) will appear on every screen until you register! Get rid of this crap by registering your own SA Forums Account and joining roughly 150,000 Goons, for the one-time price of $9.95! We charge money because it costs us money per month for bills, and since we don't believe in showing ads to our users, we try to make the money back through forum registrations.
 
  • Post
  • Reply
Baddog
May 12, 2001

Hobologist posted:

This view is largely confined to academics, and among value investors and other people who know what they're doing...


I'm not sure you got the "other people who know what they are doing" on the right side of that equation.

Adbot
ADBOT LOVES YOU

LactoseO.D.'d
Jun 3, 2002

Baddog posted:

I'm not sure you got the "other people who know what they are doing" on the right side of that equation.

http://forums.somethingawful.com/showthread.php?threadid=2892928

Baddog
May 12, 2001


Where in there is anything that disputes that the increase in return for investing in one stock compensates for the massive risk of investing in only one stock.

If I buy five stocks with the same expected return, I cut my variance tremendously, and don't hurt my expectation - I've reduced risk at no cost to myself, and that's always a good thing, you should get paid to take on risk.

Fuschia was wrong in stating that the expected return is lower from holding one stock versus a basket of similar stocks (I think probably over simplifying), but he's right in saying that you aren't being compensated for being more risky by investing in one vs a basket. And I don't think that was what Hobologist was pointing out.


The rate of return for investing in one stock with 20% EV will be the same as the rate of return for investing in five stocks with 20% EV, but the five stocks will carry much lower risk.

The rate of return for investing in one stock will be lower than the rate of return of a similarly risky but more intelligent strategy (what i think fuschia meant).

Baddog fucked around with this message at 22:33 on Feb 17, 2010

Plastic Jesus
Aug 26, 2006

I'm cranky most of the time.

ChubbyEmoBabe posted:

It's been closing green pretty much for 2 weeks now. I really can't figure out where it's coming from.

Ford

LactoseO.D.'d
Jun 3, 2002
How is anyone supposed to get:

Baddog posted:

Where in there is anything that disputes that the increase in return for investing in one stock compensates for the massive risk of investing in only one stock.

If I buy five stocks with the same expected return, I cut my variance tremendously, and don't hurt my expectation - I've reduced risk at no cost to myself, and that's always a good thing, you should get paid to take on risk.

Fuschia was wrong in stating that the expected return is lower from holding one stock versus a basket of similar stocks (I think probably over simplifying), but he's right in saying that you aren't being compensated for being more risky by investing in one vs a basket. And I don't think that was what Hobologist was pointing out.


The rate of return for investing in one stock with 20% EV will be the same as the rate of return for investing in five stocks with 20% EV, but the five stocks will carry much lower risk.

The rate of return for investing in one stock will be lower than the rate of return of a similarly risky but more intelligent strategy (what i think fuschia meant).

From:

Baddog posted:

I'm not sure you got the "other people who know what they are doing" on the right side of that equation.

Your original post wasn't much better than a troll. The link was kind of a 'gtfo'. Thanks for elaborating and inviting a discussion.

Fuschia tude
Dec 26, 2004

THUNDERDOME LOSER 2019

Baddog posted:

Fuschia was wrong in stating that the expected return is lower from holding one stock versus a basket of similar stocks (I think probably over simplifying), but he's right in saying that you aren't being compensated for being more risky by investing in one vs a basket.
I didn't say the expected return is lower. I meant the chance you could see a significantly worse outcome is greater with fewer stocks, which is basically because the probability curve of potential outcomes is flatter.

mik
Oct 16, 2003
oh

Duey posted:

It's also been getting really heavy volume, yesterday it was almost 3x avg. volume and today it'll probably be more than that.

It's always been the most heavily traded sub-dollar stock, and some exchanges changed their sub-dollar fee schedule effective Feb 1st making trading these stocks more lucrative. That's pretty much the entire reason the volume is so high on it (and other similar stocks). The price run up over the last week or so is also partially due to the same reason.

Duey
Sep 5, 2004

Hi
Nap Ghost
I figured it was cheaper to trade sub-1$, but I didn't know that exchanges were making it cheaper. Now that it's over 1$ is that going to change?

mik
Oct 16, 2003
oh
If you add liquidity when the price is under $1, for some exchanges you receive a rebate based on the dollar value of your execution. If the price is over $1, you get the standard rebate which is a flat amount, not based on the dollar value of the execution. I suspect if SIRI stays over $1.00 the volume will taper off, at least from the traders I know who will trade the sub dollar stocks to receive the new rebate schedule - and these are people who were doing over 1m shares on the stock in a day. Personally I dislike trading sub dollar stocks... too many numbers to the right of the decimal :)

Plastic Jesus
Aug 26, 2006

I'm cranky most of the time.
This is super-creepy. I kept expecting it to become obviously satire, but no, just kept on being creepy.

whalesneedlove
Sep 27, 2003

An analyst and a therapist. The world's first analrapist.

I WANT TO EAT BABBY posted:

This is super-creepy. I kept expecting it to become obviously satire, but no, just kept on being creepy.

Way too laid back. The word "rad" should never be said by the interviewer.

Hog Obituary
Jun 11, 2006
start the day right
Do you guys know anything about cv.im/Covestor? I just saw it linked off of I WANT TO EAT BABBY's WSMCo link. I know very little about investing in stocks, but this seems like it has the potential to be awesome or awful.

...Or collective2.com for that matter.

Hog Obituary fucked around with this message at 07:26 on Feb 18, 2010

Craptin Mypants
Sep 6, 2009
does anyone have a suggestion for a good stock screener software/website for screening for chart patterns. I know its hard because the pattern hasn't fully evolved, but theres got to be a way to screen for setups...

greasyhands
Oct 28, 2006

Best quality posts,
freshly delivered

I WANT TO EAT BABBY posted:

This is super-creepy. I kept expecting it to become obviously satire, but no, just kept on being creepy.

this is amateur crap but why is it creepy?

LactoseO.D.'d
Jun 3, 2002

Hog Obituary posted:

Do you guys know anything about cv.im/Covestor? I just saw it linked off of I WANT TO EAT BABBY's WSMCo link. I know very little about investing in stocks, but this seems like it has the potential to be awesome or awful.

...Or collective2.com for that matter.

What do you want to know?

LactoseO.D.'d
Jun 3, 2002

Craptin Mypants posted:

does anyone have a suggestion for a good stock screener software/website for screening for chart patterns. I know its hard because the pattern hasn't fully evolved, but theres got to be a way to screen for setups...

finviz.com has a few pattern screens. So does stockcharts.com

Plastic Jesus
Aug 26, 2006

I'm cranky most of the time.

greasyhands posted:

this is amateur crap but why is it creepy?

Dude has "bad touch" written all over him.

Limit Up
Feb 5, 2010
Horrible news A/H. Things are going to hit the fan tomorrow. Discount window raised and Fed Funds rate is next. Right at resistance too. They're hoping the news gets digested over the weekend to prevent further collapse. Whether it works we'll see Monday. Monday will be huge and if they want this rally going strong, they better have the printing presses going Monday.

waffle
May 12, 2001
HEH
I'm confused as to why the markets always drop after news or speculation about news like this. Isn't this good news, a vote of confidence in an improving economy, in the end?

Plastic Jesus
Aug 26, 2006

I'm cranky most of the time.

Limit Up posted:

Horrible news A/H. Things are going to hit the fan tomorrow. Discount window raised and Fed Funds rate is next. Right at resistance too. They're hoping the news gets digested over the weekend to prevent further collapse. Whether it works we'll see Monday. Monday will be huge and if they want this rally going strong, they better have the printing presses going Monday.

The FOMC minutes clearly telegraphed the discount window hike. The Fed has been overly clear that they will return to a discount rate premium before raising the fed funds rate. I don't understand why people are being such loving babies about a 25bp hike on loans that are only used for emergencies. If the Fed "hoped the news gets digested over the weekend to prevent further collapse" they wouldn't have announced it before expiration Friday, they'd have announced it tomorrow afternoon.

It's not a big deal but I encourage you to go short SPX futures if it will make you feel better.

LactoseO.D.'d
Jun 3, 2002
Well futures are down on the Fed hike note. I doubt it will stick. We went through a decent downer when China hiked and if anything it was a buying opportunity.

Limit Up
Feb 5, 2010

I WANT TO EAT BABBY posted:

The FOMC minutes clearly telegraphed the discount window hike. The Fed has been overly clear that they will return to a discount rate premium before raising the fed funds rate. I don't understand why people are being such loving babies about a 25bp hike on loans that are only used for emergencies. If the Fed "hoped the news gets digested over the weekend to prevent further collapse" they wouldn't have announced it before expiration Friday, they'd have announced it tomorrow afternoon.

It's not a big deal but I encourage you to go short SPX futures if it will make you feel better.

So tell me what the trade is then and why. Also exclude the fact that the Fed's gonna pump more money in. Because they're not. Monetary easing is done with. That's the trade right now. Currencies still showing it

LactoseO.D.'d posted:

Well futures are down on the Fed hike note. I doubt it will stick. We went through a decent downer when China hiked and if anything it was a buying opportunity.


That's what the Fed is hoping.

whalesneedlove
Sep 27, 2003

An analyst and a therapist. The world's first analrapist.

Limit Up posted:

Currencies still showing it


Eh. Dont get me wrong, a 200ish pip move over a couple hours is a big deal no matter what. But it happens all the time. Pairs reacted this afternoon but have traded sideways for the most part since. London session will tell more but as of right now you couldnt even tell anything major happened just looking at the dailies.

Im not claiming to know what will happen tomorrow; I'm simply saying that currencies are not pointing (as of now) to a bloodbath that will be remembered for the rest of time.

Plastic Jesus
Aug 26, 2006

I'm cranky most of the time.

Limit Up posted:

So tell me what the trade is then and why. Also exclude the fact that the Fed's gonna pump more money in. Because they're not. Monetary easing is done with. That's the trade right now. Currencies still showing it

We open down 10-15 due to people thinking the sky is falling. People start buying bargains after lunch, close is flat or slightly down. This provides the shake-out from the overbought conditions we're at now and we touch 1120 next week.

QE isn't "done with" because of a 25bp increase of the discount rate. But yup, it's getting reeled in slowly, deliberately and with lots of advance notice from the Fed. S&P futures are off a whopping 8.5 points, Dow down 57.00. The world is not ending.

Duey
Sep 5, 2004

Hi
Nap Ghost
Stopped out of SIRI today. Went from .85 to 1.09 in a week. Feeling good. I'll probably buy back in next week ahead of earnings depending on the price.

whalesneedlove
Sep 27, 2003

An analyst and a therapist. The world's first analrapist.

Limit Up posted:

Horrible news A/H. Things are going to hit the fan tomorrow. Discount window raised and Fed Funds rate is next. Right at resistance too. They're hoping the news gets digested over the weekend to prevent further collapse. Whether it works we'll see Monday. Monday will be huge and if they want this rally going strong, they better have the printing presses going Monday.

http://www.thestreet.com/story/10685007/1/stocks-higher-as-investors-shrug-off-fed-move.html?cm_ven=GOOGLEN

PianoDragn
Jan 30, 2006
Hey guys, maybe one of you can help me find the stock screener I am looking for...

I want to be able to set several parameters like you can with most stock screeners, P/E, 5yr growth rate, 52wk change, etc. But i want to run this screening in certain points in time. I would like to run this as if I ran it on Jan 1st. 2008, or April 1st. 2008 if this makes sense? I want to be able to act like I am sitting at my computer on that date doing analysis to pick stocks, then I can see how my picks ended up doing. Does that make sense? Does something like this exist?

LactoseO.D.'d
Jun 3, 2002

PianoDragn posted:

Hey guys, maybe one of you can help me find the stock screener I am looking for...

I want to be able to set several parameters like you can with most stock screeners, P/E, 5yr growth rate, 52wk change, etc. But i want to run this screening in certain points in time. I would like to run this as if I ran it on Jan 1st. 2008, or April 1st. 2008 if this makes sense? I want to be able to act like I am sitting at my computer on that date doing analysis to pick stocks, then I can see how my picks ended up doing. Does that make sense? Does something like this exist?

Yes, its called a backtester. Its tough to find testers that will let you use fundamental data (if you find a good one, do let me know). However, if you want to run a screen off of data that can be computed off of daily price data (Open, high, low, close, and volume), finviz has a backtester http://finviz.com/help/elite.ashx#backtests . Stockfetcher has P/E, and a bunch of other OHLCV-based indicators. http://forums.stockfetcher.com/sfforums/betatest.php?qrid=1190723546&fid=1006

Cheesemaster200
Feb 11, 2004

Guard of the Citadel
How the gently caress did gold not tank today?

greasyhands
Oct 28, 2006

Best quality posts,
freshly delivered

Cheesemaster200 posted:

How the gently caress did gold not tank today?

Why was the market not predictable on a short term basis??????? This is unprecedented!

ForkPat
Aug 5, 2003

All the food is poison

Cheesemaster200 posted:

How the gently caress did gold not tank today?

How much DZZ do you have?

Hobologist
May 4, 2007

We'll have one entire section labelled "for degenerates"

Limit Up posted:

Horrible news A/H. Things are going to hit the fan tomorrow. Discount window raised and Fed Funds rate is next. Right at resistance too. They're hoping the news gets digested over the weekend to prevent further collapse. Whether it works we'll see Monday. Monday will be huge and if they want this rally going strong, they better have the printing presses going Monday.

Did things hit the fan today? I can't tell.

LactoseO.D.'d
Jun 3, 2002

Cheesemaster200 posted:

How the gently caress did gold not tank today?

Gold isn't as sensitive to interest rates as a lot of the other commodities. I don't know what the official reason for that is, but it probably depends on who you ask.

Plastic Jesus
Aug 26, 2006

I'm cranky most of the time.

Cheesemaster200 posted:

How the gently caress did gold not tank today?

Because raising the discount window rate 25bp changes nothing on a macro level. What I don't understand is why silver got so feisty.

LactoseO.D.'d
Jun 3, 2002

LactoseO.D.'d posted:

Gold isn't as sensitive to interest rates as a lot of the other commodities. I don't know what the official reason for that is, but it probably depends on who you ask.

Eh, rechecked a source. This isn't exactly right.

LactoseO.D.'d fucked around with this message at 06:12 on Feb 20, 2010

Cheesemaster200
Feb 11, 2004

Guard of the Citadel

LactoseO.D.'d posted:

Gold isn't as sensitive to interest rates as a lot of the other commodities. I don't know what the official reason for that is, but it probably depends on who you ask.

Gold is sensitive to the value of the dollar though, not to mention idiots who think its some hedge for the zombie inflation apocalypse. Watching most gold stocks, you can usually track it inverse to the dollar, and the dollar strengthened a lot today (especially in the morning).

I've been watching GLL pretty closely, but I don't have the balls to actually put in a position until we start flirting with $1000/oz

Craptin Mypants
Sep 6, 2009

LactoseO.D.'d posted:

finviz.com has a few pattern screens. So does stockcharts.com

Thanks for the links, but does anyone know of a sceener that allows you to do the same screens based on chart patterns, but intraday instead of just on the daily charts?

Limit Up
Feb 5, 2010

PA didn't confirm the move from Friday. Hence Monday's a non-issue. No big deal.

"But Doug Roberts, chief investment strategist at ChannelCapitalResearch.com, believes questions behind the underlying motive and timing of the move may continue to linger.

"People are now wondering if this is the start of monetary tightening even though the Fed decision last night indicated 'that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period,' " Roberts wrote in a note. "If it is not, the market is left wondering what the true message behind the rate move is.""

For the long-term. This is an issue. If you're going to fail to realize that now....that's fine. But sooner or later the markets going to teach you a lesson.

Do you know what to do? I mean, do you have ANY experience in the markets at all? If so maybe you could contribute something of use.

Limit Up fucked around with this message at 00:43 on Feb 22, 2010

Limit Up
Feb 5, 2010

Hobologist posted:

Did things hit the fan today? I can't tell.

No they didn't. So what's your next move?

Adbot
ADBOT LOVES YOU

Hobologist
May 4, 2007

We'll have one entire section labelled "for degenerates"

Limit Up posted:

No they didn't. So what's your next move?

I've been giving some thought to Chiquita Brands, but I have to satisfy myself that they can handle a future increase in the cost of shipping first.

Edit: I think they can.

Hobologist fucked around with this message at 03:13 on Feb 22, 2010

  • 1
  • 2
  • 3
  • 4
  • 5
  • Post
  • Reply