Stock Trading & Investments

[riflearm2]

Uh, to make $5k on $50k the stock has to go up 10%, doesn’t matter if it’s a $100 stock or a $1 stock, so it shouldnt matter. The reason it does matter is a lot of people have your viewpoint.

.

What does that have to do with anything? You stated that like it was some sort of correction of something that I said.

 

[Rock98Dog]

What does that have to do with anything? You stated that like it was some sort of correction of something that I said.

Go reread your first paragraph of post #19. You specifically say that you don’t buy high price stocks because they require too much investment and “you need Apple to go up $13 bucks to make 10%”.

This is completely incorrect thinking technically speaking in that the price of a share has no real bearing as to it’s likelihood to increase 10%. Apple is as likely to go up 10% as a 4.00 stock is to go up 10% all other things being equal.

in fact, given that Apple is well managed, fiscally strong and has a strong track record of growth, it is more likely to gain 10% than the vast majority of smaller, less well managed, less financially sound companies.

you were also wrong that it takes a more substantial investment to own high price stocks. If you invest $50,000 in a $1,000 stock or the same money in a $20 stock the investment is the same.

what I then said is that your mindset on this is fairly common and creates truth in your hypothesis, unsophisticated investors can cause more upward price pressure on lower priced stocks. See GameStop or AMC as examples. But the risk is substantially higher because the same folks can crash a stock just as irrationally.

 

[mlblack16.]

Go reread your first paragraph of post #19. You specifically say that you don’t buy high price stocks because they require too much investment and “you need Apple to go up $13 bucks to make 10%”.

This is completely incorrect thinking technically speaking in that the price of a share has no real bearing as to it’s likelihood to increase 10%. Apple is as likely to go up 10% as a 4.00 stock is to go up 10% all other things being equal.

in fact, given that Apple is well managed, fiscally strong and has a strong track record of growth, it is more likely to gain 10% than the vast majority of smaller, less well managed, less financially sound companies.

you were also wrong that it takes a more substantial investment to own high price stocks. If you invest $50,000 in a $1,000 stock or the same money in a $20 stock the investment is the same.

what I then said is that your mindset on this is fairly common and creates truth in your hypothesis, unsophisticated investors can cause more upward price pressure on lower priced stocks. See GameStop or AMC as examples. But the risk is substantially higher because the same folks can crash a stock just as irrationally.

I haven't seen anyone poke Rifle with a stick this hard since he got owned by Fever.

Fireworks ought to begin soon. I'll grab my lawn chair and some beer.

 

[herdfan06]

Go reread your first paragraph of post #19. You specifically say that you don’t buy high price stocks because they require too much investment and “you need Apple to go up $13 bucks to make 10%”.

This is completely incorrect thinking technically speaking in that the price of a share has no real bearing as to it’s likelihood to increase 10%. Apple is as likely to go up 10% as a 4.00 stock is to go up 10% all other things being equal.

in fact, given that Apple is well managed, fiscally strong and has a strong track record of growth, it is more likely to gain 10% than the vast majority of smaller, less well managed, less financially sound companies.

you were also wrong that it takes a more substantial investment to own high price stocks. If you invest $50,000 in a $1,000 stock or the same money in a $20 stock the investment is the same.

what I then said is that your mindset on this is fairly common and creates truth in your hypothesis, unsophisticated investors can cause more upward price pressure on lower priced stocks. See GameStop or AMC as examples. But the risk is substantially higher because the same folks can crash a stock just as irrationally.

There certainly is a psychological element to owning ten shares of company A at $10 each vs one share of company B at $100 each, even though your ownership stake may be higher with just one share of company B vs the ten shares of company A, and your earning potential is essentially the same (all things equal). Of course this does not take into account dividends.

 

[SammyFLS]

Go reread your first paragraph of post #19. You specifically say that you don’t buy high price stocks because they require too much investment and “you need Apple to go up $13 bucks to make 10%”.

This is completely incorrect thinking technically speaking in that the price of a share has no real bearing as to it’s likelihood to increase 10%. Apple is as likely to go up 10% as a 4.00 stock is to go up 10% all other things being equal.

in fact, given that Apple is well managed, fiscally strong and has a strong track record of growth, it is more likely to gain 10% than the vast majority of smaller, less well managed, less financially sound companies.

you were also wrong that it takes a more substantial investment to own high price stocks. If you invest $50,000 in a $1,000 stock or the same money in a $20 stock the investment is the same.

what I then said is that your mindset on this is fairly common and creates truth in your hypothesis, unsophisticated investors can cause more upward price pressure on lower priced stocks. See GameStop or AMC as examples. But the risk is substantially higher because the same folks can crash a stock just as irrationally.

I`ve been trading for almost two years.

 

[ThunderCat98]

I`ve been trading for almost two years.