Worst stocks so far in 2022

[rnsmth]

(01-07-2022, 02:18 PM)stockguru Wrote:

(01-07-2022, 11:56 AM)rnsmth Wrote: Talk about it in June, we are just a week into this year.

You must own a few of these names then ? Hush is the word ?

I have never heard of most of them, and probably would not consider them

[fenders53]

In all honesty I think this guy started out believing he was showing the little people the way to fortunes. He knows now, and there is no way to remain rich other than continuing the charade. He would lose his income immediately if he switched gears to responsible investing now. In the end he will lose most of it anyway as the sheep are going broke.

[Kerim]

Humans have always been weak for get-rich-quick nonsense, but it feels especially rampant now. Maybe it is the logical end of American-style capitalism.

I've got friends who I love and respect who think that they can day-trade their way to wealth. And that I should do it too! I asked for a couple of links and was despondent at what was there. Some kid on youtube making 25 (or more!) trades an hour on penny stocks based entirely on TA gibberish. Like he's gonna outrun or outthink the algos? Had no idea what the companies even did. And some other dude they're giving $50 a month for... day-trading tips, I guess.

Sigh.

[cemanuel]

Humans have always been weak for get-rich-quick nonsense, but it feels especially rampant now. Maybe it is the logical end of American-style capitalism.

Doubt it's the end. Just a characteristic - and not sure if it's just capitalism though I think we are more conditioned to think in terms of wealth when it comes to success. 

Look at the 1840's Gold Rush, same in Alaska a few decades later. There have always been some folks willing to try it. Different these days of course - back then you had to bust your back and there was a good chance of getting dead. These days if you put all your cash into some obscure crypto you just go broke and if you're broke enough the government will help you out. Or you could grow hemp instead of corn and wonder what the hell happened when the market collapses.

[fenders53]

Kerim,

A friend of mine who actually encouraged m es to start investing subscribed to a service. It wasn't day trading but the guy was highly ranked in Tipranks. Stocks like Roku, Trade Desk, Fastly. He was catching them early and pretty much everything did run for at least a month. It was just MOMO. My friend was smart enough and scared enough to trim profits every few weeks and about half of them tripled in 2020.

When the market gets euphoric momentum works, but soon enough it sucks in the inexperienced who don't realize you only have days to realize the music stopped.

A few of us on this forum entertained ourselves trading them with a small percentage of our port. We mostly own adult DGI stocks. That is NOT the same thing as putting 100% of your account into junk stocks, then spending every dime you can find for a year averaging down while the stocks drop 75%, while being cheered on by the Pied Pipers of social media.

[cemanuel]

When the market gets euphoric momentum works, but soon enough it sucks in the inexperienced who don't realize you only have days to realize the music stopped.

When I first started in 2017 I tried a little of everything - not pure day trading but a lot of short-term things, a lot of buying something with a set sell price of 25% higher which tended to pay off 3-6 weeks later. I always say it was a great time to experiment - even my complete screw-ups made money. I quit doing that by early 2018, went to a longer-term perspective. But for those first few months I was downright brilliant! Pretty amusing in retrospect.

[fenders53]

When it's working it's working. The few people I know who have had success trading for years have one thing in common. They cut their losses quick when a trade goes bad. You don't need to understand why the market seems irrational that day. No stubbornly riding a stock into the dirt waiting to get out ahead on picks like an actual investment. You don't have to defend a trade to the death.

The algos can make money being right only 55% of the time. A little tougher for humans as the 45% can get you if emotion enters the equation. For me it's been about timing. The overall market is on your side or it isn't for months at a time. If you made bullish ST bets in 2021 on the can't lose 2020 growth stocks you got your azz handed to you.

[rnsmth]

(01-09-2022, 08:53 AM)fenders53 Wrote: When it's working it's working.  The few people I know who have had success trading for years have one thing in common.  They cut their losses quick when a trade goes bad.  You don't need to understand why the market seems irrational that day.  No stubbornly riding a stock into the dirt waiting to get out ahead on picks like an actual investment.  You don't have to defend a trade to the death.

Back when I was a Apple bullish options trader (2009-2012) I called it sell discipline and it was absolutely essential to making lots of money.  I made enough to retire early and was smart enough to stop and transition to dividend growth investing then.

[cemanuel]

(01-09-2022, 08:53 AM)fenders53 Wrote: When it's working it's working.  The few people I know who have had success trading for years have one thing in common.  They cut their losses quick when a trade goes bad.  You don't need to understand why the market seems irrational that day.  No stubbornly riding a stock into the dirt waiting to get out ahead on picks like an actual investment.  You don't have to defend a trade to the death.

The algos can make money being right only 55% of the time.  A little tougher for humans as the 45% can get you if  emotion enters the equation.  For me it's been about timing.  The overall market is on your side or it isn't for months at a time.  If you made bullish ST bets in 2021 on the can't lose 2020 growth stocks you got your azz handed to you.

Trading was very similar to buying and selling horses. You think you're buying something you can make money on but don't really know until you get it home and swing a leg over it a few times. Figure on picking wrong 20-30% of the time and when you do, get them the heck out of the barn - they're taking up space that could be making you money and every day you have them is another day of feed, labor, etc., costs.

Not terribly different when trading stocks. Have a thesis for everything you buy. Once you've owned it for a bit, if your thesis is wrong, get rid of it and put your money someplace where it can turn into more money. Figure on being wrong plenty of times and be humble enough to know it and get out.

Used to do the same with commodities and options. Have a bunch going on at a time and if you see something not going how you thought, get out.

None of this is complicated. Doesn't mean it's easy either - it takes plenty of work. But it's not filled with mind-blowing "tricks."

[rnsmth]

(01-09-2022, 10:13 AM)cemanuel Wrote:

(01-09-2022, 08:53 AM)fenders53 Wrote: When it's working it's working.  The few people I know who have had success trading for years have one thing in common.  They cut their losses quick when a trade goes bad.  You don't need to understand why the market seems irrational that day.  No stubbornly riding a stock into the dirt waiting to get out ahead on picks like an actual investment.  You don't have to defend a trade to the death.

The algos can make money being right only 55% of the time.  A little tougher for humans as the 45% can get you if  emotion enters the equation.  For me it's been about timing.  The overall market is on your side or it isn't for months at a time.  If you made bullish ST bets in 2021 on the can't lose 2020 growth stocks you got your azz handed to you.

Trading was very similar to buying and selling horses. You think you're buying something you can make money on but don't really know until you get it home and swing a leg over it a few times. Figure on picking wrong 20-30% of the time and when you do, get them the heck out of the barn - they're taking up space that could be making you money and every day you have them is another day of feed, labor, etc., costs.

Not terribly different when trading stocks. Have a thesis for everything you buy. Once you've owned it for a bit, if your thesis is wrong, get rid of it and put your money someplace where it can turn into more money. Figure on being wrong plenty of times and be humble enough to know it and get out.

Used to do the same with commodities and options. Have a bunch going on at a time and if you see something not going how you thought, get out.

None of this is complicated. Doesn't mean it's easy either - it takes plenty of work. But it's not filled with mind-blowing "tricks."

There is not near as much work when investing in or trading stocks.

Maybe as much horseshit, but you do not have to physically muck out the stalls

[fenders53]

(01-09-2022, 10:18 AM)rnsmth Wrote:

(01-09-2022, 10:13 AM)cemanuel Wrote:

(01-09-2022, 08:53 AM)fenders53 Wrote: When it's working it's working.  The few people I know who have had success trading for years have one thing in common.  They cut their losses quick when a trade goes bad.  You don't need to understand why the market seems irrational that day.  No stubbornly riding a stock into the dirt waiting to get out ahead on picks like an actual investment.  You don't have to defend a trade to the death.

The algos can make money being right only 55% of the time.  A little tougher for humans as the 45% can get you if  emotion enters the equation.  For me it's been about timing.  The overall market is on your side or it isn't for months at a time.  If you made bullish ST bets in 2021 on the can't lose 2020 growth stocks you got your azz handed to you.

Trading was very similar to buying and selling horses. You think you're buying something you can make money on but don't really know until you get it home and swing a leg over it a few times. Figure on picking wrong 20-30% of the time and when you do, get them the heck out of the barn - they're taking up space that could be making you money and every day you have them is another day of feed, labor, etc., costs.

Not terribly different when trading stocks. Have a thesis for everything you buy. Once you've owned it for a bit, if your thesis is wrong, get rid of it and put your money someplace where it can turn into more money. Figure on being wrong plenty of times and be humble enough to know it and get out.

Used to do the same with commodities and options. Have a bunch going on at a time and if you see something not going how you thought, get out.

None of this is complicated. Doesn't mean it's easy either - it takes plenty of work. But it's not filled with mind-blowing "tricks."

There is not near as much work when investing in or trading stocks.

Maybe as much horseshit, but you do not have to physically muck out the stalls

[fenders53]

If it's simple post up some real time trades and show us how to do it. You'd probably still be doing it if was as easy as you describe. Why wait years investing. As skeptical as I am I'm happy to learn. Everybody likes easy money.