RetroGamer87
Veteran
Joined: 30 Jul 2013
Age: 38
Gender: Male
Posts: 11,186
Location: Adelaide, Australia
09 Oct 2018, 7:05 pm
09 Oct 2018, 7:24 pm
10 Oct 2018, 12:28 am
Arevelion wrote:
RetroGamer87 wrote:
Arevelion wrote:
Does making money off a corporation's collapse count? I certainly enjoy it, and it is someone's misfortune.
How did you do that? Did you own stock in their competitors?Through something called a "put option." A put option is a contract that allows someone to sell a stock at a given price (called the strike price) regardless of the market value of the stock, so long as it is sold before a given expiration date. So say you buy a put option with a strike price of $18.00 and the stock goes down to $16.00. In that case you could buy the stock at $16.00 and sell if for $18.00 making a two dollar profit (minus transaction cost and the cost of buying the put to begin with.) Alternatively, you could just sell the put option so someone else can do that. Ether way you make money.
In my case I purchased way more puts than I did stock, so it hurt me a little when Bed bath and beyond's stock fell, but the puts more than made up for that. So I made money off the company's downfall.
You're a stock market speculator
I was wondering whether to start investing in the stock market, spend more than I earn
Mainly for computer games
I used to think that maybe I could learn how to invest on the stock market, I never did it, although in Cashflow 101 I managed to do something
A friend told me that I could invest 1000 or 2000 on Etoro, that this is a nice thing, or the forex market, but I'm afraid because I heard about financial leverage that you can lose more money than you have
RetroGamer87
Veteran
Joined: 30 Jul 2013
Age: 38
Gender: Male
Posts: 11,186
Location: Adelaide, Australia
10 Oct 2018, 1:10 am
pawelk1986 wrote:
Arevelion wrote:
RetroGamer87 wrote:
Arevelion wrote:
Does making money off a corporation's collapse count? I certainly enjoy it, and it is someone's misfortune.
How did you do that? Did you own stock in their competitors?Through something called a "put option." A put option is a contract that allows someone to sell a stock at a given price (called the strike price) regardless of the market value of the stock, so long as it is sold before a given expiration date. So say you buy a put option with a strike price of $18.00 and the stock goes down to $16.00. In that case you could buy the stock at $16.00 and sell if for $18.00 making a two dollar profit (minus transaction cost and the cost of buying the put to begin with.) Alternatively, you could just sell the put option so someone else can do that. Ether way you make money.
In my case I purchased way more puts than I did stock, so it hurt me a little when Bed bath and beyond's stock fell, but the puts more than made up for that. So I made money off the company's downfall.
I was wondering whether to start investing in the stock market, spend more than I earn
Mainly for computer games
I used to think that maybe I could learn how to invest on the stock market, I never did it, although in Cashflow 101 I managed to do something
A friend told me that I could invest 1000 or 2000 on Etoro, that this is a nice thing, or the forex market, but I'm afraid because I heard about financial leverage that you can lose more money than you have
10 Oct 2018, 7:33 pm
RetroGamer87 wrote:
pawelk1986 wrote:
Arevelion wrote:
RetroGamer87 wrote:
Arevelion wrote:
Does making money off a corporation's collapse count? I certainly enjoy it, and it is someone's misfortune.
How did you do that? Did you own stock in their competitors?Through something called a "put option." A put option is a contract that allows someone to sell a stock at a given price (called the strike price) regardless of the market value of the stock, so long as it is sold before a given expiration date. So say you buy a put option with a strike price of $18.00 and the stock goes down to $16.00. In that case you could buy the stock at $16.00 and sell if for $18.00 making a two dollar profit (minus transaction cost and the cost of buying the put to begin with.) Alternatively, you could just sell the put option so someone else can do that. Ether way you make money.
In my case I purchased way more puts than I did stock, so it hurt me a little when Bed bath and beyond's stock fell, but the puts more than made up for that. So I made money off the company's downfall.
I was wondering whether to start investing in the stock market, spend more than I earn
Mainly for computer games
I used to think that maybe I could learn how to invest on the stock market, I never did it, although in Cashflow 101 I managed to do something
A friend told me that I could invest 1000 or 2000 on Etoro, that this is a nice thing, or the forex market, but I'm afraid because I heard about financial leverage that you can lose more money than you have
You both flatter me, but I'm not a CFA, so I'm not actually licensed to give financial advice. I just do some day trading on the side.
Though if you are interested in learning how to trade yourselves I would recommend using this simulator. https://www.investopedia.com/simulator/
This site allows you conduct fake trades with real stocks, so it's a safe way to learn. If ether of you try it let me know how it goes. I don't know if you can practice forex trading though.
