Work Space for Learning How to Research Stocks
(Looks like Sam once again bought at all-time highs, pardon the pun. May have to be prepared for prices to drop a ways before they go up again? )
Spoiler:Also, 'Hi, how are you? Have an nice day!' etc lol
Can Anything Deflate Cannabis Stocks Before Legalization?
Marijuana Stocks: Is Now the Time for Investors to Take the Profit?
1. Bubble Stocks - price has decoupled from underlying value
Guess it didn't really occur to me before, but guess the prices of all the other investing ways will tend to be a reflection of the valuation of the company/asset. So anything that's bubble-prone will tend to be more of a gamble?
2. Options - price is a derivative of the underlying stocks, so gains and losses seem to tend to get magnified?
Buying options before earnings basically seems to be like sports-betting on a company meeting their earnings expectations? So if they hit there's a payoff, and if they miss you can pretty much lose all your money?
Marijuana Stock Update
Sold all my marijuana stocks the other day, and was going to wait for the price to drop to try and buy low. Unfortunately impatient Sam's idea of buying low turned out to still be a high
Was looking at the technical indicators, and could see that it would have been better to wait for the rsi to go down below 60 on the 1yr timeframe ...
Wound up buying around $35 while the rsi was still around 70, and now the price is something like $32.50. Guess am hoping the price will go all the way up to at least $44, since there's an analyst who feels that's a reasonable price for the stock?
So ... not sure if maybe marijuana stocks might be too risky, especially for someone like me who doesn't really excel at self-discipline to say the least? Or if it'll hopefully turn out to be okay, so long as am willing to weather the downswings in the short-term?
Options Update
Also have a update on my options - wow, are these things ever swingy! To put things in perspective, here's one of my FANG stocks which have held since the beginning of the year ...
And here's a couple of options have only held for a couple of days - so guess have been able to make more with less, in a shorter amount of time, with options?
Still have no idea if these gains are normal?? Not sure if maybe should be pocketing the Morgan Stanley gains, in case this is the best they do?
The Citigroup returns are disappointing, because the stock's currently trading at $36.50, way above the strike price. Have a membership to Kindle Unlimited, so have been able to look up help in various books, and there was one that was saying that sometimes these options sell at such a high premium that it's possible that the stock moves exactly as expected and one can still wind up losing money?
The Citigroup options were actually down a lot before they turned around, so guess maybe paid too high of a price for the options to begin with? Will have to see if am able to find out how to make sure to get better prices in the future?
Am so tempted to sell those Morgan Stanley options and just pocket the profits - but maybe that'd be a super fish move? Will they maybe be worth much more by next Wednesday??