JTsyo
Lifer
- Nov 18, 2007
- 12,032
- 1,132
- 126
Dr. Detroit
Diamond Member
- Sep 25, 2004
- 8,523
- 926
- 126
What's the best way to protect your investment and limit huge losses during quarterly earnings? Earning calls are always made when the market closes and putting in stop losses don't work during AH trading. Do I need to sit in front of the computer and wait as soon as the quarterly earnings report is released to make a move?
Hugo Drax
Diamond Member
- Nov 20, 2011
- 5,647
- 47
- 91
You buy a short term put against your position.
If earnings are friday, you can buy a put on wed that expires the end of the week (ie a weekly option)
IHateMyJob2004
Lifer
- Sep 29, 2004
- 18,656
- 68
- 91
IHateMyJob2004
Lifer
- Sep 29, 2004
- 18,656
- 68
- 91
After seeing many gurus buying XCO I did some reading and I am trying to get some calls today.
Worth investigation.
Worth investigation.
Hmm, a 2% drop with no real news? I think this could finally be the beginning of the crash. Next week will be telling. There's talk that the Fed is going to cut the stimulus more soon, and that could be the trigger for it.
Hugo Drax
Diamond Member
- Nov 20, 2011
- 5,647
- 47
- 91
Hacp
Lifer
- Jun 8, 2005
- 13,923
- 2
- 81
Michael
Elite member
- Nov 19, 1999
- 5,435
- 234
- 106
Buying puts can be expensive. You need to weigh the risk of declines vs. the cost (and some of the risk can be inferred by put pricing). This is the very basic work that "hedge" funds do and unhedged long positions greatly outperformed hedged positions the last 3 years. Of course, we are in an all new year, hedging may make sense now.
Michael
Michael
Hugo Drax
Diamond Member
- Nov 20, 2011
- 5,647
- 47
- 91
FelixDeCat
Lifer
- Aug 4, 2000
- 30,999
- 2,680
- 126
KB
Diamond Member
- Nov 8, 1999
- 5,406
- 389
- 126
Chinese growth is still 7.7%, more than twice the US growth rate; however there is so much fear that yes Chinese stocks will continue to sell off.
I have a long position in China despite the fear. Rumors are they are starting to hoard gold and possible back their currency in gold. This would cause a major drop in the dollar and a huge increase in the yuan. It could certainly be false, but its worth a position as a hedge.
http://www.forbes.com/sites/greatspeculations/2013/07/22/china-working-quietly-to-buy-up-gold/
Uppsala9496
Diamond Member
- Nov 2, 2001
- 5,272
- 19
- 81
Michael
Elite member
- Nov 19, 1999
- 5,435
- 234
- 106
You have been the contra indicator the last two times you suggested this with most going up after you did.
Some certainly would be good short targets. Do you have any in particular you think are good to short and why?
Michael
Last edited:
Mermaidman
Diamond Member
- Sep 4, 2003
- 7,987
- 93
- 91
glenn1
Lifer
- Sep 6, 2000
- 25,383
- 1,013
- 126
This article is pertinent: http://www.fxempire.com/news/special-feature/china-syndrome-the-next-global-melt-down/
I'm not liking the looks of this market at all and trimmed back a bunch of positions. The Shanghai Index is down quite a bit recently, Argentina is turning basket case in a hurry, and the macro numbers from the U.S. aren't that reassuring either. In most of my stock holdings I took all profits above cost basis; with a couple l'm playing completely with house money right now. Most the index funds in my portfolio are up 15% or more in the last year or so took profits in those also.
Who knows, I may be giving up a bunch of upside if the market continues to truck upward, but right now I feel much better with my accounts being 30-40% cash than I do with my more normal >10%.
jessieqwert
Senior member
- Jun 21, 2003
- 955
- 1
- 81
Ok Folks, January has officially sucked complete donkey balls - and now february is starting off with the DOW down 200+
So I'm quite a n00b at overall investments. I do my research and know the basics of strategies and diversifying. However, there are some things I'm not clear on. I'm at the point where this month I'm trying to fill up my yearly $5500 IRA now with this huge sell-off going down. January has been the worst month in quite some time, so I figure buy now while the market is down, right? More stock for the same amount of money, no?
Does it make sense for me to be loading up my Roth IRA Index funds now while were having a big month of drops? Previous day I put in $1000, now it's continuing to go down so I'm thinking I need to put in some more?
So I'm quite a n00b at overall investments. I do my research and know the basics of strategies and diversifying. However, there are some things I'm not clear on. I'm at the point where this month I'm trying to fill up my yearly $5500 IRA now with this huge sell-off going down. January has been the worst month in quite some time, so I figure buy now while the market is down, right? More stock for the same amount of money, no?
Does it make sense for me to be loading up my Roth IRA Index funds now while were having a big month of drops? Previous day I put in $1000, now it's continuing to go down so I'm thinking I need to put in some more?
IHateMyJob2004
Lifer
- Sep 29, 2004
- 18,656
- 68
- 91
Cool products eventually become uncool and innovative companies will replace them. Apple will eventually be destroyed by Google and Microsoft. They can't even fall back on a niche market like secure enterprise. Once cool is uncool and 40 year old people realize that the kids don't think Apple is cool anymore, the old folks won't buy Apple either.
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