Investing General Discussion
- Thread starter Furious
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Guest, it's time once again for the massively important and exciting FoH Asshat Tournament!
Go here and give us your nominations!Who's been the biggest Asshat in the last year? Give us your worst ones!
Moglyzoke Moogleman
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See this is what I dont get. I brought up TALK a bit ago and got dismissed (for good reason) by you and Zog. Take a look at how that's held up over the past week.
I dont understand what there is or isnt to learn. It's all very fucking confusing.
Hateyou
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Are you saying it has held up well? It’s a small company whose stock has done nothing but gone down for the past year. By glancing at articles about them they don’t have a clear strategy on how they’re going to reverse that trend. You could dig into more financials as well for more information but they’re most likely not good.
Tmac
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When you're learning and know nothing it's important not to have strong opinions.
Based on the shorts you've posted, it seems like you're making bold moves w little understanding. For example, I haven't touched options yet, bc I want to read up on them and fully understand the greeks before I start using options.
I think what you can learn here is market sentiment versus the plebs that get eaten by the market. Nobody's perfect. Trading is gambling. Investing is not. When you're investing you don't care about the price of a stock. You're in it long term because you like the company's numbers and you know long term it's going to pay dividends.
Most people here are gamblers with a few exceptions. You've also been gambling.
Moglyzoke Moogleman
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Big Phoenix
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#1 rule of trading;
The market can stay irrational far longer than you can stay solvent. See Michael Burry as the most reason example of this.
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Moglyzoke Moogleman
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I do gotta say this is one of the more eloquent distinctions Ive seen about trading (gambling) vs investing (investing).
Maybe I have a horrible gambling addiction I'm just discovering now.
Tmac
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Read, "The Intelligent Investor". Warren Buffet says it's the single most influential investing book he's ever read. It was written by his mentor. I'm simply repeating what I've read, written by one of the soundest philosophical investors of all time.
In other news, I was planning on adding an index today, but DOCU was so bloody I changed my mind to be opportunistic and take a bite. Added 10 shares.
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Big Phoenix
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Hateyou
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Those of us doing the simple swing trades is still a form of gambling, it just has a lower risk than what you’ve been doing with shorting. Most people seem to research market sentiment around a company and the underlying technicals of a company as well, which you don’t seem to take into account. Doing that type of research lowers your risk.
If I buy Nvidia today with the intent to sell it in a month, I’m risking that it could go down and I’d have to hold on to it a little longer. That’s risky but not too bad because I know Nvidia is sticking around, I know sentiment on them is high right now, and I know that if I do need to hold onto it longer than a month it’s not a big deal, it’ll eventually turn a profit.
You can’t go into trading thinking you’re going to double your money each week by taking huge risks on no name companies that if you get stuck with will never recover. You’re going to go broke doing that, which I think you’ve been personally experiencing the past few months. Start buying dips on solid names, if you want to turn it back into cash, flip it when the dip you bought recovers. Or just hold it cause it’s a solid company. Learn to read moving averages. Learn what support and resistance are so you know when to buy a dip or not.
I’m by no means an expert, I don’t dabble in anything other than simple swing trades and long term investing but understanding what you’re risking and how risky it is is pretty important. You’re trying to be a
Jysin
when you’re clearly a
Rajaah
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Falstaff
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Sanrith Descartes
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Ok its Friday so I will take some time to explain. Its going to be long so understand if you ask for advice you are required to read it.
1. You have to understand the fundamentals of a company if you want to own it. I hold north of 20 individual stocks and I know what every single one of them do. I can sit down and discuss the ins and out of each one of them. If I listed their names you would have heard of all but one of them most likely.
2. Lets compare why some of us moved on DOCU vs TALK. I use DOCU almost every day. I know the product. It has widespread usage across every aspect of business. It benefited from Covid but it also used Covid to get lots of companies who had not been using it to experience it. It has a moat. It has annual revenues in excess of $1b and a great growth trajectory.
3. What is TALK?
It lets you talk to a therapist via phone/web. Moat? Nope. Therapy is very dependent on client/Dr relationship. I dont see how talking to some rando therapist on the phone is going to make it as a model. It reported revenue of $26m in 3rd quarter of 2021 with COGS for the same quarter of $12m. Its SG&A expenses are $35m for the same quarter so it spent $35m to generate $26m in sales and $12m went to cover the cost of providing the service for that $26m. Its carrying over $110m in long term debt so they get to service that debt as well.
4. I am not saying TALK wont become the next FB. Ok, I am but my point is it could hypothetically grow into something. But its model can be easily replicated and to be honest is in a space that I think has very little worth (in my opinion) because of the tight Client/Dr relationship thing. Therefore it isnt a company I would consider owning.
5. So hopefully this explains a little bit why I and maybe others didnt bite on TALK but did bite on DOCU.
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Sanrith Descartes
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