My stocks are down $160k since February. I’m thinking of taking of selling my losing stocks tomorrow and going all in on AMC. If I liquidate my portfolio, I’ll be able to buy about 2k more shares of AMC (I have 300 right now). Is this a good idea or too risky?
None of us are financial advisors or can give financial advice, of course. But game-planning in my mind what I would do in a similar situation, I’d would not hesitate (especially with what is going to play out in the near future) to get rid of dead money stocks.
The memestocks and VIX ETFs (VXX, UVXY) are going to be very much live money. AMC is good, BB is better, GME still has some life in it. All else being equal, I would prefer for myself a more diverse portfolio than YOLOing into one stock, no matter how good it was (especially if I had a margin account and how small downward fluctuations in a non-diversified portfolio can do weird things.)
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based on the forecasts, your positions aren’t likely to improve anytime soon. Additionally, there are examples of amc/gme excelling when the market is declining.
I’m not a financial advisor, but i personally do ANYTHING i can that yields me more stock of both amc/gme.
Def keep this thread updated. I, for one, will be rooting for you!
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Maybe diversify a little with GME and BB? But I also wouldn’t hesitate to do the same. Not financial advice of course.
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I am also not a financial advisor (basically the equivalent of the shoe shine boy in that story about stock tips) and I have only had 5 years of stock market gambling experience. Do not base any financial transactions on my idiotic advice.
I recently closed out of all of my S&P ETFs (not just because of BAM estimations). I’m probably going to buy another 100 shares since I am already at 20% AMC exposure.
Ask yourself this before you decide to allocate funds:
1: Are you buying for the cause to bleed a handful of hedge funds and possibly a broker or market maker?
2: Do you have a high level understanding of the DD behind the MOASS? Assuming the market is fairly regulated and if retail buys all the available float, the stock prices will fluctuate more violently with less volume (This is kind of what happened with Tesla IIRC) . This makes it more likely that a little fish can spike the price causing a chain reaction in the event of a margin call.
3: Is this just to get a nice boost to the starter account?
4: Are you treating this account as an active swing/day trading account?
I personally believe in 1 and 2 over 3. If my focus was question 3, I would consider it a gamble and limit exposure to my account. I’m not completely convinced on BB personally yet (Fundamentals
don’t matter to me anymore) but the RTOS technology meets Warren Buffet’s guidelines for a solid financial moat. I’m treating BB more as a gamble and verification of the BAM model (still trying to understand the mechanics of the alerts as well) so I am only investing about 5% of my portfolio into BB.
For question 4, I personally would consider other plays on my practice day/swing account. AMC could take longer than expected to launch into lower earth orbit/lunar orbit. I have about $600 I am using for “dip and rips” and “afternoon breakouts” that will never be allocated to AMC. I do have some money in my day/swing account assigned to AMC so I can track it in my P&L window on webull. There is nothing wrong with a split approach. I also have a TD ameritrade account I am trying to fund currently in preparation for an options course.
Another thing to consider is that purchases under 100 shares get treated as Odd Lot orders and will not impact stock ticker price if you believe in questions 1 and 2. I personally like spending my buying power through reputable brokers on Fridays around 3:58 pm if the stock is being beaten down aggressively since options expire on Fridays and there is the remote possibility it will help call buyers (I however do not have enough buying power to influence the price of a security from any/all of my accounts).
A final contemplation is that I only invest what I can afford to lose into a single stock with the percent exposure driven by risk. If the hedgies cheat AMC into an NYSE delisting, I will still hold out of spite just to make them pay extra interest on their shorts. I live in a small rural town where the only social activities involve going to a theater, restaurant, or shooting range so it is my intent to Diamond Hand.
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Also just seen the news. Amazon is in talks to buy amc by the end of the year!!!
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Thank you for taking the time to share your wisdom. I do have a margin account but I plan to return my debt and not buy anything on margin this time around (at least for now since the last few weeks have been stressful with margin call after margin call). BB sounds good. I might buy 100 shares or so.
You’re awesome - thank you for your support! I’ll keep you posted on my next moves. Fingers crossed I don’t wake up to a very different market than Friday after hours so that I can execute.
Thank you. I’m thinking about maybe 5% diversification.
Thank you so much for the thoughtful response. Those are great questions! I am more of a long term holder and have only been in stocks for about a year and a half.
I tried swing trading for about a month before things started diving in mid February and it went well until it didn’t. With that said, I wouldn’t mind setting aside 1k to have some money to play with.
I hadn’t looked much into BB but I did a little reading tonight and I wouldn’t mind putting 5% into BB.
Also this is the first time I hear about the delisting possibility. Under what scenario could that even happen?
I looked it up on Reddit and it’s a big mix of theories. Curious about how it plays out this week.
Where is amazon going to come up with the cash to do that?
I dint think apes will vote to approve any buyout for less than $1000 per share. Just saying. Thats like 500 billion dollar acquisition.
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Delisting is what the hedge funds were trying to do in early January so they wouldn’t have to cover/pay nothing to cover their short position. The probability is extremely low now but there might be a heavier than normal short attack if the Lambda variant bug gets here. The nice thing is AMC has enough cash to ride out a few more lockdowns after selling those shares a few months ago.
If you are still learning short term strategies, paper trading might be the way to go or only trading with a small percentage of your account until you start to get the hang of things. It took about 11 months for scalping to start clicking for me.
I personally have had a horrible time finding long term stocks after since 2020. I studied engineering in college so my portfolio was based on and heavily concentrated into my particular field which is extremely risky for an investor that doesn’t have that technical knowledge. I also invest in an Acorns Investing account every month. This is basically a mix of ETFs where your allocation is dependent on your risk selection across the a broad rangeof the stock market. There are similar and probably better services to this one now if you do a quick internet search. Overall, my long term strategy has been diversification through ETFs with a concentration in a particular sector. My best payoffs have been the equivalent of picking stocks with a dart board in this bull run.
A final point to consider is the S&P 500 BAM model. I don’t know if your subscription includes it so I don’t want to give away anything.
When this rumor started back in February I remember Amazon was supposedly going to do a 1:1 stock swap. At the time people were saying that kind of thing happens in investing. I don’t know enough about the investing game to know whether that is feasible.
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Ok. So amazon is going to dilute their current shareholders to complete the buyout
How exactly does this acquisition benefit any of the current Amazon shareholders?
I’ll let someone else answer that because I don’t know.
I remember the Amazon rumor in February as well and there weren’t any supporting resources back then either.
No, there weren’t. Same as it ever was.
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