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re: Does what happened today scare you?
Posted on 5/6/10 at 8:41 pm to LSURussian
Posted on 5/6/10 at 8:41 pm to LSURussian
quote:
That drop triggered automated (computer) sell programs. It also triggered some long standing "stop loss" orders, driving the DJ down even more. It may have caused some margin calls (meaning some investors who had borrowed money to buy stocks using the stocks as collateral had to sell some stocks to repay the money they borrowed to buy them.)
I feel like I should be paying you for this information.
Are you a trader or investment banker?
Pretty much my only investment in the stock market is my 401k. Can I call up my adviser at anytime and say buy this now? Or do 401ks not work like that?
2
Posted on 5/6/10 at 8:42 pm to dutchdanish
so just to ask again, can margin calls be automatic ?
Posted on 5/6/10 at 8:44 pm to crimsonsaint
quote:Commercial banker. But I trade a lot.
Are you a trader or investment banker?
quote:It depends on your 401k plan, but usually plans are not designed to encourage excessive trading or market timing. Check with your human resources department.
Can I call up my adviser at anytime and say buy this now? Or do 401ks not work like that?
Posted on 5/6/10 at 8:45 pm to crimsonsaint
quote:
Can I call up my adviser at anytime and say buy this now?
Consider opening an IRA through an internet broker if you want to do that.
Much lower fee structure and they will give you some market analysis tools.
I like the Roth IRA, but traditional has it's benefits as well.
Posted on 5/6/10 at 8:46 pm to tammanytiger91
quote:
Aren't you nervous that a mistake by one smuck causes the DOW to plunge a 1000 points. Is that the definition of a healthy tradable market?
Not nervous at all. As others have already pointed out, this is mainly a problem for people who trade professionally and monitor their positions minute by minute.
As a buy and holder, the subsequent recovery is rather comforting.
Posted on 5/6/10 at 8:51 pm to dutchdanish
quote:
This is why I really wish a personal finance class would be mandatory for all high school students. Because even when stocks are down there are still ways to hedge your risks (diversification).
They should do this but don't. Most people depend upon a finacial advisor to help them with this. Do you realy think that they offer up those options to most clients? i can tell you from personal experience not once has someone suggested putting money in REIT's, commodities, currencies, etc. To the financial planners I have met, diversification only means stocks-international, growth, income and bonds.
Posted on 5/6/10 at 8:58 pm to LSURussian
Thanks Russian and Flask 
One last question, Are "stop losses" and "margin calls" the same except for one is borrowed money and one is personal money? They both sell at one point? On margin calls, does the bank establish the selling point or the individual?
One last question, Are "stop losses" and "margin calls" the same except for one is borrowed money and one is personal money? They both sell at one point? On margin calls, does the bank establish the selling point or the individual?
Posted on 5/6/10 at 9:00 pm to crimsonsaint
What stocks are you buying tomorrow morning? How are the financials looking?
Posted on 5/6/10 at 9:04 pm to crimsonsaint
quote:
One last question, Are "stop losses" and "margin calls" the same except for one is borrowed money and one is personal money? They both sell at one point? On margin calls, does the bank establish the selling point or the individual?
No, a stop loss is a sell order that will execute at a certain price.
A margin call is when an investor runs out of money and goes negative on his investment. He either has to put more money in, or exit his position.
Posted on 5/6/10 at 9:07 pm to Paul Allen
Financials got hit pretty hard today over exposure to sovergin debt on top of the sell off. They are some good values in financials right now, espically in the commerical banking sector, IMHO.
:waits for Russian to destroy this with his insight/experience:
:waits for Russian to destroy this with his insight/experience:
Posted on 5/6/10 at 9:07 pm to Paul Allen
quote:
What stocks are you buying tomorrow morning? How are the financials looking?
Was that post meant for me? I'm not buying anything tomorrow. Tomorrow I'm gonna try to convince a client to build a home.
This post was edited on 5/6/10 at 11:22 pm
Posted on 5/6/10 at 9:08 pm to Zilla
quote:
so just to ask again, can margin calls be automatic ?
Yes. When I first started trading I had a margin call on a 16 cent stock, ate my arse up. Learned a valuable lesson that day.
Posted on 5/6/10 at 9:11 pm to Paul Allen
quote:Depends on whether you're talking JPM or C.
What stocks are you buying tomorrow morning? How are the financials looking?
Doesn't it?
Posted on 5/6/10 at 9:15 pm to Greenspan
NASDAQ cancelling trades +/- 60% for today. Still confidant in the system? If your down 
if your up 
. Seems like a arbitrary number to me. Why not 55, 45 or 25? Is it the price to pay to play the game? Why not reset whenever there is a huge rally? Someone wins and someone looses on every trade. How do you rectify the situation. Only the lawyers will win when the lawsuits start to flow.
if your up . Seems like a arbitrary number to me. Why not 55, 45 or 25? Is it the price to pay to play the game? Why not reset whenever there is a huge rally? Someone wins and someone looses on every trade. How do you rectify the situation. Only the lawyers will win when the lawsuits start to flow.Posted on 5/6/10 at 9:16 pm to Paul Allen
quote:
What stocks are you buying tomorrow morning? How are the financials looking?
Depends on your time frame. I am a short term trader, normally only hold 1-10 trading days so...I ain't buying shite in the morning. No need for haste right now. Let the market digest this week's action. Buying/Shorting now is just gambling imo. I will wait until this market cools it's jets and gathers itself emotionally. We are very volatile right now and the bulls and bears are about to duke it out. I will make my trading decisions after I see which camp prevails. That's just my two cents though...
Posted on 5/6/10 at 10:08 pm to dutchdanish
Posted on 5/7/10 at 12:26 am to CamdenTiger
I'm amazed we made it 10 hours with nary a mention of the PPT. Rivers be slippin'.
Posted on 5/7/10 at 12:35 am to kfizzle85
quote:
Rivers be slippin'.
Old age is getting to him. Being senile and all...
Posted on 5/7/10 at 12:36 am to dutchdanish
True. 
Posted on 5/7/10 at 12:52 am to dutchdanish
quote:
Old age is getting to him. Being senile and all...
That, or the extra chromosome he is toting around.
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