re: Weekly Stock Market Plays/Thoughts - March/April

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placing fairly significant sums of money into AUPH. I'm hoping for a HUGE pay day within the next 18 months.

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what kind of return are you hoping for out of this thing? I've been following it but every time there's good news it pops and then sells back to flat

I don't expect to make 2% a week. But the theory works. Buy low in safe companies like blue chips, wait for the 2% return, sell, compound all the money over and over. It's definitely not an overnight strategy, but it is fairly conservative with big rewards a few years down the line.

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what kind of return are you hoping for out of this thing? I've been following it but every time there's good news it pops and then sells back to flat

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It's a drug that has been proven to work that will conservatively produce 2 billion in sales per year based on the number of people with Lupus Nephritis that need a cure ( and the price of the drug).

The company is currently valued at 500 million, and a buyout should occur at 1.5 minimum, which equates to lower $20s per share. This is a conservative estimate.
I'm just waiting for the pay day. I was not discouraged at $6.50 so I bought more. Day to day news means nothing. It's all about the buyout.

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But the theory works. Buy low in safe companies like blue chips, wait for the 2% return, sell, compound all the money over and over.

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ya, of course, it works

one would just need to time it right, every day, which would take monitoring the market all the time.

gl

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Would you suggest buying more now at 7.08 or waiting on another dip if a dip should occur? Just curious. I see you guys all talking about it. Haven't looked into it much.

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I agree with Rocket, but like I've mentioned, I don't know when a buyout could occur. So I wait. This is my current short term investing strategy, and I realize that it's not for everyone.

I started buying at $3.40 and I've bought as high as $8.40 in my Roth. I'm not worried about those $8.40 shares at all.

I'll wait on some mid to low 6's and I'll buy some and hold them til do some good. Thanks.

AMZN, GOOGL

I figured out I have $14k in capital I'm going to use to start. The trick is to find stocks with high volatility and volume. A stock's beta above 1 is a clue. So I guess KO is a bad example. My goal is jump into a large cap stock having a down day. This gives me security in case I get stuck.

Let's forget about TD Ameritrade's commissions and the 2% for a minute. Use 1%.

Spend $14,000, let it rise 1%, then sell. Your money is now $14,140.
Now buy something with that $14,140. Wait for a 1% gain. Sell. Now you have $14,281.40.

So start with $14k, do the cycle only 7 times to make your first $1,000. Try it on your calculator. $14,000*1.01*1.01*1.01*1.01*1.01*1.01*1.01=$15,009.89.

$14,000...70 cycles of 1%...calculates to $28,094.69 to double your money. Of course any sale over 1% will speed up the process.

Obviously you need to pay attention to your profits on every transaction for your taxes. But, how long would it normally take to invest in something and to make a thousand bucks? I have nothing to say about how often you can realistically rinse and repeat, but the theory is solid. Asking for 1% isn't asking much. Just buy a big company having a bad day.

Also for the record, I never said anything about this being able to be performed every day. You need to let the transactions close, funds settle, etc.

This is interesting.

From TD Ameritrade:

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What is a day trade/round trip?
A day trade occurs when you buy and sell (or sell and buy) the same stock or option position during the same trading day. A trading day includes all pre-market, normal trading hours, and extended session hours. Selling a position held overnight and reacquiring the position the following day is not considered a day trade.

FINRA provides that a pattern day trader is any account that executes four or more round-trip day trades within any rolling five-business-day period, provided the number of day trades represents at least 6% of the total trading activity during the same five-business-day period.

If you are flagged as a pattern day trader, you'll be subject to restrictions, including a minimum equity of $25,000. Pattern day-trader accounts that fall below the $25,000 minimum equity requirement and day trading will be restricted to closing transactions only for 90 days, or until the equity is brought up to $25,000.

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So if I understand this correctly, if you stay in a stock overnight, you are clear. If you were buying and selling different stocks, you are clear. And if you're buying different stocks, you are exempt from the 4 or more trades per week restriction. That is all if I understand properly.

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one i like for a few months is RNN - might be worth looking into - its been trading between .60-.64

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this one is at .68-.69 now and the more i think about, i think it might come crashing down back to the .50s - seems like a pump and dump to me

there has been a lot of hype leading up to tuesdays "shareholders meeting" but what exactly will this meeting resolve? no data, catalysts, etc.

anyways, just my thoughts, if anyone is in this, be careful