I have some OLN and it is ok. I feel better about buying HAL at 4 & 5 dollars per share a year ago.Also picked up quite a bit of DVN at 6 dollars per share.OKE was 13 a year ago and i should have bought more because they have a really nice dividend.All these stocks have tripled or better in a year.Every one gets scared when oil goes down but that is the time to buy.
selling puts is prooooobably not a bad idea on this one but man...short options just has so much potential to wipe you out overnight. Definitely would want to hedge my position with something like a collar just in case.Ive had OLN in my watch list for several years now. Until about October it's been a snooze fest. They got the Lake City contract and that has helped but I think the ship has sailed on the stock price. It'll go back to sleep in a few weeks, I think. If I were trading it I'd be selling puts. They are a chemical company mostly. Ammo and components are just a small part of their market. I could be wrong, Lord knows I have been before.
I have all the "gun" stocks in my watch list and was planning to buy in a year before the election. But I didn't think there was much chance on Trump losing so I didn't.
Im really just an amateur but it has become obsessive.
Trend trading is one of those things that just makes sense..."the trend is your friend" as they say. However, supposedly trend trading strategies aren't nearly as effective as they were decades ago such as when Richard Dennis borrowed $1,600 in the 1970's and turned it into $200 million via trend trading the commodities markets. He coined the phrase "Buy strength, sell weakness" which I really like.
I honestly think they should teach courses about the stock market in high school: investing, trading, hedging, etc...people shouldn't look at it with such intimidation. I made a thread the other night about gambling addicts being able to get their fix via daily/weekly OTM options contracts...usually losers but big potential similar to slot machines and zero change of losing more than they bet...all from the comfort of your pajamas lol.
as long as the company has strong fundamentals then yea I agree.
HAL has a net debt of $8 billion with a debt/equity ratio over 2 which doesn't look so hot IMO. They are just one of those companies that you can't imagine going under though and i bet they will survive just fine.
I agree.HAL might eventually get bought by another company but i doubt they will go bankrupt.So far i have been fortunate enough to have never lost money on an oil stock in 30 years.It may take awhile for them to come back but so far the oil stocks i have bought did.It is just nice to be able to spend 5000 dollars and have 1000 shares of a stock as opposed to buying AAPL and owning less than 50 at todays price.
Can you talk more about how this?
How do *YOU* look for strength and weakness. What's your triggers? (hehehe)
I would also like to hear from zghorner but here is a pretty good definition.
Buy weakness is a proactive trading strategy where a trader enters into long positions ahead of the anticipated reversal in a security's price. Traders will generally either go long a security, or buy call options, in a preemptive move to capture the entire expected upside. A buy weakness strategy is the opposite of a 'selling into strength' strategy.
Buy weakness is a proactive trading strategy where a trader enters into long positions ahead of the anticipated reversal in a security's price. Traders will generally either go long a security, or buy call options, in a preemptive move to capture the entire expected upside. A buy weakness strategy is the opposite of a 'selling into strength' strategy.
based off of moving averages. when something is "strong" it is trending upwards above several moving averages 200, 50, and 20 day SMA. The price is steadily rising proving it to be trading with strength. In this case you would buy it because its steady price increase has proved it a winner thus far. You would be amazed how much money is made from buying high and selling higher (vs the old axiom: buy low, sell high).
To "sell weakness" means the same thing in reverse. a stock/commodity/etc...is trending downwards and is below all of the common moving averages...price decreasing more and more each day. At this point you would sell it short...meaning sell the stock on margin and you make money the further the price drops.
What often happens in the real world, especially with new investors...is they buy a stock because they got an email with a list of recommended buys...the price drops...proving it to be weak...but they BUY more to average down the price of their position...the price drops further...they buy more of the weak performer...next thing you know they are down 70% on their position and either freak out and sell, or tell themselves "this is just going to be a long term investment now" lol...Rule #1 is knowing the difference between trading and investing...if a trade turns into an investment then you messed up major.
Ive had OLN in my watch list for several years now. Until about October it's been a snooze fest. They got the Lake City contract and that has helped but I think the ship has sailed on the stock price. It'll go back to sleep in a few weeks, I think. If I were trading it I'd be selling puts. They are a chemical company mostly. Ammo and components are just a small part of their market. I could be wrong, Lord knows I have been before.
I have all the "gun" stocks in my watch list and was planning to buy in a year before the election. But I didn't think there was much chance on Trump losing so I didn't.
Ammo and gun company profits are rounding errors for most tech companies. Not usually worth my time, the 3 year chart for OLN isn't impressive.
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Zghorner and JD8 have both giving good advice.Buffet use to say i wouldn't hold a stock for 10 minutes if i wouldn't own it for 10 years.People that i know that bought AAPL in 2010 and NFLX around that same time and just held it have created alot of wealth.It is nice to make 40 or 50 dollars a share profit.It is even nicer to have bought 400 shares of a stock like AAPL and by not touching it 10 years later you have over 10,000 shares.AAPl had a 7 for 1 stock split in 2014 and a 4 for 1 stock split a few months ago.
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