We all started somewhere, we all had questions. No longer do you have to be worried about asking a stupid question, for here in the stupid question forum, you can ask away without fear of being judged... by most.. but we will probably still judge you anyway Ask away! Its the only way to learn!
Okay, I'll go first then What happens to my shares of a company going bankrupt? I mean I know there is an order of priority for debt payment, and that common shareholders are at the very end of this line. So is there any hope for me to get some compensation, or whatever reason to hold stock such as SUNE other than for short-term trading opportunity?
Congrats on the first question in this new forum! Holders of common stock, which is you unfortunately, get their shares slammed down to almost nothing and eventually they get delisted. In some cases there can be a reverse split or the company keeps trading like some zombie, not quiet dead... Hey, start a fresh thread in this section for this question, its probably going to be a common one light of SUNE getting smacked.
Hey Gil, can you upload my old avatar, lol. After 20+ years and 4 computers...I don't have it any longer. Thanks! ~Sis~
I'll bite. recently had a spinal fusion that ended my physical career as a carpenter/contractor. I've always been interested in investing and now wonder about making a career of it. how did you guys get started? education? mentorships? I've read a couple of books, but still lack confidence(on an island all by myself) and end up with bad entries and exits. Not all have been lost, but would like to increase my wins. thanks for listening and look forward to continued learning.
Seems like you have done your research and understand the game, now its all about fine tuning your system so you get more wins than losses. Switch to paper trading while you do this, it will save you a lot of money! What kind of trading do you do? stocks? options? short term? swing?
paper trading is where I'm at now. I lost a couple with real money and decided the game is much harder than it appears. However, deciding to pursue further does have a time frame to it. At some point, I need to produce income. whether it be trading or a non physical contracting position. I lean towards trading in attempt to get control of my life. just not willing to risk everything I've worked for all these years without the confidence that I can be successful. Currently reading a book on options and would like to get to that point. at this point my focus has been on stocks under $15. looking for short tem and swings. my paper portfolio currently has both HPQ and HPE, DNR, SIRI Been watching several others that have been mentioned on this site. THanks for the reply. Appreciate a place to be a newbie.
When it comes to options, they can be your best friend when done right! Have you read up on covered calls yet?
I have, but only the basics. and have not dabbled on paper yet either. something I would certainly do before exposing my self to that risk. would love to see examples of past covered calls if willing to share.
Covered calls are probably one of the safest things you can do with options, the only risk is getting called out of you stock. From the investor perspective, lets say you love TSLA and you have a position already, but you are afraid of some potential downside. You can sell a OTM (out the money) call option, grab some premium. Have you gotten that far into the material?
Great thread idea! I have a question regarding margin. My strategy is to sell cash secured puts on blue chip companies and if assigned do covered calls until the shares are called away. My goal is to increase account by 1% each month. I typically keep 30% cash for when there are market dips/crashes so I can buy stocks on sale. I am looking at switching to a margin account. I have never used margin before and wanted to know if I can choose when to use margin or not. For example could I continue to do cash secured puts keeping my 30% cash cushion but dip into the margin every-now and again to by shares. So say I have $30k cash in the account and a further $70k tied up in cash secured puts. Could I use $10k of my $30k and borrow $10k margin to by $20k of stock? Or in margin do I have to change to naked puts rather than cash secured? Thanks for any help offered. Gareth
Most brokers give you the option of which account to use, so yes. Even if there is no option, there is really no need for a cash account unless you really like the T+3 (3 day settlement wait). If you have $30k cash you will not be using any margin. If you buy $60k worth of of stock, then that is using margin.
