HL Investment Challenge #2 Game

[Zambini]

I tried buying a boatload of Google stock (under 50k worth) but it cancelled my transaction....

the next day? Google went up 20 points. Stupid VSE..... :'(

[Tech Geek Deluxe]

Originally Posted by Capper

and the bottom is nowhere in sight!!!!

I haven't charted it Capper ... but Buffet is loading up on stock now.

Buying before the bottom and "Averaging Down" until the bottom has been reached is very likely what he is doing ... meaning he must see the end in sight now and is loading up on cheap stocks. Remember he is one of the best investors in the last 50 years and consistently trades against the normal market valuation on great opportunities.

Averaging down is a great technique. Basically one buys said stock at lets say $5 per share ... for practical reasons lets say you buy 50K at $5 then it drops to $4 where you buy 10K ... then it drops to $3 where you buy 10K ... then it drops to $2 where you buy 250K shares where it bottoms out [Mind you ... the market supports its value to rise to $15 a share and its 52 week high is near or above that.]

In a classic "Average Down" you don't want to buy at "dead bottom" ... otherwise you will be "Averaging Up" which is another technique. You actually want to buy when people are jumping ship and selling their positions cheap ... either allowing a steady decline or easing towards the bottom ... once you own all of that "real-estate" and OWN most stocks trading in that range ... one can OWN the entire bottom ... especially if you are the only buyer at a said level and everyone else is selling ... then when the market decides to buy in again ... there isn't hardly any cheap stock available ... guess what ... they have to buy in where you started ... yup ... that is at the $5 level ... valuations will rise very fast if you own most all stock in the low range and liquidity is tight below $5.

Your in the stock for $820K and now own 320,000 shares at an "Average Cost" of $2 5/8 [or $2.5625 plus entry and exit costs.]

If done correctly ... you literally own the entire bottom range of that stocks trading range below $5 ... let alone other enormous leveraging affect one can do if one begins to gain controlling interest. In this type of scenario where a rebound to $5 is highly likely ... the bottom buyer owns a very sizeable amount of stock for FREE after they sell a portion of stock on its natural rise in valuation.

I am wondering if the Fed forced the market to find a bottom today ... I expect it did ... much smarter than a slow sag.

My money is on a strong bounce and Buffets call on that.

[oldman_gamer]

Well this fits in just nice here so have fun and see how well you do ...or poorly. I did 50 of 100....not really bad in one aspect but poorly technically.
Financial IQ test - MSN Money

[Tech Geek Deluxe]

I don't know about you all ... but I am reeaally excited about the condition of the stock market. I haven't seen opportunities like this for 8 years.

Right now there are a pile of stocks that have over a 25% dividend yield. Some at almost 50% !!! It is downright freekin' me out ... I mean it ... I am calm now but I was ready to sell every asset I had and borrow money and leverage every way possible to start getting positions.

I have to wait a week or two however just to get my calm back and set things up ... probably for the better as things may still settle some in the markets.

Sigh ...

[IC Diamond 7]

How you guys doing? I know some investors are making a killing with the volatility I envy the cool headed nerves . LOL, I am a financial genius in a rising market and just not smart enough to trade a falling market. I did not enter this round because I do not think I could handle the humiliation of being in last place - "A man's got to know his limitations"

When the DJIA hits 3-5K I will enter the game if it's still going on to place somewhere in the pack with some luck.

[oldman_gamer]

Originally Posted by IC Diamond 7

How you guys doing? I know some investors are making a killing with the volatility I envy the cool headed nerves . LOL, I am a financial genius in a rising market and just not smart enough to trade a falling market. I did not enter this round because I do not think I could handle the humiliation of being in last place - "A man's got to know his limitations"

When the DJIA hits 3-5K I will enter the game if it's still going on to place somewhere in the pack with some luck.

LOL...we are pretty much all losing our shorts @ this time.....when it bounces back,some will come back to normal.....some should just hang it up . Cough,no names . I rebought XOM and CVX at a very bad time....I wish Ida waited till it was down like now! But I didnt know it was going to take the dive it did....atleast it's all in phunny $$#$$.

[IC Diamond 7]

With all that is going on- government interventions, collapse of $JPN currency carry trade, de-leveraging, unwinding hedge funds and everything else I know nothing about I figured if I do not understand it I better sit on the sidelines. I am a deer in the headlights on falling markets

[OcciferFriendly]

Me too. I figure I'll hold onto what I have since I already lost on it, and then buy when the thing starts ticking upwards.

[Tech Geek Deluxe]

I had to do research on high yield plays ... and they won't let me win money this time ... so I simply am on a dividend yield long portfolio and taking a beating. [for now]

[IC Diamond 7]

Originally Posted by Tech Geek Deluxe

I had to do research on high yield plays ... and they won't let me win money this time ... so I simply am on a dividend yield long portfolio and taking a beating. [for now]

Good strategy, I would think that if we had hit bottom you would have been in a good position. The normal rules kind of went out of the market when the government stepped in, I have been confused with a lot of the market moves in the last couple of months....with all asset classes declining where is the upside?