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Old 02-10-2020, 01:28 PM
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Can we still talk about stocks on the SDMB?


I got reluctant approval to talk about stocks back in 2005. Has there been a change in policy? I donít want the board to have 1000 threads about buying some hot stock, but I thought some general discussion on the markets would be of interest. If itís granted, can that also include commodities such as gold and oil?

https://boards.straightdope.com/sdmb...d.php?t=299067
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Old 02-10-2020, 01:57 PM
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There's no prohibition on talking about stocks on the board, and there are lots of threads in IMHO on stocks and the stock market. IMHO would be the place to talk about personal investing. Specific issues concerning the stock market could be addressed in Great Debate, and factual questions about stocks in General Questions.
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Old 02-10-2020, 09:16 PM
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I have to come about this from a couple of angles.

1. As a moderator, I don't really have trouble with it.

2. As a licensed broker, I have to say that anyone - like me - who is licensed and those licenses are active shouldn't participate in any such threads. I know my compliance department would shit if I provided anything like advice in clear on a message board. I don't know the participants well enough to provide any real worthy advice. In addition, I couldn't limit my advice to one person so it would create a potential liability between my firm and every single person who read it.

People who are qualified to give opinions and advice wouldn't be able to do so easily. So what you get is what you get.
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Old 02-10-2020, 11:53 PM
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I have to come about this from a couple of angles.

1. As a moderator, I don't really have trouble with it.

2. As a licensed broker, I have to say that anyone - like me - who is licensed and those licenses are active shouldn't participate in any such threads. I know my compliance department would shit if I provided anything like advice in clear on a message board. I don't know the participants well enough to provide any real worthy advice. In addition, I couldn't limit my advice to one person so it would create a potential liability between my firm and every single person who read it.

People who are qualified to give opinions and advice wouldn't be able to do so easily. So what you get is what you get.
Iím a former licensed broker myself. Series 3/4/7/24/34/63

And I wouldnít be starting or responding to any threads about should I buy XYZ? Iíd be more interested in discussing if the S&P will be higher or lower on Dec 31. Or, why is XYZ dropping in price? Whatís up with the rise in gold prices? That sort of stuff.

And yeah, when I was working in the industry, compliance wouldnít have been happy although I doubt the SDMB is in on their radar. They were more interested in those who took to Twitter to gloat over a recent trade or decided they wanted to be Jim Cramer.
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Old 02-11-2020, 09:32 AM
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Iím a former licensed broker myself. Series 3/4/7/24/34/63
...
So what does that series of numbers mean?
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Old 02-11-2020, 09:48 AM
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So what does that series of numbers mean?
Pardon the pun, but they are a series of different securities examinations administered by various bodies to ensure financial professionals know their stuff. Link:
https://en.wikipedia.org/wiki/List_o...tes_of_America
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Old 02-11-2020, 09:58 AM
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Sounds like I need to go find a penny stock to pump and dump.

HOSS is going through the roof I tell ya! Buy it now, because it is shooting straight to $10!!

Last edited by Hermitian; 02-11-2020 at 09:59 AM.
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Old 02-11-2020, 10:09 AM
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And yeah, when I was working in the industry, compliance wouldnít have been happy although I doubt the SDMB is in on their radar. They were more interested in those who took to Twitter to gloat over a recent trade or decided they wanted to be Jim Cramer.
Yeah, I donít know how long itís been for you but itís right now. Compliance knows all my social media - even here - and has the right to review everything at their discretion.

Hell, when I was writing my webcomic some poor guy had to review the entire archive once per year to make sure I wasnít slipping anything in there.
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Old 02-11-2020, 02:11 PM
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Yeah, I don’t know how long it’s been for you but it’s right now. Compliance knows all my social media - even here - and has the right to review everything at their discretion.

Hell, when I was writing my webcomic some poor guy had to review the entire archive once per year to make sure I wasn’t slipping anything in there.
The major discount brokerage firm I worked for announced layoffs last fall and I was one of them. So, it’s recent.

Twice a year, I had to certify that I was in compliance with the social media policy. My manager may have looked at my LinkedIn because weren’t allowed to have any of their silly endorsements, but that’s as far as he went. I’m very active on social media, it would be a full time job just to review my Twitter much less the rest of my social media and the SDMB.
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Last edited by dalej42; 02-11-2020 at 02:11 PM.
  #10  
Old 02-11-2020, 10:09 AM
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Buy low, sell high.

Regards,
Shodan
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Old 02-11-2020, 11:13 AM
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Buy low, sell high.
Alternatively, sell high then buy low.
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Old 02-11-2020, 10:11 PM
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Alternatively, sell high then buy low.
Which is kind of what I did in one of my early trades, when I played the market just for fun as a kid. I signed up with what was then Merrill Lynch Pierce Fenner & Smith. One of my interests was puts and calls because of the tremendous leverage they had. The broker might have thought I was some rich kid (I was not) and early on tried to impress me with some direct advice, like recommending IBM puts. For the non-brokers and non-investors around here, a put is analogous to a short sale; it's a time-limited bet that the stock will drop below a certain value in a fixed period of time. If it doesn't, or it drops only slowly as the time runs out, you run the risk of losing everything. Same with a "call" option.

I took his advice and put a few hundred dollars into IBM puts. The stock subsequently dropped like a rock, and I netted several thousand dollars in two weeks, the equivalent of over $12 grand today. His advice continued to be amazing and I actually got into trouble with my employer's accounting department because for a while I couldn't be bothered cashing my paychecks and it was causing problems with their books. It was just that the profits coming in from the brokerage were making my paychecks seem like petty cash.

Eventually he realized I wasn't a rich-kid investor after all and the direct advice petered out. To this day I have no idea how he had this information to give, and whether he had insider contacts, or some other sources that normal mortals don't have access to.
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Old 02-11-2020, 11:58 PM
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Which is kind of what I did in one of my early trades, when I played the market just for fun as a kid. I signed up with what was then Merrill Lynch Pierce Fenner & Smith. One of my interests was puts and calls because of the tremendous leverage they had. The broker might have thought I was some rich kid (I was not) and early on tried to impress me with some direct advice, like recommending IBM puts. For the non-brokers and non-investors around here, a put is analogous to a short sale; it's a time-limited bet that the stock will drop below a certain value in a fixed period of time. If it doesn't, or it drops only slowly as the time runs out, you run the risk of losing everything. Same with a "call" option.

I took his advice and put a few hundred dollars into IBM puts. The stock subsequently dropped like a rock, and I netted several thousand dollars in two weeks, the equivalent of over $12 grand today. His advice continued to be amazing and I actually got into trouble with my employer's accounting department because for a while I couldn't be bothered cashing my paychecks and it was causing problems with their books. It was just that the profits coming in from the brokerage were making my paychecks seem like petty cash.

Eventually he realized I wasn't a rich-kid investor after all and the direct advice petered out. To this day I have no idea how he had this information to give, and whether he had insider contacts, or some other sources that normal mortals don't have access to.
I doubt inside advice, and buying long options isn’t always the best strategy anyway. It’s usually done with a spread to reduce the premium paid.

I’d assume they used some technical analysis to perhaps determine stocks likely to fall and then looked to see how much the option premiums were to see if they were low enough. You don’t want to pay $6 for a put for a stock that drops $5 especially with time value ticking off on the option.
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Last edited by dalej42; 02-11-2020 at 11:59 PM.
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Old 02-14-2020, 07:25 PM
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(snip)Eventually he realized I wasn't a rich-kid investor after all and the direct advice petered out. To this day I have no idea how he had this information to give, and whether he had insider contacts, or some other sources that normal mortals don't have access to.
He had a few thousand people he was providing advice to, and just tossing coins to determine who got puts and who got calls. After a few weeks he had a list of a couple of dozen that got 90% good advice, then those people get hit for the big score. The first time I heard that one it was predicting the winners of the gladiator games. I laughed so hard I fell off my chariot.
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Old 02-15-2020, 07:59 AM
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He had a few thousand people he was providing advice to, and just tossing coins to determine who got puts and who got calls. After a few weeks he had a list of a couple of dozen that got 90% good advice, then those people get hit for the big score. The first time I heard that one it was predicting the winners of the gladiator games. I laughed so hard I fell off my chariot.
A.k.a. the raindrop con. Sprinkle enough drops over things and one of them is bound to land on something.
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Old 02-16-2020, 01:14 PM
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He had a few thousand people he was providing advice to, and just tossing coins to determine who got puts and who got calls. After a few weeks he had a list of a couple of dozen that got 90% good advice, then those people get hit for the big score. The first time I heard that one it was predicting the winners of the gladiator games. I laughed so hard I fell off my chariot.
Yeah, I thought I was clever when I came up with this idea myself as a young teenager, only to learn that I wasn't anywhere near the first to think of it.
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Old 02-16-2020, 02:06 PM
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He had a few thousand people he was providing advice to, and just tossing coins to determine who got puts and who got calls. After a few weeks he had a list of a couple of dozen that got 90% good advice, then those people get hit for the big score. The first time I heard that one it was predicting the winners of the gladiator games. I laughed so hard I fell off my chariot.
I don't think so. It was a very long time ago, but my recollection is that he was pretty confident that it was the right thing to do. Unlike my bank FA, he never tried to hit me with a "big score" that I can ever recall. Most of the bad decisions I made were entirely my own bright ideas!

This has been an interesting thread. One other anecdote I can relate is getting the idea for some reason that buying stock in a big mining company up north was a good thing to do, up in the Sudbury area so it must have been mainly nickel with perhaps some copper and zinc as their products. A week or two later I read somewhere -- in an investment advice column in a newspaper I think -- that prices of base metals were plummeting and were expected to fall for the foreseeable future, so anyone holding base metal mining stocks should get right the hell out. I shrugged and ignored the advice. Just about exactly one year later, the price of the stock had doubled!

The moral of the story is that by the time you read "investment advice" in any popular media, everybody who knows anything already acted on it long ago, or else the advice is completely stupid, or both. Possibly what happened in this case was that the expected downturn in metal prices had long been expected and the "experts" had all dumped their holdings, depressing the market price to exceptionally low levels by the time I came along. Again, this was long ago so I don't remember the price history.
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Old 02-11-2020, 12:12 PM
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Buy low, sell high.
"What happened to your portfolio?"
"I dunno, man, I ate some of those brownies and the next thing I know I was selling all my stocks so I could buy more brownies."
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Old 02-11-2020, 02:13 PM
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"What happened to your portfolio?"
"I dunno, man, I ate some of those brownies and the next thing I know I was selling all my stocks so I could buy more brownies."
Iíd rather be buying brownies than the marijuana penny stocks I constantly get spammed for. At least the brownies have a purpose.
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Old 02-16-2020, 01:46 PM
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Buy low, sell high.

Regards,
Shodan
Buy low, never sell.
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Old 02-16-2020, 02:34 PM
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Buy low, never sell.
Pretty much my standard advice for real estate!
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Old Yesterday, 04:04 AM
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Pretty much my standard advice for real estate!
The problem with buying real estate too low is the increased risk of flooding.
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