I wonder if anyone here can understand this little story. · 4:18am Mar 27th, 2015
I wonder if anyone here can understand this little story.
A stock trader in-training's tale – Greed, Fear, and Being An Amateur
Prelude
“Gosh, I got in too late, this company's already high, and I still got in. The heck was I thinking? Next time, when you give yourself a memo on a Friday saying, “Be there on market-open come Monday, YOU DO IT!”
“Monday came, I woke up at 10:00am. Crap. The opening price of the company was 72 bucks, and now it's 84 bucks. Crap. If I woke up early, and was actually there, I could have gotten those stocks at 72 bucks, and sold them at 84 bucks and made much profit IN LESS THAN A FRIGGIN' MORNING! BUT NOOOOO!!!! I HAD TO WAKE UP LATE!”
“I bought at 82 bucks, then 78, then 74. I should not have done that! Crap. What a crappy day.”
“*Sigh* At least...I have time. Yeah. I'll just have to wait for this company's stock to go up...whenever that may be.”
Present Day
“What's this? I have a...Tender Offer for my shares of the company. Someone's willing to buy my shares at 21.93 bucks. Wait, what? That's waaaaay below the price I bought it for. The peeps making this tender offer are crazy!”
“Hmmm, let's do some research on the company.”
1. http://www.philstar.com/business/2014/12/18/1403775/software-firm-iripple-selling-all-assets
2. http://www.philstar.com/business/2015/03/07/1430795/software-firm-iripple-sells-assets
“What! This company sold all its assets and won't be able to do its core business anymore?! And I got in it after this news came out?!?!?! Dear me I SHOULD HAVE DONE MY RESEARCH!!!”
“Uh, k. So, let's assess the situation:
1. There are two individuals out there wanting to OWN this company, and they're going to do it by offering to buy everyone's shares. Their offer is cheap, especially today, when the company is selling for 68.65 bucks a share.
2. This company had plans to end itself and do another kind of business since at least last year. DAGNANGIT I should have known that! The news was out there!
3. If these two individuals manage to own 90.1% of this company's total shares, meaning that the public will own less than 10% of the company, the company will be de-listed from the stock market, and I will be stuck with shares that I can't trade in the stock market anymore.”
Conclusion:
There may come a time, in a stock trader's life, when his abundance in time will not be enough. The guy planned to just shift this bad trade to a longer term, in the hopes of making money out of it...but I guess that is not going to work this time.
I used to work at a place that made stock and money market software.
Being a stock broker is like being a gambler except maybe you get better info.
Maybe?
There are so many variables to juggle.
Why did the price climb to 82?
I would take the offer so at least I get some money.
3087808 That's true. You do get better info.
But also true: there are too many variables to juggle, especially for noobs like me. That's why the best brokers can know in a glimpse of a few charts what the charts are saying. Still, they go with certain criterias being met whether they will sell/buy/hold, and not just emotions and gut-feels.
That's what I need to become. Also, I come from a Fundamental Mindset trying to build up a Technical Mindset. I'd like to be the trader/investor that can "ride the wave like a pro-surfer dude."
The market's going sideways right now (Philippines), so I can't even know if my "losers" are truly "losers that needs to be fired (sold)," or not.
3087879
Research would probably help.
Have to study future trends and catch unknown companies
before they become famous.
Have you thought about doing a MLP story on the life of a stock broker?
Something like Stallion of Wall Street?
3087950 Shhhh!!! Keep it down. >.> ... <.<
...yes, yes I have.