In this thread, you can discuss so-called hype stocks, which are bought in the hope of significant value appreciation. Some might call investing in these gambling, not investing. In this thread, you can discuss, for example, your own trades or share information about companies.
Stock ideas are offered by, for example, the following sites:
*please note that the idea of these sites is also to draw you into the hype. In most hype stocks, there are always losers who buy at the highest price.
Current examples include GNUS, SOLO, XSPA, IZEA, DGLY etc.
After browsing through some of these threads, it seems that with the advent of Robinhood and the like, “retail investing” in the US has completely transformed into penny-stock trading and a full-blown tulip mania. Someone there wrote that they could only afford to buy 28 shares of some $0.2 stock. Well, with a free app and commission-free trading, that’s how you spend your day
First, let me say that I don’t like the idea of gambling with businesses. I would add to this argument that I was one of those bulls who, in the spring, bought shares in the fund that later changed its name to Nikola Corporation. The mania is fueled by money, which is now abundant in the economy, and consumers with purchasing power have plenty saved up as holiday travel is on hold.
Secondly, an interesting site for monitoring the herd behavior of these hyperventilating “investors” can be found at Robintrack.nethttps://robintrack.net/
Calling gambling “investing” is somewhat nonsensical. It’s a great shame when many people form an idea of investing through these hypes. Investing should involve understanding risks and opportunities, and these should be based on business operations.
Of course, I have also occasionally bought and sold shares whose value I personally deemed irrational for one reason or another, but I have a) believed a greater fool would be found (most often I was right) and b) known it was a gamble and that I would lose the entire stake, or almost the entire stake, if I was wrong. It can be fun, but it’s not investing.
I admit I got into this hype-driven trading (gambling?). And no, I don’t really consider this investing. I’ve allocated 5% of my portfolio to this and as soon as the situation normalizes, I’ll stop playing.
The long-term portfolio is separate, where I look for fundamentally sound investments, preferably to hold forever, generating dividends or growth for retirement.
Glad you created a thread on this topic and allow this for us who are interested in playing the game
I wrote down a few points for myself, which I’ve managed to follow over the past couple of weeks. However, I’m constantly thinking about when those losses will come and I should just stop this whole thing..
I look for stocks that haven’t risen yet, but discussion has started to form around them.
I buy small positions; the amount must be something I can afford to lose entirely without losing sleep.
I never chase any stock.
I set a target in advance, and I don’t worry if the stock continues to rise; instead, I enjoy all achievements.
I always set a stop-loss, and if it triggers, that’s good; I didn’t lose more money.
I’ve had a small ownership in this Actinium for five years, and it almost went to zero. Now it’s woken up. I bought another 200 euros worth. Ihre Datenschutzeinstellungen
H.C. Wainwright initiated coverage on Actinium Pharmaceuticals Inc (AMEX: ATNM) with a Buy rating. The price target for Actinium Pharmaceuticals is set at $3.00. For the fourth quarter, Actinium Pharmaceuticals had an EPS of ($0.03), compared to year-ago quarter EPS of ($0.05). The stock has a 52-week-high of $0.41 and a 52-week-low of $0.16. Actinium Pharmaceuticals’s stock last closed at $0.22 per share. (Ihre Datenschutzeinstellungen)
“Like McCarthy, other analysts also take a bullish approach. ATNM’s Strong Buy consensus rating breaks down into 3 Buys and zero Holds or Sells. Given the $2.75 average price target, shares could skyrocket 1,172% in the coming twelve months. (See Actinium stock analysis on TipRanks)” (Ihre Datenschutzeinstellungen)
I find it distressing that some old fuddy-duddies don’t consider it investing if someone else’s investments are based on various indicators rather than good old-school fundamentals. Let alone if the targets are shorter term, not 20 years away.
What is a hype stock? How do I know which thread my stock goes into, is there a list somewhere? For example, are all hydrogen sector stocks hype stocks, or can I discuss, for instance, Plug Power (Plug) stocks in a regular stock thread?
I find it amusing, but let’s go with this…
I doubled my Plug position when I halved my Nikola position. Plug has good prospects within a few years and a can-do attitude in everything it does. This allowed me to balance out my longer-term view on hydrogen stocks. I will probably make further purchases, especially if the stock price drags for some reason.
This thread is probably a good place to list ongoing SPACs. Among them, one might find gold nuggets like Nikola. I own and/or follow at least the following:
Opes Acquisition Corp (OPES) → merges with Burgerfi
Collier Creek Holdings (CCH) → merges with Utz Quality Foods
Forum Merger II Corp (FMCI) → target not yet officially announced, but should be a veggie-focused company (rumors of Impossible Foods and Oatly)
In addition to these, there’s American Virtual Cloud Technologies (AVCT), where the merger has already occurred and prices have bottomed out during the spring. Today, however, it seems to be pulling +100%.
Does Plug Power belong here? I’ve owned this for a while, not really because of any “hype.” However, it seems some hype has caught on as it’s up +16% today. Or has there been some news behind this rise?
Only post articles about Plug in the energy chain. At least, I’ve tried to stir up some discussion about the company there. Of course, if there seems to be long-term interest, we could consider a dedicated chain for it.
Yes, there’s a lot of discussion about Plug in the energy chain, and it’s certainly not a shooting star, but perhaps the most advanced hydrogen company.
Well, my latest hype-driven stock, Izea, is up a quite reasonable +13.27% from my purchase price today As I mentioned in the buying discussion, this stock isn’t selling promises and futures; they have a real product that real people use, and on Friday, they’re announcing two new contracts with Fortune 500 and Fortune 10 companies.
Investing is like sex; the young wonder why their elders haven’t figured out how great it is and how it should be done.
In my opinion, it’s really great if someone manages to become a millionaire in a year, and someone somewhere in the world always succeeds in doing that.
Finding a suitable stock around which a buzz is starting to form and which hasn’t risen much yet.
Buying said stock and starting to hype it up. Expected return of 50-100% per day.
Selling the stock after 1-3 days of ownership.
Or would this rather be gambling? When it comes to such stocks, buying is not based on anything other than the hope of an explosive increase in value within a couple of days. And that increase in value is based on almost no fundamentals. Which company’s valuation genuinely rises by 50-100% in a day, (almost) without any changes to the company’s business?
And no, hydrogen stocks like Plug do not belong here. And even though Nikola’s stock behavior makes no sense, it doesn’t belong here either. This thread is for stocks that are roughly valued at the correct level based on key figures, but whose valuation is hoped to explode due to hype. These stocks then slide back down over some period of time.
For example, the consequence of Robinhood hype ($CHK):
Of course, you’d make a profit if you bought it at the $20 levels and managed to sell at the $60 levels, but you could just as easily make a loss. It’s extremely difficult to find the right timing when the behavior is based on nothing but hype.
Sure, many people have that quick-win system, but you can also think that Tesla, Amazon, etc. also started somewhere. So there are essentially two types of penny stocks: a quick dump or a vision 5-15 years into the future, where the stock’s value could be hundreds instead of cents. And because it’s impossible to calculate or even guess such a thing, there’s also a lot of buying “random” promising stocks for a really long hold, typically for 50-100 euros (at least for me – though in those Robinhoods you see people putting in thousands, but I don’t know if it’s their “last” money), and then just seeing what happens sometime in the future. So the loss is quite negligible even if it goes down 100%, but then there’s a chance to get it back many times over sometime in the future. It’s not really that different from, for example, Revenio, which has risen +1732% in Inderes’ model portfolio, or Talenom (+340%).
I was just poking the hornet’s nest for fun. Still, you can throw out all sorts of extreme examples like “read about stock x in Iltalehti and put all their assets into it.” In that lottery, anything can happen, of course.
But on the other hand - there are many kinds of hype investing, for example, observing how much hype gathers around something so that it’s obvious that due to human behavior, the stock will get a boost in the near future. You don’t jump on every hype-driven promotion or expect returns of 50-100% per day. You set clear goals and milestones at which profits must be realized, and use stop-losses and cash management, i.e., have a plan. For example, my trading capital is currently ~10%, of which portions are invested at a time in these hype stocks, leveraged products, etc. It’s probably not traditional “I invest in company x because it generates good results and creates value and dividends for the owner” investing. But is investing in ETFs? Funds? Which ones, only precisely targeted ones?
Nikola was an exception in that for me, it was a “no-brainer” that mega-hype would push the price up, and I broke the mold and invested a very large portion of my cash at risk into this. The rapid rise in price exceeded expectations many times over. I calculated that at a price below $12, the risks were still small, and even a collapse would hardly cause it to budge from that floor price. I invested even more at this stage. These probably don’t come along often.
This thread is very interesting for me, as I will continue to invest small portions of my cash in hype stocks in the future. Waiting for the next “no-brainer”…
Domestic penny stocks are also interesting, as their developments are often easier to follow.
My opinion:
What is the criterion for investing to be called investing? It doesn’t seem to be fundamentals, TA expertise, etc., but rather, in my opinion, investing is about seeking profit with a certain asset (usually financial instruments). So I invest something somewhere and hope it yields a return. Some, of course, know how to use various tools to ensure or improve the outcome, which I would consider knowledge of fundamentals, TA expertise, and other skills. If one calls oneself an investor, it might lean more towards a “who can call themselves a master” type of setup, but there doesn’t seem to be an official criterion for that either.
What is gambling? It is a game where the stake is greater than what the player can afford to lose. If the stake doesn’t matter, then it’s entertainment gambling. Someone plays a slot machine for fun, another as gambling.
So, could what’s under this heading still be investing, but one could call it high-risk investing, extremely high-risk investing, threat-investing (compare to gambling), or one could perceive it as an investment game, in which case it could be gambling.
This message of mine is actually just idle talk, and it comes to mind that there isn’t one right answer to this. Therefore, I don’t know if there’s reason to negatively judge another’s way of thinking about another?
edit:
The definition of gambling in the Criminal Code includes that the gaining of profit is based wholly or partly on chance or on events independent of the game or activity participants, and where the potential loss is in obvious disproportion to the solvency of at least one participant.
