Stocks and Trading Thread - Channeling your inner Mono

[Hamilcar]

Probably just a short squeeze.

[The Brain]

Any Paradox owners here?

[Admiral Yi]

Anyone pay any attention to analysts?

[Hamilcar]

Anyone pay any attention to analysts?

https://www.reddit.com/r/wallstreetbets/comments/4qhb98/wsb_weekly_herald_idiot_canadian_trader_hailed_as/

[Valmy]

I have been thinking about experimenting a bit with algorithm based investing. I like that you can test it using old data before you can take it live. The amount of money would be pretty low I just thought it might be kind of fun. Anybody have some advice on how to do that? I am worried fees and so forth might make it non-feasible as a source of entertainment and possible profit. Is that true?

[DGuller]

I like that you can test it using old data before you can take it live.

Be careful, the stock market cemetery is full of people who had an algorithm that worked well in back-testing.  Churn through enough candidates, and you'll find one that predicts the past very well.

Anybody have some advice on how to do that?

Don't.

I am worried fees and so forth might make it non-feasible as a source of entertainment and possible profit. Is that true?

When it comes to entertainment, YMMV.  But as far as profits go, absolutely.  Algorithmic trading is a very brutal business, and algorithmic traders do things like finding the physical location with the shortest cable length to the exchange servers, to eek out milliseconds in lag.  You're not going to fare well against such entities, you'll be the source of their profits.

[Valmy]

When it comes to entertainment, YMMV.  But as far as profits go, absolutely.  Algorithmic trading is a very brutal business, and algorithmic traders do things like finding the physical location with the shortest cable length to the exchange servers, to eek out milliseconds in lag.  You're not going to fare well against such entities, you'll be the source of their profits.

Ah. Gotcha. It sounds a bit like Fan Duel or some shit.

I thought it might be fun, like some kind of video game, but not if it goes like this: https://www.youtube.com/watch?v=hDIbYXM2jK0

[Admiral Yi]

It's possible you guys are talking about two different things.

Valmy, are you talking about that company that advertised nationally a while back, that automatically divides up your money into different investments?  Can't remember the name.

[Valmy]

It's possible you guys are talking about two different things.

Valmy, are you talking about that company that advertised nationally a while back, that automatically divides up your money into different investments?  Can't remember the name.

Not exactly. A few years ago a good buddy of mind was having a good time doing currency speculation type shit (well he did stocks and commodities as well but he enjoyed currency the most) using algorithms and he would usually pocket a few hundred extra bucks a month and this was all during the economic downturn. He said we might be fun to do a bit of it together at some point. Well now I have some money to do something like that but he passed away from cancer a few years back.

So I was just thinking about it.

[Valmy]

Ok so I am asking around and I am told the most hands on low risk-ish short term investiness entertainment for my money is peer to peer lending. Like Lending Club or something which apparently has been a thing for awhile but I had never heard of it before. Is that better? I am thinking of putting in a hundred bucks a month to fool around with and posting an AAR around the first of the month here so you can all laugh at/cheer me as I goof around in the world of high stakes video games.



Sound like fun? Entertaining? Advice?

[Ed Anger]

You can always watch Mad Money*.

*not serious advice

[Admiral Yi]

I've got some money in Lending Club.  Was trying to give away referral bonuses, no takers.  It's $75 free money if you put up five large.

FYI, it's not short term.  Loan durations are 3 and 5 years.

I'm making 9 percent and change right now.

[Valmy]

I've got some money in Lending Club.  Was trying to give away referral bonuses, no takers.  It's $75 free money if you put up five large.

FYI, it's not short term.  Loan durations are 3 and 5 years.

I'm making 9 percent and change right now.

9 percent sounds good to me I am glad you are doing this, you usually know your investments. So I guess the chances of losing it all super fast are low.

Yes I know it is only short termish but it was the best I could do.

Anyway I will be playing with $100 a month not 5 large

But hey if I end up playing a couple years it could eventually be 5 large.

[Admiral Yi]

100 bucks is only 4 loans.  Poorer rated loans have historic default rates of like 9%, so it's theoretically possible you'd get wiped out on your first due date.

[Valmy]

100 bucks is only 4 loans.  Poorer rated loans have historic default rates of like 9%, so it's theoretically possible you'd get wiped out on your first due date.

Well won't that be fun? It takes a few weeks at least to get to the first due date. I was worried it would take a few minutes, like thinking you are going to have a good time at a Vegas Casino or something.