Anyone Buying Back Fannie Mae Yet???!

[spanish89]

ALoha im not an equities trader, and so know very very little about the equities markets...

But when i saw that Fannie Mae had dropped 67% today, but then heard that teh fed will just bail them out in the end i thought that it was just too good bargain to miss, and so on my virtual account i bought it at about 800.

End of trading it was up nearly 200points. :cheesy:


Im looking to widen my trading portfolio away from just Oil mainly, ftse n dow, and so was just wondering if anyone else on here actually does 'daily bargain hunting' from the early mornng, just buying the worst performing stocks of that day with a giant stoploss, and then just holding for a day or few days for the recover and then cashing-iny??

 

[welshandy1]

ALoha im not an equities trader, and so know very very little about the equities markets...

But when i saw that Fannie Mae had dropped 67% today, but then heard that teh fed will just bail them out in the end i thought that it was just too good bargain to miss, and so on my virtual account i bought it at about 800.

End of trading it was up nearly 200points. :cheesy:


Im looking to widen my trading portfolio away from just Oil mainly, ftse n dow, and so was just wondering if anyone else on here actually does 'daily bargain hunting' from the early mornng, just buying the worst performing stocks of that day with a giant stoploss, and then just holding for a day or few days for the recover and then cashing-iny??

Im thinking the same thing... Freddie Mac is another one. Surely they are good buys at that price?! I know they can go lower, but theyre pretty damn low already.

Between the two of them, they control 6,000 billion US dollars of US mortgages. Thats half of the entire US mortgage market.

So, realistically, can the US government afford to let them go lower... that is the question.

Depends what happens if there is a govt. bailout.

Interesting times!

 

[prop]

he who pick bottom get stinky finger !

 

[shadowninja]

Check out what happened to Northern Rock.

 

[Trader333]

I know they can go lower, but theyre pretty damn low already.

When a market is trending down and especially on news, if you ever think that a price is too low and trade based on that you will eventually lose your account.


Paul

 

[Crap Buddist]

I did hear if the gov take ownership then it will be essentially worthless.... I just assume they aquire the debt and take it off the market or something. ? Just a snip I heard.

But why bother with something like that when you have safe/r liquid markets to trade?

 

[shadowninja]

Many people bought at 300 when it looked really cheap (it fell to that on the day). Then it fell. Rose a bit. Fell a bit. Rose a bit. Fell a bit. Got suspended.

 

[Splitlink]

When a market is trending down and especially on news, if you ever think that a price is too low and trade based on that you will eventually lose your account.


Paul

It's short all the way, Paul, until the market says otherwise.

 

[rathcoole_exile]

that looks uncannily like a profile of sexual activity, over fractal timescales - both in minutes and years ....notice the dip from 1200 to 1000 then the temporary surge back to 1200 as flagging libido discovers viagra ...but ultimately it's all downhill .....

or could just be the profile of sexual activity before and after marriage, with the brief surge of the honeymoon followed by a lifetime of :-(

 

[Splitlink]

Listen, I'm 76. Don't let's bring sex into it.

Put your mind on your ball and not your balls. :cheesy:

Split

 

[Crap Buddist]

Listen, I'm 76. Don't let's bring sex into it.

Why not this lady is 70 years young.. crazy times we live in ...

 

[the blades]

Why not this lady is 70 years young.. crazy times we live in ...

70? I would.

UTB

 

[MrGecko]

Did you miss fridays comments from Bernanke?

Fannie and Freddie would be eleigible for the Discount window.

 

[shadowninja]

Why not this lady is 70 years young.. crazy times we live in ...

Problem is, the breasts in the first picture hang below the breasts in the second picture as you look at the screen.

 

[Splitlink]

Why not this lady is 70 years young.. crazy times we live in ...

Whatever. I've had a good innings and am quite content to let that part of life go

 

[Crap Buddist]

Why not this lady is 70 years young.. crazy times we live in ...

Whatever. I've had a good innings and am quite content to let that part of life go

I respect that split. To be honest when I realised it was Jane , from that film On golden pond, I was , well I didn't know what to think. I think she is very attractive, and then I was told she was 70. And I am also being told, see the person , not the age.. so...

These thoughts I was experiencing, I bracketed as "normal" ....

Thank you split.

 

[spanish89]

I know there is always the danger of it doing another Northern rock, everyone knows it 'could'...

But technically so could any other stock you buy, suddenly just crash overnight with no-warning.., but on them the crash would be much bigger.


On Fannie Mae ok you buy now at 800, yo have to accept it could go very low, so you put at stoploss at about 250.. and then just wait.

Worst case scenario the company does go bankrupt and lose everything and all value and so you lose £550 (not much at all, just 1days profit somedays).


But if the company is saved, then think about in a few weeks to months when the recovery starts how high it could then return too.

 

[Splitlink]

I know there is always the danger of it doing another Northern rock, everyone knows it 'could'...

But technically so could any other stock you buy, suddenly just crash overnight with no-warning.., but on them the crash would be much bigger.


On Fannie Mae ok you buy now at 800, yo have to accept it could go very low, so you put at stoploss at about 250.. and then just wait.

Worst case scenario the company does go bankrupt and lose everything and all value and so you lose £550 (not much at all, just 1days profit somedays).


But if the company is saved, then think about in a few weeks to months when the recovery starts how high it could then return too.

You have a peculiar concept of value. Not everyone calculates a drop from a price of 800 to 250 as a loss of only £550 . I suggest that you put your stop loss at the 250 level because you have no real idea how much the fall could be. Why not go the whole hog and put it at 1?

You are calculating your possible loss at £1 per point and then say "that's only a days profit somedays". I suggest that to make a profit at around that figure in shares on a good day you are going to have to punt much more than £1 per point, because 550 points is rare and only attributable to a takeover situation or a company crisis, all of which is only known in hindsight.

It is very easy to lose 550 and extremely difficult to get it back afterwards.

Split

 

[spanish89]

I suggest that to make a profit at around that figure in shares on a good day you are going to have to punt much more than £1 per point, because 550 points is rare and only attributable to a takeover situation or a company crisis, all of which is only known in hindsight.

It is very easy to lose 550 and extremely difficult to get it back afterwards.

Split

I trade oil and ftse/dow, never done shares yet...

But only do £1 point, and as i have proved repeatedly now in my trading journal i have, can, and am consistently continueing to make between £60 t £600 per day, everday at just £1 point and with an account of under £2,000!! :cheesy::cheesy:


Ive decided that i am going to expand my portfolio to shares when i have enough free capital, but instead of buying im only going to be a seller, shorting the highest % rise companies each day (although looking at their industry 1st), and then holding for a few days till they return to their average value and cashing-in then.. :cheesy:


And the logic behind this any stock out there can have a good day, and in value of % change be in the highest 5 out of the 100 stocks in the list, but its an incredibly unlikely thing that any of them will then go on to being the next Google (and basically taking over the world!)

And so they will have to come down of this % high the next day or a few days later that week, and so be cashed in by me (unless they do do a google). :cheesy:



But its far far more likely that any of those 100 companies can do a northern rock suddenly overnight, do an airline industry cos the oil, or do a banking sector...,
And just fall and fall and then just stay down there for a long long time!! :whistling


So selling is far more logically and numerially shifted in the favour of a profitable portfolio than trying to buy is.

 

[Splitlink]

Ok, I've no argument about what you say except that you were considering buying FM. I am a seller of shares right now, too, but I am more cautious than you. After a fall of FM's size, I'd be more likely to take profits, if I had it, which I don't. But I don't think I'd buy into a falling knife.

Good trading

Split