HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
If you buy a stock the day before it opens, and I bought it 6 months ago...
If a stock adjusts up (or down) 10 points... you and I both make (or lose) the same amount of money when it adjusts. The fact that you bought it when it was 100 and I bought it when it was 60 does not matter since we both earn (or lose) the same amount after opening weekend...yes, I made more on it over time, but we both make the same amount when the adjust happens...that's what I mean by PPDM..price paid doesn't matter.
The only times price matters is when a stock adjusts, and when it delists. Yes, if you paid 100 for a stock and it's worth only 90 now, you lose money... but it may rise again when it delists. Once a stock adjusts it's purely market forces, and the price you or I paid doesn't matter until it delists. You or I may make more (or less depending on what we paid for it) but we'll each make the same amount of money (or lose the same amount) once that stock adjusts until it delists.
I'm speaking purely of adjusts and delists. If you buy a stock the day before opening weekend, and I bought it 6 months earlier, you and I make the same (or lose the same) amount after opening weekend adjust.
The fact that we each bought a stock at different times has no bearing on what the stock will earn (or lose) until opening weekend. After the opening weekend adjust..it won't matter what we paid for the stock until it delists.
I hope that clears up what I meant. 
Why can the market settle on a direction for Hobbit? Dec 18, 07:29
there are thousands of traders. you cant expect every single one to hold it the exact same way. Dec 18, 07:34
Yes, we can expect them to. :P {nm} Dec 18, 10:37
After a stock adjusts, market forces drive the prices...people buying selling / shorting covering... Dec 18, 08:02
Well, I'd say there's a third time when the price matters - when you buy/short it. :) {nm} Dec 18, 10:38
If you buy a stock the day before it opens, and I bought it 6 months ago... Dec 19, 07:58
OK, I'll grow a pair...thanks! {nm} Dec 18, 08:31
They don't just spontaneously pop up. You have to be born with them. {nm} Dec 19, 13:32
It's an unusual stock Dec 18, 08:55
is your hobbit stock taking an unexpected journey? {nm} Dec 18, 12:00
Leading to the Desolation of his Stock. {nm} Dec 18, 12:56
the stock price was there, but now its back again? {nm} Dec 18, 18:57
He couldn't handle the Sting. {nm} Dec 19, 11:35
Always have 2 options, play the player and play the adjust. Personally I am playing the adjust on this one... {nm} Dec 18, 21:10
