Short Term Investing

robertbanking

Hello you wonderful and amazing people that make up this forum. I do hope you are having a super week and enjoying this warmer weather we are having.

I do note that on the NASDAQ Meta dropped to a low of around 90 USD in November 2022 and has steadily risen over a period of 6 months to around 245 USD. I was kindly wondering about maybe looking to try formulate a strategy for trying to invest on a share term basis, with these dips in strong stocks. I know this is more easily said than done. I kindly wondered please if anyone knows the reason or combination of factors that led this stock to drop to such a low in November 2022 please and then to steadily increase again? I am just trying to learn more about investing and what contributes to fluctuations in the share price, i would be very thankful and grateful for any support you can kindly give.

Sending you lots of good wishes and i do hope you enjoy the rest of the week. All the best in your investing and hope you are happy. Take care.  

InvesterJones

As per your other threads on similar subjects, the general advice is don't. The vast majority of investors such as yourself will lose money doing so.

jimjames

If it's short term it's not investing it's gambling. At any point in time the direction of travel in the short term is as likely to be down as up.

wmb194

robertbanking said:

I do note that on the NASDAQ Meta dropped to a low of around 90 USD in November 2022 and has steadily risen over a period of 6 months to around 245 USD. I was kindly wondering about maybe looking to try formulate a strategy for trying to invest on a share term basis, with these dips in strong stocks. I know this is more easily said than done. I kindly wondered please if anyone knows the reason or combination of factors that led this stock to drop to such a low in November 2022 please and then to steadily increase again? I am just trying to learn more about investing and what contributes to fluctuations in the share price, i would be very thankful and grateful for any support you can kindly give.

Haven't you looked at the news flow during the period, particularly around its results and the commentary related to them?

sevenhills

jimjames said:

If it's short term it's not investing it's gambling. At any point in time the direction of travel in the short term is as likely to be down as up.

Surely if the long term trend is up, the short term is also up, but very volatile.

Prism

Some people can do this but they are mostly quants (maths people).

In this case the only thing that change about Meta was the sentiment towards it and that is impossible to predict. Last year Meta said they were going to be investing a lot in the metaverse or VR. This year they said they were not going to invest as much. That is all that has happened.

Nobody know they were going to say these things ahead of time and nobody knew how everyone else would react by them saying these things.

ColdIron

sevenhills said:

jimjames said:

If it's short term it's not investing it's gambling. At any point in time the direction of travel in the short term is as likely to be down as up.

Surely if the long term trend is up, the short term is also up

No. If the trend is up it will be the sum of the zigs and zags over time where there are more zigs

If you are invested for a short period during a zag that will be a down rather than an up

jimjames

sevenhills said:

jimjames said:

If it's short term it's not investing it's gambling. At any point in time the direction of travel in the short term is as likely to be down as up.

Surely if the long term trend is up, the short term is also up, but very volatile.

The long term trend isn't always up for all shares

Grenage

Big dips in strong companies such as Meta, Netflix, Alphabet etc are incredibly rare, especially when it's mainly sentiment.  Even then it's not a no-brainer.

It's very easy to remember the trades you didn't make but wish you had, and forget those that would have ended badly.

coyrls

Grenage said:

Big dips in strong companies such as Meta, Netflix, Alphabet etc are incredibly rare, especially when it's mainly sentiment.  Even then it's not a no-brainer.

It's very easy to remember the trades you didn't make but wish you had, and forget those that would have ended badly.

What do you mean by "incredibly rare"?  I would say big dips are fairly common and not just dips, they can drop and never recover.

Grenage

coyrls said:

Grenage said:

Big dips in strong companies such as Meta, Netflix, Alphabet etc are incredibly rare, especially when it's mainly sentiment.  Even then it's not a no-brainer.

It's very easy to remember the trades you didn't make but wish you had, and forget those that would have ended badly.

What do you mean by "incredibly rare"?  I would say big dips are fairly common and not just dips, they can drop and never recover.

That's true, but I'm talking about the sort of drop in the aforementioned Meta.  Such drastic drops and recoveries are quite exceptional.