# Hertz (HTZ) - sink or swim?



## eChamp (26 June 2020)

Hey guys,

Need some opinion whether i should keep or let it go. I've option HTZ on plus500 which now been taken off the list.

I had an open margin of $1,000 aud which reach to $18K+ profit however i didn't cashed it out.

It sink all the way down to $400 positive. Today its back up to $2,500

Will Hertz get bail out ? First wave seem to be pump and dump before it goes busto.  I got a good feeling since its back up again. 

Anyway what do yo guys think?


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## peter2 (26 June 2020)

If you weren't happy to cash in the 18K profit on a company that is in Chapter 11 (bankruptcy) then you're just gambling* that another company will buy the old Hertz shell. There's no guarantee that if someone does buy the Hertz assets (cars) they will resume the prior Hertz business. Any sale of the assets will go towards paying the Hertz debtors first. 






* You're just gambling. Enjoy the action. You're paying for it.


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## Dona Ferentes (27 June 2020)

eChamp said:


> Hey guys,
> 
> Anyway what do yo guys think?



_Do you feeling lucky punk?_


> One of the most important concepts in finance - and yet seemingly one of the hardest to understand - is that there are two sides to every trade. For a day trader to make money, someone else has to lose money. In the most optimistic case, the loser could be a normal person who needs to put money in or take money out , and who therefore doesn't worry much about the price at which they buy or sell.





> But most trades are not this. Instead, day traders are usually buying and selling either from one another, or from algorithms programmed by skilled, experienced financial professionals. If it's the former, their trading is a *zero-sum game*. If it's the latter, human day traders are likely to lose because the people who program trading algorithms are typically smart and their computers can spot market-moving developments faster than people can. This is why professional human traders have been increasingly driven out of the market.




and then







> A related problem is the idea of slippage. Day traders might think that because they're paying zero commission, their trades are free. But when a day trader places an order, a trading algorithm somewhere quickly figures out that they want to buy or sell, and raises or lowers the price accordingly, so the day trader gets a less favourable price.





> Another reason day trading is a bad idea is that people often fail to understand when they're winning and losing. If the market as a whole goes up (as it has recently), many stocks will be winners. That can make a day trader feel like they won, even if they would have made as much or more money if they had simply bought an index fund and held onto it. This is especially true right now, when correlations between stocks are high - in this case, meaning many stocks are rising or falling together.



so, still there?


> A large amount of *empirical evidence* confirms that most day traders lose money. A very large 2004 study of Taiwanese day traders found that more than 80 per cent lost money. A tiny number - about 0.03 per cent - earned consistently large profits, but the odds of possessing this kind of skill are slim. Most studies of day traders in the US and Finland yield similar results - a few traders are consistently good, but most lose out.





> Day trading might therefore be a fun way of gambling for those who are locked inside waiting out the pandemic. But if regular people start betting large amounts of their money on individual stocks and options, they're courting financial ruin. If you want to day trade, the best thing to do is to bet only a small percentage of your money to learn whether you're one of the few who has the skill to beat the market



_Noah Smith is a Bloomberg Opinion columnist._


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