Investing General Discussion
- Thread starter Furious
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Guest, it's time once again for the massively important and exciting FoH Asshat Tournament!
Go here and give us your nominations!Who's been the biggest Asshat in the last year? Give us your worst ones!
Furry
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Options trading is like gambling. If there's one thing I know from gamblers, they're all rich and always win. Should probably give it a try.
Personally, I almost never move my funds out of one of three sectors. Nasdaq index, s&p index, russel index, and govies when I don't like them. Saving regularly and some minor management, I've built up ~224k or so. It's not tons of money, but I'm very comfortably on the course to an easy retirement before my 50s.
Sanrith Descartes
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I have found as an amateur that two of the biggest mistakes people make are trading with emotion and being greedy.
I consider the entirety of market knowledge to be an ocean and all I have is a Dixie cup. But I can make money with my little Dixie cup by trading in my comfort zone without emotion and avoiding greed. I invariably leave profit on the table each trade. I analyze my exit point and get out taking my profit with it. "Let your winners run" isnt sound advice in my worldview. And I make bad trades and lose sometimes. It just happens. Analyze what you jissed or didn't predict and learn from it.
As gamers, in my opinion, we are uniquely skilled to make money in the current technical trading world we are in. Gamers can read graphs and rules lawyer. Educate yourself on how to let today's trading tools show you lines of support and resistance. Pick maybe a dozen or so stocks max that have sound financials and balance sheets. Find out their support and resistance levels (and what that means) and make trade decisions based off it that info. Don't overwhelm yourself trying to look at all the stocks. Follow your picks. You may go a week or two with no opportunities. Be patient. Wait until the entry point or exit point is reached. And start small. No commissions makes learning with small amounts viable.
I consider the entirety of market knowledge to be an ocean and all I have is a Dixie cup. But I can make money with my little Dixie cup by trading in my comfort zone without emotion and avoiding greed. I invariably leave profit on the table each trade. I analyze my exit point and get out taking my profit with it. "Let your winners run" isnt sound advice in my worldview. And I make bad trades and lose sometimes. It just happens. Analyze what you jissed or didn't predict and learn from it.
As gamers, in my opinion, we are uniquely skilled to make money in the current technical trading world we are in. Gamers can read graphs and rules lawyer. Educate yourself on how to let today's trading tools show you lines of support and resistance. Pick maybe a dozen or so stocks max that have sound financials and balance sheets. Find out their support and resistance levels (and what that means) and make trade decisions based off it that info. Don't overwhelm yourself trying to look at all the stocks. Follow your picks. You may go a week or two with no opportunities. Be patient. Wait until the entry point or exit point is reached. And start small. No commissions makes learning with small amounts viable.
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Blazin
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Definitely don't do it, you were just scaring me with the sell at the bottom talk. Just keep saving, don't time the market, and with as much assurance a person can have you'll be better off 20yrs down the road. Benefiting enough that it will have a dramatic effect on your later years. And with your resolve and diligence over decades you will have earned every bit of it. It's both easy as can be and extremely challenging along the way.
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Sanrith Descartes
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LachiusTZ
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I've done some options. But I treat it like a trip to the craps table.
Keep it under 200$, and need to be ok with losing it.
I think last year I made 50$ on four option trades. Lol
I mean even the qqq bond margin etc. I prolly don't understand half the shit you guys talk about.
But it's good to read, starting to pick up more and this thread is a good source of info.
Better to keep the conversation flowing and let people decide for themselves if they want to WSB it up and bet the house on black etc. I wouldn't read this if the conversation was sterile and was at my level
Keep it under 200$, and need to be ok with losing it.
I think last year I made 50$ on four option trades. Lol
I mean even the qqq bond margin etc. I prolly don't understand half the shit you guys talk about.
But it's good to read, starting to pick up more and this thread is a good source of info.
Better to keep the conversation flowing and let people decide for themselves if they want to WSB it up and bet the house on black etc. I wouldn't read this if the conversation was sterile and was at my level
Furry
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Entertainment industry is up pretty big. Looks like the saudis flinging money that way and companies buying back stock because daddy bailout will have their back if they need is having some positive impact for now.
I think the short term for cruise lines is fairly bleak. On the bright side, cruise industry has a very liquid work force. Fire everyone, park their boats. They'll need to keep an underwater and above water cleaning crew on tap and rebuild the engines/do a full paint job if they are idle too long, but they can easily go down to ~20 crew per boat and wait it out. I'm afraid to know what a full paint job on a full size cruise boat is. Probably pushing near a 100 million.
I think the short term for cruise lines is fairly bleak. On the bright side, cruise industry has a very liquid work force. Fire everyone, park their boats. They'll need to keep an underwater and above water cleaning crew on tap and rebuild the engines/do a full paint job if they are idle too long, but they can easily go down to ~20 crew per boat and wait it out. I'm afraid to know what a full paint job on a full size cruise boat is. Probably pushing near a 100 million.
Sanrith Descartes
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Blazin
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A person has to really want to do this, like passionately enjoy it. People don't "need" to and more will be hurt by it than helped. It's why no matter what in the end I will be a broken record about people consistently saving over time and let market dynamics work for them so that they don't become a detriment to their own returns. I think there are differences in presentation and success but it's rather clear you, myself, and even furry aren't that different. We are risk adverse, work to be prudent, and are not generally driven by a strong greed impulse.
This is why I posted nearly twenty years of my returns here, and show I'm not the risk taker I was in my 20s the numbers may be bigger but I use investment tools to hedge risk and I have never cared about making the most I can. I will always pick the safer position knowing full well it precludes making massive gains, I know the risk that goes along with those gains and I'm not interested in the trade off.
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Pops
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Pershing Square paid about $27 million for hedges in the form of purchases of credit protection on investment-grade and high-yield credit indices, Ackman said in a letter last month. The hedges generated $2.6 billion in proceeds by the time he exited them on March 23.
Blazin
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And he was in that position when he went on television to talk his book and was given over a half hour straight without being challenged
Furry
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I really don't get the slobknobbing on Pershing Square. I mean look at this shit. The guy has basically burned money for a living during the greatest bull market ever.
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Sanrith Descartes
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So some basic advice for peeps wanting to trade or just learn more about the market.
1. Learn the terms. Investopedia is a great website for learning the basic terms and definitions of shit you read but aren't familiar with.
2. S&P 500 Map
is a link to a free SP500 heat map. I like heat maps to get a visual look at all the companies by sector. It helps me get a feel of what is going individually and helps me to ask questions. "Why is this whole sector red but this one stock green? Hmm let me look at it".
3. Watch some videos on how to read a stock chart. What candles are are how to interpret them. How to use the chart to calculate resistance and support technicals. And what resistance and support really mean.
4. Learn how to read the 3 basics of a company. Its income statement, balance sheet and statement of cashflows. Being able to read these are critical in my opinion.
5. Learn the basic company ratios and what they mean. P/E, Div Yield, EPS, Enterprise Value and Price to Book, PEG for example.
Start with these five things. Consider it spending time on Test Server. Get some understanding of the basics.
1. Learn the terms. Investopedia is a great website for learning the basic terms and definitions of shit you read but aren't familiar with.
2. S&P 500 Map
is a link to a free SP500 heat map. I like heat maps to get a visual look at all the companies by sector. It helps me get a feel of what is going individually and helps me to ask questions. "Why is this whole sector red but this one stock green? Hmm let me look at it".
3. Watch some videos on how to read a stock chart. What candles are are how to interpret them. How to use the chart to calculate resistance and support technicals. And what resistance and support really mean.
4. Learn how to read the 3 basics of a company. Its income statement, balance sheet and statement of cashflows. Being able to read these are critical in my opinion.
5. Learn the basic company ratios and what they mean. P/E, Div Yield, EPS, Enterprise Value and Price to Book, PEG for example.
Start with these five things. Consider it spending time on Test Server. Get some understanding of the basics.
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Furry
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Decent advise. One thing I'd personally strongly advise to anyone is just invest in the S&P 500 at first. It's reliable and good money with pretty much 0 risk long term. Watch your money and see how it does. If you get the itch to gamble or bet specifically on stocks or options, start with smaller amounts. Nothing wrong with allocating some money for play, but going full force into it without understanding how it works is how people end up broke.
Like any responsible gambler, you need to have a plan to cut your loses and a well of money on autopilot so you can compare how you fair against the braindead mass of the market.
Most people will lose vs the S&P long term, but doesn't mean you can't get lucky or have money to play with because you enjoy it.
Sanrith Descartes
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To clarify, my 5 basics was really focused on those looking at learning about trading. For long term buy and hold investing I agree the real crux of a portfolio should be built around some core ETFs (SP500 Index, Nasdaq index etc) with some overweight overweighting in individual bedrock stocks.
Sanrith Descartes
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