Investing General Discussion

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Sanrith Descartes

Sanrith Descartes

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Creslin said:
The guy coming to your house isn't really even the investment banker, he is just a salesman with a fancy finance title to lend him credibility. He sells various index funds and talks about diversification and a portfolio with a balanced allocation of stocks and bonds because that is what the book on investing 101 said he then locks you into that and probably doesn't touch it again until his next visit.

That is part of the reason the markets act the way they do, because Grandma is locked into some index fund that was setup to buy certain types of companies and isn't nimble because it can't be, it's prospectus said it would invest in pet hair removal stocks, the fund manager can't suddenly pivot and decide to start shorting tech just because he thinks its a good idea.

The analysts posting articles and posting price targets to the public are also not analysts, they are sales men, thats why every article reads like some crypto tard BTC to $1M fantasy and why you can still go on to websites and see price targets for YE tech stocks that are all like 20% above the 2021 ATHs.

This is literally Amazon's Analysis on MSN Money right now:View attachment 417533
Click to expand...
Its all a grift. it always has been.
 
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Masakari

Masakari

Which way, western man?
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Serious question: I want to start shorting a handful of stocks that I know will continue to sink, anything I should be mindful of? I want to call this around Q4

Trying to figure out the trading options here.

Order Type:
  • Market
  • Limit
  • Stop Loss
  • Stop Limit

Time in Force:
  • Day
  • Good til cancelled
  • Fill or Kill
  • Immediate or Cancel
  • On the Open
  • On the close
25235.PNG
 
Last edited:
  • 1Worf
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Sanrith Descartes

Sanrith Descartes

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Masakari said:
Serious question: I want to start shorting a handful of stocks that I know will continue to sink, anything I should be mindful of? I want to call this around Q4

Trying to figure out the trading options here.

Order Type:
  • Market
  • Limit
  • Stop Loss
  • Stop Limit

Time in Force:
  • Day
  • Good til cancelled
  • Fill or Kill
  • Immediate or Cancel
  • On the Open
  • On the close
View attachment 417568
Click to expand...
Jason Bateman Cotton GIF
 
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ShakyJake

ShakyJake

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Masakari said:
Serious question: I want to start shorting a handful of stocks that I know will continue to sink, anything I should be mindful of? I want to call this around Q4

Trying to figure out the trading options here.

Order Type:
  • Market
  • Limit
  • Stop Loss
  • Stop Limit

Time in Force:
  • Day
  • Good til cancelled
  • Fill or Kill
  • Immediate or Cancel
  • On the Open
  • On the close
View attachment 417568
Click to expand...
You know?
 
  • 3Worf
Reactions: 2 users
Masakari

Masakari

Which way, western man?
<Aristocrat╭ರ_•́>
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Just looking for advice on how to place the trade properly with no definitive price set for the future. I don't want to set an upper or lower limit since I'll be monitoring it daily.

Any advice? :)

I'm assuming Order Type: Market & Time in Force: Day?
 
C

Creslin

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not setting stop losses is a good way to end up as one of the guys who loses their house.
 
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Sanrith Descartes

Sanrith Descartes

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Masakari said:
Just looking for advice on how to place the trade properly with no definitive price set for the future. I don't want to set an upper or lower limit since I'll be monitoring it daily.

Any advice? :)

I'm assuming Order Type: Market & Time in Force: Day?
Click to expand...
I dont short.

That being out of the way, shorting isnt like a standard sell order. You need to have margin enabled and then borrow the shares from your broker to then sell them.
 
Cutlery

Cutlery

Kill All the White People
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Alright, so I know fuck goddamned all about investing. Shit reads like greek to me, and I have almost no time to learn it. Too busy during the day, can't be babysitting the stonks, so best course of action seemed to be to divert a little bit of cash into some endeavor.

6-8 months ago, Ally bank (been with them forever) said they started some robo portfolio, charges nothing. Okay, fine, seems reasonable. I'm not expecting miracles, but I'm hoping for better than the 0.5% I got in my savings account. Basically, I had gotten to the point where more in savings wasn't really worthwhile and I should start dipping my toes into investing, and considering my situation, that seemed like a safe bet.

So, down about 9%. No big deal, because A) I am fully aware that the market sucks right now, and B) it's not like I'm 6 figures deep in this shit, so I don't really care. My question I have been pondering is as follows -

Is it better to continue diverting money to this account knowing full well I lose some percentage of it immediately as the market craters, with the upside being that said account buys more shares of cheaper shit for the eventual rebound

OR

Is it better to just stop putting money into this account and go back to my safe 1% savings?

I don't need the money urgently, but I obviously see a lot of stuff about buying the dip and don't know if that's just meme magic or not. In any case, we're not talking about huge sums of money here either way...1% in my savings or 9% in my investment isn't changing my life in any way, shape or form, but eventually these will be much bigger numbers and it might.
 
Sanrith Descartes

Sanrith Descartes

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Cutlery said:
Alright, so I know fuck goddamned all about investing. Shit reads like greek to me, and I have almost no time to learn it. Too busy during the day, can't be babysitting the stonks, so best course of action seemed to be to divert a little bit of cash into some endeavor.

6-8 months ago, Ally bank (been with them forever) said they started some robo portfolio, charges nothing. Okay, fine, seems reasonable. I'm not expecting miracles, but I'm hoping for better than the 0.5% I got in my savings account. Basically, I had gotten to the point where more in savings wasn't really worthwhile and I should start dipping my toes into investing, and considering my situation, that seemed like a safe bet.

So, down about 9%. No big deal, because A) I am fully aware that the market sucks right now, and B) it's not like I'm 6 figures deep in this shit, so I don't really care. My question I have been pondering is as follows -

Is it better to continue diverting money to this account knowing full well I lose some percentage of it immediately as the market craters, with the upside being that said account buys more shares of cheaper shit for the eventual rebound

OR

Is it better to just stop putting money into this account and go back to my safe 1% savings?

I don't need the money urgently, but I obviously see a lot of stuff about buying the dip and don't know if that's just meme magic or not. In any case, we're not talking about huge sums of money here either way...1% in my savings or 9% in my investment isn't changing my life in any way, shape or form, but eventually these will be much bigger numbers and it might.
Click to expand...
Caveat - It depends on what investment the money is actually going into. They are not all created the same.

"Is it better to continue diverting money to this account knowing full well I lose some percentage of it immediately as the market craters, with the upside being that said account buys more shares of cheaper shit for the eventual rebound" - This is called dollar cost averaging. Yes it is the better option over the long time horizon (however, see caveat above). As you dollar cost average, you basis goes down and at some point you will generate more profit when it recovers.
 
Gravel

Gravel

Mr. Poopybutthole
41,104
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Cutlery said:
Alright, so I know fuck goddamned all about investing. Shit reads like greek to me, and I have almost no time to learn it. Too busy during the day, can't be babysitting the stonks, so best course of action seemed to be to divert a little bit of cash into some endeavor.

6-8 months ago, Ally bank (been with them forever) said they started some robo portfolio, charges nothing. Okay, fine, seems reasonable. I'm not expecting miracles, but I'm hoping for better than the 0.5% I got in my savings account. Basically, I had gotten to the point where more in savings wasn't really worthwhile and I should start dipping my toes into investing, and considering my situation, that seemed like a safe bet.

So, down about 9%. No big deal, because A) I am fully aware that the market sucks right now, and B) it's not like I'm 6 figures deep in this shit, so I don't really care. My question I have been pondering is as follows -

Is it better to continue diverting money to this account knowing full well I lose some percentage of it immediately as the market craters, with the upside being that said account buys more shares of cheaper shit for the eventual rebound

OR

Is it better to just stop putting money into this account and go back to my safe 1% savings?

I don't need the money urgently, but I obviously see a lot of stuff about buying the dip and don't know if that's just meme magic or not. In any case, we're not talking about huge sums of money here either way...1% in my savings or 9% in my investment isn't changing my life in any way, shape or form, but eventually these will be much bigger numbers and it might.
Click to expand...
I get an email every other week from Vanguard for their robo whatever the fuck bullshit. I literally have no idea what it is or why I should care. But they really really seem to be pimping it hard.
 
Cutlery

Cutlery

Kill All the White People
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Gravel said:
I get an email every other week from Vanguard for their robo whatever the fuck bullshit. I literally have no idea what it is or why I should care. But they really really seem to be pimping it hard.
Click to expand...

Eh, puts my money into 30% US stocks, 21% Int'l stocks, 9% bonds, 4% int'l bonds, and then it has some cash buffer (fucking lol at the 1% earnings being a "buffer")

As i said, I don't know shit all about investing, and I don't have the time to watch the market like you guys do. If I did, I get into trading, but that's not in the cards for me right now, so it seemed like getting some measure of return over 1% was better than what I was doing.

It still probably is, because like I said - it's not a ton of money, and it's not something I plan on touching, so when shit eventually starts to go back up in a few years, I should have a lot of shares that will recover their value - at least a helluva a lot more than anything else right now.

It's just kind of a shit position to be in monetarily. Still have a mortgage, still working, starting to finally get "ahead" and start doing something with my cash, and the market takes a gigantic shit right at that time. I'm not really sure what to do - the money in my savings account and shit, even the couple hundred bucks in my gun safe is worth 15% less than it was a few months ago. I might as well buy a bunch of tools or guitars or some shit.
 
Sanrith Descartes

Sanrith Descartes

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Cutlery said:
Eh, puts my money into 30% US stocks, 21% Int'l stocks, 9% bonds, 4% int'l bonds, and then it has some cash buffer (fucking lol at the 1% earnings being a "buffer")

As i said, I don't know shit all about investing, and I don't have the time to watch the market like you guys do. If I did, I get into trading, but that's not in the cards for me right now, so it seemed like getting some measure of return over 1% was better than what I was doing.

It still probably is, because like I said - it's not a ton of money, and it's not something I plan on touching, so when shit eventually starts to go back up in a few years, I should have a lot of shares that will recover their value - at least a helluva a lot more than anything else right now.

It's just kind of a shit position to be in monetarily. Still have a mortgage, still working, starting to finally get "ahead" and start doing something with my cash, and the market takes a gigantic shit right at that time. I'm not really sure what to do - the money in my savings account and shit, even the couple hundred bucks in my gun safe is worth 15% less than it was a few months ago. I might as well buy a bunch of tools or guitars or some shit.
Click to expand...
Seeing thos investments, my honest advice is to stop adding money to it, open an IRA or Roth and put that same amount into it at the same regular interval but put it all into the IVV (S&P 500 index ETF). Thos internationals and bonds are just bad.

This assumes you are hitting the 19 or 20k annual cap on your 401k. If not that should be priority 1.
 
Cutlery

Cutlery

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Sanrith Descartes said:
Seeing thos investments, my honest advice is to stop adding money to it, open an IRA or Roth and put that same amount into it at the same regular interval but put it all into the IVV (S&P 500 index ETF). Thos internationals and bonds are just bad.

This assumes you are hitting the 19 or 20k annual cap on your 401k. If not that should be priority 1.
Click to expand...

No 401k.

Defined benefit pension, so that's taken care of. IRA isn't a poor idea anyway though, as that's what I was going to do anyway until this came along and seemed like less work.

i'll see what they have if they can turn everything to IVV, because a good chunk of it is already in that.
 
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Sanrith Descartes

Sanrith Descartes

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Cutlery said:
No 401k.

Defined benefit pension, so that's taken care of. IRA isn't a poor idea anyway though, as that's what I was going to do anyway until this came along and seemed like less work.

i'll see what they have if they can turn everything to IVV, because a good chunk of it is already in that.
Click to expand...
Off the top of my head I don't know how a defined pension works with an IRA so ask your tax professional. If you can get the 6k tax deduction using the standard IRA that should be the priority before it going any where else.
 
Cutlery

Cutlery

Kill All the White People
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Sanrith Descartes said:
Off the top of my head I don't know how a defined pension works with an IRA so ask your tax professional. If you can get the 6k tax deduction using the standard IRA that should be the priority before it going any where else.
Click to expand...

My insurance guy tried to get me to set one up a couple years ago, but I was still recovering from the divorce and didn't have enough liquid to open the account comfortably.

I can divert to 40% US stocks today, and cut the bond shit to near nothing, so I'll do that for now, and re-explore the IRA option for it.

Thanks man.
 
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T

Tide27

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Masakari said:
Serious question: I want to start shorting a handful of stocks that I know will continue to sink, anything I should be mindful of? I want to call this around Q4

Trying to figure out the trading options here.

Order Type:
  • Market
  • Limit
  • Stop Loss
  • Stop Limit

Time in Force:
  • Day
  • Good til cancelled
  • Fill or Kill
  • Immediate or Cancel
  • On the Open
  • On the close
View attachment 417568
Click to expand...

Do not EVER short a stock if you are unsure of how to get out if a trade. Your loss has unlimited potential.

If you are dead set of shorting a stock or playing to the downside, use a PUT option. This way your max loss is only what you put down on the trade.

You could literally lose your entire life savings shorting a stock if you arent careful.
 
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Arden

Arden

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I've been shorting using PSQ and REK. You won't get the gains you get by shorting individual stocks but its much much safer and you still make money in a bear market.
 
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