Investing General Discussion

  • 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!
Sanrith Descartes

Sanrith Descartes

You have insufficient privileges to reply here.
<Gold Donor>
45,084
122,668
Cad said:
It's a good point, but looking at TSLA for example, it looks like you could have bought it in 2021 for around $200-ish, and it has wavered up and down but never went anywhere. I think I think too much in a long mentality where I want it to just slowly go up. There's a lot of volatility in these stocks that you could exploit if you trade smartly, but a lot of volatility could kill you too if you don't. Buying the index seems like a pretty safe play that it's just going to slowly and steadily go up and I can just hold it and forget it.

Maybe it's because I don't more actively trade, but at the same time... I don't know wtf I'm doing with stock trading so I'd just be shooting in the dark and giving my money to people who do know what they're doing.
Click to expand...
My belief is if you are buying a quality stock for a long term buy/hold then you have to just ignore the ups and downs because the idea is that over the long term it goes up.

One of the tools for this is to scale into positions. Using TSLA as an example I moved back in for a long term hold around $170, bought more around $160 and then finally filled out my position in the 140s. At that point I rode the ups and downs that have brought us here to $420.

With these individual buy and hold stocks, the only time you think about selling is if the company fundamentally changes in some way. Companies can have a bad quarter, it's gonna happen. But if, God forbid, Elon were to pass away, I would consider that a fundamental change and a reason to think about exiting the position. AAPL had a short period this year when the stock got hammered on China news and dropped to $165-ish. I saw nothing telling me to sell so I rode it out (and actually added some in those lows). Now it's back up around $300.
 
  • 1Like
Reactions: 1 user
Rangoth

Rangoth

Blackwing Lair Raider
1,778
1,893
Sanrith Descartes said:
M lowered forecasts. Stock is back where it was in 1996. So if you invested 30 years ago all you have made is dividends for your 3 decades of ownership.
Click to expand...

‘interesting. Many ways to interpret this, but something I have tethered on to over the last 5-6 years(mostly as I get older and I find my goals/plans evolve) is that my entire purpose for anything I do is cash/security. I don’t care about owning intel, I care about my investment. I don’t care about x/y/z, I care about being able to afford an unexpected medical bill, buy the thing I want, pursue a hobby or interest, and ultimately work less hours(I actually do love my job, I just want more control over my time).

as Ive aged I pretty much paper hands more and more as I make profit outside of SPY and now BITO(or other bitcoin type index). Everything else….up 20%+, sell. Of course I am not advocating others do this and I have absolutely missed in on additional gains. As with anything there is context, if it’s on a rip I let it continue, etc. but I’ve learned there is *always* another “gain 30% in 6 months“ stock, always. And will always be until I die.
 
  • 2Like
Reactions: 1 users
Haus

Haus

<Silver Donator>
13,038
50,860
Cad said:
It's a good point, but looking at TSLA for example, it looks like you could have bought it in 2021 for around $200-ish, and it has wavered up and down but never went anywhere. I think I think too much in a long mentality where I want it to just slowly go up. There's a lot of volatility in these stocks that you could exploit if you trade smartly, but a lot of volatility could kill you too if you don't. Buying the index seems like a pretty safe play that it's just going to slowly and steadily go up and I can just hold it and forget it.

Maybe it's because I don't more actively trade, but at the same time... I don't know wtf I'm doing with stock trading so I'd just be shooting in the dark and giving my money to people who do know what they're doing.
Click to expand...
I'm with you on the long term mentality. But for me it's also that I know I could probably make good money doing short term trades/action (I have a head for numbers and pattern matching, plus know enough about finance to be moderately dangerous) , but I also know it would take a lot of my time/effort. And right now I make good enough money at my "day job" that it hasn't felt like a good trade off yet, since I don't want to work 16 hours a day (real job, then researching for investing as a second job). Which is why I'm an ETF person. Almost all my personal stock purchases are either:
  • In a market index fund tracking the S&P 500
  • In an ETF tracking the sector I work in which I think should perform well for the foreseeable future (Cybersecurity focused tech)
  • In a speculative play of mine I believe is the real near to medium term solution for energy (The Sprott URNM ETF)
  • In a slow growth but higher dividend ETF (i.e. HDV , aka "Your grandmothers ETF")
Every now and then I'll see a unique opportunity and get a wild hair up my ass and dump some smaller amount in an individual stock. Then if it pays off well, I harvest the profits and dump it into one of the 4 above.
 
  • 1Like
Reactions: 1 user
Big Phoenix

Big Phoenix

Pronouns: zie/zhem/zer
<Gold Donor>
46,642
99,422
TSLA is honestly fucking nuts.

Doubled in price in 6 weeks on nothing more than Trump being elected.

1733976212569.png
 
Hateyou

Hateyou

Not Great, Not Terrible
<Bronze Donator>
16,912
44,356
Yeah, Elon doubled his wealth too. I read he’s now the richest man in world history, passed up Mansa Musa. He’s closing in on half a trillion. Nuts.
 
  • 1Like
Reactions: 1 user
Haus

Haus

<Silver Donator>
13,038
50,860
So my.. "Tell me what I'm missing here.." Question of the day.

Stock Splits. Any real movement on price after a split is purely psychological isn't it? Nothing fundamentally changes about the business in question, just the number of shares increases, and the price per share proportionally decreases. Are there any "accepted fundamentals" which would say that a split is inherently a good or bad thing to drive stock value?
 
Sanrith Descartes

Sanrith Descartes

You have insufficient privileges to reply here.
<Gold Donor>
45,084
122,668
Haus said:
So my.. "Tell me what I'm missing here.." Question of the day.

Stock Splits. Any real movement on price after a split is purely psychological isn't it? Nothing fundamentally changes about the business in question, just the number of shares increases, and the price per share proportionally decreases. Are there any "accepted fundamentals" which would say that a split is inherently a good or bad thing to drive stock value?
Click to expand...
People tend to buy up a stock when it announced a split and there isn't really a reason for it. They just do. Before fractional share pricing, it could make a stock that was previously too expensive to buy affordable, but today it doesn't matter.

And yes, no value is created in the split. The price fall is proportional to the share split.
 
Fogel

Fogel

Mr. Poopybutthole
13,324
52,803
Sanrith Descartes said:
People tend to buy up a stock when it announced a split and there isn't really a reason for it. They just do. Before fractional share pricing, it could make a stock that was previously too expensive to buy affordable, but today it doesn't matter.

And yes, no value is created in the split. The price fall is proportional to the share split.
Click to expand...

It doesn't matter for individual shares yeah but it helps with options

Edit: And it kinda does have an affect on perception. Stock splits usually mean the stock is doing so well that its price is out of control, where as reverse splits are usually viewed in a negative light and a sign of weakness that the price has fallen so much.
 
  • 4Like
Reactions: 3 users
Haus

Haus

<Silver Donator>
13,038
50,860
Fogel said:
It doesn't matter for individual shares yeah but it helps with options
Click to expand...
My experience with splits and options was that , for instance with a 2:1 split, you would have 2x the number of options, and your strike price would half, but so would the share price.

Then again for me it was stock options granted by a pervious employer, you might mean something else.
 
Blazin

Blazin

Creative Title
<Nazi Janitors>
7,069
36,506
Haus said:
My experience with splits and options was that , for instance with a 2:1 split, you would have 2x the number of options, and your strike price would half, but so would the share price.

Then again for me it was stock options granted by a pervious employer, you might mean something else.
Click to expand...
It might help in that it’s easier to have a covered position. The cash to cover a secured put on a $3000 stock vs 300 . This was true for amzn and googl for awhile it was harder to make certain options plays without significant capital investment
 
  • 1Like
Reactions: 1 user
Palum

Palum

what Suineg set it to
27,159
42,786
I really need there to be a bit of a slump next week so I can win the EOY guess.
 
  • 1Diamond Hands
  • 1Solidarity
Reactions: 1 users
tugofpeace

tugofpeace

Trakanon Raider
399
826
Today for the first time since probably 2022, UPST touched my cost basis. I decided to hold onto shares for now and sell calls. JUICY premiums. I'm super jealous of people able to sell calls on TSLA.

3 contracts are giving me $1500 over 2 weeks.
 
  • 1Like
Reactions: 1 user
Blazin

Blazin

Creative Title
<Nazi Janitors>
7,069
36,506
just sold puts on AMD and NVDA, aggressive strikes near/at the money for 7/20 exp

..edit 12/20 exp (next Friday)
 
Last edited:
You must log in or register to reply here.