Investing General Discussion
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Sanrith Descartes
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A couple of things.
Premium if you write (ie. sell) the premium is paid immediately.
There are American and European style options. One style can be called at anytime (they almost never are) and the other only called at expiry. If you are committed to holding a stock for a year, technically if it is in the money it can be called. Again it almost never happens.
I dont do leaps so I can comment on that.
Gravel
Mr. Poopybutthole
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Don't get dollar signs in your eyes based on the posts in this thread.I guess we're doing our end of year success stories so I'll post mine. Up until October of this year I did the basics that everyone should still do - Max out my Roth IRA contribution and 401K contributions and put them in an index fund. Mostly SP500 but started doing 50/50 SPY/QQQ. I did want to spend more time learning the markets and see if I can use some time and knowledge to generate extra returns. I started October with 63k and ended last week with 75k, almost 20% return in just two months, mostly from selling puts with a few lucky hits like CCL after the pfizer vaccine and most recently GMHI going parabolic with LAZR. I have to give most of the credit to @Blazin andSanrith Descartes who put me on the right direction of selling puts on quality companies.
I'll probably play out this latest spac crazy through January and then go back to selling puts. Good luck guys
I know most people are saying they only put about 10% of "play money" into the market. Buy total market, buy year round, and be totally boring and you can become rich.
I started tracking our annual net worth (investable accounts only) back in 2014 after discovering MMM and the FIRE movement. In 2018 I started tracking it monthly. We also made about $60-70k combined household income in the early days (I'll also note that we carried over some money we put into Roth IRA's and my wife's 401k in the 2000's), although we're up to about $180k income as of the March 2020.
Y axis removed for obvious reasons.
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Sanrith Descartes
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PLTR older article but will get more relevant as we approach lockup expiry.
www.linkedin.com
How to Trade the PLTR Lock-Up Expiration
Gobble! Gobble! I hope all of you had an amazing Thanksgiving with your friends, family, and/or loved ones. I hope you stuffed your face full of delicious food and dessert and are ready for one more treat before we say “goodbye” to Thanksgiving and “hello” to Christmas.
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Fogel
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Yeah I read about MMM as well which helped me get to where I am today. Can't let the market do work for you if you don't put any money into it. I probably save about 50% of my income, putting it into maxing out my IRA, 401k, and then the rest into checking/brokerage. I also stopped paying extra on my mortgage principle so I could put more into my index funds.
Gravel
Mr. Poopybutthole
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That's not to say I don't see the appeal. I watched back in August as everyone was saying buy Tesla. I seriously considered it. But would I have the balls to dump enough in to see a worthwhile return ($100-200k)? Probably not.
But had I? I'd have retired already.
Similarly, my mom and her boyfriend are heavily invested in Tesla. He's made over $2 million on it now and is considering quitting this week.
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Think I'll spend January trading in some warrants instead of just shares on spacs. Here's a good write up on warrants, you can skip halfway down if you're mostly familiar with spacs
SPACS & WARRANTS W/ DOC_STEVE_BRULE
justpaste.it
This has my interest!
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Fogel
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Yeah I always got jealous thinking of those people who invested in the decades version of amazon, netflix, google, etc. Then I realized it'll never happen if you never play the game, just be disciplined enough to not chase anything if you lose your play money and leave your safe bets alone.
Sanrith Descartes
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Warrants or shares. You are still dealing with SPACs. Use caution. Think of the warrants like options.
TJT
Mr. Poopybutthole
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While I do have a fun account the majority of my money has always been in ETF. However, the biggest take away for everyone should be that diligently investing is the only thing you need to do. Dollar to dollar, month to month, and year to year.
Most people do not do this unsurprisingly.
Most people do not do this unsurprisingly.
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Sanrith Descartes
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SeanDoe1z1
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The biggest hurdle for me was actually starting...
doing anything.
Its honestly embarrassing to get hit by such a mental roadblock. Automatic deposits are your friend.
doing anything.
Its honestly embarrassing to get hit by such a mental roadblock. Automatic deposits are your friend.
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Sanrith Descartes
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One of the best things I ever did was up my 401k contributions by whatever raises I got. Once you are used to taking home X amount and living within it, you dont ever miss "not getting" those raises.
SeanDoe1z1
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right. i have an automatic monthly that hits an ira. i'm rolling over an additional fed payment i won't miss into a 529, etc etc.
i like money, but i'm trying to not let it consume my life.
i typically only touch my 401k with big catalysts. i did a 50/50 bond cash when the pandemic started to seem pretty obvious. i 100% blue chipped it after the crash. I'm not seeing that as a terrible way to sit in 2021, but I might take advice and just S&P it. Good thing about 401ks is unless you're paying little to no attention it is much easier to navigate within the plans available.
and its hard not to look at the markets when you're partaking in some degenerate gambling.
i like money, but i'm trying to not let it consume my life.
i typically only touch my 401k with big catalysts. i did a 50/50 bond cash when the pandemic started to seem pretty obvious. i 100% blue chipped it after the crash. I'm not seeing that as a terrible way to sit in 2021, but I might take advice and just S&P it. Good thing about 401ks is unless you're paying little to no attention it is much easier to navigate within the plans available.
and its hard not to look at the markets when you're partaking in some degenerate gambling.
Jysin
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Best thing I ever did in my life was when I got out of the military at 24 years old and got my first 6 figure contracting gig, I maxed my annual 401k contribution limit for well over the decade following. At the time, it was money I never had before, so I wouldn't miss it. I wasn't necessarily investor savvy at the time, but it turned out to be the best financial decision of my life.
The only downside today is that it has grown so large that I have become overprotective and quite bearish in nature over the last ~5 years. Managed to keep most of it in S&P ETF, which was the smart thing, but I have become extremely gun-shy worrying the markets are too hot. That feeling is even more pressing now, as the market is on fire and seems to have priced in a perfect post-COVID recovery, despite a lot of uncertainty, unemployment, and sector fragility.
My 401k is probably 30% bonds, 50% cash, and another 20% swing trades in beat up sectors like Airlines.
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Furry
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My accounts swinging 10k on a busy day is stress enough for me. I try to keep it out of site and mind, but I swear I'm surrounded by robinhood traders who don't give me a choice but to feel the wave move.
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SeanDoe1z1
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Certainly feels like a surge doesn't it? Feels very greedy that doesn't agree with the reality on the ground.
Wingz
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That's why every company loves electronic deposit. Comcast, Netflix etc. They can also raise the price, send you a cursory email, and you don't see it unless you check your bank statements and most people don't. Out of sight out of mind. Most people only notice an issue when their balance hits zero or below.
Just keeps the money flowing in.
SeanDoe1z1
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And ironically, that was one of the same sentiments why I did not. I wanted to do my IRA contribs on my own. Overall, ended up only hurting myself. (Ehh, this extra 350 is better suited here). While it may of been true or whatever, I get to corporate overlord myself!
Just lack of discipline, which is normally the answer to all our faults in life. Definitely don't do any automatic bill pays on my end. Oh boy, the stories we all have. Sallie Mae was the worst for me -- first time I setup automatic payments was a disaster and never will do it again.
Just lack of discipline, which is normally the answer to all our faults in life. Definitely don't do any automatic bill pays on my end. Oh boy, the stories we all have. Sallie Mae was the worst for me -- first time I setup automatic payments was a disaster and never will do it again.
Sanrith Descartes
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But here is the trick. Why is it not agreeing with reality? If you look at earnings this year, some sectors bombed and some roared. There is nothing to show that Tech is slowing down. Industrials crushed earnings this year. Zero interest rates for the God knows how long are going to fuel borrowing and CapEx because the money is free to borrow. If we avoid the shitty sectors, there isnt a lot of metrics pointing to a slowdown in the good ones. Not that a pullback or two wont be healthy, because thats normal. But overall fundamentals are pointing up for a lot of the market.
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