Stock Market thread

NoMoreTO said:
NoMoreTO said:
berenmsc said:
What are you guy's thoughts on investing in mutual funds vs individual stocks?

I go with ETFs over mutual funds

It sounds like you are new to the investment game.

I'd suggest you buy the whole index. DOW or S&P 500.

Given the current investment climate, I wouldn't sink a large amount in all at once. If you have an investment amount in mind, I would suggest only to invest 1/4 now, then wait and see. Perhaps invest another 1/4 in the summer.

Read up on some investment basics or see a financial planner. If you don't understand the stock market, perhaps put your money somewhere else or keep it in the bank. There are a lot of smart guys who work in the financial biz who don't invest in it.

I've been involved in stocks for the past two years with the majority of my stocks in the S&P 500. My timeline is quite long (10 years+) and decided to invest in stocks as it would beat inflation and interest rates set by my bank and would ride out any market dips.

But now I'm interested in buying individual stocks and improving my general understanding.

I also am sitting on a decent wad of cash and have emergency savings so not too worried about the market dropping or fluctuations.
 

NoMoreTO

Ostrich
berenmsc said:
NoMoreTO said:
NoMoreTO said:
berenmsc said:
What are you guy's thoughts on investing in mutual funds vs individual stocks?

I go with ETFs over mutual funds

It sounds like you are new to the investment game.

I'd suggest you buy the whole index. DOW or S&P 500.

Given the current investment climate, I wouldn't sink a large amount in all at once. If you have an investment amount in mind, I would suggest only to invest 1/4 now, then wait and see. Perhaps invest another 1/4 in the summer.

Read up on some investment basics or see a financial planner. If you don't understand the stock market, perhaps put your money somewhere else or keep it in the bank. There are a lot of smart guys who work in the financial biz who don't invest in it.

I've been involved in stocks for the past two years with the majority of my stocks in the S&P 500. My timeline is quite long (10 years+) and decided to invest in stocks as it would beat inflation and interest rates set by my bank and would ride out any market dips.

But now I'm interested in buying individual stocks and improving my general understanding.

I also am sitting on a decent wad of cash and have emergency savings so not too worried about the market dropping or fluctuations.

Read - A random walk down wall street.

I will tell you what I did. I would suggest buying a stock / position every 3 months and to build out a diversified portfolio. Over the next 3 years. If it took you a long time to build this wealth, I wouldn't throw it all in at a single moment. Timing Risk is real
 
NoMoreTO said:
berenmsc said:
NoMoreTO said:
NoMoreTO said:
berenmsc said:
What are you guy's thoughts on investing in mutual funds vs individual stocks?

I go with ETFs over mutual funds

It sounds like you are new to the investment game.

I'd suggest you buy the whole index. DOW or S&P 500.

Given the current investment climate, I wouldn't sink a large amount in all at once. If you have an investment amount in mind, I would suggest only to invest 1/4 now, then wait and see. Perhaps invest another 1/4 in the summer.

Read up on some investment basics or see a financial planner. If you don't understand the stock market, perhaps put your money somewhere else or keep it in the bank. There are a lot of smart guys who work in the financial biz who don't invest in it.

I've been involved in stocks for the past two years with the majority of my stocks in the S&P 500. My timeline is quite long (10 years+) and decided to invest in stocks as it would beat inflation and interest rates set by my bank and would ride out any market dips.

But now I'm interested in buying individual stocks and improving my general understanding.

I also am sitting on a decent wad of cash and have emergency savings so not too worried about the market dropping or fluctuations.

Read - A random walk down wall street.

I will tell you what I did. I would suggest buying a stock / position every 3 months and to build out a diversified portfolio. Over the next 3 years. If it took you a long time to build this wealth, I wouldn't throw it all in at a single moment. Timing Risk is real

Thank you for the recommendation and advice - will definitely get on it.

Currently reading the 'Intelligent Investor' for insights.
 

joost

Kingfisher
NoMoreTO said:
Read - A random walk down wall street.

I will tell you what I did. I would suggest buying a stock / position every 3 months and to build out a diversified portfolio. Over the next 3 years. If it took you a long time to build this wealth, I wouldn't throw it all in at a single moment. Timing Risk is real


More or less what I do. I increase my positions if I see the market going down considerably. I was 7.5% for the 52week (not counting dividends) before the recent crash. My 52week is -12% this exact moment (not counting dividends).
 
I have two separate strategies. One which smart investing and the other which essentially gambling.

As an example, I bought some Inovio (INO) stock a couple days back and initially made some handsome gains before it tanked yesterday due to some reports by Citron.

Holding on though and think it might rally.

My investing side is buying up the discount on the S&P 500 and FTSE 100.
 

Lampwick

Woodpecker
Gold Member
I've been balancing long/short, and have stopped out of pretty much all my long positions except one, which is PD. Earnings are next week, I expect it to be a bright spot with all these clouds recently. Even if their earnings are good, we'll see if it can punch through.

Short side, I've holding been long-dated put options on CVNA and TSLA all the way through their crazy bubbles. They went from negative to positive for me after the stock market tanked. I think they're both zeroes eventually, so I'm continuing to hold them. There's still a good deal of meat on the TSLA bone, but put options are getting more expensive with this volatility.

I also opportunistically shorted a bit of TLT and TWTR near their recent tops. Will keep moving my stop down on it. I'm hoping for a melt up with all this dip buying and for some more good short opportunities to open up. I'm otherwise mainly in cash and 20% precious metals.
 

Lampwick

Woodpecker
Gold Member
There are some great opportunities if you're inclined to trade them. For example, XOP was up 30% at market open. I was looking at this, thinking I should fade it because it seemed like such an extreme whipsaw from the horrible oil news we've had. I decided not to, as I'm not that familiar with the whole situation. Sure enough, it's been gradually selling off as today's session has gone on.

Market open/close and extended hours can surface some good opportunities in this volatility.
 

jbkunt2

Woodpecker
Do people think it's worth transferring out of Robinhood to TD Ameritrade now they are also commission free? Looks like you can get decent cash bonuses for doing so.
 

joost

Kingfisher
I opened an account with TD Ameritrade and I'm not happy with the user interface.

Since I didn't suffer losses from not being able to exercise options, I'm not that mad with them (Robinhood). Like every other brokerage firm, Robinhood is insuranced by the FDIC. Should I be concerned with Robinhood going under?

Another interesting firm is WeBull. Their platform is quite good but I would choose a more established company to move my stocks (like TD Ameritrade or Schwab). E*Trade offers zero commission too but their execution is as bad as Robinhood.

For my strategy (buy stocks I consider reasonably priced every now and then), Robinhood is pretty decent.
 

Tail Gunner

Hummingbird
Gold Member
joost said:
Like every other brokerage firm, Robinhood is insuranced by the FDIC.

That is incorrect.

Unlike the FDIC, SIPC does not provide blanket coverage. Instead, SIPC protects customers of SIPC-member broker-dealers if the firm fails financially. Coverage is up to $500,000 per customer for all accounts at the same institution, including a maximum of $250,000 for cash.

https://www.schwabmoneywise.com/public/moneywise/essentials/understanding_fdic_and_sipc_insurance

https://robinhood.com/us/en/support/articles/360001226546/how-youre-protected/

The Federal Deposit Insurance Corporation (FDIC) is a federal agency, while the Securities Investor Protection Corporation (SIPC) is a nonprofit membership corporation that was created by federal statute.


Also noteworthy:

KEEP IN MIND
Cryptocurrency investments through Robinhood Crypto are not protected by SIPC and that Robinhood Crypto is not a member of FINRA or SIPC.
 

joost

Kingfisher
^^

Mentioning Robinhood Crypto, you actually don't own the bitcoins since you can't transfer to your own wallet. Imagine how lame!
 
M1 finance is horrible. The UI is dumb and after withdrawing the $100 I put in there just to set the account up, I found out the hard way there was apparently a $100 liquidation fee. So I gave M1 $100 to frustrate me for a couple of days. I recommend staying away from it and its hidden fees and pointless “pie” system. In my four or five days on the app, I was completely unable to even find a Buy button for stocks. And I spent considerable time looking.
 

Tail Gunner

Hummingbird
Gold Member
MichaelWitcoff said:
In my four or five days on the app, I was completely unable to even find a Buy button for stocks. And I spent considerable time looking.

:laugh:

They have no customer service call center, no trading platform instruction manual, and no FAQs web site?
 
All the videos and screenshots I saw showed a Buy button that didn’t exist on my app, so I moved on to more user-friendly pastures. Still have a couple open positions in Robinhood but I’m looking to diversify platforms so if any one goes down, I won’t lose everything.
 

Lampwick

Woodpecker
Gold Member
The M1 Finance pie system is fantastic, it allows you to easily diversify your portfolio and rebalance. It's not meant to be a trading platform, they only allow trades once a day, so it's mainly for buy and hold.

They have a lot of problems though. It's a small company, so I wouldn't trust it not to fail if things go south. I would put it in the same category as Robinhood in that sense. One of M1's selling points was free trades, but now there is no differentiation, so I don't think they're viable as a company unless someone buys them. It is hard to get them on the phone sometimes, and it was usually the same guy.

I put code words on all my accounts so that anyone who calls up needs to provide the code word to access my account. Etrade and Schwab ask for this code word every single time. M1 did it only sometimes. If they're sloppy with this security practice, they're probably sloppy with other things. I transferred out because of this.

None of the big brokerages offer a similar pie system that I'm aware of. I don't understand why. Everyone talks about asset allocation, diversification and rebalancing, but there's no robust automated way to do it for retail investors if you want anything custom. I'd like to build a pie for my long portfolio, pie for my short portfolio, automatically manage things like stops, and manage the entire thing as a big pie. Maybe a brokerage like Interactive Brokers has an API I can use to build something like this. I'll have to look into it.
 
Well if you want a highly diversified portfolio the pie thing might be alright, but for people like me who just want a few different stocks it just made things needlessly complicated. None of that matters when the Buy button decides to ghost on you though.
 
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