(Topic ID: 175889)

Stock Market Traders?


By kpg

3 years ago



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    29
    #3 3 years ago

    I began investing in mutual funds when I was 23 and set aside 15% of my salary to do this. My wife, though we hadn't met yet, was doing the same as me.

    Other than rebalancing, we've never sold. Not in 2000, 2001, 2008, or any other time. We are now early 40s and contemplating an early retirement by early 50s. We save about 23% of our gross these days.

    Simple, cheap, boring, stress free...and highly successful.

    #7 3 years ago

    Index funds...I look for lowest management fees and avoid actively managed funds. I've shifted from a 90/10 equity to bond mix to a 75/25 mix over the last ten years.

    I return market average year in and year out.

    The most important years of returns were from age 23 to age 29. That's because few people invest during those years. By the time most people start thinking of retirement as they turn 30 ish, we already had a full decade under our belts. The snowball affect on our portfolio kicked in as we hit mid 30s.

    It's for this reason I often marvel at folks with as much money in pins that they have.

    #18 3 years ago
    Quoted from pocketscience:

    Cute conversation, but it's not all doom and gloom - it's entirely possible to have your cake and eat it too... my young kids are already setup for schooling, my wife and I have worked hard, invested wisely, and now that I'm mid 40's I can see a few more years of work then I'm done. I've got way better cars, toys and access to disposable cash since being married than I ever had when I was single. It's all swings and roundabouts, but in the end 2 people working together will achieve more than 1... just my $0.02...

    Sound just like us.

    I make a pretty handsome income, but my wife earns about 20% more.

    And we're both savers and investors.

    For the win.

    #44 3 years ago

    Whysnow,

    Set an equity to bond ratio based upon your age and comfort level, invest in mutual funds that meet that ratio, and then set it and forget it.

    Investing is only complicated if you make it so.

    Never triy to time the markets, just leave your investments the way they are based upon the ratio that you set.

    #103 3 years ago

    During the course of my MBA work I concluded that options are not suited for individual investors. Rather, they serve as insurance policies for institutional investors.

    Naturally, folks are free to do as they wish.

    On insurance, we have term policies that expire when the kids are eighteen or so.

    The most important insurance policy we carry is an umbrella policy. Several millions in coverage can be had for a few hundred dollars, an important investment.

    #118 3 years ago

    When it comes to ANY investment, I find that the harder it is to explain how you earn your risk premium, the more likely it is that the only real profit to be made is earned at the time of the transaction...and pocketed by the seller.

    As for filling a claim on our umbrella...I truly hope that day never comes. But if it does, a lifetime of careful planning won't be wiped out. That's the point of insurance..not to turn a profit.

    #166 3 years ago

    The problem with trading stocks is that in order to keep up with the aggregate market return over the course of 40+ years, you have to constantly be looking for the next trade.

    The discussion on here to this point is a perfect example. It's a lot of work.

    #168 3 years ago

    I don't agree that there is a bad side of the trade when talking stock. It is not zero sum.

    When talking options trades, I agree. That is zero sum and there is a corresponding loser for each winner.

    Otherwise, Rai, I agree with what you posted.

    #173 3 years ago

    As we are in our early 40s, I've started to transition our portfolio to a higher bond weight. Over the last five or so years, I've moved us closer to 25% bonds. Mostly I've done this by weighting new contributions heavily to bonds.

    However, I gave it a big shove over the summer with a rebalance. Just in time for bond prices to take a dump.

    That's how it goes sometimes when you recalibrate. You don't like bond funds until the next equity melt down...which is absolutely going to happen. I just don't know if it will be tomorrow or five years from now.

    As we approach 50, I will probably let it go up to 30%, but no higher.

    #203 3 years ago

    Are you certain this wasn't a taxable event?

    #223 3 years ago

    I have a problem with a stock purchase as zero sum. It simply is NOT.

    This is not an option trade where there is truly a loser of money that pays for the gains of the winner. THAT is zero sum. And the time component forces each trader's hand.

    Not the same as the buyer and seller of a stock. There does not need to be a losing side on a stock sale. A stock can be lower than the purchase price and pay a dividend and there is no compunction to sell on time.

    Please stop describing stock trades as zero sum. This is infuriating to me. If you are as accomplished as an analyst as you claim, you know darn well stock trades are not zero sum. There are folks on here looking to learn about investing that are going to come away thinking they are. Don't do them that disservice.

    #234 3 years ago
    Quoted from thedarkknight77:

    All this BS about zero sum.......So clearly no one has a clue about naked shorting?

    I'm familiar with creating short positions by selling naked. But we both know this is a form of trade that is different than typical selling when the underlying asset is owned.

    #237 3 years ago

    Determine the asset ratio suited to your age and risk tolerance.

    Determine how much income you need to generate based on your expenses. Are you making that in retirement taking in the above criteria?

    Timing the markets is folly. It's been proven over and over again.

    Set your mix per the above and then do it.

    #246 3 years ago

    I was born in 1973, middle of Gen X. I have found the market to be outstanding since I began investing in 1997...again, buy, hold, never sell. Ignore the noise and maintain correct investment ratio. Don't trade.

    #266 3 years ago
    Quoted from JY64:

    1Mill will give you between $20,000 and $30,000 a yr in income will not feel like much come retirement

    I like the 2.5% to 3% estimate for a safe withdrawal rate as far as planning goes, so I will echo what you said above.

    Whether you include social security in the model or not is up for debate. I've generally assumed it to be zero for my planning.

    Including primary residence is fine for net worth calculations. But home equity is too illiquid to mean much which is why I prefer to exclude it and only look at portfolio value.

    #267 3 years ago
    Quoted from Richthofen:

    Hey InvestingDad, no disrespect meant of course. But what I was trying to illustrate was that 1973 and 1980 are huge differences. You graduated college, in theory, in 1995. If you were in tech you would have graduated into a much stronger job market and had a leg up on getting financial footing. Hell maybe you worked at a company that gave you stock options and you exercised some for a little profit before the market blew up. You probably would have been buying your first home in 1998-1999, which was a much better time to buy than 2006.
    You can't hold and never sell, because human life is finite. And when you sell is mostly based on your age, or if you are unlucky, when the SHTF in your life (illness, job loss, divorce, etc). If you were set to retire at 60 in 2010, your prime earning years and therefore prime retirement contributions would have been during the two largest stock bubbles ever. you don't have time to make up the crash of 2008 and you gotta start selling on your way to retirement if your income is gonna stop. It's just so much harder to make money than it is to lose it. And every time you are burned by a big loss in either your investing life or personal life, you end up being that much less risk-tolerant.

    No offense taken.

    Never sell means, to me, not selling/trading based on market noise. Other than rebalancing, my view is there should be little reason to sell during the accumulation years.

    I will add that, while crap can always hit the fan, living below your means is a great way to smooth out the bumps.

    #270 3 years ago
    Quoted from JY64:

    No withdrawal %2/%3 from div income only

    Not reinvesting dividends (i.e. dividend income) is the same as withdrawing them.

    #275 3 years ago
    Quoted from rai:

    I'm not saying you're not correct I was just responding to who is considered HNW investors and I checked they say $1M liquid assets make you HNW. 99% of individuals do not have $1M liquid.

    Actually, it's about 95%.

    #283 3 years ago
    Quoted from rai:

    Anyway here is a great website for playing around with scenarios.
    http://firecalc.com/
    this is quite a powerful website. You can just punch in three sets of numbers (years in retirement, savings, and spending) and it will give your probability of success. But there are other pages (tabs at the top) you can explore more detailed or different spending methods and if you will get SS income etc..

    Ahh, firecalc. I love that website. You're talking my language now. Happiness is 98.9% chance of success.

    #288 3 years ago
    Quoted from JY64:

    Getting div income is not at all the same as taking out principal

    Safe withdrawal rate pertains to taking a percentage of the portfolio at a rate that can be maintained in perpetuity.

    It's irrelevant whether that is in the form of dividends, principal, or a combination thereof...ignoring tax efficiency of course.

    1 month later
    #367 3 years ago
    Quoted from Trekkie1978:

    Just sold 500 shares of Disney @ 111. Purchased back in September for around 92.
    Purchased 1,000 shares of Harley Davidson @ 57.
    **Note: I use round numbers for purchase price.

    Nice gain. 20%.

    The problem, though, is finding a new place to park that money. And repeating.

    I've done nothing but be invested in the market during this timeframe. I've seen an 11% gain simply given the market increase. But, I've also not paid any capital gains tax, as you will be doing.

    That knocks your return down to 17%.

    And you still have to find a new investment as I said (HD in this case). Because you are working single investments, your Risk is massively higher than mine.

    This isn't a criticism, just something to highlight between our strategies.

    1 week later
    #397 3 years ago

    My goal is 3.5% safe withdrawal rate.

    #398 3 years ago
    Quoted from Trekkie1978:

    My retirement:
    Whole life policy
    Profit sharing plan
    House paid off
    Rental condo paid off
    Savings
    Proceeds from sale of my business
    That's my current situation. Real estate isn't paid off yet, but will be before I retire.
    What I would like to add:
    2 more rental condos
    Start 2 more businesses
    As I near retirement, my portfolio will shift to produce more income
    I'm single now, but if I ever get married, I'm marrying someone with a good career. I saw first hand what marrying a leech does...that will never happen to me.

    Unless the leech is AMAZING in the sack...

    #406 3 years ago
    Quoted from Erik:

    Some spending models take age into consideration. Bernicke's I think. You can do some projections with firecalc and cfiresim.
    Personally I find it difficult to estimate healthcare costs.

    Firecalc is a fine tool for sure.

    1 month later
    #426 3 years ago
    Quoted from Baiter:

    If inflation is anywhere near historical averages of nearly 3%, you'll need a 6.5% annual return to allow you to withdraw 3.5% and still keep the principal at the same relative value.

    I'm not trying to preserve principal, I'm looking to have constant spending power until age 95. The portfolio test passes if it goes to zero at age 95.

    4 months later
    #473 2 years ago

    Invest the 25k in an index fund, please.

    1 month later
    #499 2 years ago
    Quoted from mtp78:

    Been holding visa since it went public. Sold half and still have 2k shares....i am 49 and feel like this is a keeper for the long haul.
    When do you guys sell, is it wrong to believe in a company to hold it long term till retirement?

    I have never sold any mutual funds in twenty plus years of investing. Rebalance a bit, but no selling. I don't trade. I still own the shares I bought at 23.

    Some will argue about this method, my reply is to sit back and smile.

    Invest, don't trade.

    1 month later
    #538 2 years ago

    So when you get out of the market and into cash, how do you know when to get back in?

    For that matter, how do you know when to get out in the first place?

    When you sell a big gaining stock, do you immediately have another in mind to buy? How do you find the winners consistently?

    #541 2 years ago

    Exactly.

    Which is why I continue to preach low cost funds, buy and never sell, stay the course regardless of what the market is doing, etc.

    Complicated trades to score a few thousand or tens of thousands of dollars is not appealing to me and not sustainable as a long term strategy.

    Investing is simple and requires very little work. I never understood the desire to make it complicated.

    #550 2 years ago
    Quoted from Rdoyle1978:

    I'm considering selling all our holdings to get construction done on our home - we are in a hot market, in a super hot zip code, and need a bit more space to work with. Meeting with the builder today to see if the cost will be sustained by the potential in the end result. We'll see...

    So after you pay taxes on gains, do you expect the return on the home improvements to exceed what your investments will return? If not, I'd think a HELOC would be better...or save up what you need in cash if the work isn't critical, that's the most prudent option.

    #555 2 years ago

    The great thing about index funds is the diversity and distributed risk that means few instances where I need to worry about 20%+ losses.

    How do you know the market is over priced?

    What happens if you're not in the market on the 20% of days that yield 80% of the returns?

    #563 2 years ago
    Quoted from Kkuoppamaki:

    If you go cash, what the heck do you do with it? While there's no apparent downturn it just seems crazy to cash on gains, pay the tax and sit on pile of cash. What am I missing here?

    In my view, you're not missing anything. I've shared this view for the last 20+ years of investing.

    1 month later
    #574 2 years ago

    I predict our portfolio will again closely match whatever the S&P does.

    Our 2017 return was a little over 20%.

    My biggest effort was clicking 'buy' for each monthly purchase of additional fund shares.

    Simplicity!

    #576 2 years ago
    Quoted from rai:

    My return was ~20% overall but that was brought down because I’m holding 25% Bonds would have been lower due to that except I own a lot of APPL
    25% of my assets are in US ETFs total stock
    20% Total international funds
    25% US Bonds
    25% indivual US stocks
    5% REITS

    Ditto.

    We are about 25% domestic bonds, but we have a single stock holding in my wife's company that had outsized gains.

    1 week later
    #589 2 years ago
    Quoted from Trekkie1978:

    I looked back at my posts...looks like I had a pretty good year.
    I forgot to mention the 2nd purchase of TEVA, 2,000 shares at $13.
    I sold SLB, made a profit.
    I took a loss on the Harley Davison at $57 purchase, needed it for taxes. But I still own the shares I purchased at $47.
    Right now, I'm in a holding pattern. Market has taken off like a rocket ship...all the easy money has already been made. Now I'm sitting on some cash waiting for a buying opportunity.

    You've identified the problem with investors timing the market and not being fully invested all the time per whatever asset ratio is appropriate for you.

    How do you know when it's a buying opportunity and what gains are you missing while waiting?

    #610 2 years ago
    Quoted from scarybeard:

    waiting for that correction, and then beginning to cost-dollar average in on the recovery, will provide you with the lowest risk returns.

    There are people that have been waiting for a correction since 2016, I would not want to have missed the gains since then.

    You cannot time the market regardless of whatever timeline you want to use.

    #615 2 years ago
    Quoted from ExtremePinball:

    Well sure they've been waiting, because a 10 year bull cycle is unrealistic. So when the correction is finally manipulated by wall street, it's going to be that much bloodier. You know, just like the way wall street managed to manipulate BTC this week.

    Tell that to every day trader and swing trader making a living on the planet. What you might have meant to say is that the average person cannot time the market.
    Let's try to be truthful about the U.S. stock market. It's the biggest long term scam ever perpetuated, and it is currently being threatened by crypto currencies. Wall street will use its trillions of dollars to make sure they win, and everybody else loses.
    As I previously mentioned, when a U.S. stock that loses money every year for decades, goes up 400% in two days.... it's completely normal, nothing to see here. But when a crypto moves like that... well, it can only be fraudulent. Right, wall street?
    That's just my opinion, and nobody else's matters.

    No offense, but could you provide some details on your professional and educational background that support your views.

    Especially the "stock that loses money" for decades bit, I don't understand how that works.

    #623 2 years ago

    Honestly, I'm still wanting to hear how the market is the biggest long term scam ever.

    I've been buying and holding index funds since I was 23. I'm 44 now and I haven't been scammed yet. I've also never sold.

    My investments are worth much more than when I started two decades ago. And that includes the dot com bubble, 9/11, and the 2008 mess. My money wasn't stolen from me via Wall Street during any of those gyrations.

    ???

    #627 2 years ago
    Quoted from MotorCityMatt:

    401k question for you guys. My 401k is way up right now, looking online it says my personal rate of return for the last year was 24%. I have 20 more years of work to go until retirement, that's the plan anyway right now. Most of my investments are in stocks. Should I convert a bunch of these over to bonds or money markets accounts while the market is high and then buy stocks again when the markets is low. Do people do this with their 401k's or just let it ride?

    The correct answer is to determine first what asset allocation you are comfortable with for your entire portfolio. Is it 90/10, 70/30, other?

    Once you know that, it's simply a matter of doing an occasional rebalance once or twice a year if things skew.

    If you rebalance, do so in a tax advantaged account so as not to incur taxes.

    #639 2 years ago
    Quoted from scarybeard:

    naw, your right. That's why Warren Buffet is sitting on more cash right now than he's ever held.... You right. buy in now. buy buy buy.... I hear Bitcoin is gonna be big.... better not miss out...
    Never said I was out of the market waiting for a correction, Said its worth skimming profits to have cash on hand for when the fall comes. (and it will) Was just offering a more conservative viewpoint for those of us not chasing huge returns at great risk. But by all means, continue your fair weather enthusiasm.

    If you've read my posts, you will well know I advocate low cost index funds with a bond and equity mix that aligns with your age and risk tolerance. I've never been on the band wagon of bitcoin, nor do I believe the run up in the broad market is sustainable. But I don't advocate selling because I cannot predict the future. I do not advocate chasing high risk at any cost, but have always said to buy broadly and stay the course. I did not sell in 1999, 2008, and I'm not selling now.

    I am, however, in my mid 40s and considering retiring in my very early 50s. You can draw whatever conclusions you like about that and how the investment strategy I've used since I was 23, and outlined above, got me here.

    I share this because I want others to know that investing is remarkably simple, making it complicated is what costs most private investors money. Living below your means is also very important.

    #640 2 years ago

    I will also add that there are a few basic ways to invest.

    One is doing detailed analysis of a company, determining there is value, and buying a position. And eventually selling. This process needs to be repeated again and again and requires a high level of talent and intelligence. I doubt most private investors are doing this. Buffet is an example of somebody who has managed to do this over a lifetime.

    If you're not doing the above, you are most likely simply placing what is little more than a wager, buying and selling when it feels right to you. Timing. This is not sustainable and will eventually lead to under performance.

    Or, you buy everything, hold it forever, and accept average market return...outperforming almost all active investors over time.

    Ultimately, I don't care what any of you do, but I wish you best success. Good luck.

    1 week later
    #649 2 years ago
    Quoted from Pintucky:

    That #&@*%!#*& stock market tanked today!!!!!!! I watched the DOW just keep going negative, like a pinball score counter, but backward! Just kept zinging to negative numbers! Right when I was doing so well, I had thought of cashing in in April or May. Hell, it will probably now take until June to just get back up to near where it was. Or, it could just keep on going downhill all next week long. One little fuckin' political comment, a release of a FBI memo, the Feds just talking about a possible interest rate hike, or the price of tampons going up . . . that's all it takes and then . . . WHAMO! Cocksuckers who sell out like that so quickly should be tied and horse whipped!!!

    With all due respect, if this small drop has that kind of outsized impact on your retirement...i would question whether your strategy is appropriate or situation as secure as you believe.

    #653 2 years ago
    Quoted from Pintucky:

    This isn't exactly my retirement. This stock was my plan to pay off a certain rather large debt. I was getting really close to my goal and then this happened. It's my age . . . . I'm somewhere between 70 and death. Once the debt is paid off, I can rest and be debt free. I just want the market to stay stable.

    That's not how the equities market works. There is no such thing as risk free return. A stable and predictable equities market carries no risk and won't happen.

    Stable returns and income are available to investors, but at much lower rates.

    #656 2 years ago
    Quoted from thedarkknight77:

    The truth is the Fed has robbed us all by keeping interest rates so low for so long. You should not have to play the casino to get a decent return on your money. The 10 year should be at 4-5%+. One could easily argue we are setting up the next crash. The American people are clueless!

    [sigh]

    I typed a reply, but then I erased it and wrote this instead.

    #668 2 years ago

    I continue to abide by my strategy of doing nothing except making incremental purchases the first trading day of the month.

    #693 2 years ago
    Quoted from thedarkknight77:

    Am I missing something or maybe I am clueless as I have no idea what you meant by your post?

    It meant I began to respond to the implied Wall Street = casino thing when I realized I no longer care if people want to think this. So rather than continue to debate this ridiculous notion, I deleted my reply and decided it's easier to let people believe whatever the heck they want at their own detriment.

    #697 2 years ago

    bogleheads, great forum

    5 months later
    #829 2 years ago
    Quoted from robgo777:

    Our Family has been a Dave Ramsey follower for close to 15 years now. We only invest in Mutual Funds and paid for Real Estate. We spread our mutual funds evenly over Growth (Large Cap), Growth and Income (Mid Cap), Aggressive Growth (Small Cap), and International.
    If you want to learn more, visit:
    www.daveramsey.com

    Dave is great for getting people on track, but I would add that the funds he hawks have very high fees.

    #830 2 years ago
    Quoted from MrSanRamon:

    I bought BRK.B about 20 years ago...glad I did.
    Robert

    We bought some in 2008. Outside of company stock awards from our employers, it's the only stock we own. It has done well, though most of the gains came since 2009.

    #838 2 years ago
    Quoted from WackyBrakke:

    I have 2.5m in the market. I don’t try to time it, just let it be. In 10 years I look forward to having 5.4m

    Sounds about right.

    I'm guessing you're adding ~80k or so per year and assuming a RoR around 6 or 7%?

    With a 3.5% withdrawal rate, you should pull 175k a year off of it in perpetuity.

    #844 2 years ago

    I'll say it again... investing is SIMPLE.

    Pick a few low cost funds (index, bond, and foreign), pick a ratio of the three consistent with your age and risk tolerance, contribute monthly.

    Done.

    No trading. No complexity.

    The first rule of advisor club is let the client believe it's complicated.

    #858 2 years ago

    It's also easy to think investing is easy, or you're smart, when the markets have been on a long run up.

    It's a lot harder to stick to the plan with conviction when everything is red.

    That's where the money is made...sticking to plan when it's going poorly.

    2 weeks later
    #884 2 years ago
    Quoted from Londonpinball:

    Honest, Thanks for the feedback !!!
    If I want to make 1000.00$ bets, not investments
    What can you imagine would be the highist reward/ biggest /quickest risk in the market I could try ?
    I like options because of the compounded risk, any info on increasing the risk and reward,
    is what I am looking for.

    You're better off going to a casino if this is your view and approach.

    Or... just send me your money and I'll flip a coin. If it comes up heads, I'll mail you back a check for 10x the original amount. Tails, I keep what you sent.

    Honestly...i don't think option trading is in your best interest.

    1 month later
    #985 1 year ago

    For those using an active trading strategy, I'm curious if this makes up the lion's share of your overall investment portfolio.

    I've mentioned my preferences for passive investing and have followed this strategy since I was 23 or 24. I became intrigued by options while doing my MBA work but never used them.

    For those that actively trade, how do your returns compare against a benchmark such as the S&P500 taking into account dividends and total return?

    Over 1 year, 5, 20, and longer?

    I'll be honest, I'm skeptical that anyone here is matching, let alone beating, the S&P long term. And if you're not, what motivates you to keep trying and accepting reduced returns?

    I'm reminded of Buffets wager with a hedge fund manager trying to beat the S&P, it didn't go that well if you all recall. The wager ended in 2017 with Buffet and the S&P trouncing the experts.

    #992 1 year ago

    Don't forget to include short term capital gains tax, at whatever your tax rate is, when figuring out your total return.

    A holder of S&P only pays on the dividend, not the entire capital gain that comes with the churn.

    #998 1 year ago
    Quoted from rai:

    Good point.
    But often the selling puts is what I call a side hustle, I mean you have your core stocks in taxable and that gains whatever the market gains. The selling puts is more or less pure gain meaning you don’t really put anything on hold (like in cash). So while it’s true it’ll be taxed at short term cap gains, it does not mean his returns are not accurately stated. He did not state after tax gains but then most gains are stated in absolute terms not after tax gains.

    True, but the tax hit is not apples to apples between these two strategies.

    #1001 1 year ago
    Quoted from Trekkie1978:

    I don’t take taxes into consideration when it comes to investing (unless it’s December).
    My rational is simple. I buy etoys for $5. Watch it go up to $120. Decide not to sell at $120, because I’ll have a tax bill. Watch it drop all the way down because I don’t want to pay taxes.
    Taxes is a result of making the correct decisions. It is a necessary evil.

    My point was just that some strategies incur higher taxes than others with a non trivial impact on returns.

    But I don't agree that ignoring taxes when investing is a smart idea. It's all about minimizing taxes where possible.

    Especially if your managing 6 or 7 figures or preserving wealth.

    In any case, many roads to Dublin.

    2 weeks later
    #1008 1 year ago

    As much as I despise days like this, it reinforces for me why I simply buy and hold and buy.

    Nothing to think about or do as buying day is always the 1st day of the month.

    1 month later
    #1077 1 year ago
    Quoted from topkat:

    fingers crossed amazon cyber monday results were enough to get us out of the downward spin

    Or maybe the Fed statement about neutral rates had something to do with it...

    7 months later
    #1157 1 year ago
    Quoted from BenetBoy78:

    Any thoughts on best for 5-10 years investment?
    1. No meat stocks. Meatless food stocks
    2. Stocks that pay dividends
    3. Marijuana stocks
    4. Ups. FedEx type stocks
    5. McDonalds fast food type stocks.
    Thanks Mike V

    What is your objective with this investment? Is this part of a larger portfolio? What is your current investing mix? How old are you? What is your risk tolerance and how will this investment fit into your larger strategy?

    I fail to understand how other posters are able to offer up advice without asking these sorts of questions.

    My advice is to seek out something other than a pinball forum for investing guidance.

    #1162 1 year ago
    Quoted from pinballplusMN:

    Disagree ,I find people to be pretty knowledgeable about different things on this forum.
    You have many people that are experts in a variety of things here so it cant hurt to ask advice here. It doesnt cost anything

    Fair enough, yet none of them asked the questions I posed, so...

    1 month later
    #1215 1 year ago
    Quoted from sataneatscheese:

    So I'm a buy and hold kind of guy with 30+ years until I retire with all my holdings outside my residence in mutual funds. I am curious how the active traders are playing on the 850+ point drop in the market today (8/5/2019).

    We've been buying and holding for almost 25 years now. I hate days like yesterday because my strategy requires that I do nothing. My monthly investment day is always the first business day of the month, so I didn't submit a buy on more mutual funds since I already bought in August.

    I won't hit refresh on Quicken for awhile, I know about how much the portfolio dropped without having to verify. It's probably close to my yearly salary.

    #1217 1 year ago

    Are you thinking of 87? I remember the headlines in the newspaper being in giant print, then forgot about it while I went to play on my Nintendo.

    3 weeks later
    #1227 11 months ago

    The hard part of active trading is selling the winners, then picking new ones.

    Repeatedly.

    For 30+ years.

    #1232 11 months ago

    I spent a fair bit of time studying options as part of my MBA. My conclusion is that they're a fine insurance policy for institutions, high risk for the individual trader. I avoid them.

    #1235 11 months ago

    My basic dislike of options lies in the fact that they're zero sum and have no "real" value. That's just my view of them. I won't dispute that the leveraged nature of them creates a lot of potential gains, but I suspect a lot of people that play with them are setting themselves up for a fall.

    They do have a place and use, though. No question about that.

    #1238 11 months ago
    Quoted from JY64:

    If I buy the right to buy an ETF selling at 292 and I can now buy for 200 how does this have no value

    Because the derivatives contracts are zero sum, there is no intrinsic value that increases. Your loss is exactly offset by somebody else's gain, and vice versa.

    This is not the same as a holding that is underpinned by an asset that can have an intrinsic increase in value. If I sell a stock for a gain, it's not offset by an equal loss to the buyer.

    #1239 11 months ago
    Quoted from LITZ:

    People often define risk as an increase in volatility and to the downside. Which is not the way I define risk. Using my standard position size of $350-$500 per trade my historical average loss is $100 and my average win is $250.00 This means my system generates 250% returns on risk. I know my setup which is a simple breakout/ breakdown strategy inside-out. I have the disciple to cut my losers quickly and deploy that capital into new setups off my watchlist.
    Most traders do not respect the leverage that options possess and end up blowing up their accounts. There is a reason only 5% of traders consistently make money in the mkt no matter if it is going up, down, or sideways. Only 5% have a defined statistical edge and that makes what I do like being the casino. This is a zero sum game, where 90% consistently give away their money to that 5% group. Also anytime there is a great chance at making vast sums of money, the Powers That Be make it nearly impossible to take advantage of this situation by instituting tons of hurdles and roadblocks. Why is it that any Joe can open a brokerage account and start firing off trades within minutes? It is because they know only a small minority of investors will actually walk out of the casino with more than they walked in with. The rest are just gamblers! And I am grateful for their kind donations into my account
    Here are two open trades I have on SLV. Notice the new trade has an 80% return in just a few days based on risk of 100.00 and the other is nearly up 5x. I am trading options using only $12,500 and each month in 2019 I am averaging anywhere from 20%-80% account growth. I am slowly increasing the size of the account so that eventually I will be trading with 100K.
    [quoted image][quoted image]

    I certainly wish you success, but I heard this argument 20 years ago as well.

    I post about this only because I have a little buy and hold investing experience and can speak to the success of that strategy over decades.

    Every sure fire strategy is a winner until the next unexpected black swan. To quote WOPR from the movie Wargames, the only winning move is not to play.

    Buy and Hold is boring and you simply ride the market, but over long time horizons it simply works.

    #1243 11 months ago
    Quoted from JY64:

    You act as if option are bit coin I am not sure you even understand them. I bought cvs $37.50 jan 2021 for $16.83 the stock was trading around $52.50 the stock now trades at $61. That $61 gives the option a value of $23.50 that is the spread between 37.50 and $61

    You're correct, I don't understand them. Please, carry on.

    2 months later
    #1284 9 months ago
    Quoted from sataneatscheese:

    I'm 50% VIGAX and 50% VIGRX. Slow and steady wins the race. t.

    Yes it does. Very large portfolios can be built like this. Just takes some patience and ability to think ahead.

    1 month later
    #1292 7 months ago

    On a tangent, our total return in 2019 was about 27%. That was based on a 70/25/5 portfolio mix of mutual funds, the 5% being cash or cash equivalents.

    The S&P return was 29%.

    I have executed zero trades for probably close to 15 years; only fund purchases with some modest rebalancing. This is obviously a passive strategy versus the active strategy being discussed.

    Our portfolio dollar gain in 2019 was about 2.7x our combined gross income, primarily a function of LBYM over 25 years.

    #1294 7 months ago
    Quoted from Trekkie1978:

    2019 - up 65%
    2018 - down 8%
    2017 - up 56%
    2016 - up 86%
    2015 - up 7%
    2014 - up 2%
    2013 - up 2%
    2012 - up 34%
    2011 - up 4%
    2010 - up 16%
    2009 - up 30%
    2008 - down 16%
    2007 - up 10%
    I'm averaging 22% over a 13 year period

    I'm not sure if I can suss out my exact returns over that time period, but i want to say we have averaged 9% a year over the last 5 years.

    I arrive at that number based on our net worth increasing by 88% since Jan 2015 and correcting for the new money we added during that time.

    I am still anticipating full financial independence between 52 and 54. I need an average 5.5% return over the next five years plus our contributions to do that.

    Many roads to Dublin, good luck in 2020.

    EDIT
    I think my 9% average over the last 5 years is about right. The S&P returned about this average over the same time and while we have 25% bonds, I do have a large equity holding that has been a heavy outperformer.

    #1306 7 months ago
    Quoted from iceman44:

    For most investors, read this book 2 or 3 times and you will do better than 90% of professionals
    amazon.com link »

    Correct.

    #1310 7 months ago

    I'll tell you something though, when you have a year like 2019 and your portfolio appreciates more than 2.5 times what you and your spouse grossed...it starts to get REALLY hard to stay focused at work.

    I'm finding my tolerance for the BS, sycophants, and V.P. wannabes that will say and do anything to climb the next rung to be quickly approaching zero. While they're chasing the next promotion and sacrificing crazy hours to get it, I'm sitting back and watching our bottom line appreciate by itself.

    That has always been my goal of investing in the market coming out of college, to work only for as long as I needed to and having the flexibility to stop when I felt like it. It's what keeps me focused when I see the 30 something douchebag that got promoted above his abilities come rolling to work in a new Benz a few months after the fact (happened) and why I have just one pin.

    I've seen markets meltdown before, 2000 was ugly and 2008 was scary in a different way. So I know 2020 could be the opposite and I'll be glad for that income, because we've not hit our number yet.

    My point here is this...have a clear goal in mind with your investing and remember that money is a tool; the most important thing it can buy you is options.

    #1322 7 months ago
    Quoted from jwilson:

    I noticed LITZ hasn't posted in awhile. I decided to give his service a try. Over 3 months I lost a couple of thousand dollars. It was a good lesson to remember that there's no timing the market and all his bullshit is just that, bullshit. He liked to talk a big game but all his screenshots are nonsense.

    I remember seeing that post and making the conscious decision to say nothing.

    So, I never heard of Stocktwits before but had to check it out.

    It took me back to the late 90s, and the Yahoo Stock message boards...where every dumbass pump and dumper was plying their trade and fanning the flames of HUGE wins, and BIG NEWS coming shortly.

    Man, glad I passed that phase early and quickly.

    I see the spirit carries on.

    #1324 7 months ago
    Quoted from sataneatscheese:

    I like mutual funds for easy management and instant diversification.
    Here is my 2019 performance:
    Retirement and Kids College is all invested in Vanguard Growth Index Fund Investor Shares (VIGRX) and Vanguard Small-Cap Growth Index Investor Shares (VSGAX) returning 32.96% and 30.81% year over year each. Can't win every year, but very happy. S&P500 was up 29.6% in 2019. Both had expense ratios less than .17% so outperformed the S&P500 even with expenses.

    Just a note, Vanguard does not benchmark those funds against the S&P500.

    #1330 7 months ago
    Quoted from sataneatscheese:

    I know just enough about the stock market to know that I don't know what I'm doing, and mutual funds are a better option for me. Can you let me know where my logic is wrong above?

    Sure. Let's say I'm invested 100% in bonds and I return 5% in 2019.

    One could say I returned less than the S&P which returned over 25% in 2019.

    But that would be a meaningless comparison, like saying the basketball team consistently outscored the hockey team.

    The Vanguard funds you mention are not measured against the S&P because the holdings they are made of do not reflect the S&P.

    Instead, you want to compare the performance against the fund's benchmark, net of mgmt fee, to guage how the fund is doing within its category.

    Most passive funds are just under the benchmark each year. As one would expect, they just mimic.

    Active funds are paying managers their salaries (fees) to do better. I avoid them.

    1 month later
    #1366 6 months ago
    Quoted from LITZ:

    Poor poor Jeremy always playing the victim role. I enjoyed reading some of your previous posts here on Pinside! As far as screenshots go, how about a link to the 2020 US Investing Championships? Scroll down to the bottom for the January results and you will see yours truly listed in the Stock Options division (Enhanced Growth). I had a 29% month in January and as of the close yesterday my account is up 50% YTD! This is a verified contest where I send in my broker statements. Past winners happen to be trading legends like Paul Tudor Jones.
    https://financial-competitions.com/
    Here is last year's Market Watch article. My name will appear in this year's press release.
    https://www.marketwatch.com/press-release/united-states-investing-championship-first-month-results-2019-02-14
    I am glad you were honest about losing $2K with me and not the entire $3K you started with. There is no way to make money when you are paying insane broker commissions in Canada. But, if you remember the text messages I sent ya, I told you that my main momentum indicator had divergence starting on Oct 22nd and this lasted for 5 weeks. I did not close out my trades because I truly believed the market would rollover. I "TIMED" the market perfectly with my long only 401K account; picking bottoms and selling tops throughout 2019. So, I had no reason to think this indicator would lead me astray. I then explained how I found another momentum indicator to act as a filter since it did not show the same divergence during that Oct- Nov period.
    I kept you in the trading room for free so that you could see me recover all those losses. Not only did I recover, I made 100% return on that draw down! Most ppl would have quit and given up after such a bad F- up in front of paying customers! Once I proved my point I booted you out of the room when you started asking for your 3K back! No body is capable of escaping a draw down period. That was mine for 2019 and it's unfortunate you got caught in it. This was the best thing to happen to me. It prepared me to be much more disciplined with cutting my losers when the stops are hit, no questions asked.

    I enjoyed reading this post.

    Why? Because it took me back to the days of 1999 when everybody was getting rich, day trading, going public, burning cash and growing fast, dot comming, B2B, new market, P/E 200 new normal, giving stock tips, and making fast money.

    Lenny Dykstra trade of the day anyone? Good times.

    Thankfully, I learned my lesson quickly and cheaply and never looked back.

    But it brings a smile to my face when I see people still playing this game because they're new and got it figured out.

    Meanwhile, I've just quietly accumulated, and accumulated, and accumulated...by doing nothing but buying every month for 25 years. No deviation. No selling.

    Maybe I can make more money by placing tiny little ads in newspapers...

    10
    #1368 6 months ago
    Quoted from LITZ:

    I kept you in the trading room for free so that you could see me recover all those losses. Not only did I recover, I made 100% return on that draw down! Most ppl would have quit and given up after such a bad F- up in front of paying customers!

    Ask yourself this question...if somebody has truly perfected a trading system and they're making 100% GAINS ON EVERY TRADE, LOOK AT MY STATEMENT!!!! ....how long will it take somebody else to employ the same strategy on a very large scale, rendering it ineffective?

    Answer? On Wall Street, no time at all.

    So would you openly share it? Of course not. If it worked, really worked, you would create vast trading gains very quickly. Selling access to it? For fractions of pennies on the dollar relative to what you can make actually employing it?

    Please.

    If I had a system that I was fully confident worked in such a manner, I would be all in all the time. You could accumulate gains exceedingly quickly. Charging people a few dollars to watch me? Come on, man...

    #1370 6 months ago
    Quoted from Trekkie1978:

    Is this 100% of your money in one account? It’s pretty easy to do high risk stuff in an account, that only represents a fraction of your total investments.

    You and I both know the answer to this question.

    #1378 6 months ago
    Quoted from iceman44:

    Tesla took over the #1 spot on Robin Hood with Millennials, by far, with Apple now #2.
    New thesis for me. Oil & Gas equities are finished. They are the new "tobacco". Fossil fuels are dead unless you want to go for some MLP pipelines for dividends.
    Millennials are all about green energy and young investment managers are going to avoid Oil stocks.
    Most people can't invest over 10 yr periods much less 10 days. Tesla will be a multi bagger from here over that time frame.

    You need to remember that oil and gas is used for more than just energy. I realize most people just think of gasoline, but oil is the starting material for chemicals that serve as starting material all over industry.

    Plastics, fabrics, rubber, pharmaceuticals, packaging, medical supplies, and I could go on and on ad nausum. And the plants making that stuff don't run on solar, they burn fossils for steam generation

    Millennials may like green energy, but liking it doesn't change the reality of modern life. That infrastructure isn't changing anytime soon.

    1 week later
    #1455 5 months ago

    As one of the trumpeters of the buy, hold, buy and stay the course strategy...I will chime in that I have done nothing. Same as 2001 and 2007.

    Still sickening when you measure the one day decrease in six figures, I'm not enjoying this.

    #1483 5 months ago
    Quoted from taylor34:

    I think the problem is the uncertainty. Stock market likes clarity. You have two spectrums here. We could somehow miraculously make it through with no disruptions or find a cure super quickly and this blows over in a few months. Then you have the opposite where schools/businesses are closed for a long period of time, like no MLB, no NFL, restaurants almost vacant, etc...would really take a toll on the economy.
    It'll probably be somewhere in the middle. But until we know for certain, I would guess that we're going to get a lot of drastic moves. The problem is that we're not making the simple moves to reduce immediate risk, like closing flights to Korea or Italy...that's going to bite us here eventually I would guess.
    In my opinion, what should have happened is immediate closing of borders for travel, and setup a fund to support affected airlines. Keep the virus from ever getting here at all costs. While painful, that is much better than any of the alternatives. Stock market would not be dropping like it is now if we would have closed the borders...it would have taken a hit, but not a 'fear based' rout.

    Actually, a lot of studies and models of this type of situation suggests just the opposite...keeping borders open and allowing commerce to continue is the better option.

    #1490 5 months ago
    Quoted from LITZ:

    Poor poor Jeremy always playing the victim role. I enjoyed reading some of your previous posts here on Pinside! As far as screenshots go, how about a link to the 2020 US Investing Championships? Scroll down to the bottom for the January results and you will see yours truly listed in the Stock Options division (Enhanced Growth). I had a 29% month in January and as of the close yesterday my account is up 50% YTD! This is a verified contest where I send in my broker statements. Past winners happen to be trading legends like Paul Tudor Jones.
    https://financial-competitions.com/
    Here is last year's Market Watch article. My name will appear in this year's press release.
    https://www.marketwatch.com/press-release/united-states-investing-championship-first-month-results-2019-02-14
    I am glad you were honest about losing $2K with me and not the entire $3K you started with. There is no way to make money when you are paying insane broker commissions in Canada. But, if you remember the text messages I sent ya, I told you that my main momentum indicator had divergence starting on Oct 22nd and this lasted for 5 weeks. I did not close out my trades because I truly believed the market would rollover. I "TIMED" the market perfectly with my long only 401K account; picking bottoms and selling tops throughout 2019. So, I had no reason to think this indicator would lead me astray. I then explained how I found another momentum indicator to act as a filter since it did not show the same divergence during that Oct- Nov period.
    I kept you in the trading room for free so that you could see me recover all those losses. Not only did I recover, I made 100% return on that draw down! Most ppl would have quit and given up after such a bad F- up in front of paying customers! Once I proved my point I booted you out of the room when you started asking for your 3K back! No body is capable of escaping a draw down period. That was mine for 2019 and it's unfortunate you got caught in it. This was the best thing to happen to me. It prepared me to be much more disciplined with cutting my losers when the stops are hit, no questions asked.

    At the risk of trolling, I'd really love an update from this trading expert...

    #1515 5 months ago

    This is the first trading day of the month, so I bought the usual (for us) monthly amount.

    3 weeks later
    #2849 4 months ago

    I missed the last 20 pages.

    I'll chime in with what I've done market wise.

    A very painful nothing. I did buy the usual amount on Mar 1st.

    This is the part of the "set allocation, buy, hold, do not deviate" strategy I believe in that is stomach churning.

    I've done this 2 times in the past, 2001 and 2008. I suspect it will not be the last time.

    This also when having close to a year of expenses in a cash account can lower stress a bit.

    2 weeks later
    #3419 4 months ago
    Quoted from DadofTwins:

    Riddle me this......Oil stocks are down when too much is being produced with low demand and then oil stocks are down after they come to an agreement to scale back production? By no means am I an investing guru, but can someone explain this?

    Oil companies are more than just pulling oil out of the ground. Many of them process the oil. With demand in the tank, they're certainly hurting.

    2 weeks later
    #3822 3 months ago

    Just checking in...as most know, I'm the buy, hold, buy, hold, hold, and stay the course dude.

    Our total portfolio is down about 10% even.

    #3827 3 months ago

    I also wanted to add that as of yesterday, our portfolio was about 35% bonds, balance equity funds. Though we are a tad heavy in my wife's company stock grants.

    #3925 3 months ago

    I own BRKB. They are required to report change in investment value as part of their profit and loss, even though Warren has said in his annual letter that it's stupid as a metric.

    I'm not worried.

    #4014 3 months ago

    Before today's close, our portfolio was down about 5.6% from Jan 1st 2020.

    That is a 70/30 index fund portfolio with a do nothing but buy regularly strategy.

    I don't know what we're down at the low, maybe 25% or so?

    All I can think is...what a massive wealth transfer we just saw. Lots of people selling in a panic on the way down and perhaps now thinking of getting back in. Locking in their losses and handing over their money in the process.

    I don't view stocks as zero sum over the long term. But in the short term like this, yeah it's almost zero sum like options are.

    I'm not saying this won't get bad again. I'm only suggesting the best strategy is not to play. I didn't. I think it was the right move. Just stay with the plan...but I was not loving it a month or two ago.

    #4020 3 months ago
    Quoted from investingdad:

    Before today's close, our portfolio was down about 5.6% from Jan 1st 2020.
    That is a 70/30 index fund portfolio with a do nothing but buy regularly strategy.
    I don't know what we're down at the low, maybe 25% or so?
    All I can think is...what a massive wealth transfer we just saw. Lots of people selling in a panic on the way down and perhaps now thinking of getting back in. Locking in their losses and handing over their money in the process.
    I don't view stocks as zero sum over the long term. But in the short term like this, yeah it's almost zero sum like options are.
    I'm not saying this won't get bad again. I'm only suggesting the best strategy is not to play. I didn't. I think it was the right move. Just stay with the plan...but I was not loving it a month or two ago.

    Just to clarify, I don't view any of this as some sort of coordinated plan or conspiracy to steal wealth. But I do think the natural tendency of small investors to panic and not stick to their game plan during these situations serves only to enrich those stepping in.

    I work very hard to be neither and just ride it out.

    Having cash on hand also helps.

    2 weeks later
    #4179 80 days ago

    Based on the morning futures, it's beginning to look more and more like a 3 month wealth transfer.

    The unpleasant woman Suze Orman was bragging about how much cheap stock she bought while giving very different advice to her adherents during all this.

    I'm happy to say that nobody profited off of me via panic selling.

    #4186 80 days ago
    Quoted from cottonm4:

    You are more diplomatic than I am. This bought a lot of votes.

    Let me be clear, I'm not suggesting in ANY way that the reaction and precautions and seriousness of Covid19 are being overstated. I believe the quarantine and stay at home enacted by States and other nations is appropriate.

    I'm simply pointing out that the reactions of small investors to sell into the panic enriched others unwilling to follow said panic.

    Stay the course is usually sound advice and I follow it.

    #4202 79 days ago
    Quoted from Londonpinball:

    Is a contract 100 times the price ,
    So a 1.25$ contract would cost 125$ ?
    And get me in at say 23$ strike price ?

    At the risk of sounding like a jerk, if you're asking these questions you've no business in the Options market.

    #4227 78 days ago

    Incredibly, as of close yesterday, my 70/30 fund portfolio is -4.1% from the high and -1.4% from Jan 1st.

    2 weeks later
    #4404 62 days ago

    I continue to be amazed by those that shun science. None of them high falutin, book learnin fancy folks goin to tell them folks to wear masks.

    FWIW, this is the type of extended family I grew up with.

    Covid19 has everything to do with what is happening in the market. Actions and lack of action by the population to treat it seriously will only continue to detail the economy.

    #4435 59 days ago
    Quoted from SilverUnicorn:

    Well, looks like I will have to read through this thread.
    The company I work for went public 2 weeks ago. Our CEO said months ago that when we went public, the employees would be rewarded with restricted stock units for their loyalty to the company and all their hard work to get us where we are now.
    Our IPO was $23 a share, and today it is at $34.75. True to his word, the CEO sent out letters to all employees explaining their RSU allocation. This will take 3 years to vest, but when it does I may just get me a NIB machine for the first time ever.
    I have been at this company for 15 years and honestly was hoping to get MAYBE 250 shares of stock. I almost fell over when the letter said that my allocation was 5,346 RSU's.
    Work is really annoying sometimes, but I sincerely respect our CEO. He is always looking out for the employees. Even the furloughed workers currently were eligible for stock as well. He is a class act.
    Hopefully in 3 years the stock will be over $100 a share. One can dream!
    Chris

    Give careful consideration to how you'll pay tax on RSUs when they vest. You will have the option of paying cash or taking net shares, the latter meaning you allow the broker to sell some shares at time of vesting to cover the expected tax liability.

    If you think the company is only getting stronger, net shares may be a poor choice.

    Unfortunately, this is what we did with my wife's RSUs when she started getting them over a decade ago. At the time it didn't seem like a big deal. But as of today, the shares we liquidated to cover the tax piece would have added another 100k to the pot. Fortunately we kept the rest.

    We had no idea then the company was going to perform as it has.

    #4464 56 days ago
    Quoted from D-Gottlieb:

    I have about 100K in VBLAX bonds. Should I get rid of these? What is better?

    Better in what sense?

    How does the bond position fit into your larger portfolio strategy and acceptable risk level?

    I think a lot of inexperienced and 'investing uneducated' folks read posts in threads like this one and get a lot of inappropriate advice, bad ideas, and then make bad decisions.

    When I see posts asking about trading options, but not understanding basics like contract size, or asking if there is 'something better' than XYZ investment, all I see is somebody on the precipice of making a bad decision.

    A pinball forum is not the sort of place where I'd be seeking financial advice if I were asking these sorts of questions.

    It's like going to a car dealership and asking if they have anything better.

    #4468 56 days ago
    Quoted from DBLM:

    Doing some simple math and making assumptions, it sound like you have roughly 6,000 or so shares. The investment is up about 3 bucks since it's inception, so depending upon your purchase price, you could have up to about 18K of profit, plus a 3.3% dividend. That is a pretty good lick, but it all depends on as investingdad said your tolerances, etc. Could you make more money in other places? Sure. But you would have to make those decisions.

    Not necessarily.

    These are Admiral shares. Vanguard does auto conversion from investor shares to Admiral once you meet a holding threshold in the investment. Admiral are even lower cost.

    VBLAX is a new Admiral class that was created not long ago.

    It's very possible his true cost basis is much lower if was converted from investor shares.

    #4469 56 days ago

    I read that. Poor guy.

    Let's be clear, those strategies are very advanced. For most, it's nearly gambling. Options were originally intended to function as a form of insurance or risk mitigation on an underlying investment.

    A lot of people that play with them don't really understand them.

    #4479 55 days ago

    Looking at the Robin hood response, I'm wondering if the guy may have actually been net positive on that trade.

    I'll be honest, if it had been me, I would have been in a panic as well.

    Therein is the rub on certain options contracts, the potential for unlimited downside. Naked calls are no joke.

    #4514 50 days ago
    Quoted from DBLM:

    My unvarnished advice to you is such:
    If you are a passive investor, you are screwing yourself. You need to be active on the news of what is going on in the markets and political arenas.

    With all due respect, I simply do not agree with this advice and believe it in error.

    I've been a passive investor since I was 23 and am heading into my late 40s. I was passive in 2000, 2001, 2008, and now 2020.

    My results stand on their own and my 25 year passive strategy has proven itself as valid.

    At the moment, our portfolio is worth between 25 and 30 times our annual expenses.

    I've never missed a run up, never caught a falling knife, never sold at a loss, never paid taxes on trading churn, and never lost sleep trying to decide if I needed to jump in or out.

    Investing and wealth building are a lot easier than financial advisors and active traders would have you believe.

    #4517 50 days ago
    Quoted from DCFAN:

    What you are saying works historically for a diversified portfolio. I believe what DBLM was referring to is people that are buying individual stocks (or options trading) and not paying attention to being in a diversified S&P like spread of stocks. For example if you bought several retail, airline, and tech stocks but not much of typical boring blue chips then you may get burned or miss out on the full market performance long term.

    That I agree with.

    Perhaps it's my own bias, when I hear 'passive investor', I automatically assume we are talking about a well diversified portfolio that just sits there and emulates an index.

    2 weeks later
    #4590 34 days ago
    Quoted from Kkuoppamaki:

    Silly question, assuming you own several lots of the same stock does it make sense to sell the ones with largest profit or it doesn’t matter as long as they are long to minimize the tax impact? Just trying to figure out if there’s a benefit in one approach over the other when selling

    It depends entirely on why you're selling.

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    Super Skill Shot Shop
    $ 64.00
    $ 69.99
    Playfield - Toys/Add-ons
    Lighted Pinball Mods
    $ 9.99
    Eproms
    Matt's Basement Arcade
    $ 35.00
    Playfield - Toys/Add-ons
    3D MODS
    $ 34.95
    Playfield - Toys/Add-ons
    COINTAKER.COM
    $ 339.00
    $ 10.50
    Playfield - Protection
    The MOD Couple
    From: $ 7.00
    Playfield - Protection
    Pinball Haus
    $ 29.95
    Gameroom - Decorations
    Pinball Photos
    $ 69.99
    Playfield - Toys/Add-ons
    Lighted Pinball Mods
    $ 69.99
    Playfield - Toys/Add-ons
    Lighted Pinball Mods
    $ 5.00
    Playfield - Decals
    Doc's Pinball Shop
    $ 35.00
    Cabinet - Decals
    Pinball Haus
    $ 42.00
    Playfield - Toys/Add-ons
    The MOD Couple
    $ 19.00
    Cabinet - Other
    Chrome Candy
    $ 25.00
    Cabinet - Other
    Filament Printing

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