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rickyt31

Stock Investing

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Anyone else into stock investing?

 

All I pay attention to is tech and clothing companies honestly.

Edited by rickyt31

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I just dump a bunch of money into Stash.  I don't like investing in individual stocks.  I did recently get into buying Bitcoins lately though. 

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1 hour ago, HorizontoZenith said:

I just dump a bunch of money into Stash.  I don't like investing in individual stocks.  I did recently get into buying Bitcoins lately though. 

I've thought about getting on Stash. I still get their emails, I use RobinHood and TDA for my stocks. I'm still learning the other options out there. I'm going heavy on XGTI  for the long run.

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Right now I have most of my money  in dividends and earn about 5.5%. I'm waiting for the Dow to crash so I can put the rest of my money into an index fund. Wait several weeks to a few months after the Dow bottoms before going all in then ride the wave for 7 years and sell it all.  Had I done that back in late 2009 I would be a millionaire.

Edited by TVScout

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3 hours ago, TVScout said:

Right now I have most of my money  in dividends and earn about 5.5%. I'm waiting for the Dow to crash so I can put the rest of my money into an index fund. Wait several weeks to a few months after the Dow bottoms before going all in then ride the wave for 7 years and sell it all.  Had I done that back in late 2009 I would be a millionaire.

But it may never crash.  The market may never go below what it's at today.  You just never know.  In which case you miss years of growth.

If you knew where the bottom was, you would make millions.  And obviously if you knew where the bottom was, you should be a full time investor. 

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I don't dabble in single stocks.  ETF's and mutual funds only.  ETF's for my non-retirement investments, mutual funds in my retirement accounts because they don't have index options to pick from.

Stock investing is a good way to lose money or at best under-perform the market in the long run.

In before someone mentions some stock they invested in and returned 50% in two years or some garbage.  Yeah, got it, but let's see the whole portfolio.  And if you're outpacing the market over a 5-10 year span, you should be a full time investor because only a small percentage of investors are able to do that (IIRC, it's like 2%).

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perhaps one should rename the thread to "stock speculating" if the discussion is geared about buying single stocks ;)

 

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22 hours ago, theJ said:

But it may never crash.  The market may never go below what it's at today.  You just never know.  In which case you miss years of growth.

If you knew where the bottom was, you would make millions.  And obviously if you knew where the bottom was, you should be a full time investor. 

The Dow never crashing would be like the sun never setting or the economy never going into another recession.

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20 hours ago, theJ said:

But it may never crash.  The market may never go below what it's at today.  You just never know.  In which case you miss years of growth.

If you knew where the bottom was, you would make millions.  And obviously if you knew where the bottom was, you should be a full time investor. 

I can't find the link, but if you block out years a huge percentage of January 1s (like 70% or something crazy) are lower than every subsequent January 1 for the stock market.

People have been waiting for a correction for like 4 years now, missing out on like 10-15% YOY growth in the meantime. Insanity.

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11 minutes ago, TVScout said:

The Dow never crashing would be like the sun never setting or the economy never going into another recession.

Ok, here's what i'm trying to say:

Yes, there will be dips.  There will be surges.  The S&P is sitting right now at 2430.

In Jan 1995 it was 465.

If, in Jan 1995 you said you were waiting for a big correction below 465, you'd still be sitting there today with cash in your pocket devalued by 6x.

Making my point another way:

If, in Dec 2005 you said you were waiting for a big correction, you would have guessed right.  The market crashed from 1561 to 683 (Oct 2007 to Mar 2009).  But how do you know when you hit the bottom?  If in March 2009 you had guessed the bottom was still some ways away, you would have missed the bottom.  If you guessed the bottom was still 2 years out, you actually would have missed completely from Dec 2005 to Mar 2011 (market went up).

Point is that, yes, we'd all like to buy at the bottom and sell at the top.  But you can only do with the benefit of hindsight, because we have no idea where the bottom is in the future.

 

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14 minutes ago, ramssuperbowl99 said:

I can't find the link, but if you block out years a huge percentage of January 1s (like 70% or something crazy) are lower than every subsequent January 1 for the stock market.

People have been waiting for a correction for like 4 years now, missing out on like 10-15% YOY growth in the meantime. Insanity.

S&P was actually down a little from Jan 2015 to Jan 2016, but your point is a good one.  If you're building for long term wealth, you can't look at those 1% swings from M-F.  The only thing that matters is YOY growth.  Over 30-40 years it will grow.  Just put your money steadily and let it do its thing.

Those corrections will mean nothing in the long run as long as you're not pulling your money out.

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9 minutes ago, theJ said:
29 minutes ago, TVScout said:

The Dow never crashing would be like the sun never setting or the economy never going into another recession.

Ok, here's what i'm trying to say:

Yes, there will be dips.  There will be surges.  The S&P is sitting right now at 2430.

In Jan 1995 it was 465.

If, in Jan 1995 you said you were waiting for a big correction below 465, you'd still be sitting there today with cash in your pocket devalued by 6x.

Making my point another way:

If, in Dec 2005 you said you were waiting for a big correction, you would have guessed right.  The market crashed from 1561 to 683 (Oct 2007 to Mar 2009).  But how do you know when you hit the bottom?  If in March 2009 you had guessed the bottom was still some ways away, you would have missed the bottom.  If you guessed the bottom was still 2 years out, you actually would have missed completely from Dec 2005 to Mar 2011 (market went up).

Point is that, yes, we'd all like to buy at the bottom and sell at the top.  But you can only do with the benefit of hindsight, because we have no idea where the bottom is in the future.

I'm just an internet guy, but maybe you'll appreciate this guys advice:

https://www.cnbc.com/2017/05/12/warren-buffett-says-index-funds-make-the-best-retirement-sense-practically-all-the-time.html

Quote

"Consistently buy an S&P 500 low-cost index fund," Warren Buffetttold CNBC's On The Money in an interview recently. "I think it's the thing that makes the most sense practically all of the time."

 

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15 minutes ago, theJ said:

S&P was actually down a little from Jan 2015 to Jan 2016, but your point is a good one.  If you're building for long term wealth, you can't look at those 1% swings from M-F.  The only thing that matters is YOY growth.  Over 30-40 years it will grow.  Just put your money steadily and let it do its thing.

You come out way further ahead by being smart about minimizing your taxes/interest owed, IMO.

If you're far away from retirement and have a 90/10 stocks/bonds ratio, prioritize the 90% stocks with your IRA/401k/HSA/403/tax advantaged space and have the bonds in non-tax advantaged accounts (reallocating as necessary).

EDIT: By the way, have you noticed the people who say this are always talking about either making a short term buck or waiting with cash on the sidelines? I've never heard anyone say, "I make $100k/year and max out my 401k at 18% contributions, but changed my contributions to 36% at the new year because I think the market is low right now and want to max it out by July".

I think it's a fear-based thing.

Edited by ramssuperbowl99

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14 hours ago, incognito_man said:

perhaps one should rename the thread to "stock speculating" if the discussion is geared about buying single stocks ;)

 

My gf told me last week that "her mom talked her into buying $1,000 of Ford stock". She then went on to tell me it was basd on the advice of her mom's financial advisor. I asked if he was a fiduciary, and she told me no. I opened my mouth, then decided this would be far too long of a discussion and promptly shut it.

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I started investing when I started working full time around 6 years ago.  I bought $5K worth of stocks and did a lot of day trading.  Oooh, I made $100 bucks, time to sell before it goes down!  Lots of stupid moves like that.  I made out for a few years, and then panicked during a lul and lost all of my gains.  So I sat down and calculated how much my stocks would be worth if I had just held onto the initial $5K worth of stocks until today.  It would be worth $30K today :/.  I bought $1000 Netflix on the ground floor.  It's grown 2000 percent since then.

After learning that hard lesson, I am doing what Warren Buffet suggests - pick stocks and companies you believe in, buy and hold.  Timing the market doesn't work in the long run.  So now, I do it systematically.  Auto deposit a portion of my paycheck into my brokerage account weekly, and buy stocks right away.  Diversifying more than I used to as well.  I don't plan on selling anything until I retire.

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