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Investment Thread

Discussion in 'Real Life Discussion' started by Lyndon Eye, Jul 12, 2013.

  1. Giovanni

    Giovanni God of Scotch

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    Yup! Boeing killing a bunch of people paid for my new HVAC system with enough left over to repave my driveway, and buy new cabinets for my kitchen.
     
  2. Conquistador

    Conquistador Professor

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    Inb4 we find out Gio caused the planes to go down for the money.
     
  3. dhulli

    dhulli The Reborn

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    20190402_162843.jpg And so it starts...
     
    Last edited: Apr 3, 2019
  4. Conquistador

    Conquistador Professor

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    Does that mean you made 10k in one day? Or am I reading that wrong.
     
  5. Agayek

    Agayek Totally Sirius DLP Supporter

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    Depends on what he started with. It's hard to say from the graph as there's no scale provided. Assuming an absolute scale, it looks like he started with 5k and ended at just over 10k, but it could just as easily have been starting with 10k and ending at $10,185.
     
  6. dhulli

    dhulli The Reborn

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    Nope. That is 10k in one day. Starting at XXX and ending at XXX+10k.

    To be fair, I've lost 10k in a day before as well.

    I may or may not have a problem.
     
  7. Microwave

    Microwave Seventh Year

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    "investing"
     
  8. dhulli

    dhulli The Reborn

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    Most of that is from FB call options btw. I would have had to own ~300k worth of FB stock to get that gain from today alone. Instead, I can drop 10k on options and see it swing massively up or down.
     
  9. Conquistador

    Conquistador Professor

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    Not to give advice to an "investor" but I'm farily certain that this is the part you sell.
     
  10. dhulli

    dhulli The Reborn

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    I did sell some (like 20%) just in case. I'm expecting a lot more run-up before their earnings on the 24th though and don't want to miss out on that. Needless to say, I'll share my gain or pain with y'all.

    For more drama as companies miss or beat earnings, I invite you all to head over to https://reddit.com/r/wallstreetbets

    They taught me everything I know. heh.
     
  11. Heleor

    Heleor EsperJones

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    ...you do realize wallstreetbets is a parody subreddit, right?
     
  12. dhulli

    dhulli The Reborn

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  13. Heleor

    Heleor EsperJones

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    That doesn't make it not a parody. It means some people aren't in on the joke. :)
     
  14. Ched

    Ched Da Trek Moderator DLP Supporter

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    I'm lucky in terms of funds. I don't have a large salary - and in fact make significantly less than everyone ever assumes - but my housing costs are low enough that I'm still able to save. Most people in my position can't.

    When I started working I was given this advice: Try to save enough that, if the worst happened, you could pay your bills for three months without bringing in a dime.

    I thought it was good advice and once I had that much saved I kept saving the same amount each month, with a few exceptions for trips or special purchases, and ended up with a nest egg. Last year I bought a car and spoke to my friend's uncle - a financial advisor - about why sometimes it's better not to pay for the car upfront even if you can. Because if the interest on your payment is 4%, but you're earning 8% on average with your money in stocks, you're better off paying slowly per month.

    He normally only works with people who have a lot more money than I do, but since I'm a family friend he offered to help me out and manage the savings I had in excess of that '3 months worth of bills' that I haven't touched since I first saved it. He's been teaching me some things about investment and I'm hopeful that in a few years I can manage it myself without stressing myself out that I'd screw it up.

    Before this I knew that 'options' existed but not a clue what they were. @dhulli 's recent posts here make me want to do similar things but I can't risk it until I understand it... and even then I wouldn't risk much.
     
  15. Sesc

    Sesc Slytherin at Heart Moderator

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    Financial derivates are like porn, @Ched. If you can imagine it, it exists. So the part where you learn ... is mostly you figuring out on which particular thing/news/future outcome you wanna put money. This can be arbitrarily complex, naturally.

    Personally -- if I wanna win or lose 10k, I put on a suit and some shades, and check out a casino. That's more my idea of a fun night than sitting at home and staring at fb's earnings. But to each his own. I enjoy reading balance sheets over the weekend and actually owning 0.00...01% of a company, for instance.

    Either way, if you want to actively invest in anything, you need time, repeatedly (or a nice friend's uncle, who hopefully knows wtf he's doing. Have you compared your returns with, say, the S&P 500 over the same timespan?). In all other cases, just buy index funds. But it definitely shouldn't take you years (and also: you years) just to get started.


    As for the 3 months rule -- yup, though individual circumstances obv. If you're only responsible for yourself, you can run a greater risk than if you got people depending on you. Personally I skipped that rule, precisely because money sitting there doing nothing that I'm not touching annoys me -- if there's an urgent need, I can get an instant loan against my stock for reasonable conditions, and as long as that isn't happening every other week, I'm coming out ahead.
     
  16. Ched

    Ched Da Trek Moderator DLP Supporter

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    Yeah, I did compare his returns to the S&P500 and research him, but when that came back fairly clean it still mattered that it was someone I knew as opposed to someone I didn't but who had good numbers.

    And it did take me years to get started - but 'just buy index funds' is stressful as hell to someone who doesn't know a single person (living) who has ever invested in stocks of any kind. I mean, yeah, I looked it up and studied and figured out technically how to do it, but it's different when you're the first person you know to take that step and everyone is warning you off doing it.

    Easier to start out with someone in that case, at least for me. Even if I trust that I'm bright enough to figure it out I didn't need the anxiety that would come from diving into it solo and worrying about how I was probably doing it wrong.
     
  17. Darth_Revan

    Darth_Revan Secret Squirrel ~ Prestige ~ DLP Supporter

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    Index funds just track the DOW, the S&P, or any other major market, but with the added flavor of a level of risk based on aggressiveness.

    I use those sometimes, but I prefer to pick a few companies I think will perform over the next 4 or 5 years and then buy some shares to hold long term. Don't bother day trading, it's stressful.
     
  18. Sesc

    Sesc Slytherin at Heart Moderator

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    o_O

    And here I thought we were the stock haters and over there ya'll invested as soon as there was money. One more cliché debunked, I guess.

    So you're rather trusting someone than something :p
    And you'd need to put it into perspective: What does "doing it wrong" mean? It means losing 100% (for simple stocks/index funds). So start small, with one or two grand (adjust relative to what is "small" for you), and see what works and what doesn't. You don't learn riding a bike by reading the manual.

    When I started I went on a shopping spree and read up on what I was doing as I did it. But fair enough, different people are different. The only rule that really matters is that you should do whatever lets you sleep at night, so you're right on the money.
     
  19. Ched

    Ched Da Trek Moderator DLP Supporter

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    Perhaps "doing it wrong" was the wrong phrase.

    One thing that's held true my entire life is that the more I know about something the more I am intimately aware of how much more I don't know.

    The more I'd read up on stocks the more I'd learn. The more I learned the more I realized how much more there was to learn before I'd feel confident. And I didn't want to have to be constantly going back to fix crap decisions I made with my life savings.

    I didn't want investing to be a hobby that I felt required time every week. It might grow into one where I wanted to put time into it but that's different.

    That's the source of stress - that I want to know that I'm not missing something obvious and making blatantly poor decisions because I just didn't know.

    Whether the expert I work with is top tier is less important than that I can trust him to make reasonably decent decisions. That way I can learn as we go (he's very communicative) and not stress about what I need to be doing.

    Great responses Sesc, thank you.

    My advice? If you have savings you can spare in your 20s like I did don't hoard it till your mid 30s. Find a way to invest that lets you sleep at night (as Sesc said) and run with it.
     
    Last edited: Apr 8, 2019
  20. Darth_Revan

    Darth_Revan Secret Squirrel ~ Prestige ~ DLP Supporter

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    With the long term view, it's not something you have to devote your time each week to. I buy stocks with a view to sell the shares in 2 or 3 years, not 2 or 3 days. I rarely look at my portfolio.
     
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