Stocks Thread

[BisexualMMA]

I mean, not a bunch. 10 shares. I'm not playing with a lot of money til I have somewhat of a grasp on how this works, i'm just trying to get my feet wet and learn. I know two people who do well day trading, and they both told me Wendy's is something to get in on. They're remodeling most of the places and going for a more high end feel, toying with the menu, bunch of other shit I don't really remember but they both have a high outlook on where the stock is headed.

Wendys might go up, it might go down. I don't know and neither do you. But now you have an incentive to watch a stock and feel your emotions go up and down with it, see how it affects your nerves and such. If you really think you'll be a day trader, you can watch it go up and down and see how little bits of news affect it.

Chances are that day trading won't be the ticket, though. Everyone feels like they can beat the market just like everyone feels like they can beat the house in Vegas. You can diversify your portfolio perfectly and do everything right, but lose money because some asshole bombs a factory somewhere and the market drops for the year, or because currencies in Europe go down and they stop importing as much American product.

If you're a gambler, you can put your money in some random mining penny stock and hope one of their prospecting surveys in Zimbabwe strikes gold. But unless you have inside information, you're kind of just playing roulette.

All in all, chances are you won't have any good reason to expect that you will beat the market. If you're confident that the market will continue to grow, then invest in the market as diversely as your funds allow. You won't hit any home runs, but you also won't hit into any triple plays.

It won't have the rush of day trading and getting in on stock X before it takes off, but your money should grow over the long term. How much you want to un-diversify from there and concentrate your money in individual stocks will more or less reflect how much you like to gamble.

 

[Joseph Budden]

DO NOT DAY TRADE. You will lose everything really quickly. No one beats the house if you gamble.

So think of stocks like this: They're a representation of what you think the future of the company looks like. If the collective community thinks the company is going to make a lot of money in the future, the stock is valued higher. You make your money in the difference. When you see things that others don't, you are rewarded accordingly. I don't own companies that don't have optimistic futures. That's generally how this stuff works. Also, if you're making small trades like 10 shares of a $10/share stock, you'll lose money in the trading fees. I don't suggest doing that. For someone like you, buy a bunch of shares of Coca-Cola. It's a great stock that pays a dividend, and you can get more of them for cheap. When you have a little more money, buy something like JNJ. They have about 10 major pharmaceuticals in the pipeline. I predict good things for the future of that company.

So i'm trying to read random shit on the internet while reading these posts to learn lol have a few questions since you've been helpful. What exactly constitutes something as day trading as opposed to what you're suggesting? Is day trading basically just when you are actively buying and selling instead of sitting on shares for a more lengthy period of time? You are right about trading fees, what a fucking pain in the ass. I've bought shares in two companies and thats 20 bucks in the hole for doing so? Fuck.

Also, what constitutes a loss? I'm reading about how stocks can drop and people will reinvest and their is some crazy term for this? My brain is on overload right now lol

 

[iGnP]

Posted why I bought into Wendy's a few posts up. In a nutshell just a tip from trusted colleagues I work with.

This shit is a lot more complicated than MMA gambling, sheesh

same principles. going back to the apple example, it's like betting on Lineker after his price has dropped against Mayday because there's value. no point in buying apple when its price is at an all time high back when it was at like $130ish

 

[iGnP]

APPLE up almost 5% after hours!

 

[Scott Parker 27]

I'm still mad about this, DO NOT EVER EVER TAKE INVESTMENT ADVICE FROM RELIGIOUS PEOPLE! I was a nuns c-hair away from buying up a bunch of netflix stock when it was dirt cheap, after they changed their pricing, about 7 bucks a share, now its up around $80/share. Shit, I never let these "friends" forget they talked me out of it.
That being said, as others have said, diversify, maybe put some $ into an index fund. Also follow trends, when I heard Stern was going to Sirius I bought, right after he started, sold for a nice profit.

 

[Joseph Budden]

Wendys might go up, it might go down. I don't know and neither do you. But now you have an incentive to watch a stock and feel your emotions go up and down with it, see how it affects your nerves and such. If you really think you'll be a day trader, you can watch it go up and down and see how little bits of news affect it.

Chances are that day trading won't be the ticket, though. Everyone feels like they can beat the market just like everyone feels like they can beat the house in Vegas. You can diversify your portfolio perfectly and do everything right, but lose money because some asshole bombs a factory somewhere and the market drops for the year, or because currencies in Europe go down and they stop importing as much American product.

If you're a gambler, you can put your money in some random mining penny stock and hope one of their prospecting surveys in Zimbabwe strikes gold. But unless you have inside information, you're kind of just playing roulette.

All in all, chances are you won't have any good reason to expect that you will beat the market. If you're confident that the market will continue to grow, then invest in the market as diversely as your funds allow. You won't hit any home runs, but you also won't hit into any triple plays.

It won't have the rush of day trading and getting in on stock X before Pokemon Go gets released, but your money should grow over the long term. How much you want to un-diversify from there and concentrate your money in individual stocks will more or less reflect how much you like to gamble.

Regarding penny stocks, yeah from what i've read/heard so far thats a horrible idea unless like you said, you just wanna play a game of chance and keep your fingers crossed you end up on the good side. Fuck that.

How long will you keep money in a stock you feel really good about? Do you have a set dollar per share you want to see it increase to before pulling out, and you wait it out?

 

[Joseph Budden]

same principles. going back to the apple example, it's like betting on Lineker after his price has dropped against Mayday because there's value. no point in buying apple when its price is at an all time high back when it was at like $130ish

Please more MMA gambling references. Will be the best way for me to comprehend all this stuff haha

 

[iGnP]

i also think you have to take everything you read with a grain of salt. a lot of people writing out there just spew random crap in hopes that their prediction will hit and make them relevant. its good to gather all the information and make your own decisions whether its a positive, negative, or irrelevant to the company's future. i have some stock in Disney and im very worried about their future because Thomas Staggs, Bob Iger's heir to the CEO position, stepped down. This means they're gonna have to bring in an outsider to fill the position

 

[BisexualMMA]

Regarding penny stocks, yeah from what i've read/heard so far thats a horrible idea unless like you said, you just wanna play a game of chance and keep your fingers crossed you end up on the good side. Fuck that.

How long will you keep money in a stock you feel really good about? Do you have a set dollar per share you want to see it increase to before pulling out, and you wait it out?

Some people set targets to sell once it rises to X or falls to Y, win or lose. Some people go with their gut. It hits their soft target, but they think it will keep going up, so they watch it and try to guess right and squeeze out every dollar. There really isn't a right answer...but I think that in holding and watching Wendys and your other stock, you will learn a bit about your personality as an investor.

Your reasons for buying Wendys in particular seem to be the tip you received, which seems to be the expectation of rising shares in the next 3-12 months because of Wendys' continuing renovation / image improvement campaign... In this case, I guess if I were you I would sell when I thought time had passed to capture the full benefits of this image overhaul? The thing is, other investors (the market as a whole) also are aware of Wendys image campaign. Neither of us knows how completely that has been factored into the stock price...

So, if I were in your shoes, I honestly don't know what I would do with $100 of Wendys stock.

If you're paying $10 per trade, buy or sell, you need Wendys to go up by 20% just to break even. I'd kind of just use Wendys as a case study to get the feel for being in the game.

 

[sub_thug]

So i'm trying to read random shit on the internet while reading these posts to learn lol have a few questions since you've been helpful. What exactly constitutes something as day trading as opposed to what you're suggesting? Is day trading basically just when you are actively buying and selling instead of sitting on shares for a more lengthy period of time? You are right about trading fees, what a fucking pain in the ass. I've bought shares in two companies and thats 20 bucks in the hole for doing so? Fuck.

Also, what constitutes a loss? I'm reading about how stocks can drop and people will reinvest and their is some crazy term for this? My brain is on overload right now lol

Day trading is what you see in the movies. Guys buy 50,000 shares of a stock, hold it for a few hours while it climbs 50 cents/share, and then they sell it all off. Stocks will do small climbs and falls multiple times in a single day. If you try to predict these accurately, you'll be screwed. Buy companies for the long term. Hold for a while, and do it because you believe in the company.

A loss is when the stock depreciates and you sell it. You can double down by buying more when it's down. You can minimize your net loss by letting it come back up in the future, using the two purchase prices to offset each other. Don't worry about stuff like that now. For now, learn companies that you believe in that you think will be profitable in the future. Learn the fundamentals from guys like Warren Buffett.

 

[DIABOLUS]

Really would love to get into this but there's a lot I don't know about. And I like the security of cash vs. stocks or investments that can depreciate or plummet with little warning. Would be nice to put my money to work for me though instead of just letting it sit in a bank.

 

[Joseph Budden]

Some people set targets to sell once it rises to X or falls to Y, win or lose. Some people go with their gut. It hits their soft target, but they think it will keep going up, so they watch it and try to guess right and squeeze out every dollar. There really isn't a right answer...but I think that in holding and watching Wendys and your other stock, you will learn a bit about your personality as an investor.

Your reasons for buying Wendys in particular seem to be the tip you received, which seems to be the expectation of rising shares in the next 3-12 months because of Wendys' continuing renovation / image improvement campaign... In this case, I guess if I were you I would sell when I thought time had passed to capture the full benefits of this image overhaul? The thing is, other investors (the market as a whole) also are aware of Wendys image campaign. Neither of us knows how completely that has been factored into the stock price...

So, if I were in your shoes, I honestly don't know what I would do with $100 of Wendys stock.

If you're paying $10 per trade, buy or sell, you need Wendys to go up by 20% just to break even. I'd kind of just use Wendys as a case study to get the feel for being in the game.

Jesus christ. I see all other fast food chains trade at a much higher price, but 20% is no joke. But yeah I am basically using Wendy's with the intent you stated, a learning mechanism rather than an expectation of profitability.

 

[iGnP]

@Joseph Budden PM me if you have any specific questions and ill do my best to answer. im heading back to the betting forums now. see u there

 

[sub_thug]

For me, this is what I like to do for fun. Seriously. I watch the market like some people check the scores to a game during the day. Haha, I know I'm a nerd. I throw money into this just like anyone funds their hobbies. Not a bad hobby to have!

 

[Joseph Budden]

Day trading is what you see in the movies. Guys buy 50,000 shares of a stock, hold it for a few hours while it climbs 50 cents/share, and then they sell it all off. Stocks will do small climbs and falls multiple times in a single day. If you try to predict these accurately, you'll be screwed. Buy companies for the long term. Hold for a while, and do it because you believe in the company.

A loss is when the stock depreciates and you sell it. You can double down by buying more when it's down. You can minimize your net loss by letting it come back up in the future, using the two purchase prices to offset each other. Don't worry about stuff like that now. For now, learn companies that you believe in that you think will be profitable in the future. Learn the fundamentals from guys like Warren Buffett.

Oh hell no if thats what day trading is thats definitely not me. I do really well gambling on MMA and I can't foresee ever using more money on stocks than that, especially since i'm young and MMA gambling is easily my favorite hobby. Sounds like you have to be really financially invested to have a hope of being a successful day trader. Definitely more interested in going the route you suggest. Find companies I believe in and invest for the long term.

 

[MASShole]

I'm a buy and hold investor, diversifying across sectors, and usually buying dividend payers and growers. Day trading is a quick way to lose everything.

My current Roth and IRA portfolio is this:

GILD
WMT
BDX
HCP
CVX
T
V
IBM
WSM
VZ
APD
XOM
GIS
JNJ
PG
MMM
KMB
KO
EMR
PEP
MO
LMT

My 401k is mutual funds and company stock.

 

[sub_thug]

I'm a buy and hold investor, diversifying across sectors, and usually buying dividend payers and growers. Day trading is a quick way to lose everything.

My current Roth and IRA portfolio is this:

GILD
WMT
BDX
HCP
CVX
T
V
IBM
WSM
VZ
APD
XOM
GIS
JNJ
PG
MMM
KMB
KO
EMR
PEP
MO
LMT

My 401k is mutual funds and company stock.

You have a lot of good picks in there. As you always would when comparing two people, we have some differences, but we have a lot more similarities. Respect.

 

[Krav McGraw]

I don't day trade because I have have better things to do like work and make real money.

I follow Bogle and buy low cost index funds like VTI and VFIAX. I own Berkshire class B too. I put money into these accounts every chance I get. Always hold. Never sell.

 

[RJ43]

I used to be into individual stock investing but found that the amount of time I had to invest to really feel like I was making educated decisions was too much. I switched to a "be the market" strategy with a portion of my portfolio. I have auto debits to index funds and check once or twice a year.

I'd be curious to hear what kind of annual returns you see for those of you who are active managers of your stocks.

 

[sub_thug]

Yesterday was a damn good day to buy AAPL. Made $1.5K from just the amount that the stock went up today.

I don't make that every day, of course. All told, I probably make about $10K/yr by managing the funds myself. I made less when I had less money a few years ago, and I'm making more now that I have more to play with. Like I said, this is something I like to do for fun.