Stock Market discussion

[Palumboism]

You need a margin based account so you can buy and sell in and out the same day without waiting 2 days for settlememt

A margin account will also allow you to borrow up to 50% from the broker that gives you 2 to 1 leverage with or against the market

Then you need to learn about leverage derivates that will give you 3 to 1 against sectors and indexes. Combined with your broker borrowing you can now go 6 to 1 with or against the market

Then you can eventually learn about option and future contracts that will allow you to go 100 to 1 Delta but may have Theta decay

Once you have these accounts opened and these basic concepts figured out we can go further but there is no need to even talk about what to trade yet

We then need to talk statistics and mean reversion theories standard deviations peaks and troughs candlesticks Beta correlation etc etc

What's your advice on shorting and options? 

I bought a put option last week and I'm not that impressed with options. It seems like you're spending money on something that could expire worthless. 

[TheGrinch]

This is what matters when it comes to timing. The freebie spigot is being turned off all at once. Many of these people didn't go back to work...at least not yet. Big time consumer weakness Q4.

NOPE

[SOMEPARTS]

Haha, okay. If you feel that reflects reality then stay with it.

[TheGrinch]

Haha, okay. If you feel that reflects reality then stay with it.

No way, reality is completely opposite to the markets right now.

Economy is completely in the toilet, its all an illusion, everything is fcked right now and been so for a long while.



HOWEVER, I learned a really long time ago that the old saying is 100% true...


"the markets can remain irrational longer than you can remain solvent" - Keynes

[FitnessFrenzy]

[IroNat]

What's your advice on shorting and options? 

I bought a put option last week and I'm not that impressed with options. It seems like you're spending money on something that could expire worthless. 

Did some research and looked up shorting the market via mutual funds that specialize in this.

Unfortunately these funds have lost 20-40% a year shorting the market.

[Marty Champions]

No way, reality is completely opposite to the markets right now.

Economy is completely in the toilet, its all an illusion, everything is fcked right now and been so for a long while.



HOWEVER, I learned a really long time ago that the old saying is 100% true...


"the markets can remain irrational longer than you can remain solvent" - Keynes

this

[FitnessFrenzy]

Economy is completely in the toilet, its all an illusion, everything is fcked right now and been so for a long while.

why so? Please elaborate

[Marty Champions]

why so? Please elaborate

no one working yet economy going up up up

[IroNat]

no one working yet economy going up up up

Lots of people are working.

[SOMEPARTS]

Lots of people are working.

Yeah, all the small business owners that got crushed by lockdowns love working at Costco. Did their wages go up 20% this year like everything else did?

Where is the creation of value? Demand did not drive asset prices up, it was printing, stimmies and easy money policy.

Market hitting Hindenberg Omens over and over but nothing matters until it does...

[oldtimer1]

When the Democrats get their wish for massive capital gains tax on stock market appreciation there will be a massive sell off of stocks and people will lose their life savings.  Publicly traded companies will stop hiring leading to this economy on a bigger downward spiral than it's on right now.

[GymnJuice]

When the Democrats get their wish for massive capital gains tax on stock market appreciation there will be a massive sell off of stocks and people will lose their life savings.  Publicly traded companies will stop hiring leading to this economy on a bigger downward spiral than it's on right now.

What will wealthy getbiggers do with their money when Democrats do this? Real estate?

[SOMEPARTS]

Turkish Lira lost almost 20% of it's value in one day. Tick tock.

[IroNat]

What will wealthy getbiggers do with their money when Democrats do this? Real estate?

Leave.

[El Diablo Blanco]

There used to be a small handful of people that could manipulate the market but now with the billionaire list growing and social media, the stock market is one big bullshit ponzi.  A lot of people are now influencing stocks, cryptos etc... and making serious money on the constant up and down.  Up for two weeks, sell on the dip, up for two weeks, sell on the dip, on and on.  they are just increasing their wealth 10% every couple of weeks.  Fucking insane.  How do you stop it?

[SOMEPARTS]

Anyone want to argue that there was not 20% inflation in the last year is going to have a hard time explaining this one. 


Dollar Tree Makes It Official: Items Will Now Cost $1.25


https://www.huffpost.com/entry/dollar-tree-raises-prices-125_n_619d6f8ee4b044a1cc0e37ed

[bigkid]

There used to be a small handful of people that could manipulate the market but now with the billionaire list growing and social media, the stock market is one big bullshit ponzi.  A lot of people are now influencing stocks, cryptos etc... and making serious money on the constant up and down.  Up for two weeks, sell on the dip, up for two weeks, sell on the dip, on and on.  they are just increasing their wealth 10% every couple of weeks.  Fucking insane.  How do you stop it?

You have to put your cash somewhere.  The fed just continues to print money.

[FitnessFrenzy]

You have to put your cash somewhere.  The fed just continues to print money.

indeed. The more difficult exercise is to determine what to invest in.

[GymnJuice]

You have to put your cash somewhere.  The fed just continues to print money.

I'm not a finance expert but that's why I'm guessing real estate. Seems harder for the government to tax "unrealized gains" on lands and buildings.

[IroNat]

indeed. The more difficult exercise is to determine what to invest in.

TIPs or I-Bonds for fixed income/cash is not a bad option.

Just keep emergency funds liquid.

[bigkid]

indeed. The more difficult exercise is to determine what to invest in.

It is, especially in these markets where everything seems inflated. I have a ton of money in the stock market, and its' scary but I don't know what else to do.  Every time I've tried to time the market, it's been an epic fail.

[IroNat]

It is, especially in these markets where everything seems inflated. I have a ton of money in the stock market, and its' scary but I don't know what else to do.  Every time I've tried to time the market, it's been an epic fail.

If your money is in a tax deferred account then reallocate some to non-equity.

If you'll be in trouble if your equities drop 50% then move some out of equities.

If it's in taxable accounts then you're stuck unless you can take the tax hit.

In any case stop buying equities until you reach a decent allocation.

[lsr_asr]

It is, especially in these markets where everything seems inflated. I have a ton of money in the stock market, and its' scary but I don't know what else to do.  Every time I've tried to time the market, it's been an epic fail.

reduce your exposure to growth stocks, IT type stocks.  S&P trading at historically high P/E ratios.  A correction is coming, not a crash.   Many "experts" are predicting slow/little growth type market over next number of years.  Dividend paying equities will be the investments to go into.  It is what I have done and I too am big in the stock market.

[FitnessFrenzy]

new covid strain causing a lot of concern.

I estimate SPX will close 2 or 3 percent in the red today..