Stock Market discussion

[a_pupil]

With those amounts I'd dump into the market and not worry.  In other words, it's not a significant sum.

I'm not belittling your wealth but if the amount was large and you're 60 then it's a different situation.

You have a long time horizon so any market fluctuations will not matter in the long run.  Just stay in the market and don't sell during downturns.

Keep enough liquid funds available for emergencies and your business so you never need to sell your investments.

Check this out: https://www.bogleheads.org/wiki/Main_Page

Nice. I hope I can join the business trips to dubai india club soon 

[IroNat]

Nice. I hope I can join the business trips to dubai india club soon 

Right now the plane is full but every now and then Bezos, Musk, or Bhank fly in their own private jets so you might get a chance.

[deadz]

I let Charles Schwab handle such things, uninteresting to me.

[IroNat]

I let Charles Schwab handle such things, uninteresting to me.

I'd never blindly trust someone to handle my money.

[deadz]

I'd never blindly trust someone to handle my money.

I'd prefer someone with 20+ years experience to manage my investments. If I was a finance guy I'd do it myself, I am not.

[IroNat]

I'd prefer someone with 20+ years experience to manage my investments. If I was a finance guy I'd do it myself, I am not.

It's not hard to do.  It's very simple.

The financial guys want you to think it's hard.

I used to be one.

See my link above.

[FitnessFrenzy]

80% VTSAX

20% aggregate bonds

works for most people

[bhank]

Collectable tupperware and beanie babies

[bhank]

Step one learn how to use leverage and margin

[loco]

80% VTSAX

20% aggregate bonds

works for most people

Smart getbigger.

[loco]

It's not hard to do.  It's very simple.

The financial guys want you to think it's hard.

I used to be one.

See my link above.

Yup.



Free eBook: "If You Can: How Millennials Can Get Rich Slowly"
by William J Bernstein
https://www.etf.com/docs/IfYouCan.pdf

[bhank]

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

[loco]

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

Or you could just buy VTSAX and hold it long term.

[bhank]

Or you could just buy VTSAX and hold it long term.

If you just want the market return sure but the idea is to buy the market stock or collectable beanie babies on the dips and sell the rips using leverage to get an exponential return. The idea is to make money in all market conditions regardless of product traded

[loco]

If you just want the market return sure but the idea is to buy the market stock or collectable beanie babies on the dips and sell the rips using leverage to get an exponential return. The idea is to make money in all market conditions regardless of product traded

Exactly, which is more than enough to make anyone wealthy or at least have a very comfortable retirement, with little effort, in 10 to 30 years depending on how much and how early they invest in that period.

And the market returns are more than most active investors get by timing the market.  Chasing exceptional returns and timing the market is one of the main reasons active investors lose money and get below average returns, not to mention high fund fees, high transaction fees, and capital gains taxes from buying and selling too often.

[IroNat]

Where will Bhank pop up next to provide his expertise?

[bigkid]

If you just want the market return sure but the idea is to buy the market stock or collectable beanie babies on the dips and sell the rips using leverage to get an exponential return. The idea is to make money in all market conditions regardless of product traded

LOL.  No one makes money in all market conditions.  Most hedge funds and mutual funds can't beat the market.  A lot less stress in buying the market consistently, reinvesting the dividends and letting it grow long-term.

[GymnJuice]

Boglehead 3 fund portfolio.  No thinking.  More free time to enjoy your money.  All getbiggers are millionaires already - no need for stress, risks, and margin calls.

[BB]

If you just want the market return sure but the idea is to buy the market stock or collectable beanie babies on the dips and sell the rips using leverage to get an exponential return. The idea is to make money in all market conditions regardless of product traded

Out of curiosity, what has been BHank's personal rate of return during the last, say decade, best years, worst years? This isn't a cheap shot, I saw your resume during the BHank outing a few months ago, and am genuinely interested in your financial musings. 

[loco]

LOL.  No one makes money in all market conditions.  Most hedge funds and mutual funds can't beat the market.  A lot less stress in buying the market consistently, reinvesting the dividends and letting it grow long-term.

Another smart getbigger.

[loco]

Boglehead 3 fund portfolio.  No thinking.  More free time to enjoy your money.  All getbiggers are millionaires already - no need for stress, risks, and margin calls.

Exactly!

[Maxwell Smart]

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

That's smart.  I do covered calls weekly.  It's almost like a paycheck.  I put 80% of the premiums I make back into stock and take the other 20% out.  52 times a year.  Don't lift a finger and the money I make from it is pretty crazy.  Safest way to do options IMO.

[bigkid]

That's smart.  I do covered calls weekly.  It's almost like a paycheck.  I put 80% of the premiums I make back into stock and take the other 20% out.  52 times a year.  Don't lift a finger and the money I make from it is pretty crazy.  Safest way to do options IMO.

After these  bull markets, do you still  own any stock?

[bhank]

Out of curiosity, what has been BHank's personal rate of return during the last, say decade, best years, worst years? This isn't a cheap shot, I saw your resume during the BHank outing a few months ago, and am genuinely interested in your financial musings.

I have had some really good years like 300% up and unfortunately some really bad years like down 50%. Prop traders will make money in all conditions or lose their jobs. I would have lost my job the last few years. But I was killing it before that I deviated from the plan got over extended and messed up it happens. I may have to actually go back to working for the man soon if my positions do not turn around.

Never go all in on collectible Tupperware and beanie babie

[FitnessFrenzy]