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Anybody feel like teaching stock trading in layman's terms?

Motorcharge said:
The fool proof way is to just buy major company stock when it crashes after some disastrous bullshit. Those companies will always get bailed out by the Feds and that stock will always go back up.

I don't buy often, but I've never lost money doing that. Like after the BP shit in the gulf their stock shit the bed big time. Bought a bunch and just waited. Went from $110 to $58 over night, bought it at $58. In less than a year it was back up to $92. You gotta look for major events though, like Bud Light and the Dylan Mulvaney shit. If a company is going to shit just because of bad business practices don't buy that when it's getting low because it'll probably stay there.
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I have a buddy who lost over $300k cuz “General Motors is to big to go bankrupt”. :homer:

Once it started dropping he was stuck.
 
white-rhino said:
I have a buddy who lost over $300k cuz “General Motors is to big to go bankrupt”. :homer:

Once it started dropping he was stuck.
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You're probably never technically "stuck" with a stock (options, maybe). You can realize the loss (tax tool as well), and move the remainder onto something with more upside, and hopefully have made a better choice next go around :laughing:
 
FlexyTJ said:
You're probably never technically "stuck" with a stock (options, maybe). You can realize the loss (tax tool as well), and move the remainder onto something with more upside, and hopefully have made a better choice next go around :laughing:
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Oh for sure. But by the time he realized it was a sinking ship, he didn’t have much left. Sucked for him. Set his retirement back several years.

Lesson learned is don’t ever think a company is too big to fail.
 
SomeGuyFromOlympia said:
They have things called Financial Advisors, they do this sort of thing:grinpimp:

My kid has been turning 20+% on Mutual Funds this year, I told her to not to get used to it, but she is digging it
edit 22.77 on her Mutual Funds
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She needs to review her portfolio.

port.PNG
 
...try these channels?

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XtremeJ said:
Put 1/4 X into a SPY index or SPY ETF
Put 1/4 X into a Tech index or ETF(s)
Put 1/4 X into your kids college funds, they will be very limited in what you can invest in within the fund. Choose Growth funds.
Put 1/4 X into dividend generating ETF's. These focus on returning dividends to investors and reinvesting these. Personal favorite is SCHD, VOO.

Max out any contributions you can. HSA, 401K, especially if you are in any company matching scheme.
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This is where I am heading with mine, I'm working on getting the 401k up to a safer level then leveraging off to a very similar break up to this here.

I'm not smart enough to manage funds with individual stocks. I have read books and most of this is ridiculously overwhelming to understand for me, taking in all of it, and not being able to watch it through the day. Lower risk for sure, but it's long term growth for me.
 
non-OP said:
She needs to review her portfolio.

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She is 16, and she will be a multi-millionaire at the rate she is going. She is fine with what she has going on
(and that is 29.74 average FYI, not far off )
 
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Motorcharge said:
The fool proof way is to just buy major company stock when it crashes after some disastrous bullshit. Those companies will always get bailed out by the Feds and that stock will always go back up.

I don't buy often, but I've never lost money doing that. Like after the BP shit in the gulf their stock shit the bed big time. Bought a bunch and just waited. Went from $110 to $58 over night, bought it at $58. In less than a year it was back up to $92. You gotta look for major events though, like Bud Light and the Dylan Mulvaney shit. If a company is going to shit just because of bad business practices don't buy that when it's getting low because it'll probably stay there.
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My dad bought Enron on this theory.
“Too big to fail”

He lost a lot.
 
grumpy356 said:
My dad bought Enron on this theory.
“Too big to fail”

He lost a lot.
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Haven't been able to keep up with this today.

One of the "teachers" I spoke of has done the same thing more than once. Went in big on companies viewed like that, and lost it all.
 
grumpy356 said:
My dad bought Enron on this theory.
“Too big to fail”

He lost a lot.
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An old housemate bought lots of Dell back in the 90's and bought a lot of it on margin. Account value was over $7m, when the dot com bubble burst, they cashed him out with $17k once all the margin calls were in.. His house was paid for and his wife worked, so he didn't end up on the street, but it was pure greed, he was trying to delay tax implications. Now he just pays the tax.
 
I havent read some of the long winded posts simply because im on my phone:flipoff2:

The markets are loaded with all kinds of different opportunities for all kinds of different goals and styles. I have been a full time trader since 2016. Its the sole reason I was able to walk away from a lucrative 20yr career in the electrical construction world and flee the sinking ship of CA. I'll revisit this tomorrow while im at my desk and plop down my 2 cents on a few things.
 
Fueler said:
I havent read some of the long winded posts simply because im on my phone:flipoff2:

The markets are loaded with all kinds of different opportunities for all kinds of different goals and styles. I have been a full time trader since 2016. Its the sole reason I was able to walk away from a lucrative 20yr career in the electrical construction world and flee the sinking ship of CA. I'll revisit this tomorrow while im at my desk and plop down my 2 cents on a few things.
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Please do. Sounds like you'll provide some useful info.
 
It takes money to make money... Some of the better equities are north of $500 a share. You are looking at ~500K to start playing ball; options are in 100 share lots. You also need to know how to place a buy or sell order, or you will lose your ass. Market orders are fucking crazy dangerous; stop limits are your new friend.
Settle down and play the long game on the market. That is you hold a stock for longer then a year to avoid short term capital gains taxes. :smokin::smokin::smokin:
 
I agree with much of what has been said...some not so much. 100% true that if you dont have the time to dedicate to learning how all this works then some sort of dollar cost averaging into an index fund would be best. But if you have the time and desire to get involved there is plenty of money to be made in all kinds of different corners of the market. But make no mistake...you WILL lose money figuring it out:laughing:

Honestly Im not sure where Id even begin to try and "teach" somebody any of this. Its definitely true that most dont stick around after giving up all their money to the market gods. Many that dive in have crazy expectations of Lambos and yachts mostly fueled by all the instagram and youtube "stock alert" services. Id advise strongly against any "alert" service. They are all mostly a giant waste of time. The only thing you will eventually learn there is what not to do.

I think the first thing the OP needs to do is watch some videos on how to read the charts to determine what the stock is doing. The chart will tell you where the supply and demand is in the most basic sense.

Just watch this gem from way back...it will tell you everything you need to know:laughing:


 
SomeGuyFromOlympia said:
She is 16, and she will be a multi-millionaire at the rate she is going. She is fine with what she has going on
(and that is 29.74 average FYI, not far off )
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I does depend on how and what you average. Weighted average based on portfolio value can help numbers feel better. And not including bonds with fixed rates (like that 4% number) is also a good thing when considering portfolio performance.
 
WTF? nailed it.

Even among finance professionals everyone just buys boring ETFs except the hobbyists for whom it is a hobby.


Roc Doc said:
Just to add, trading is gambling, investing is different.
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Trading is gambling investing is betting.

Motorcharge said:
Stick to household names, shit that's been around forever. Coke, Disney, Ford, etc.
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Sears. :laughing:
 
non-OP said:
I does depend on how and what you average. Weighted average based on portfolio value can help numbers feel better. And not including bonds with fixed rates (like that 4% number) is also a good thing when considering portfolio performance.
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her numbers were running off an 8% average
she is long game
as a dad she will be doing fine, and she will probably be able to give the finger to any job that she wants to by 40 and do what she wants
I just wished that I had someone to show me when I was younger
 
non-OP said:
I does depend on how and what you average. Weighted average based on portfolio value can help numbers feel better. And not including bonds with fixed rates (like that 4% number) is also a good thing when considering portfolio performance.
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What is also often overlooked is the before tax value versus the after tax take home.

I would love to trade my bitcoin (buy& sell on the rise & fall) but fuck the tax implications.

Same with some Apple stock I have.
 
grumpy356 said:
What is also often overlooked is the before tax value versus the after tax take home.

I would love to trade my bitcoin (buy& sell on the rise & fall) but fuck the tax implications.

Same with some Apple stock I have.
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It sucks and is why I split my 401k (and related matches) 50/50 into traditional and Roth versions. Keep the max matching from my employer and hit the annual max contribution but lower my taxes a little bit while reducing tax burden on withdrawal. All hoping that the marginal tax rates don't skyrocket when I need to start pulling from it.
 
Sort of off topic; Anyone ever of a "back-door" Roth conversion? Rolling an IRA into a 401K.

There are no limits to the amount of money that can be converted from a traditional IRA to a Roth IRA through a backdoor Roth strategy. However, there are contribution limits to traditional IRAs and Roth IRAs, which can change annually. In 2024, individuals under 50 can contribute up to $7,000 to an IRA, and those 50 and older can contribute up to $8,000.

This would be my excuse to work for a Walffel House or Walmart just long enough to get into their 401K.
On the flip side of things; I would get "Taxed Torpedoed" and suffer a huge IRMAA adjustment with Medicare.

Maybe I should consider the Hunter Biden lifestyle; hookers and blow. :lmao::lmao::lmao::lmao:
 
billdacat said:
Sort of off topic; Anyone ever of a "back-door" Roth conversion? Rolling an IRA into a 401K.
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Do you mean the inverse of that 401k -> Rollover IRA? I did that when I left my former employer, no cap. Disregard if you meant otherwise.

I start and max out a new Roth every year, do most of my quick flips there as it avoids paperwork tax time. There are probably some hidden tricks here I'm missing.....
 
grumpy356 said:
What is also often overlooked is the before tax value versus the after tax take home.

I would love to trade my bitcoin (buy& sell on the rise & fall) but fuck the tax implications.

Same with some Apple stock I have.
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Please explain this to me like I am graduating high school and cannot balance a check book.

I do not get this paralysis to buy or sell based on fear of possible taxation.

Are you ill prepared as an entity to trade your own investments / retirement accounts?

Who is advising you that paying some % of tax on massive gains should prevent you from realizing those gains?

If you won a million dollars on the lotto are you a happy man?
Now you have to pay 50% tax. Are you a happy man?

Or does you fear of having to pay 1/2 mil prevent you from buying that lotto ticket in the first place?

I suggest a better tax advisor.
 
billdacat said:
You also need to know how to place a buy or sell order, or you will lose your ass. Market orders are fucking crazy dangerous; stop limits are your new friend.
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What is wrong with a market order? I’ve executed dozens of them
 
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