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

XtremeJ said:
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.
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Once I rob the bank it’s MY MONEY and I don’t want to give a dime to anyone… especially the government.

We are talking about buying and selling, not long term holds.

So short term gains are taxed as standard income.
I buy at 10,000 dollars and sell in 6 months for a 5000 profit.
That 5000 is taxed as income. So because of my income, I’m already at the 35% tax bracket (because my 9 to 5 pays well & I hit some great bonuses) so that 5000 is really $3,250.
(Now i don’t hit that tax bracket every year, but it’s always over 22% you have to back out….unless you’re barely scraping by)


You hold it over a year you only have to worry about long term capital gains, so not as big of a hit.

If I got this fucked up someone correct me.

And I’m not saying don’t do it, I’m saying there’s a gross & a net or a before taxes & a take home, and don’t lose site of it
 
JNHEscher said:
Of course. How to identify the highs and lows, I don't really know. Tried it a few times and mostly lost.
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Easy way is 52 week high and low, that could tell you a lot of nothing...

IMO you need rules...
% profit+ is one.
Current price under "avg"
And weather it's a long term trade/acquisition or short.

If you are doing this in a regular account not a IRA or 401k then you will have short and long term capital gains, unless you make less than $3Xk a year (don't quote me on that)
 
[memphis] said:
What is wrong with a market order? I’ve executed dozens of them
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There's nothing wrong with them technically, but depending on the platform I believe they will fuck you for a few cents or dollars per share given the chance.

I always set a limit order to ensure best available price in my favor not the clearing house.
 
IMO most of us should be trading in a Roth IRA with no capital gains penalties.
Yes you can't pull out the gains penalty free but can pull out the principal at any time sans fees or tax.
 
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jpmassey said:
I've been trading for 20 years now. I find I can't beat the index over the long term.
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That's what my Uber wealthy financial advisor customer tells me...

The smartest traders in the world have a hard time doing it, you think you can do better than them?

I still try...
 
Here's a good example of stock market trading...

Buy TSLA @ $200
Elect Trump and collet $127/+65% per share.

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If you are going to hold any divy payment stocks; I’d recommend downloading DivTracker. It’s manual input but helps keep track of your P&L including your dividend payments
 

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Like others have said, the absolute vast majority of people have no business trading stocks if they are trying to increase their wealth. If you are just wanting to do it for entertainment, then go for it. If you want to build your wealth, listen to Warren Buffett and just make regular purchases of a low cost S&P500 index fund like VOO or similar other ones in your 401k and in a personal investment account if you are already maxing out your 401k.

Buying big companies when they are beaten down can be a good plan, but it can also sometimes take a long time to payoff. I bought BA when they were down big, but then their troubles continued and their stock dropped even further. On the flip side, I have also bought CCL, META, and COST when they were low, and have made huge gains on them.

I consider myself an investor, NOT a trader though. Most things I buy planning to hold for a minimum of a few years.
 
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@[memphis]

No more new trades in RobinHood, I'm still pissed about the bullshit they pulled, just not pissed enough apparently to pay the $75 to transfer the holdings.
 
I read most of this thread ……. I have no delusional expectations but I want to enter an entry level stock buy. Total investment will be less than $10k. Serious amusement for me at my financial level. I know what I want to buy. That’s not a question. Where do I start ? Where do you recommend I make this one-time purchase? E trade ? Thanks. :flipoff2:
 
Not Robinhood...

Do you already have a institution for 401k etc?
 
i have a fidelity, an Etrade, interactive brokers, sofi and robin hood. i put them in that order, fidelity is the easiest for me to bang around in.
 
I have empower, vanguard and robinhood.

Vanguard sort of sucks, I'd be looking at e-trade or other.
 
Vanguard refuses to give me a avg share cost or cost basis, really pisses me off
 
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