Board 8 > Stock Topic 35

(+) Yeah! (+)

Or not? Ugh

You better hope Uber goes up or else you owe me $130k

Damn. Oh well, Im still holding these bad boys. Hopefully they recover sooner than later.

Oh this is looking great to get a discount on my tax bill

As I said

The stock market is done
It will take a year to recover or more

Market not liking this press conference.

Powell talking about how the labor market is awesome and it's super easy to find a job right now.

Fail

Mistimed. But I believe in a rebound

This market sucks. Oh well. This is when you rejoice that you aren't overleveraged and keep on going.

I was hoping it would go down more today but I'll take the free lunch that this bought me and be happy.

Dont worry guys. There is a rebound coming.

reddit fucked up and missed the IPO bubble

Man this market sucks

GME has been fluctuating wildly doing 10-20% moves on a daily basis recently. I feel like there's an opportunity to daytrade this.

Looking at TQQQ graph is such a lol

I have faith that February will be our savior.

February 2024

I think buy the dip is over and now it's dollar cost averaging or holding cash.

Zachnorn posted...

I think buy the dip is over and now it's dollar cost averaging or holding cash.

Isn't dollar cost averaging the same as buy the dip?

red sox 777 posted...

Isn't dollar cost averaging the same as buy the dip?

"Buying the dip" is trying to time the market to buy at a low. "Dollar cost averaging" is buying at regular intervals regardless of market conditions.

Easily confused with "averaging down" which is buying the dip to get a lower cost per share. Dollar cost averaging only lowers the cost per share when the stock is down but it can increase it if the value of the stock has gone up.

Zachnorn posted...

"Buying the dip" is trying to time the market to buy at a low. "Dollar cost averaging" is buying at regular intervals regardless of market conditions.

Easily confused with "averaging down" which is buying the dip to get a lower cost per share. Dollar cost averaging only lowers the cost per share when the stock is down but it can increase it if the value of the stock has gone up.

I am pretty sure dollar cost averaging means only buying when it lowers your average cost. The other one you are referring to is what is typically recommended (just put all your money save an emergency fund in the market at all times).

red sox 777 posted...

I am pretty sure dollar cost averaging means only buying when it lowers your average cost. The other one you are referring to is what is typically recommended (just put all your money save an emergency fund in the market at all times).

https://www.investopedia.com/terms/d/dollarcostaveraging.asp

Oh interesting. Guess I've misunderstood the term for ages!

But uh, I guess the conclusion is the same. DCA is a suboptimal strategy. The recommended advice always given (assuming you cannot time the market) is to maximize the amount of money you have in the market at all times. Buy when stocks are down, buy when they are up, buy whenever you have money to put in. I guess this is "lump sum" investing if you have a big lump sum to invest, but if you have already invested most of your money this looks a lot of like investing at regular intervals because you invest more when you get paid from work.

This is the most I've ever felt the Mandela effect. I was half convinced someone went and edited Investopedia, but it checks out with all the other sites showing up on a Google search. So strange.

Youre thinking value averaging

red sox 777 posted...

Oh interesting. Guess I've misunderstood the term for ages!

But uh, I guess the conclusion is the same. DCA is a suboptimal strategy. The recommended advice always given (assuming you cannot time the market) is to maximize the amount of money you have in the market at all times. Buy when stocks are down, buy when they are up, buy whenever you have money to put in. I guess this is "lump sum" investing if you have a big lump sum to invest, but if you have already invested most of your money this looks a lot of like investing at regular intervals because you invest more when you get paid from work.

Pretty much. I had been saving for a year's worth of expenses until I figured that that's too long. So it turned into a down payment fund, and now I'm just putting it in gradually into stocks because I still can't buy a home in LA and I'm not moving out of my mom's house until I can afford to buy; I refuse to be a renter.

So, I have a lump sum I can invest, but I'm too risk adverse to actually drop it in at once. I'm dropping in $1,000 per week until it's down to my emergency fund (I'm putting more into investments than my income each moth currently), plus whatever I feel like betting on in another brokerage.

I have pretty much all my funds in the market. Down about 7% so far. Hope it doesnt keep going down!

DCA is suboptimal strategy but it's a hedge against future downturns. It's less risky than lump sum investing, even if the EV is lower.

bartz help me make a quick buck @Lopen has failed me

I don't pick stocks

damn

Sorry. I know my strengths and that is not one of them.

Homie stock EVRI up 9% AH for some reason, damn it

Another Red day. Sheesh

I wish I had the same diamond hands I have now back when the market was bullish
At a certain point like 4 months ago I was just broken mentally and decided that I suck at this and I can't time the market, ever, so I just put my money and see what happens in a year from now

Of course that was a shitty time to make that decision as I am at a $8k loss from the entire time I started investing (maybe even more) but I don't care anymore.
Maybe this is a good lesson for me for the future...maybe I finally realized the "it's just money" "money comes money goes", "evantually the market will go up"
And maybe then when the market will finally break new records, I won't sell early anymore

Nanis23 posted...

I wish I had the same diamond hands I have now back when the market was bullish
At a certain point like 4 months ago I was just broken mentally and decided that I suck at this and I can't time the market, ever, so I just put my money and see what happens in a year from now

Of course that was a shitty time to make that decision as I am at a $8k loss from the entire time I started investing (maybe even more) but I don't care anymore.
Maybe this is a good lesson for me for the future...maybe I finally realized the "it's just money" "money comes money goes", "evantually the market will go up"
And maybe then when the market will finally break new records, I won't sell early anymore

Im down 50k! I just stopped looking!

Yeah, diamond hands wouldve been great about two years ago. Now? Im not so sure. The bear market fear is real. You could be down for years. I heard bear markets typically last 15 months on average.

Nanis23 posted...

I wish I had the same diamond hands I have now back when the market was bullish
At a certain point like 4 months ago I was just broken mentally and decided that I suck at this and I can't time the market, ever, so I just put my money and see what happens in a year from now

Of course that was a shitty time to make that decision as I am at a $8k loss from the entire time I started investing (maybe even more) but I don't care anymore.
Maybe this is a good lesson for me for the future...maybe I finally realized the "it's just money" "money comes money goes", "evantually the market will go up"
And maybe then when the market will finally break new records, I won't sell early anymore

What I've done is get an M1 Finance account. It's like a robo-advisor except you can set up a "pie" that has an allocation of stocks and ETFs you select (or premade ones) and you just put money into it and it buys them for you. I set it up to throw in some money every week.

The bad thing about it is that you can only buy/sell stocks and only do market orders during 9:30-10 am and 3-3:30 Eastern. It has no option for limit orders. Options aren't an option. It's a limited brokerage, but it's good for people like me that say "screw this, I'm done" but still want to invest regularly anyway.

I've lost the most money on regular brokerages where I play with stock picking and limit orders and honestly, options scare me so I haven't bought any.

Moonroof posted...

Yeah, diamond hands wouldve been great about two years ago. Now? Im not so sure. The bear market fear is real. You could be down for years. I heard bear markets typically last 15 months on average.

And this is why I believe dollar cost averaging is the way to go right now.

I did a lump sum investment of 6k in my Roth IRA on January 3rd and I regret it. The time horizon is there, I can't take any gains out for a few decades, just that I would have had more gains if I waited.

Im considering selling for losses, and exiting for the time being. I have all my money invested and am fearful of continued downspikes. Uber is at a 1.5 year low!

A stock is at a 1.5 year low so you want to.... sell?

The biggest gains tend to come after big losses.

If you're swing trading or day trading, this is a horrible time to do it unless you know what you're doing with shorting.

If you're investing for the long term, stocks are on sale right now.

I like to buy high and sell low.

Everyone please sell so the price goes down and I can buy more shares.

Moonroof, you like to hold for extremely short amounts of time. While I still don't think that is a great strategy, I can't knock it, because I think you've managed to lose less money than most people here over the past 7 months or so despite having much more money to lose.

I've also come to understand that its your way of managing risk - putting in massive amounts of money and holding for days or hours is much less risky than holding for years.

Yeah, it raises my floor but also lowers my ceiling. Which is fine with me because my goal is to have one million dollars and live off weekly puts. I can safely earn 1% per week doing safe strike prices which would yield $10k per week.

It really all depends on what you're buying.

I'm down a grand on SOFI and just a few months ago I was up a grand. Similar with other stock picks I've made, but not as much money (I just really believed in SOFI).

Meanwhile, while I'm down on my ETFs, they're not that far down. If you're buying ETFs, those are best for long term holds. Companies being bought and sold quickly is perfectly valid, especially if they're speculative. Like, that's what I should have done with SOFI. But I probably wouldn't do that with companies more established and "boring" like KO if I believe in them. But you buy those anyway if you're buying an ETF like SPY/VOO. So might as well just buy those.

FWIW, September and February are historically the worst performing months in the stock market.

I'm expecting March to be pretty bad if the Fed actually raises rates. Right now, we're only dealing with talk of them doing it.