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Talking stocks, trading, and investing in general - Page 336

post #5026 of 6116
Quote:
Originally Posted by UnFacconable View Post

Sorry everyone, should have warned you this would happen.

I'm always amazed at the insight people have post-event.
post #5027 of 6116
So far so good, only ATK is green, everything else is red. Let the river run red.
post #5028 of 6116
Quote:
Originally Posted by Piobaire View Post

I'm always amazed at the insight people have post-event.

Yep, the market went up probably 25% while I waited for a 5-10% drop. I don't really regret waiting and I don't really regret dropping in now even if it turns out to precede the fall. I have more to deploy and will get it all back over time.
post #5029 of 6116
Quote:
Originally Posted by UnFacconable View Post


Yep, the market went up probably 25% while I waited for a 5-10% drop. I don't really regret waiting and I don't really regret dropping in now even if it turns out to precede the fall. I have more to deploy and will get it all back over time.

 

Let me see if I am reading your investing strategy correctly:

 

1. Timing the market and thus losing out on a 25% gain.

2. Deploy money Wednesday then tell us the fall was coming Thursday (I assume you were red like the rest of us)

3. Say you didn't mind missing out on the 25% gain and are now telling us you will slowly get back in with your timing strategy.

 

We will all have more money to put into the market in the future...sort of how investing works.  Keep adding and hopefully it keeps growing.  Post in here more before you come in here saying you could predict yesterdays drop to the day.

post #5030 of 6116
Math never lies:

Lost out on 25% gain.
Waiting for 10% drop (let's be generous)
Hold till the correction is over.

-25% + 10% = -15%

You'd still be -15% behind someone who just buys and holds. Market timing doesn't work, no matter how much you look at the market everyday. Buy and hold may be boring, but it works. Remember the saying: "It's not timing the market, it's time IN the market."
post #5031 of 6116
Quote:
Originally Posted by jbarwick View Post

We will all have more money to put into the market in the future...sort of how investing works.  Keep adding and hopefully it keeps growing.  Post in here more before you come in here saying you could predict yesterdays drop to the day.

It was sarcasm. Obviously if I could time the market perfectly I would have sat on the sidelines longer or put in money earlier. Didn't realize I was being that obtuse but I guess I must have been.
Quote:
Originally Posted by guyver00 View Post


You'd still be -15% behind someone who just buys and holds. Market timing doesn't work, no matter how much you look at the market everyday. Buy and hold may be boring, but it works. Remember the saying: "It's not timing the market, it's time IN the market."

No debate here. I took some money off the table for a very specific reason a few years ago in order to de-risk in connection with a home purchase and was far too patient in jumping back in. In addition to investing in the market, I also allocate to private investments (some direct, some through funds) so I wanted to have cash available for that as well.
post #5032 of 6116
Deploying some bucks. Krft got hammered yesterday.

I'm off peaks by about 4-5% in all accounts, so a pretty decent correction I suppose.
post #5033 of 6116
Quote:
Originally Posted by SkinnyGoomba View Post

Deploying some bucks. Krft got hammered yesterday.

I'm off peaks by about 4-5% in all accounts, so a pretty decent correction I suppose.

You going in on KFT? I'm bearish. Holding my small stake in it, but still.

I think there is more correcting to do. Hopefully the weekend settles nerves.

BAC looks cheap here.
post #5034 of 6116
I have a bunch, had it since well before they spun off Mondelez, thinking about buying more.

Yes! I want more BAC. I am happy to gobble it up while it gets sold off. I've been bolstering dividend positions, but I may take a break from that soon and pick up more BAC.

Here's one for you, my brother bought Philip Morris USA in 2006, which spun off Kraft in 2007 then Phillip Morris International in 2008, Kraft then Spun off Mondelez in 2012. He has retained all companies since then, and the cumulative dividend is around 12% on his principle investment.
Edited by SkinnyGoomba - 8/2/14 at 5:19am
post #5035 of 6116
Quote:
Originally Posted by SkinnyGoomba View Post

I have a bunch, had it since well before they spun off Mondelez, thinking about buying more.

Yes! I want more BAC. I am happy to gobble it up while it gets sold off. I've been bolstering dividend positions, but I may take a break from that soon and pick up more BAC.

Here's one for you, my brother bought Philip Morris USA in 2006, which spun off Kraft in 2007 then Phillip Morris International in 2008, Kraft then Spun off Mondelez in 2012. He has retained all companies since then, and the cumulative dividend is around 12% on his principle investment.

Bought BAC at 15.02 today and sold call options at $0.22 on it.

Doubled down on SBUX and also doubled down on DVYL. Bought more AAPL and PBR.

Don't think the downturn is over, so I'm sitting on cash and willing to double down on any long position when the math makes sense.
post #5036 of 6116
Quote:
Originally Posted by idfnl View Post

Bought BAC at 15.02 today and sold call options at $0.22 on it.

What does that mean for us non-finance types? foo.gif
post #5037 of 6116
Quote:
Originally Posted by amerikajinda View Post

What does that mean for us non-finance types? foo.gif

For every hundred shares of stock you have you can sell an option on it. Means that someone pays a free for the right to buy the stock at the strike price at a future date. If the price isn't over that strike at expiration, you keep the stock and the fee that was paid, otherwise, the person gets the stock at the strike price.

Its an excellent way to make an extra 1 or 2% on your positions.
post #5038 of 6116
Quote:
Originally Posted by idfnl View Post


For every hundred shares of stock you have you can sell an option on it. Means that someone pays a free for the right to buy the stock at the strike price at a future date. If the price isn't over that strike at expiration, you keep the stock and the fee that was paid, otherwise, the person gets the stock at the strike price.

Its an excellent way to make an extra 1 or 2% on your positions.

 

For anyone who doesn't exactly know what they are doing, please do not go out and write a bunch of options. Writing covered calls can be a great method to generate some additional income, but the key word is covered.

 

I'm not as inclined to write covered calls right now given that vol is still so cheap

post #5039 of 6116
Quote:
Originally Posted by RedLeg View Post

For anyone who doesn't exactly know what they are doing, please do not go out and write a bunch of options. Writing covered calls can be a great method to generate some additional income, but the key word is covered.

I'm not as inclined to write covered calls right now given that vol is still so cheap

Naked calls are a bad idea. Make sure you own the stock. What's your experience with writing puts?
post #5040 of 6116
Quote:
Originally Posted by idfnl View Post

What's your experience with writing puts?
For those, make REALLY sure that you're not naked.
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