• Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.
  • The Politics forum has been nuked. Please do not bring political discussion to the rest of the site, or you will be removed. Thanks.

Who needs a job when you can just buy stocks?

Jose92

Member
Aug 24, 2013
471
2,857
965
swansea
Hey everyone I just kinda half skimmed the thread. Can someone tell me how to make tonnes of money really fast please thanks
Day trading is mostly bullshit unless you get super lucky, if you looking to invest cash as a long term thing then stocks could yield much higher profit than just leaving your money in the bank.

90% of day traders lose money just keep that in mind before you embark on treacherous journey filled with heartache and disappointment
 
Last edited:

Weiji

Banned
Jul 20, 2018
1,412
2,271
430
I’ll bite.

I have decently large accounts.

My strategy:

1) Max annual 401k contributions: 90% SPY and 10% international to lower my taxes on realized gains in my private trading account.

2) Max IRA and focus on high dividend income. During 25-30% market drops I will cut IRA funding and focus income on my personal account and during 50+% downturns I’ll pull funds out to fund my personal accounts.

3) Remaining funds go into my private account (by far my largest) where I trade 100 tickers (No etfs) within % confidence tiers, I sell if they exceed their tier % and buying if they drop below their tier minimum. No single stock ticker is allowed to exceed ~6%.

80% of these tickets are in tech, and all stocks in the OP are in my top two tiers. The rest are high risk software / chip makers etc. Believe it or not even at 100 tickers I have trouble picking what stays or goes.

The remaining 20% are low dividend high stability companies like waste management utilities

I do utilize options, but only ever 5% of my portfolio or less.

I typically beat the SPY by between 10 and 30% annually and most of the time I beat VGT as well, but it varies. Importantly my methodology produces much better results during downturns. During the March low this year my account fell about 10-15% less then SPY despite the tech focus.

I am also a big believer in paying off debt. I’d say once 50% of your trading account can pay something off do it. CCs first, then car loans, then mortgage, in that order. I am debt free for about 2 years.
 
Last edited:

supernova8

Member
Jun 2, 2020
2,389
3,405
430
You only make money when you sell your stock... it can go down at any moment.

OP sounds like some Robinhood teen who just discovered trading for the first time.

Yeah I was about to say that. Plus you have your transaction fees for both buying and selling, and you'll have to pay tax every time you sell at a profit (which is every time if you're doing it right).

With that said, this covid thing has been a learning experience in terms of stock investing. Now I know (or am relatively confident) that tech stocks will be considered safe haven stocks in any future similar pandemic.
 

supernova8

Member
Jun 2, 2020
2,389
3,405
430
I’ll bite.

I have decently large accounts.

My strategy:

1) Max annual 401k contributions: 90% SPY and 10% international to lower my taxes on realized gains in my private trading account.

2) Max IRA and focus on high dividend income. During 25-30% market drops I will cut IRA funding and focus income on my personal account and during 50+% downturns I’ll pull funds out to fund my personal accounts.

3) Remaining funds go into my private account (by far my largest) where I trade 100 tickers (No etfs) within % confidence tiers, I sell if they exceed their tier % and buying if they drop below their tier minimum. No single stock ticker is allowed to exceed ~6%.

80% of these tickets are in tech, and all stocks in the OP are in my top two tiers. The rest are high risk software / chip makers etc. Believe it or not even at 100 tickers I have trouble picking what stays or goes.

The remaining 20% are low dividend high stability companies like waste management utilities

I do utilize options, but only ever 5% of my portfolio or less.

I typically beat the SPY by between 10 and 30% annually and most of the time I beat VGT as well, but it varies. Importantly my methodology produces much better results during downturns. During the March low this year my account fell about 10-15% less then SPY despite the tech focus.

I am also a big believer in paying off debt. I’d say once 50% of your trading account can pay something off do it. CCs first, then car loans, then mortgage, in that order. I am debt free for about 2 years.

Joseph Carlson? ;)
 

Weiji

Banned
Jul 20, 2018
1,412
2,271
430
Joseph Carlson? ;)

Never heard of him, looked him up on YouTube just now. Definitely not me, dividend / value investor who recently bought bank stocks?

Definitely NOT my trading style.

banks are cheap right now but I don’t believe we’re going to see high interest rates again for a very long time, if ever, which makes them a terrible investment. AlsoI believe the tech winds are just starting to commoditize what they do.

TLDR Fintech + long term low interest rates gonna fuck big banks.
 
Oct 30, 2011
6,947
7,655
1,075
I’ll bite.

I have decently large accounts.

My strategy:

1) Max annual 401k contributions: 90% SPY and 10% international to lower my taxes on realized gains in my private trading account.

2) Max IRA and focus on high dividend income. During 25-30% market drops I will cut IRA funding and focus income on my personal account and during 50+% downturns I’ll pull funds out to fund my personal accounts.

3) Remaining funds go into my private account (by far my largest) where I trade 100 tickers (No etfs) within % confidence tiers, I sell if they exceed their tier % and buying if they drop below their tier minimum. No single stock ticker is allowed to exceed ~6%.

80% of these tickets are in tech, and all stocks in the OP are in my top two tiers. The rest are high risk software / chip makers etc. Believe it or not even at 100 tickers I have trouble picking what stays or goes.

The remaining 20% are low dividend high stability companies like waste management utilities

I do utilize options, but only ever 5% of my portfolio or less.

I typically beat the SPY by between 10 and 30% annually and most of the time I beat VGT as well, but it varies. Importantly my methodology produces much better results during downturns. During the March low this year my account fell about 10-15% less then SPY despite the tech focus.

I am also a big believer in paying off debt. I’d say once 50% of your trading account can pay something off do it. CCs first, then car loans, then mortgage, in that order. I am debt free for about 2 years.

your retirement strategy is sound but don’t confuse outcome of your trading accounts with strategy

tech stocks all have very high p/e multiples. If/when growth slows you are going to see a massive correction in this sector

tech is always highly volatile and cyclical.

having 80% of your holdings there is unwise, just ask anyone from the early 00s
 

Weiji

Banned
Jul 20, 2018
1,412
2,271
430
your retirement strategy is sound but don’t confuse outcome of your trading accounts with strategy

tech stocks all have very high p/e multiples. If/when growth slows you are going to see a massive correction in this sector

tech is always highly volatile and cyclical.

having 80% of your holdings there is unwise, just ask anyone from the early 00s

I was trading during the .com bubble and I remember it well. And I agree, many of the stocks in the sector are very overpriced, and some will die when / if liquidity dries up. But I have no debt and I believe we’re in a world now where data is the new gold. More of our lives are online and greater levels of analytics are going to be necessary this is a massive long term tail wind for software and chip stocks.

In short I remain highly bullish on the sector long term, and I’m perfectly able to handle a 50% market correction in tech. Obviously not everyone should be invested that aggressively.
 
Oct 30, 2011
6,947
7,655
1,075
I was trading during the .com bubble and I remember it well. And I agree, many of the stocks in the sector are very overpriced, and some will die when / if liquidity dries up. But I have no debt and I believe we’re in a world now where data is the new gold. More of our lives are online and greater levels of analytics are going to be necessary this is a massive long term tail wind for software and chip stocks.

In short I remain highly bullish on the sector long term, and I’m perfectly able to handle a 50% market correction in tech. Obviously not everyone should be invested that aggressively.

I don’t disagree that tech is here to stay, certainly not questioning that. It’s whether that sector can continue to have enormously outsized returns

I have my doubts that it can continue as it has.

it can still be extremely important economically and yet be a terrible investment
 

Weiji

Banned
Jul 20, 2018
1,412
2,271
430
Also just a quick shoutout for iexcloud.io which is where I get financial data to feed my modeling tools. If you’ve got a background in data analytics you can use this to do some pretty cool shit.
 
F

Foamy

Unconfirmed Member
Maybe. I wouldn't make any hasty moves till after the election. I think there is a lot of upside if Trump wins. Also buying volatility index and shorting is for brainlets. Everyone else buys precious metals or crypto if they are worried, or possibly treasury bonds.
Oh look VIX has gone from $27 to $40 this week and made me a killing. Not bad for a brainlet.
If you can't recognize this market as down trending yet I don't know what to tell you.
Good luck with bonds.
 
Last edited by a moderator:

Wunray

Member
Jan 7, 2018
1,560
2,056
505
Darn a lot of back and forth but can someone point me in the direction of any material so I could the art of trading stocks?
 
  • Thoughtful
Reactions: Tesseract

Weiji

Banned
Jul 20, 2018
1,412
2,271
430
Darn a lot of back and forth but can someone point me in the direction of any material so I could the art of trading stocks?

 
  • Thoughtful
Reactions: Tesseract
Mar 23, 2013
2,616
1,015
810
Invest in snp500 funds like VOO. Don’t invest money you can’t afford to lose. Have a long time horizon at least like 3-5 years.
if there’s a downturn, stomach the volatility and just buy more.
if you invested once during the peak of the dot com bubble in 2000, yes, it
would have taken 10 years to recoup your money but if you dollar cost averaged every 2 weeks over that 10 year period you would have made a
ton of money.

 
Last edited: