Current Events > Literally no idea how investing works.

(+) Yeah! (+)

Calls? Puts? WHAT DO I DO WITH MY HANDS?!

Tagged. I'm interested in starting as a noob too >_>

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idk just throw money at microcap cryptocurrencies like youre playing roulette

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Options are gambling not really investing. You can use them to hedge your investments but naked options are just gambling.

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Don't bother with calls and puts. Find a company that you like the future of. See if they're profitable with a respectable PE ratio. Buy its stock. Come back later and have more money than you started with.

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Well strap in comrades.

Calls and Puts are called OPTIONS because unlike purchasing SHARES when you purchase OPTIONS you purchase contracts that are 100 SHARES at a time. The price of these is 1/10 or something (im stoned) of the entire shares value. These are WAY MORE VOLATILE than simply owning SHARES because of some super tricky bullshit called THE GREEKS.

THE GREEKS are all sorts of complicated things that are constantly changing and ALWAYS affecting the value or rather rapid devaluing or extremely escalation of value. Price of stock, Volume of purchases, THETA DECAY is how quick your money turns to sand. CALLS is essentially saying "i wanna buy these 100 shares at a later time for this because this price will be consider cheaper later".

PUTS is saying "I wanna maybe sell this 100 of this stock shares at this price later because i own lots and it tanked and omg please i need money to feed my family and not lose my house after this stock bottomed out"

The return can potentially be hundreds of percent. I've seen it myself having shorted the market in March before the big leap. I also lost much of that becoming too confident with options when it was actually just LUCK,TIMING, and a HOT TIP.

I know for a time I was radically consumed with day trading. I'm an addict of substances and recognized the feelings. Trading can be this insane high especially when you are winning. IN TRADING LOSSES ARENT REALIZED UNTIL YOU SELL, sometimes you can be in denial and OTHER TIMES HOLDING PAYS OFF. The market has the ability to outlast you. It's irrationality will outlast your solvency 9/10 times.

There's all sorts of crazy shit when it comes to covered calls, iron condors and all that shit. Looking into that more while this pandemic helped me understand how the stock market has been artificially inflated this entire presidency. Getting in now is terrifying watching the fed reserve spend endless money it prints to inflate the stock market to all time highs. The more I learn these days the more I regret being sober. Buy guns, withdraw your money and plan for the revolution. lol.....

EDIT: In short, the theory is to invest into companies that you see growing in the future. The more stock you own, the more money you receive during dividend payouts. This itself is how the vast majority of the 1% grow their wealth over time.

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Don't invest in properties. GameFAQs is 100% against that.

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randy_123r posted...

Do not do day trading. Do not believe in the hype. Do not buy individual stocks. Invest in a well-diversifered portfolio of low-cost index funds/ ETFs. Earn that 6% per year compound growth. Buy it and leave it, checking up on it every year.

This unless you're a millionaire. And you won't become a millionaire unless you get super lucky. This isn't a get rich scheme. I'm more so into other passive income to gain more money for now.

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money goes in
money goes out

you cant explain that!

If you don't really even understand what a stock is, definitely don't start buying options lol. Options/derivatives trading is basically (educated?) gambling on the stock market these days. They originated from reasonable deals on commodities in the past that were subject to heavy price fluctuations.

The most reliable way to win in the stock market is dollar cost averaging to market wide (or something equivalent) index funds. This requires very little knowledge to do, but is generally the best strategy for the average person.

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T.C. i don't remember the investment company but they gave me false advice and cost me about $350. Give me a PM tomorrow and I will give you their name (gotta look up the records, it was about 2004).
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_Kowalski_ posted...

Well strap in comrades.

Calls and Puts are called OPTIONS because unlike purchasing SHARES when you purchase OPTIONS you purchase contracts that are 100 SHARES at a time. The price of these is 1/10 or something (im stoned) of the entire shares value. These are WAY MORE VOLATILE than simply owning SHARES because of some super tricky bullshit called THE GREEKS.

THE GREEKS are all sorts of complicated things that are constantly changing and ALWAYS affecting the value or rather rapid devaluing or extremely escalation of value. Price of stock, Volume of purchases, THETA DECAY is how quick your money turns to sand. CALLS is essentially saying "i wanna buy these 100 shares at a later time for this because this price will be consider cheaper later".

PUTS is saying "I wanna maybe sell this 100 of this stock shares at this price later because i own lots and it tanked and omg please i need money to feed my family and not lose my house after this stock bottomed out"

The return can potentially be hundreds of percent. I've seen it myself having shorted the market in March before the big leap. I also lost much of that becoming too confident with options when it was actually just LUCK,TIMING, and a HOT TIP.

I know for a time I was radically consumed with day trading. I'm an addict of substances and recognized the feelings. Trading can be this insane high especially when you are winning. IN TRADING LOSSES ARENT REALIZED UNTIL YOU SELL, sometimes you can be in denial and OTHER TIMES HOLDING PAYS OFF. The market has the ability to outlast you. It's irrationality will outlast your solvency 9/10 times.

There's all sorts of crazy shit when it comes to covered calls, iron condors and all that shit. Looking into that more while this pandemic helped me understand how the stock market has been artificially inflated this entire presidency. Getting in now is terrifying watching the fed reserve spend endless money it prints to inflate the stock market to all time highs. The more I learn these days the more I regret being sober. Buy guns, withdraw your money and plan for the revolution. lol.....

EDIT: In short, the theory is to invest into companies that you see growing in the future. The more stock you own, the more money you receive during dividend payouts. This itself is how the vast majority of the 1% grow their wealth over time.

Thanks for this detailed breakdown AND the interesting comparisons to substance use!

_Kowalski_ posted...

The market has the ability to outlast you. Its irrationality will outlast your solvency 9/10 times.

Also this is a good quote lol

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Dont waste your time with the Stock Market. Invest in Crypto currency

Buy low sell high is what Ive heard

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I wonder how many people in this topic actually have a securities license.

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meralonne posted...

I wonder how many people in this topic actually have a securities license.

Probably none. Why does that matter?

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Don't forget to factor in taxes.

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https://youtu.be/6rtYfx1-FS4?t=54

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whitelytning posted...

Probably none. Why does that matter?

Actually, one. And it doesnt, i was merely musing.

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meralonne posted...

I wonder how many people in this topic actually have a securities license.

everyone is permitted so many day trades in a business week. with all those apps people can be margin trading more than they can ever earn in a lifetime and lose it all before the nov election lol


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If you're new don't do options. I don't usually buy options myself but may start buying some puts spreads for November (election) to protect against a >8% drop in the market. I do sell some cash secured puts on stocks I wouldn't mind getting but at a cheaper price.

Current active trading portfolio is ~25% etfs (QQQ, SPY), ~30% individual stocks, ~30% selling cash secured puts and ~15% cash (for new opportunities). My retirement portfolio is more passive with just 80% VTI,10% VXUS, 10% BND index funds.

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_Kowalski_ posted...

everyone is permitted so many day trades in a business week. with all those apps people can be margin trading more than they can ever earn in a lifetime and lose it all before the nov election lol

Actually, you cant simply open up a brokerage account and trade options or on margin without proper review by the brokerage firm. Any firm that lets you create an account, dump cash into it and let you do this is asking for trouble.


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meralonne posted...

Actually, you cant simply open up a brokerage account and trade options or on margin without proper review by the brokerage firm. Any firm that lets you create an account, dump cash into it and let you do this is asking for trouble.

So you can't but you can. Got it.

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Nu_Titan posted...

If you're new don't do options. I don't usually buy options myself but may start buying some puts spreads for November (election) to protect against a >8% drop in the market. I do sell some cash secured puts on stocks I wouldn't mind getting but at a cheaper price.

Current active trading portfolio is ~25% etfs (QQQ, SPY), ~30% individual stocks, ~30% selling cash secured puts and ~15% cash (for new opportunities). My retirement portfolio is more passive with just 80% VTI,10% VXUS, 10% BND index funds.

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How quickly can u take money out of ETFs to say buy a house or stocks in a private company or just to use yourself?

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I threw $150 into Peloton at the end of April thinking in-home exercise would be a growing market because of the virus, and it's since grown to about $425. I just went into it blind through that Robin Hood app.

I also bought 10,000 Dogecoin for no real reason.

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_Kowalski_ posted...

THE GREEKS are all sorts of complicated things that are constantly changing and ALWAYS affecting the value or rather rapid devaluing or extremely escalation of value. Price of stock, Volume of purchases, THETA DECAY is how quick your money turns to sand. CALLS is essentially saying "i wanna buy these 100 shares at a later time for this because this price will be consider cheaper later".

Greeks explained

<img src="" />
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emblem boy posted...

Greeks explained

<img src="" />

thanks i never thought of just googling a picture

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Tag

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Austin_Era_II posted...

How quickly can u take money out of ETFs to say buy a house or stocks in a private company or just to use yourself?

ETFs is just basically traded like stock so you can sell it immediately during the day. If you want to sell the ETFs to buy other stock, you can do it right away. People also day trade SPY and QQQ options all the time which makes them very liquid.

If you want to withdraw your money to buy a house or whatever, you will probably have to wait a few days after selling the ETFs for the funds to settle in your account.

Keep in mind you will have to pay taxes on the income you get from profits on selling the ETFs or stocks. Short term gains (less than a year of holding the stock/etf) are taxed at a higher rate.

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Which app or program are you guys using for this? Robinhood?

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Buy a nasdaq or tech index and wait. Its pretty easy

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Poop2 posted...

money goes in
money goes out

you cant explain that!

Put your money in where everyone else is putting their money.
Get it the hell out when people start mass selling.

my explaination is about as basic as it gets. buyer beware.
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