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2020 Investment Thread

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asdfghwy said:
sounds like somebody is butthurt the game and algorithms they've fine tuned for decades are being fucked by retail investors. don't hate the player, hate the game:cool
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My feeling is that retail investors are getting fucked quite well on terrible option trades.
 
Well, that's kind of the whole point of options. It's a game of little guy winners and losers created for the purpose of funneling transaction fees to the real money makers.
 
mrzuzzo said:
My feeling is that retail investors are getting fucked quite well on terrible option trades.
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It's actually almost funny. There are a lot of young traders out there buying up options, driving the market higher short term, but the volatility is high and the prices are insane. Insane. It's how you make some good money until you suddenly lose a lot of good money.

Options remain an area where most traders lose money, but all of them believe that they actually know what they are doing. :laughing
 
afm199 said:
It's actually almost funny. There are a lot of young traders out there buying up options, driving the market higher short term, but the volatility is high and the prices are insane. Insane. It's how you make some good money until you suddenly lose a lot of good money.

Options remain an area where most traders lose money, but all of them believe that they actually know what they are doing. :laughing
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I get a kick out off all the books written about options trading by authors who never made anything close to the fortune they claim you’ll make by following their tips.
 
Blankpage said:
I get a kick out off all the books written about options trading by authors who never made anything close to the fortune they claim you’ll make by following their tips.
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Amen. The hardest investment lesson to learn is that if it was really easy money, everyone would be doing it. Though it seems that everyone is trying now, :laughing.
 
Blankpage said:
I get a kick out off all the books written about options trading by authors who never made anything close to the fortune they claim you’ll make by following their tips.
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The same is true for real estate investors.

Watch Dirty Money on Netflix ;)
 
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afm199 said:
It's actually almost funny. There are a lot of young traders out there buying up options, driving the market higher short term, but the volatility is high and the prices are insane. Insane. It's how you make some good money until you suddenly lose a lot of good money.

Options remain an area where most traders lose money, but all of them believe that they actually know what they are doing. :laughing
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Sadly I’m in the category you speak of. :laughing
 
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Some of the get rich quick plans the guys at wallstreetbets actually work. But it’s very horrifying seeing the plans that didn’t work. There’s lots of YOLO attitudes among the younger generation and I don’t think it will stop anytime soon.
 
Sometimes betting on horses at the track actually works. But it is still just gambling.

It likely will stop soon - as with any fad or bubble. The unfortunate thing is that it will exacerbate the market correction that is likely coming.

Back on the subject of investing, I've been shifting to cash ahead of the election and am planning on holding a ~40% cash/money markets until after the dust settles.
 
jt2 said:
Sometimes betting on horses at the track actually works. But it is still just gambling.

It likely will stop soon - as with any fad or bubble. The unfortunate thing is that it will exacerbate the market correction that is likely coming.

Back on the subject of investing, I've been shifting to cash ahead of the election and am planning on holding a ~40% cash/money markets until after the dust settles.
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I'm trimming and putting cash away. Some positions I will never sell, some I consider too vulnerable. Tech is getting way frothy.
 
Yeah, not 2000 frothy, but definitely bubbleicious. I've sold enough Amazon, Tesla and Microsoft that what remains is "free" to me, but still may need to shed more to maintain a good allocation balance. Especially since the coming months are likely to be very choppy.
 
Is it worth it to cash out positions in index funds and wait to re-enter or should i just maintain the set it and forget it mentality. Outside of Palantir and Apple I don't own other individual stocks anymore
 
Your investment horizon is likely much longer than mine, so my more cautious approach might not be right for you.

I think if I were in your shoes, I'd likely largely ride it out. The wildcard there is if you need to maintain an emergency fund. I'd fund that now if you need to bank some living expenses.
 
What is it that we think will cause a sudden wave of intelligence for investors? Poor holiday spending, covid pt 2 the awakening, more unemployment..?
 
prominent members of the financial community are endorsing Biden due to the stability he'll create vs. Trump. And Biden is looking like he'll win by a lot. I'm starting to have a feeling that the dip isn't going to be as bad as thought. Alternatively, if a big dip happens, the govt will once again push aside helping working class to prioritize printing money for wall street. I get the feeling the NYSE will be over 30k by the end of next year. I agree with getting dry powder ready if/when a dip happens, but I'm now starting to think that just steadily increasing positions won't be a losing strategy either...the opposite, really.
 
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