Discussion ***Official*** 2021 Stock Market Thread

[FelixDeCat]

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[KentState]

Hopefully this question is ok in the thread, if I will remove it.

At what point should someone reconsider handling their "play" money stock account? I opened one in 2008 around the crash as I felt it was a good time to pick up some cheap stocks. Over that time, I've put in a few thousand each month and picked up stocks that interested me. Some have had huge growth like Tesla to the point were it's become more than just "playing" with stocks. How have other amateurs dealt with this and what should be my next steps?

 

[Train]

Hopefully this question is ok in the thread, if I will remove it.

At what point should someone reconsider handling their "play" money stock account? I opened one in 2008 around the crash as I felt it was a good time to pick up some cheap stocks. Over that time, I've put in a few thousand each month and picked up stocks that interested me. Some have had huge growth like Tesla to the point were it's become more than just "playing" with stocks. How have other amateurs dealt with this and what should be my next steps?

I would just take some profit from TSLA if you are feeling you are holding too much. Put it somewhere safe and diversified like VOO and BOND (90/10 or maybe 80/20, your call)

Over the past decade or so my TD Ameritrade acct went from a small chunk of play money to a sizable portion of my net worth. One thing I decided to do was make sure I had something in every sector. I was way too tech-heavy. Aside from ETFs like I mentioned above, I didn't have any real estate so I added O, and I didn't have any entertainment so I added Disney. One sector I think everyone should have is energy. There are ETF's but also individual stocks (I've held ALE for years and they pay a great dividend and have grown to the point where I had to sell half to balance out) Energy stocks have a tendency to move the opposite of the market so are a great tool to rebalance with.

 

[ponyo]

Hopefully this question is ok in the thread, if I will remove it.

At what point should someone reconsider handling their "play" money stock account? I opened one in 2008 around the crash as I felt it was a good time to pick up some cheap stocks. Over that time, I've put in a few thousand each month and picked up stocks that interested me. Some have had huge growth like Tesla to the point were it's become more than just "playing" with stocks. How have other amateurs dealt with this and what should be my next steps?

I'm not sure I understand your question. Are you asking if you should stop self-managing your "play" money account and turn it over to some fee charging professional? Or your uncomfortable with how big some of your positions have gotten and looking ways to diversify?

 

[njdevilsfan87]

What a great day for weed stocks. With the dems winning Georgia it becomes very likely we will see it legalized at the federal level opening up a huge market and removing a lot of barriers for many companies.

 

[FelixDeCat]

As predicted, you know who caused the market to fall because he refuses to acknowledge he lost. Hopefully we will have a peaceful transition of power, but I have a funny feeling he still going to call himself president and try to "govern" from the golf course. If he continues to call for action that leads to violence, he should be incarcerated for inciting violence.

I voted for him in 2016 and if I could rescind my vote I would. That guy is a madman. Hopefully the market will brush this off....

...and peace will be restored.

 

[FelixDeCat]

Nm

 

[woodman1999]

Thinking about adding to my ACB and APHA positions.

Also, 3 straight days of crappy KO performance. So damn frustrating.

 

[KentState]

I would just take some profit from TSLA if you are feeling you are holding too much. Put it somewhere safe and diversified like VOO and BOND (90/10 or maybe 80/20, your call)

Over the past decade or so my TD Ameritrade acct went from a small chunk of play money to a sizable portion of my net worth. One thing I decided to do was make sure I had something in every sector. I was way too tech-heavy. Aside from ETFs like I mentioned above, I didn't have any real estate so I added O, and I didn't have any entertainment so I added Disney. One sector I think everyone should have is energy. There are ETF's but also individual stocks (I've held ALE for years and they pay a great dividend and have grown to the point where I had to sell half to balance out) Energy stocks have a tendency to move the opposite of the market so are a great tool to rebalance with.

I have been trying to but into more sectors. Recently I've purchased a few green tech and energy stocks which seems to have done favorability today on speculation of incentives from the new administration. Thanks for advice.

I'm not sure I understand your question. Are you asking if you should stop self-managing your "play" money account and turn it over to some fee charging professional? Or your uncomfortable with how big some of your positions have gotten and looking ways to diversify?

It's honestly both. For example, I purchased a $2,000 worth of Sirius Radio back in 2008 at nearly their lowest point. I did sell some awhile back which I used purchase a car but still hold a good amount. Some other stocks like Tesla and BoA have also had great returns over the year. So my outlay of cash has been rather small over time, probably about $10k on average per year. However, it's turned into something that's meaningful. So I do have reservations of turning it over to someone to get a percentage on a recurring basis where they will make more off me than I will off them. And like the advice above, it may be a good idea to start buying into more sectors but I'm feeling more like a gambler at Vegas that doesn't know when to stop. I am in my early 40's so I have plenty of more years to earn, save and invest but working with a professional may be the right move.

 

[dasherHampton]

I have been trying to but into more sectors. Recently I've purchased a few green tech and energy stocks which seems to have done favorability today on speculation of incentives from the new administration. Thanks for advice.



It's honestly both. For example, I purchased a $2,000 worth of Sirius Radio back in 2008 at nearly their lowest point. I did sell some awhile back which I used purchase a car but still hold a good amount. Some other stocks like Tesla and BoA have also had great returns over the year. So my outlay of cash has been rather small over time, probably about $10k on average per year. However, it's turned into something that's meaningful. So I do have reservations of turning it over to someone to get a percentage on a recurring basis where they will make more off me than I will off them. And like the advice above, it may be a good idea to start buying into more sectors but I'm feeling more like a gambler at Vegas that doesn't know when to stop. I am in my early 40's so I have plenty of more years to earn, save and invest but working with a professional may be the right move.

Personally - I don't see anything wrong with putting some of your assets with a broker.

I inherited a large portfolio from my parents and I just left it with the broker they used. Its about 40% of my entire net worth. I bitch about them sometimes because they're so slow and steady (and sometimes post rather large monthy losses on months the market went up) but on occasion they kill it - the account made almost 15% last year. Since I'm a self taught trader and not a professional it gives me peace of mind to know that money will always be there even if I fuck up royally somehow with the money I control.

But don't turn over all of your scratch to a professional broker. For instance - they charge commission to make trades, or really any moves at all. If you still want to make your own moves keep a significant portion of the money you trade with in your own account.

I'm happy with the 40% pro/60% personal split of my assets.

 

[ponyo]

I have been trying to but into more sectors. Recently I've purchased a few green tech and energy stocks which seems to have done favorability today on speculation of incentives from the new administration. Thanks for advice.



It's honestly both. For example, I purchased a $2,000 worth of Sirius Radio back in 2008 at nearly their lowest point. I did sell some awhile back which I used purchase a car but still hold a good amount. Some other stocks like Tesla and BoA have also had great returns over the year. So my outlay of cash has been rather small over time, probably about $10k on average per year. However, it's turned into something that's meaningful. So I do have reservations of turning it over to someone to get a percentage on a recurring basis where they will make more off me than I will off them. And like the advice above, it may be a good idea to start buying into more sectors but I'm feeling more like a gambler at Vegas that doesn't know when to stop. I am in my early 40's so I have plenty of more years to earn, save and invest but working with a professional may be the right move.

Don't turn your money over to "professional." Most are worthless garbage. They'll just steal your money and make worse choices than you. They don't know anything either and will likely under perform total market index. So why pay for worse performance?

Take some money off the table if you're anxious. I've taken lot of money off the table during the incredible TSLA run the past year. Every time, selling TSLA have been a mistake but I made what I felt was the right decision at the time. It costed me millions more in potential profit but I never expected TSLA to run this far this fast. I fully expected TSLA to reach the current price and even exceed it but not until later in this decade. So it has been a pleasant surprise. But if I had used a "professional", I would never had the opportunity to make the life changing money I did with TSLA.

Holding cash is perfectly fine. Cash is not trash. I know interest rate is basically zero but having cash gives you options. I'm actually mostly in cash right now other than my now small TSLA stock and option positions and few other minor positions like XPEV, PLTR, LMND, and weed stocks. Buffett always keeps large amount of cash on hand.

You can always buy something like VTI, which is Vanguard Total Stock Market ETF if you want diversification and don't want to pick your own stocks. I wouldn't mess with any bond fund. Just hold cash instead. And when you spot the right opportunity, deploy that cash. You don't always have to be fully invested in the market. I'm a firm believer that the market gives you couple fat pitches a year to hit. Wait for your opportunity. Patiently waiting for your pitch is the hard part.

 

[Svnla]

Short sellers of Telsa lost about $40 billion USD in 2020. Elon made over 3x of that amount.

Tesla short sellers lost $40 billion in 2020. Elon Musk made more than triple that - CNN

Live by the sword and die by it indeed.

 

[dasherHampton]

Not all professionals are garbage. That's a silly statement.

I've consulted with my broker probably 50 times over the past five years (free of charge) and he always gives his honest opinion. He knows his shit.

Years ago my dad wanted to sell AAPL at $100 a share and the guy talked him out of it. That sort of thing is worth a lot of money.

 

[ponyo]

Not all professionals are garbage. That's a silly statement.

I've consulted with my broker probably 50 times over the past five years (free of charge) and he always gives his honest opinion. He knows his shit.

Years ago my dad wanted to sell AAPL at $100 a share and the guy talked him out of it. That sort of thing is worth a lot of money.

You do realize your "professional" underperformed the market index last year, right? By pretty big amount if your "professional" almost made 15%. I don't know about you but I don't pay people to underperform the benchmark index. I can underperform just fine on my own without paying anyone. You do realize that Vanguard Total Stock Market Index Fund (VTI) returned over 19% in 2020, right? That's index with over 3,000 US stocks. Pretty much diversified as you can be.

 

[KentState]

Thanks @ponyo for the advice. I will look at that Vanguard ETF. I hold my rollover account with them which is mostly in one of their target retirement funds (VTIVX).

 

[s0me0nesmind1]

You do realize your "professional" underperformed the market index last year, right? By pretty big amount if your "professional" almost made 15%. I don't know about you but I don't pay people to underperform the benchmark index. I can underperform just fine on my own without paying anyone. You do realize that Vanguard Total Stock Market Index Fund (VTI) returned over 19% in 2020, right? That's index with over 3,000 US stocks. Pretty much diversified as you can be.

This. Plus there are all kinds of baked in fees and ridiculous expense ratios - often times also fees for just performing the trades that they do.

 

[dasherHampton]

I made a personal goal of doing $6000 a month in pure options income. I beat that in 7 days.

2 June $400 Nvidia puts. - $2700
20 Feb $7 KNDI puts - $2200
10 March 19 $8 KNDI call on 1000 shares I own - $1300
1 Jan 29 $140 AAPL call - $250

Is it possible I might have to buy the NVDA back? Sure, but not likely. When my PFE calls expire on the 15th I'm looking to make another fat sale.

KNDI is still cheap enough to look at imo.

 

[ponyo]

Elon Musk is now the world's richest person. He officially passed Jeff Bezos today. I said this would happen when Elon was worth like $30 billion and people laughed and called me crazy. But it was so obvious in my mind and inevitable. I said Musk has a chance to pass $1 trillion in his lifetime and I still believe that. I think both Tesla and SpaceX will be multi-trillion dollar companies. He will be the first person to have started and own two different trillion dollar companies.

 

[jpiniero]

Elon Musk is now the world's richest person. He officially passed Jeff Bezos today. I said this would happen when Elon was worth like $30 billion and people laughed and called me crazy. But it was so obvious in my mind and inevitable. I said Musk has a chance to pass $1 trillion in his lifetime and I still believe that. I think both Tesla and SpaceX will be multi-trillion dollar companies. He will be the first person to have started and own two different trillion dollar companies.

Serious question, if Tesla had 100% market share, do you think you could justify it's current share price? I don't. US Car sales were down 9% last quarter. That's what I mean by the memes pumping up the share price.

 

[FelixDeCat]

I made a personal goal of doing $6000 a month in pure options income. I beat that in 7 days.

2 June $400 Nvidia puts. - $2700
20 Feb $7 KNDI puts - $2200
10 March 19 $8 KNDI call on 1000 shares I own - $1300
1 Jan 29 $140 AAPL call - $250

Is it possible I might have to buy the NVDA back? Sure, but not likely. When my PFE calls expire on the 15th I'm looking to make another fat sale.

KNDI is still cheap enough to look at imo.

I've got burned on KNDI more than once. I would love to short puts on that one too but....

 

[ponyo]

Serious question, if Tesla had 100% market share, do you think you could justify it's current share price? I don't. US Car sales were down 9% last quarter. That's what I mean by the memes pumping up the share price.

Serious question. Why are you so stupid and math challenged?

 

[njdevilsfan87]

Elon Musk is now the world's richest person. He officially passed Jeff Bezos today. I said this would happen when Elon was worth like $30 billion and people laughed and called me crazy. But it was so obvious in my mind and inevitable. I said Musk has a chance to pass $1 trillion in his lifetime and I still believe that. I think both Tesla and SpaceX will be multi-trillion dollar companies. He will be the first person to have started and own two different trillion dollar companies.

Good, someone whose work may end up saving our planet deserves to be the richest person. And not some guy who capitalized on consumerism and the service industry or some other guy who built the worst thing ever for humanity (social media).

 

[Svnla]

Elon is now the richest person....

Elon Musk overtakes Jeff Bezos to become world's richest person - CNN

Better get a good lawyer, just in case. So you won't lose billion and billion of net worth in divorce as Bezos did.

 

[s0me0nesmind1]

Good, someone whose work may end up saving our planet deserves to be the richest person. And not some guy who capitalized on consumerism and the service industry or some other guy who built the worst thing ever for humanity (social media).

okay that made me laugh hysterically. Tell me you aren't serious?

 

[Artorias]

You do realize your "professional" underperformed the market index last year, right? By pretty big amount if your "professional" almost made 15%. I don't know about you but I don't pay people to underperform the benchmark index. I can underperform just fine on my own without paying anyone. You do realize that Vanguard Total Stock Market Index Fund (VTI) returned over 19% in 2020, right? That's index with over 3,000 US stocks. Pretty much diversified as you can be.

As a Canadian resident what's the recommended way to go about ETF's that track American markets? Hedged or Un-Hedged?

I hesitate to convert CAD to USD then purchase directly from the US market. I'm worried about fees killing me on conversions(maybe I'm overstating/thinking they are high), or loss in value because of currency fluctuations.