Stocks and Trading Thread - Channeling your inner Mono

[DGuller]

What I suggest is that selling a stock at time B is either a good decision or it's not, economically speaking.  It's not a good decision for some and bad decision for others, economically speaking.  It's not like for all those who bought it at 20, it's a good decision, and for all those who bought at 30 it's not, and yet that's where mental accounting will lead you.  The gains and losses happen when the price changes, not when they're realized.

Yes, I'm ignoring taxes here, make a report to the IRS if you want.

[DGuller]

Incidentally, I do think that Yi has a point.  If you think that the market is efficient, and that it's generally a good investment, what matters more is if your beliefs get you in the market.  What matters none at all is whether your beliefs are rational or full of behavioral biases or superstitions.  Avoiding mental biases only matters if your skill has the possibility of changing the outcome, which isn't really the case in the efficient market.

[crazy canuck]

Incidentally, I do think that Yi has a point.  If you think that the market is efficient, and that it's generally a good investment, what matters more is if your beliefs get you in the market.  What matters none at all is whether your beliefs are rational or full of behavioral biases or superstitions.  Avoiding mental biases only matters if your skill has the possibility of changing the outcome, which isn't really the case in the efficient market.

I think that what matters more is investing rationally rather than on the basis of belief.  For many stock picking or doing their own investing is not a rational decision.

[Admiral Yi]

Did you pull the trigger Tonto, or did Gloomy Guller scare you off?

[DGuller]

 

[Tonitrus]

Did you pull the trigger Tonto, or did Gloomy Guller scare you off?

Not yet.  Apparently I goofed and only submitted for approval to trade options on me regular account, not the Roth one. 

But, to test the waters, I did trade a covered call from that account on AAPL at an absurd 150/share (as I am not really that inclined to unload it) that expires in a couple weeks.  That one is worth a couple hundred bucks.

[Admiral Yi]

When did you start speaking Irish. 

Did you get any Gecko vibe?

[Tonitrus]

When did you start speaking Irish. 

Did you get any Gecko vibe?

And no, not yet. 

[Admiral Yi]

Me account, faith and bogorah.

[Admiral Yi]

Sold 1 Tesla put 1/29 @740.

Sold 7 NNDM calls 2/29 @17.50.

[Tonitrus]

I'm starting to get that itchy feeling like it's nearing time to cash out. 

[Habbaku]

Cash out of Tesla? Of the stock market in general? Of your 401k?

Playing games with timing is dangerous.

[Tonitrus]

In general.

[Habbaku]

Everyone has to make their own decisions at the end of the day, but I strongly urge you not to play the timing game. Staying in, consistently investing, and steadily rebalancing away from risky assets as you age is the most proven means of success.

I think it's normal to get jitters as the market breaks all time highs year after year, but if you bail out now, when do you get back in? After the next crash?

[Tonitrus]

Part of the feeling, I think, is that I am pretty much at what I've seen as being my financial goal/target (well ahead of schedule)...and cashing out would mean that I may be able to just coast, without worrying as much about the ups and downs of the market.