Stocks and Trading Thread - Channeling your inner Mono

[Barrister]

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.

Sounds like maybe you should rebalance and go more conservative, but I wouldn't recommend a wholesale exit from the stock market.

[crazy canuck]

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.

For God sake man, do not go to languish for financial advice, get a good certified financial planner to figure out how to meet your investment goals.

[Tonitrus]

I wasn't seeking advice...venting/thinking out loud more than anything. 

[Admiral Yi]

For starters, you can't cash out your Roth or regular IRA (if you have one) without significant tax penalties.

Look at your options.  You don't want your wealth sitting in cash, or in savings or CDs earning 50 or 75 basis points.

I'm in a similar situation to you.  Last years gains have put me ahead of target.  What I did was sold off some losers and put a chunk of money into a dividend ETF.  The one I bought is WDIV, yielding 5.5%.

My advice to you is to rotate some money into dividend stocks, keep on making max annual contributions to the Roth (possibly using funds from your regular brokerage account), and have some cash on hand for if and when the forecast market correction comes.

You can keep on holding high flyers in your Roth as long as you're diversified.

Buying an annuity is an option, but stay away from fixed index annuities.  They are a scam.

[crazy canuck]

I wasn't seeking advice...venting/thinking out loud more than anything. 

I figured.  It is just that when I read Yi's posts giving advice about how to do this and that, it is worth stating the obvious from time to time. 

[Habbaku]

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.

For God sake man, do not go to languish for financial advice, get a good certified financial planner to figure out how to meet your investment goals.

[crazy canuck]

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.

For God sake man, do not go to languish for financial advice, get a good certified financial planner to figure out how to meet your investment goals.

Telling him to get investment advice is slightly different then Yi telling him how to invest.   

[Habbaku]

  I'm agreeing with you.

[crazy canuck]

I'm agreeing with you.

I am terrible at interpreting smiles, my apologies. 

[Admiral Yi]

Article in The Economist about explosion in option trading.  Talks about the retail investors chasing long odds thing I mentioned.

[Habbaku]

Article in The Economist about explosion in option trading.  Talks about the retail investors chasing long odds thing I mentioned.

It's the Reddit WallStreetBets/Boredom Markets effect. Lots of people glommed onto WSB over the last two years (me included) and the gush of loss/gain excitement due to the magnifying effect of options seems to have led far, far too many people stuck in lockdown to thinking they can make it rich with just one lucky call option.

[Admiral Yi]

It's the Reddit WallStreetBets/Boredom Markets effect. Lots of people glommed onto WSB over the last two years (me included) and the gush of loss/gain excitement due to the magnifying effect of options seems to have led far, far too many people stuck in lockdown to thinking they can make it rich with just one lucky call option.

Yup.  But I think you were wrong when you said options in general are bad news and best to stay away.  I'm inclined to agree when it's limited to the buy side, but as I mentioned earlier these yahoos are bidding up premiums and that can be taken advantage of on the sell side.

I've never visited but I'll bet not many folks on Reddit are cackling about selling covered calls.

[Habbaku]

My note about options should be clarified to be referring to buying any of them, for the most part. I think there are probably better uses of your money than writing covered calls, but you're not wrong about the premiums getting bid up because of the retard sector and if you're making money there, you're not doing anything wrong.

[Admiral Yi]

FYI I'm making about $500/week writing covered calls against 75 grand in capital.

[Admiral Yi]

edit: calls and puts