Stocks and Trading Thread - Channeling your inner Mono

[crazy canuck]

The piece about moving to other investments as you get closer to the date you are going to need some of the capital is the part that is missing from Yi's - its a sure thing reckless comment.

It is never a sure thing, but it can be a good investment strategy under certain conditions.

[Threviel]

For many people the mortgage payments will be the best investments of their lives. For most of them that is because that is the only serious investment they do in their life.

Stock market is a gamble. The risk is not at the level of lotto or horse races but it is still there. As with any kind of a gamble you should only play of you can afford to lose. We invest about 5% of our income in the stock market, hoping that the returns will allow early retirement and the ability to support our kids, but also knowing that we might not even get all back.

[Jacob]

The thing with the stock market is also what your objective is. An ex of mine's parents put money away for her education in some sort of conservative market vehicle. Unfortunately, she went to university right as the market cratered and she got very little out of the money her parents had diligently been putting away for a decade+ (significantly less than the principal IIRC).

If they'd sat on the investment for another five or ten years or whatever it would've turned around and they'd be ahead, most likely, but that didn't help her pay her way through school.

[grumbler]

The thing with the stock market is also what your objective is. An ex of mine's parents put money away for her education in some sort of conservative market vehicle. Unfortunately, she went to university right as the market cratered and she got very little out of the money her parents had diligently been putting away for a decade+ (significantly less than the principal IIRC).

If they'd sat on the investment for another five or ten years or whatever it would've turned around and they'd be ahead, most likely, but that didn't help her pay her way through school.

That's when you consider taking a loan rather than liquidating assets (not that it matters this far removed, but people should remember that taking loans is the other side of the money management coin).

[Jacob]

That's when you consider taking a loan rather than liquidating assets (not that it matters this far removed, but people should remember that taking loans is the other side of the money management coin).

The principle is sound, but I expect that wasn't an option. I believe it was some sort of tax sheltered "save up for the education of your children and let the market grow" it thing, so it essentially had to be spent while she was at school. I don't know for sure, though. Could've been peevishness for all I know.

[grumbler]

That's when you consider taking a loan rather than liquidating assets (not that it matters this far removed, but people should remember that taking loans is the other side of the money management coin).

The principle is sound, but I expect that wasn't an option. I believe it was some sort of tax sheltered "save up for the education of your children and let the market grow" it thing, so it essentially had to be spent while she was at school. I don't know for sure, though. Could've been peevishness for all I know.

Could have been peevishness, the policy of the plan they used, or just a lack of recognition that there were other options.  Kind of moot now, but it highlights your observation that one cannot plan on the markets to have a given value when you need them to.

[Admiral Yi]

Amsterdam passed London last year in volume of shares traded.

[Tamas]

Amsterdam passed London last year in volume of shares traded.

Sweet sweet freedom

[Admiral Yi]

Of particular interest to you Tamas, in that same Economist article it mentioned there is a branch of the Chicago Board of Options Exchange operating in Amsterdam.  So curious you don't have access to US derivitives

[Tamas]

Of particular interest to you Tamas, in that same Economist article it mentioned there is a branch of the Chicago Board of Options Exchange operating in Amsterdam.  So curious you don't have access to US derivitives

Yeah. They might be just hiding it from me as I don't have the moneis.

[Admiral Yi]

Yeah. They might be just hiding it from me as I don't have the moneis.

I know with Etrade and the brokerages that Tonto uses option trading is an option that you have to request.  Search around the site for "request options trading."

[Tamas]

Yeah. They might be just hiding it from me as I don't have the moneis.

I know with Etrade and the brokerages that Tonto uses option trading is an option that you have to request.  Search around the site for "request options trading."

Yeah done that already. Not eager to lose all my money though so it's no biggie.

[Tonitrus]

The way C. Schwab does their approval is in "levels" that appear to correspond with risk.

I just got Level 0, which allows covered calls and some other what-must-be low-risk options.  Helps keep the temptation away.

I think the riskiest C-call I did last week was betting TSLA wouldn't spike back up over 700 in exchange for a $1500 premium.  It did spike above 700, but closed below that by the time the option expired.  So I appear to have won that bet. 

[Admiral Yi]

What happened to that speech about boo hoo hoo, what if I sell the call and then the stock tanks and I can't unloard it?

[Tonitrus]

What happened to that speech about boo hoo hoo, what if I sell the call and then the stock tanks and I can't unloard it?

There was no such speech, and I bought the call on a Wednesday with it expiring on Friday.