I didn't have time the rest of the day to post but just adding to this discussion and why risk management is so important. Here's an easy example.
Let's say I am trading with $100k account. Since my rule is 10% position size, I put $10k on a stock I think will breakout but instead gaps down and I get stopped out at 10% loss. A 10% loss of $10k is $1k. And $1k is only 1% of my total account value. I bet everyone here has seen their account value drop much greater than that on any random day. A 10% loss sounds severe but at only 1% of my total account value (due to position sizing), it's something I can live with and regain rather quickly.
I hope that makes is clear why I am such a stickler for keeping your average losses small. Maintain capital so you can find another stock to trade because there's always something to move that money to if your stock screening/rules are working. The only thing you can't do is make money if your capital is depreciating. [Reply]
Originally Posted by eDave:
I wish I knew all of this stuff.
You know plenty and have done well. There's more than one way to skin a cat.
I am just trying to show people it can be more than just guessing and you MUST protect your capital or all these gains you're getting will be gone in a flash. There's a lot of risky things being done by new investors right now. Anyone can self teach if they have the desire/discipline to learn. I've really enjoyed learning this style of trading over the past year. [Reply]
Originally Posted by lewdog:
You know plenty and have done well. There's more than one way to skin a cat.
I am just trying to show people it can be more than just guessing and you MUST protect your capital or all these gains you're getting will be gone in a flash. There's a lot of risky things being done by new investors right now. Anyone can self teach if they have the desire/discipline to learn. I've really enjoyed learning this style of trading over the past year.
Lewdog is a genius. I am not kidding. Listen and learn from this man.
i am just a lucky guy that invested in the worst downturn in modern history. I am an automotive repair shop owner and saw the all time lows in stocks during the pandemic as an opportunity. I invested in XOM, RDSB, OXY, HPQ and a few other stocks I felt were undervalued at the time. I am up about 70,000 at the moment. This i feel is a once in a lifetime opportunity to do, but what lewdog says is an actual strategy to make money.
So, if you are lucky like me or want to actually make money in the stock market on a regular basis, listen to Lewdog.
Hammockparty has helped me along the way for short term profit but Lewdog has the right longterm approach for short term trading. You MUST learn the difference between the two strategies or you will lose money.
We all want to make money and although I have only been in this for a year or so, I have made a substantial amount of money and have looked at a LOT of different sources to gleam information I can tell you what is a decent source of info and what is not.
Thanks to those I have mentioned and some I have not. Digest the info and determine what is valuable and invest accordingly.
I hope we all make money and spend most of it on the CHIEFS!! [Reply]
For you guys liking lower priced stocks, check out CAPR.
Capricor Therapeutics. $5.50
Expecting a pop to $7.5-$8 on good news from conference this week [Reply]
Originally Posted by scho63:
For you guys liking lower priced stocks, check out CAPR.
Capricor Therapeutics. $5.50
Expecting a pop to $7.5-$8 on good news from conference this week
Originally Posted by lewdog:
Looking at RBLX above 85.45
I didn’t get in until 85.89 today as I got busy with the morning and I missed setting my order.
Stop at 80.55 for now, 6.2% risk but will look to move up stop to right below intraday low of 6-23 at 81.92, if it starts out stronger tomorrow. [Reply]
How Peter Thiel turned $2,000 in a Roth IRA into $5,000,000,000
Originally Posted by :
Roth individual retirement accounts were created to help middle-class earners set aside money for retirement with no taxes due upon withdrawal. But PayPal co-founder Peter Thiel has used his Roth IRA to amass a $5 billion nest egg.
Thiel’s Roth IRA was worth less than $2,000 in 1999, according to Internal Revenue Service data obtained by ProPublica. Roth IRAs are funded with after-tax dollars, which means at withdrawal the money is tax-free. (Traditional IRAs are funded with pretax dollars, so distributions are taxed at withdrawal.)
The account jumped more than $3 billion in value in just three years, even though Thiel did not contribute money to his Roth after 1999, ProPublica found. It had reached $5 billion at the end of 2019.
Thiel, 53, need only wait until he turns 59½ to withdraw any of his Roth account balance completely tax-free.
Amassing this amount of money in a Roth IRA is not simple. The contribution limit for these accounts is $6,000 a year in 2021 (or $7,000 for people 50 and older). There are also income restrictions. For example, single individuals with modified adjusted gross incomes, or MAGI, of less than $125,000 in 2021 can contribute up to the limit, but their contributions are phased out if their MAGI is between $125,000 and $140,000, the IRS states. If they earn more than $140,000, single taxpayers cannot contribute to a Roth IRA. For married couples filing jointly, the threshold is between $198,000 and $208,000 in 2021.
Thiel and other entrepreneurs have used their Roth IRAs slightly differently from the manner in which the average investor would, ProPublica found. For example, Thiel bought 1.7 million shares of PayPal PYPL, +1.77% in 1999 for $0.001 per share, or $1,700, ProPublica reported.
With this strategy, investors are able to buy a large number of shares in a startup at fractions of a penny per share. When those investments garner large gains, investors can use the proceeds from these investments still inside the Roth IRA to make other investments. Substantial gains could be derived if the company goes public and its share price skyrockets.
The gains from those sales are then tax-free, because they occurred inside a Roth IRA.
I know some traders who do most of their trading in their ROTH IRA account for the exact mentioned above. All gains made from trades are tax free. [Reply]
I know some traders who do most of their trading in their ROTH IRA account for the exact mentioned above. All gains made from trades are tax free.
If only students were taught this in high school instead of all the worthless shit that is spewed these days maybe our country wouldn't have so many leeches sucking off the government.
Maybe just maybe people woudl be more responsible for their financial well being. [Reply]
That reminds me: so I had a 401k through a previous job with T. Rowe Price. When I left that job, I stayed with T. Rowe Price and now it's labelled as a Rollover 401k.
Is that the same as a Roth IRA? I've contributed to it with post-tax money since it's inception so I'm assuming so.. but figured I'd ask people here who know better. [Reply]
