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Old 06-27-2016, 11:23 AM  
DaFace DaFace is offline
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Investing megathread extravaganza

A place to talk about investing stuff.

Last edited by DaFace; 02-19-2021 at 06:35 PM..
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Old 08-28-2020, 02:51 PM   #5956
Buehler445 Buehler445 is online now
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Quote:
Originally Posted by MagicHef View Post
Does anyone mind if I talk about options trading in here? I understand if it's seen as outside the purpose of this thread.

Anyway, I've just started out trying my hand at it, and I apparently need to work on my timing a bit. I bought some WMT calls for $214, and sold them yesterday for $346. I was pretty happy with my 62% profit in a few days.

Today, WMT is up more so I thought I'd check just to see what could have been (probably a bad idea). My WMT options would be worth $1260 today.
Work your system. DO NOT see what would have happened if you operated outside of your system. That leads to undisciplined trading.

At 62%, do your thing man.
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Old 08-28-2020, 02:55 PM   #5957
MagicHef MagicHef is offline
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Quote:
Originally Posted by ChiTown View Post
I'm always slightly impressed with people that can effectively do options trading. I suck at it. I do have WMT stock though and it's done quite well.

Your 62% profit is nothing to sneeze at. Well done.
I'm very new at it, so it remains to be seen if I can do it effectively. So far, I'm only doing it with companies I trust (AMD, AAPL, MSFT, WMT, etc), and I'm doing calls about 3 weeks out. I buy dips, figuring that a company like Microsoft will go up sometime in the next 3 weeks, even if it isn't immediately.

So far, I've been at it for about a month and I've made about $900, while only investing about $1,000 at a time. If it does turn out to be an effective strategy, I'll start using more of my money for it.
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Old 08-28-2020, 02:58 PM   #5958
MagicHef MagicHef is offline
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Originally Posted by Buehler445 View Post
Work your system. DO NOT see what would have happened if you operated outside of your system. That leads to undisciplined trading.

At 62%, do your thing man.
I'm still figuring out my system, so I figure more info doesn't hurt. However, if the exact same thing happened again I would still sell at 62%.
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Old 08-28-2020, 06:09 PM   #5959
scho63 scho63 is offline
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90% of pure options TRADERS lose money.

Most professional options traders are using them as hedges for their portfolio or an individual stock
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Old 08-28-2020, 08:47 PM   #5960
Hog's Gone Fishin Hog's Gone Fishin is offline
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Quote:
Originally Posted by scho63 View Post
90% of pure options TRADERS lose money.

Most professional options traders are using them as hedges for their portfolio or an individual stock
That's why I just stick with buying and selling the stock. I only lose 70-80% of the time.
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Old 08-28-2020, 11:26 PM   #5961
MagicHef MagicHef is offline
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Quote:
Originally Posted by scho63 View Post
90% of pure options TRADERS lose money.

Most professional options traders are using them as hedges for their portfolio or an individual stock
Hopefully I’m in the 10%.
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Old 08-29-2020, 01:10 PM   #5962
Stewie Stewie is offline
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Do you do covered calls? You can get blindsided in a hurry unless you're constantly watching your trades.
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Old 08-29-2020, 03:15 PM   #5963
MagicHef MagicHef is offline
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Quote:
Originally Posted by Stewie View Post
Do you do covered calls? You can get blindsided in a hurry unless you're constantly watching your trades.
Not fully covered, I don’t own 100 shares of each, but I do own some. However, I am constantly watching.
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Old 08-29-2020, 04:25 PM   #5964
Rain Man Rain Man is offline
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Quote:
Originally Posted by MagicHef View Post
Hopefully I’m in the 10%.
I think the odds are in your favor.
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Old 08-30-2020, 01:12 PM   #5965
Hog's Gone Fishin Hog's Gone Fishin is offline
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So , is this a good strategy???

Find mutual funds that have a really good return over the last 1 year/ 3 year period.

Pull up their portfolio and look at their top holdings

Invest in their top three since they are driving the return they're getting.

For example : ARKW which is actually an ETF is 62% 1 year and 41% 3 years

Their top 3 holdings are TSLA, SQ, ROKU

All have blown away the market over the last year.

Thoughts?
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Old 08-30-2020, 01:23 PM   #5966
neech neech is offline
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Quote:
Originally Posted by Hog's Gone Fishin View Post
So , is this a good strategy???

Find mutual funds that have a really good return over the last 1 year/ 3 year period.

Pull up their portfolio and look at their top holdings

Invest in their top three since they are driving the return they're getting.

For example : ARKW which is actually an ETF is 62% 1 year and 41% 3 years

Their top 3 holdings are TSLA, SQ, ROKU

All have blown away the market over the last year.

Thoughts?
I think its a sound strategy, opposite of the dogs of the Dow in a way.
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Old 08-30-2020, 01:44 PM   #5967
Rain Man Rain Man is offline
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Quote:
Originally Posted by Hog's Gone Fishin View Post
So , is this a good strategy???

Find mutual funds that have a really good return over the last 1 year/ 3 year period.

Pull up their portfolio and look at their top holdings

Invest in their top three since they are driving the return they're getting.

For example : ARKW which is actually an ETF is 62% 1 year and 41% 3 years

Their top 3 holdings are TSLA, SQ, ROKU

All have blown away the market over the last year.

Thoughts?

It seems kind of brilliant to me.

I always fight the urge to assume that things will even out, and so I should buy the laggards since they'll eventually catch up. But it seems like the overperforming stocks will overperform for a decade or more without slowing down.
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Old 08-30-2020, 01:54 PM   #5968
MagicHef MagicHef is offline
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Quote:
Originally Posted by Rain Man View Post
It seems kind of brilliant to me.

I always fight the urge to assume that things will even out, and so I should buy the laggards since they'll eventually catch up. But it seems like the overperforming stocks will overperform for a decade or more without slowing down.
I agree. I've been going through my stocks lately and selling off the lagging ones and buying more of the ones that have done well. It's always tempting to think that the lagging ones are just a few days away from making more money, but it makes it pretty clear if I look at what I'd have now if I had made the switch a month or two ago.
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Old 08-30-2020, 01:56 PM   #5969
Hog's Gone Fishin Hog's Gone Fishin is offline
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Quote:
Originally Posted by Rain Man View Post
It seems kind of brilliant to me.

I always fight the urge to assume that things will even out, and so I should buy the laggards since they'll eventually catch up. But it seems like the overperforming stocks will overperform for a decade or more without slowing down.
Yeah , there's some truth to riding the winners.
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Old 08-30-2020, 02:25 PM   #5970
Hog's Gone Fishin Hog's Gone Fishin is offline
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My thought is also that if these funds are investing heavily in a certain stock then they are expecting it to do well
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