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I was up 110% or so in my IRA over the course of 2.5-3 years. I was certainly lucky to do that. Bought only 5 stocks and held until I saw a profit. Right now I am still up on that money and continuing to invest in specific stocks which I watch carefully. You do need to be a bit lucky, well informed, and very patient.
Bought TGT after the hacking scandal. Waited and saw a 74% jump in the stock price over the next year.
Then pulled out and bought NFLX. That too saw another 24% jump in the stock.
Pulled out NFLX and bought COH. That was the worst play I made. Ended up going up and down and sold it for only a $7 profit. I knew nothing of retail but heard good things about Coach so went for it. At least I didn't lose money.
After selling COH I bought NFLX again. Once again NFLX came through and I saw an 11% increase in 5 days. This was my luckiest play by far. This happend when people were suspecting that Disney would purchase them.
After selling NFLX a second time I bought COP and held for a very very long time. That was held for almost a year after I sold it for only a 8% rise. Ended up buying FB with that money.
Since buying FB I am not up or down on the stock. It went wayyyy down in the past couple of months but has since returned. I know the industry pretty good and will continue to hold because I see it doing good things.
Overall, my experiences above are not common and the plays I made were decided on through research. One thing I learned is do not invest in something that you don't use or aren't familiar with, in my example Coach. I'm a guy who knows nothing of retail, specifically women's fashion.
There is something called idiosyncratic risk inherent to all stocks...to beat that risk consistently over time is almost impossible. I'm not saying it can't be done but it's hard. I know people who have been able to hit it 2 or 3 times in a row but beyond that, something happens and they end up taking a bloodbath.
There is something called idiosyncratic risk inherent to all stocks...to beat that risk consistently over time is almost impossible. I'm not saying it can't be done but it's hard. I know people who have been able to hit it 2 or 3 times in a row but beyond that, something happens and they end up taking a bloodbath.
Isn't the idea of diversification to reduce idiosyncratic risk?
Closing out a position each night and buying back the same investment or another one in the morning is no different than just keeping the money in play.
Closing out a position means paying a broker's fee to sell and buying back the next morning also incurs a broker's fee. Thus you have less money than if you had simply kept your money in play.
Closing out a position means paying a broker's fee to sell and buying back the next morning also incurs a broker's fee. Thus you have less money than if you had simply kept your money in play.
How are the two options no different?
Did you not understand the point of his post? It was discussing paper losses are losses. Far too many says it's only on paper so it doesn't matter but that's simply untrue
Closing out a position means paying a broker's fee to sell and buying back the next morning also incurs a broker's fee. Thus you have less money than if you had simply kept your money in play.
How are the two options no different?
we are talking about the term "it is only a paper loss " if you don't sell which is false . . we are not discussing taxes or trading fees at all .
your net worth is what it is at any point in time whether you close a position at night and rebuy in the morning , vs keeping the money in play over night . in that respect there is no such thing as it is only a paper loss . THEY ARE THE SAME THING whether you sell or not . only taxes and fees may make a difference .
in fact with fidelity i can sell certain etf's and buy another one commission free if you want to get technical . if it is my retirement money i have no fees and no taxes on the trade . but that is not what is being discussed regardless .
Last edited by mathjak107; 01-26-2017 at 03:00 AM..
Reason: ,
Closing out a position means paying a broker's fee to sell and buying back the next morning also incurs a broker's fee. Thus you have less money than if you had simply kept your money in play.
How are the two options no different?
Quote:
Originally Posted by Lowexpectations
Did you not understand the point of his post? It was discussing paper losses are losses. Far too many says it's only on paper so it doesn't matter but that's simply untrue
you know the drill , don't read what is posted and just look for an exception somewhere you can punch holes in . even if it doesn't apply to the post .
Last edited by mathjak107; 01-26-2017 at 03:26 AM..
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