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"I am not a total amateur and do not appreciate many of the comments from contributors as if I was. This was a term I heard and was hoping for some sound advice regarding what it meant."
This board should be a place to come for all skill levels but in defense of the board based on the original post it does sound as if you have little experience which is OK- do not take any comments personally. When you enter these boards you will run across what I suspect are people that in their real lives feel inferior and may have subservient/ menial positions within their careers so they join a board where they can post, giving their ego a false boost of worthiness. Stick around here long enough and you will know who these individuals are and the more they post the more you will smile. Enjoy..
I get what he/she is saying. House money means just that, you hit it big and now you are simply gambling with the winnings. I think if the OP feels the need to take out his original investment and let his earnings earn more there is an argument to do just that. Not unlike going to a casino with $1,000, then being up another $15,000. That $15,000, while totally yours because you have earned it, is still considered "house money" because you didn't have it when you entered the casino, or the stock market in this case. The tax implications would be my only concern.
right but this is a terrible way of thinking and makes people make horrible decisions.
if you think boeing is a good investment and you're comfortable with that amount you have invested in it then leave it in. if you don't want that much of your net worth invested in one company take out what you want. but the price you paid (aside from taxes) is irrelevant.
in other words, forgetting taxes for a second.
if you never had the money to buy the boeing stock to begin with and today someone handed you 42 thousand dollars would you buy 179 shares of boeing or would you do something else with it. besides tax considerations that's the same scenario that you're in right now. go from there.
that concept may make sense when it comes to casino gambling because that is a game and you expect to be handing over your money at the end of the night. investing isnt a game and you dont expect to be losing your money. you dont want to apply the same attitude you have towards playing blackjack as you do to investing your money.
it's horrible for stocks or for blackjack.
yes gambling against the house is -ev (as is stock picking for many) but it's still your money once you win it.
Well, I have been given a wide range of opinions on my original question. This investment is a small part of our portfolio, probably 10%.
I do not like leaving such gains sitting during this time in the market. I don't trust the market at this time.
I'll take some off and will not sell all the shares. The sell will increase what I can spend elsewhere when I feel more comfortable. I actually have quite a bit of cash sitting on the sidelines. I don't like the feeling I have about the current market.
I am going to sell some of my Amazon shares tomorrow. I'm up now about 70% and have lost 15% in the last few days. From what I see, it will continue dropping. My cost was $170.00. Again, I will not sell all my shares.
I was curious how one 'plays with the houses money.' Since I let dividends reinvest, it is hard for me to figure that out. No big deal, I'll sell my higher priced buys.
I am not a total amateur and do not appreciate many of the comments from contributors as if I was. This was a term I heard and was hoping for some sound advice regarding what it meant.
Yes, Mathjak, I get that it is my money. I'd like to hold on to it. I'm not a trader but was simply asking a question about a term.
I held 3M for 30 years.
Reinvesting the dividends gave me a 16X return.
Keep a spread sheet on Boeing. Show revenue, earnings.. whatever is important. Go back about 5 years, and then go back about 5 quarters. Get the information off the 10K (Annual Report)
The spread sheet will tell you when to sell.
I typically hold for many months or years and never buy anything without a look at the financials. Since I trade so infrequently I don't spend any time at all looking for stocks to buy.
I am currently long CBMX and BEAT.
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