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The wealth-building thread

HiFidFan

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Well...

I seem to understand something about how price wobbles around.

I already know I'm not lucky, nor terribly smart, and far from perfect.


Spending money account - $24200 principal, margin for one contract is $9,000 today - results for August and so far into September

Six weeks, 30 trading days, 25 trades.

View attachment 153537

I might graduate to trading two contracts one of these days to double the results.


That’s very good congrats. You still don’t show an example (chart) of price action. As they said back in my school days “show your work”
 

blueone

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I may be wrong about this, but if the employer elects to pay the employee's share of the deductions, it is not taxable to the employee as income. Tax wizards, please check me on this.

Employers don't get to "elect" to pay their half of the payment, that's the law, unless you're self-employed, and then you pay the entire amount. The employer's portion is not taxable income to the employee.
 

MRC01

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It does. It is the modern neoliberal reimagining of the minimum wage that you are describing, not minimum wage as it was conceived. ...
I'm only making a factual observation, not touching the subject of the purpose or efficacy of minimum wage as a public policy. Generally speaking, "safety net" programs are an important part of any society and economy, though what kinds of programs or public policy are most effective is a whole 'nuther subject.

...Industry has become increasingly reliant over the years on the government to make up for their low wages. Guess who benefits from this arrangement.
The direction of this discussion shows that math is applied to data, which is about economics, which is complex and political.
 

Sashoir

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This thread is not of personal interest to me, but having worked in the industry in various guises over the years, and having (particularly recently) seen some younger colleagues (not in financial services, I'm a professional nerd now) make some rather rash decisions, all I'd say is be mindful of four things:
* If you are not a professional investor, the chances are that the person on the other end of the trade is better resourced, and has access to better information than you (don't be too cocksure);
* You won't go broke closing out profitable positions, but you might if you don't close them out (don't be too greedy);
* Keep an eye on your fees-over time, your money will probably grow more with a slightly cheaper manager than a slightly better one;
* Diversify. Particularly if you own your home (so that most of your wealth is in real estate) or, if you're an American (I've had a couple of yanqui friends work for businesses which went belly-up whose savings were substantially in their employee share plans, so they lost their jobs and nest eggs at the same time).
May fortune smile upon you all,
S.
P.s. read Kelly if you're into active investment (I'm strictly passive myself)
 

RayDunzl

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You still don’t show an example (chart) of price action.


You're asking for what is right in front of your face.

Price Action = Price Movement on the chart for whatever time frames interest you, leading to ->

The study of how price tends to move at different times of day, as "energy" enters and leaves the market, leading to ->

Trading a vehicle that you can feel some confidence in predicting future direction.



Price moves may be fractal - you generally can't tell one timeframe from another if presented at the same scale. A 1 minute chart doesn't look any different than an hourly or daily.



Today, second trade, Green Dots entry long, Red Dots premeditated exit for $500.

Got out a little early, as I didn'trust my "guess", for $374.50

First trade was short 35720 exit 35655 for $319.50. Should have let that one run too.

$694 pocket money today.

I'm such a noob.


1631811686698.png



1631812344996.png

1631812489897.png
 
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MRC01

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...
Got out a little early, as I didn'trust my "guess", for $374.50
First trade was short 35720 exit 35655 for $319.50. Should have let that one run too.
...
I'm such a noob.
Two pieces of advice I know you will appreciate (and likely already know):
In aviation, it's better to be on the ground wishing you were in the air, than in the air wishing you were on the ground.
In investing, it's better to sell on a rise wishing you held longer, than hold into a trough wishing you sold sooner.
 

RayDunzl

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In investing, it's better to sell on a rise wishing you held longer, than hold into a trough wishing you sold sooner.


The chart in the previous post above shows immediate drawdown of about $400. The left end of the green dotted is the entry point.

I try not to sell the troughs I get stuck in, preferring to wait it out.

Early on, I did "get out", and the results just didn't go well.

1631813757473.png


Sometimes you just have to wait. Dow tends to range up and down, and not move in a straight line so much.
 

MRC01

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Yep, that's a tough call. Sometimes good investment advice can be contradictory. Like, cut your losses and move on, versus hang on and ride it out. Even if you ride it out and it eventually goes back up, one must consider the opportunity cost, what you would have gained if you had sold earlier to cut your losses, and invested that money in something else. Either one can be the best choice, depending on the situation. Usually, only hindsight tells you which is right.
 
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SimpleTheater

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Unbelievable, 25 pages of garbage investing advice from page 1.

All you have to do is buy OPPO BD-203's prior to them going out of business at $599 and then resell them on eBay fro $1,300 two years later.

If you weren't lucky enough to buy 1 million 203's like I did, or the 10 million HD-DVD's from Toshiba that I still have in my barn since 2008, I would recommend buying up Logitech Harmony remotes that are no longer being produced.
 

Pdxwayne

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Unbelievable, 25 pages of garbage investing advice from page 1.

All you have to do is buy OPPO BD-203's prior to them going out of business at $599 and then resell them on eBay fro $1,300 two years later.

If you weren't lucky enough to buy 1 million 203's like I did, or the 10 million HD-DVD's from Toshiba that I still have in my barn since 2008, I would recommend buying up Logitech Harmony remotes that are no longer being produced.
Wow, I still have seldom used 103 and 203. I am rich now!
 

Jim Matthews

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* If you are not a professional investor, the chances are that the person on the other end of the trade is better resourced, and has access to better information than you (don't be too cocksure);
* You won't go broke closing out profitable positions, but you might if you don't close them out (don't be too greedy);
* Keep an eye on your fees-over time, your money will probably grow more with a slightly cheaper manager than a slightly better one;
* Diversify. Particularly if you own your home (so that most of your wealth is in real estate) or, if you're an American (I've had a couple of yanqui friends work for businesses which went belly-up whose savings were substantially in their employee share plans, so they lost their jobs and nest eggs at the same time).

Following these guidelines would be sensible and productive over time.

Point 2 is critical - always take profits (if trading actively).
 

Chromatischism

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Unbelievable, 25 pages of garbage investing advice from page 1.

All you have to do is buy OPPO BD-203's prior to them going out of business at $599 and then resell them on eBay fro $1,300 two years later.

If you weren't lucky enough to buy 1 million 203's like I did, or the 10 million HD-DVD's from Toshiba that I still have in my barn since 2008, I would recommend buying up Logitech Harmony remotes that are no longer being produced.
Only 100% gains after 2 years? Yawn :p
 

Chromatischism

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Yep, that's a tough call. Sometimes good investment advice can be contradictory. Like, cut your losses and move on, versus hang on and ride it out. Even if you ride it out and it eventually goes back up, one must consider the opportunity cost, what you would have gained if you had sold earlier to cut your losses, and invested that money in something else. Either one can be the best choice, depending on the situation. Usually, only hindsight tells you which is right.
Sometimes you have to jump from a loser to a faster horse to keep your money working. It depends whether the story/thesis has changed or if it's just temporary volatility.
 

RayDunzl

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Yep, that's a tough call. Sometimes good investment advice can be contradictory. Like, cut your losses and move on, versus hang on and ride it out. Even if you ride it out and it eventually goes back up, one must consider the opportunity cost, what you would have gained if you had sold earlier to cut your losses, and invested that money in something else.

There's no need to "invest that money in something else".

It's not an investment, either, pure speculation.

If I buy, I don't own anything - no splits, no dividends, nothing - except something (a Futures Contract) that I can sell to somebody else or allow to expire, in which case the exchange determines my exit price, as they match the unresolved buys and sells at the end of the contract period.

Two Dow Contracts, the lower one (YMU21) "expires" this week - the last trading day is tomorrow, 9/17/2021 - you can see how trade volume has moved over the last few days from the expiring September contract to the next "front" contract, December (YMZ21) , with a last trading day of 12/17/2021

1631838168564.png


1631838205416.png
 

MRC01

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... If I buy, I don't own anything - no splits, no dividends, nothing - except something (a Futures Contract) that I can sell to somebody else or allow to expire, in which case the exchange determines my exit price, as they match the unresolved buys and sells at the end of the contract period. ...
If the thing you are trading is a futures contract, then when you buy it you do own something: the right to buy or sell the underlying "thing" at a strike price within a date range. Of course you may not ever intend to exercise that contract; you may be trading it purely for speculation. Much like some people treat real estate, buying properties not because they want to own a house but only to leverage market volatility and sell it later.

In contrast, some people buy options to hold as insurance. They buy puts to insure against the market falling, they buy calls to insure against it rising. Anyone who bought puts on their equity holdings in 2009 could have done well.
 
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JeffS7444

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I just finished Tony Robbins's Unshakeable and come away feeling ever-so-slightly smarter than I was before, because I've got some background info on why the world works as it does, from a man able to able to draw upon the knowledge of some of the most qualified individuals, not merely in the form of out-of-context quotes, but by actually being in contact with them.

Particular likes: Overall clarity combined with historical perspective, not just of the USA, but also of other regions including Japan and the "bubble economy"; Who profited during bearish times and why; How "fight or flight" instincts can cause people to make lousy investment decisions, and how to cultivate a more productive mindset; True wealth as something more than money and material success.

Dislikes: Nothing really. But if you want specific advice on how and why you should shop for a better credit card and checking account, and how to set your finances on autopilot, check out I Will Teach You To Be Rich, because Unshakeable doesn't touch upon those topics. And if you know someone who's got basic impulse control problems which causes them to overspend, Your Money Or Your Life may be a good place to start.

Note: Robbins previously published a more in-depth book called Money: Master the Game. I haven't had a chance to check it out yet.
 
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JeffS7444

JeffS7444

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Favorite Warren Buffett quote on the subject of Gold comes by way of Unshakeable co-author Peter Mollouk:
Gold gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again, and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would scratching their head.
 

Pearljam5000

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Please help me turn $3K to $10K so I could buy Genelec Ones
In what should I invest? :)
 

Chromatischism

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Please help me turn $3K to $10K so I could buy Genelec Ones
In what should I invest? :)
If you had bought Solana a few months ago you'd already be there - but it's still undervalued at $150.

Then the conundrum will be, do you sell early next year at $300-400 and buy speakers, or keep it invested and multiplying. Only you can answer that. Part of investing is discipline and delayed gratification...if I had done more of that I'd be close to retirement by now. Better late than never!
 
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