Boiler Room: The Official Stock Market Discussion

[Panther]

Good looking out.

Have the two of you been satisfied with the dividends?

And how do you feel about real estate investment through these channels versus straight up buying property?

Im just now getting started with reits, but my personal plan is to have about 10-20% of my overall portfolio in reits for some diversity and a lil income down the line

 

[Kyle C. Barker]

This is an inquisitive post not an argumentative post.

who was the last person you know with a diversified portfolio that woke up with no money by buying shares.

I get using margins but the only person I know that took a stomach turning loss was my coworker in 2009. He said he had over 1 mil before the recession and he still had a little less than 400k. He was in his late 40’s and wasn’t planning to retire soon so he shrugged it off. I’m sure he recovered by now.

what am I missing? What do people expose themselves to to get to zero? Even a portfolio of sears, wachovia and gm in 2008 would’ve turned into a decent portfolio of Wells Fargo and gm shares.

I’m seriously asking to avoid whatever it is people do to end up negative or zero.

I don't have an answer for you but I might be worth clarifying if your friend was talking about his 401K account? Or an actual brokerage account.

 

[IrateMastermind]

I don't have an answer for you but I might be worth clarifying if your friend was talking about his 401K account? Or an actual brokerage account.

I honestly don’t know. I assume ira and brokerage but it could’ve been anything. I never asked and I haven’t seen him since 2010.

 

[Kyle C. Barker]

Im just now getting started with reits, but my personal plan is to have about 10-20% of my overall portfolio in reits for some diversity and a lil income down the line

I feel you. I'm at square one right now and was looking into buying actual rental property but REIT seemed so damn attractive to me since I can get the cash flow I wanted as well as the liquidity I wanted. I won't get the tax optimization but whatever I guess. I also won't have to vfix roofs and toilets.

I'm looking at this group right now

AGNC Investment Corp. Common Stock (AGNC) Dividend History

The market is so messed up right now. You have covid and all of these tenant protections (which is good for them! I'm not evil!) Mixed in with crazy low interest rates.

Anyways I think I'm going to start nibbling here

As of now, supposedly, $100k of shares can net you $770 a month ($15.57/share, 12¢ dividend/share). That is of course based on my math and assumptions being correct

 

[Kyle C. Barker]

I honestly don’t know. I assume ira and brokerage but it could’ve been anything. I never asked and I haven’t seen him since 2010.

If I had to guess i would bet that he lost that money in 401k.

If he had a brokerage account he would have made bank by investing in inverse stocks since it takes a bit of savviness to get to a million dollar brokerage account in the first place.

Look at the movement sdow and uvxy had in March 2020. I was heavy in both of those around then.

Anyways stock market crashes can be a huge money making opportunity if you have a brokerage account.

My t rowe price 401k is pretty lame and I wouldn't be able to take advantage of those opportunities because it's limited to about 30 different mutual funds.

 

[KalKal]

I'll know when the stock no longer has the future. I got out of CCL and sold at $22. Took a major loss.

You can't hit a homerun every time. There's gonna be a plenty of fail.

My goal is to find a 10x stock and build a position early and often. That way I can just sit back and relax because I know I got in early while it's under valued.

but the long hold doesn't mean I'll hold forever.

I'm ready to jump ship anytime.

You're talking to someone old enough that I bought PALM on the day of its IPO

Back then, Palm Pilots were supposed to be THE FUTURE!
Should have thrown the towel earlier than I did. I ended up turning $4000 into $1000

This is an inquisitive post not an argumentative post.

who was the last person you know with a diversified portfolio that woke up with no money by buying shares.

I get using margins but the only person I know that took a stomach turning loss was my coworker in 2009. He said he had over 1 mil before the recession and he still had a little less than 400k. He was in his late 40’s and wasn’t planning to retire soon so he shrugged it off. I’m sure he recovered by now.

what am I missing? What do people expose themselves to to get to zero? Even a portfolio of sears, wachovia and gm in 2008 would’ve turned into a decent portfolio of Wells Fargo and gm shares.

I’m seriously asking to avoid whatever it is people do to end up negative or zero.

Maybe not LITERALLY broke (unless you're using options), but if you get hit hard enough at the right time you can take so much of a hit that its hard to recover.
Volatility tax - Wikipedia

It is well known that steep portfolio losses crush long-run compound annual growth rates (CAGRs). It just takes too long to recover from a much lower starting point: lose 50% and you need to make 100% to get back to even.

Trust me, when you see your account shrinking it gets really tempting to borrow money to get you back were you were before, especially when you KNOW we're at the bottom and a recovery is about to happen.

 

[Serious]

Yes. We live in a different era now.

People aren't factoring in options in the equation. Most people are speaking from the Buy & Hold antiquated strategy. Options adds so many elements to the game, you can 50% a year off of a sideways stock. Not to mention growth stocks that break out like TSLA.

If I do options on ARK-Series, a 20% yearly stock inflation would be 100-200% a year.

Also don't we live in a new era where if we do even attempt to enter a bear market a lot of people are hip to buying the the dip. At least that's what happened during March through August

 

[KalKal]

Also don't we live in a new era where if we do even attempt to enter a bear market a lot of people are hip to buying the the dip. At least that's what happened during March through August

That's not "new" in any way.
Is this the worst analyst call of all time? (cnbc.com)
Glad I never gave into temptation to buy the Enron dip.

 

[Mirin4rmfar]

found this on reddit.

 

[dora_da_destroyer]

That blip in March wasn’t a bear market, look at the charts from 00-03 where shyt was falling for 3 years straight, where it wasn’t until 2012 that markets reached the same point they were at in 00...navigating multiple multi year dips requires more savvy than just buying the dip.

Also don't we live in a new era where if we do even attempt to enter a bear market a lot of people are hip to buying the the dip. At least that's what happened during March through August

 

[winb83]

A year ago I bought $30 in bitcoin because SoFi gave me $25 free. That has grown to $177 all for $30 spent. I'm looking back in it like I should have bought more or at least dollar cost averaged into it. Instead I bought that $30 and forgot about it.

 

[Serious]

 

[Serious]

That's not "new" in any way.
Is this the worst analyst call of all time? (cnbc.com)
Glad I never gave into temptation to buy the Enron dip.

Balance sheets....

 

[Serious]

That blip in March wasn’t a bear market, look at the charts from 00-03 where shyt was falling for 3 years straight, where it wasn’t until 2012 that markets reached the same point they were at in 00...navigating multiple multi year dips requires more savvy than just buying the dip.

I'm ready for that shyt.

Most people in here ain't built for it. But I am trust.

I've been studying and researching while y'all sleep.

Bring on the bear market market so I can get rich.

 

[Serious]

I'll say this. The stock market maybe new relatively new to me. But politics is something I've been following since I was like 5 years old. The real reason i can make seamless transition and see shyt coming is because I have natural inclinations and feel for politics. I understand what goes on in the Senate and House, in real time, so I can make assumptions to how the market will react. I've also always heard stock market terms while I follow politics but now I have an even more in depth understanding, so the stock market just seems easy, when you have a decent idea of how politics as usual will play out.



I'm built for this shyt trust....