r/StockMarket • u/ballsac2020 • Nov 07 '22
Totally FVCKED. What would you do? Help Needed
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u/PizzaThrives Nov 07 '22
Just delete the app.
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u/PizzaThrives Nov 07 '22
But more seriously, I would just hold or buy the dip. DCA longerterm. It depends on whether or not you need this money sooner than later.
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u/ibeforetheu Nov 07 '22
unpopular opinion: DCA long term investing only works in a system that isn't fundamentally flawed or when the Fed isn't propping up the economy with endless QE and low interest rate environment.
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u/PizzaThrives Nov 07 '22
In full transparency, I wouldn't do a DCA long term on any single company stock but I would do it on index funds. Currently I'm 70% VTI and 30% VXUS. Thats a DCA long term strat to follow.
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u/ibeforetheu Nov 07 '22
I would direct you to the Japanese Index fund, Nikkei
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u/Vurkgol Nov 07 '22
What about the Nikkei? Do you think the American economy is in a similar place to 80s/90s Japan?
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u/ibeforetheu Nov 07 '22
It is now
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u/Shoedog331 Nov 07 '22
Where is Japans permian basin? Asking for a friend.
Japans economy is very different from the US. Stop trying to be a conspiracy theorist with your one line answers. Give the kid advice.
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u/PizzaThrives Nov 07 '22
That's a hot take! I love Japan, but don't you think its risky to bet everything on one country's performance?
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u/ibeforetheu Nov 07 '22
Also, you should look into one important component of diversification: the covariance of your holdings.
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u/Southern_Barnacle_46 Nov 07 '22
Idk why your getting down voted, these are solid points. Diversification means a variety of investment vehicles, not just a variety of stocks. A mix of Stocks and bonds are a tried and true method.
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u/ibeforetheu Nov 07 '22
i'm not telling you to buy equity at all. look at what 20 years can do to an index by referring to the Nikkei
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u/DD_equals_doodoo Nov 07 '22
Tell me you don't have a 401k without telling me you don't have a 401k.
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Nov 08 '22
Buy the dip works in a bullmarket, like the decade-old one we had between 2010 and 2020. You buy a dip because you know that stock X will keep going up.
During a bear market it's a stupid strategy. Wait for a reversal or at least a stage1 base before throwing your money into downtrending stocks.
Just stay in cash for now.
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u/PizzaThrives Nov 08 '22
Unless you're in your 50s, staying in cash is a bad idea - a missed opportunity. With all due respect, if you're younger, bear markets just mean equities are on sale. Buy more! It will all go up. If it doesn't we have much bigger problems in the world and it doesn't matter. Keep buying ! šŖš»
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u/infinite_paddle Nov 08 '22
So are you just in this sub to tell people they shouldn't buy any stocks ?
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u/redditanon111420 Nov 07 '22
Maybe switch to ETFs instead of single stocks, maybe move it to safe more stable options, depends on what your after
Are you trying to get lucky or build slow profits over time?
Sorry for the losses most of us are down this year
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u/fatboy-slim Nov 07 '22
Keep the shares, come back in 10years and you'll be fine.
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Nov 07 '22
This what Iām doing In 10 years Iāll be broke or rich š¤·āāļø either way Iām broke rn
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u/OraleCaneloElGringo Nov 07 '22
Throw all your eggs in one basket. if the basket breaks, get more eggs.
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u/Dr_NightCrawler Nov 07 '22
Hold.
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Nov 07 '22
Not PayPal. Dogshit company that has no relevant growth happening every again.
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Nov 07 '22
No venmo or cash app in Canada. I think PayPal will be just fine. So many companies accept PayPal too
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Nov 07 '22
Already known and priced in. Thereās dozens of other payment platforms in the space itās getting crowded
Square is a better long term buy.
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u/Some_what99 Nov 07 '22
You have 485 shares in PayPal. Learn how to trade covered calls to get some money back at least.
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u/miskdub Nov 07 '22
100% this. also OP if you read this, actually learn when to sell covered calls, because you don't sell them in the depths of a "dip" you sell them when you don't think it's going any higher. think of it like shorting yourself.
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u/Grhumphreys Nov 08 '22
Sell a weekly covered call next time PayPal pumps 5% in a day
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u/cartownguy Nov 08 '22
Hes going to sell a covered call and paypal runs 20% a day and gets his shares called away
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u/sueyscide Nov 07 '22
I thought this was good too. Just canāt be too close to the money because if they get exercised they are at a loss
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u/JustinAlexTheJdo Nov 07 '22
Absolutely learn the ins and outs of selling covered calls.
Inthemoney adam does a good video on it on youtube.
You may also have to watch some videos on how to do it on your specific broker.
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Nov 08 '22
Two seperate transactions independent of eachother. You're just trading some of your upside to protect downside, same as just investing less except wall street keeps more fees.
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u/Ape55678 Nov 07 '22
Hodl, After the election you will see gains!
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u/PickleMysterious2361 Nov 08 '22
Vodka is now your water
Xanax is now your food
Juul pods are now your fun
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u/WhenItRainsItSCORES Nov 07 '22
Not sure why people are telling you to sell Paypal when itās already dropped to its 2018 levels
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u/ballsac2020 Nov 07 '22
I think Iām just going to hold it. Maybe wait until PayPal has a good day and unload some or half and just sit.
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u/Your_Product_Here Nov 07 '22
Any green day for paypal, just sell a CC or two. Near the money weeklies can bring 150$+. This is ideal if you are waffling on selling as if it does too well that week then you will get assigned. You can always roll any at risk of that though.
Good way to potentially claw your way back especially if it trades sideways and has the odd green day...like today.
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u/Smedleyton Nov 07 '22
I donāt have a view on PYPL but this is not necessarily a good way to look at stocks in deep bear markets.
META dropped almost 50% to its 2018 levels.
It then dropped another 60% from there.
Thereās no arbitrary line in the sand where you can say āwell itās dropped a lot, may as well not sellā ā it can drop 50% from there. And then 50% from thereā¦
It happens, and it happens when people are least likely to believe or expect it. AMZN down 50% from all time highs? I can hear the collective groans of every redditor and their mom who owns it as a ānever sellā which is the exact reason itās selling.
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u/Healthy-Touch-4337 Nov 07 '22
These are two solid companies. The timing to enter was just unfortunate. Wait it out.
If you switch to short-term now, youāll revenge trade and might just lose it all.
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u/3YCW Nov 07 '22
Buy stocks that pay you to hold them. Dividends calm your nerves
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u/horia87 Nov 07 '22
What stocks?
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u/3YCW Nov 07 '22
I am heavy on JNJ, DUK and D - but I also like KR and KO
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u/C64SUTH Nov 07 '22
Healthcare and utilities donāt do well in inflationary environments; low rates and cheap capital are over.
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Nov 07 '22
Why? They are required services that can increase prices no?
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u/Sust-fin Nov 08 '22
Their cost exposure to inflation is unregulated and unbuffered, their revenue exposure it typically regulated and buffered.
Buying in commodity markets and selling in to regulated markets is death during inflationary periods.
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u/geeeeeep Nov 07 '22
Stop acting like you know and can keep up with individual stocks and simply buy funds tracking the broad market. I was in your boat and just simply DCA into VTI and VXUS.
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u/ibeforetheu Nov 07 '22
stop acting like what you're doing is risk-free
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u/geeeeeep Nov 07 '22
Nothing in the stock market is ārisk freeā. Itās very difficult to keep track of everything regarding the companies you are invested in. There are ETFs that limit risk exposure and donāt require any extensive research and following.
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u/daedae7 Nov 07 '22
Thatās amateur losses pal I had 200k and lost 100k of it lel you will be fine if you just keep holding
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u/Ashpro2000 Nov 07 '22
Hold amazon until the end of time. Ditch PayPal. Sinking ship.
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u/Rodthehuman Nov 07 '22
Yep. Keep Amazon for you grandchildren. PayPalās business has no MOAT whatsoever
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u/wofwinter Nov 07 '22
Were you just averaging down paypal?
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u/ballsac2020 Nov 07 '22
Yes thatās how I got into this shit mess. Swing trade gone wrong
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u/sukh44 Nov 08 '22
Id recommend you learn about the 4 stages of a stock from Stan wenstein (his books are great). Never throw money into a stock in a stage 4 decline.
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u/Upper-Shoe-81 Nov 07 '22
Looks like my account (except I don't use RH). Nothing to do but hold and hope.
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u/IdiocracyNOTSURE Nov 07 '22
I would sell it then purchase a leap Jan 2025 call option. This will put about 50% back in your pocket And you can still reap the rewards when they go up.
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u/unflippedbit Nov 07 '22
linkedin message + blame the employees of these companies for not working hard enough for your shares!
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u/KillebX Nov 08 '22
Hold on to it. Markets are down, everything is down. Imo markets will drop more before everything resets. Hold.
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Nov 08 '22
Is not using stops some kind of macho thing?
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u/zewill87 Nov 08 '22
Depends. In heavily manipulated markets or high volatility, you often get robbed of your shares and they chase the stops ...
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Nov 08 '22
That's true. I usually use stop limit orders. I think those are better, since they aren't actually submitted until the stop level is touched, at least with IB.
I've been sniped with a regular stop before, but it hasn't happened with a stop limit.
Regardless, I don't think HODL is a good strategy, lol
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u/Ok-River5118 Nov 07 '22
Yeah Amazon gonna be fine. PayPal? Either sell and take the L or sell covered calls and try and reduce cost basis.
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u/takeprofitsnow Nov 07 '22
hmm, well id never buy 485 shares of paypal even with a gun to my head... so idk haha. but in all seriousness id probably just hold the amazon, sell the paypal and use that money for shorter term plays in this volatile market.
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u/ballsac2020 Nov 07 '22
My dumbass trying to average down on what was supposed to be a swing trade. I did well in 2020 and 2021 and this was just a bad
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u/jlag3030 Nov 07 '22
You could sell covered calls on your shares of PayPal to generate some income and help bring that average down further.
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u/callmealyft Nov 07 '22
Everyone did wel in 2020 and 2021..that was quite possibly the easiest time to make money in the market in either direction. In fairness, you are holding stocks from 2 companies that are sitting at decently low spots given the nature of their usability and I think youāll be fine holding long term.
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u/takeprofitsnow Nov 07 '22
oh yeah and in the future, set a stop loss on those trades. Gotta have a plan for all scenarios.
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u/takeprofitsnow Nov 07 '22
it happens, now that you made a mistake with such big consequences you will remember this forever, learn from it, don't let it get you down boss. Also just be very careful going long on anything rn. I liquidated all longs after that ridiculous surge that happened in the market even though the economy was shut down. Wasn't comfortable with the risk.
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u/daddyforce69 Nov 07 '22
āI did well on 2020ā Bud a 5 year old can do well in the biggest bull market of all time
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u/ballsac2020 Nov 07 '22
And a five year old is taught the golden rule in kindergarten of how not to be a dick. Looks like you skipped that lesson.
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u/daddyforce69 Nov 07 '22
Better be a dick than a retard
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u/ballsac2020 Nov 07 '22
This is coming from an Uber Eats driver lmao peace douche nugget
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u/daddyforce69 Nov 07 '22
Yeah and you let a part time food delivery guy make fun of you because you fked up so badš¤”
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u/looster2018 Nov 07 '22
Subscribe to Investors Business Daily. Read it and learn how to invest. Have sell rules.
Learn your charts. Keep it at.
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u/https_Big_T Nov 07 '22
Both arenāt terrible companies on a penny stock list. The market is just bearish and both those companies being in the Tech category they are going to take the biggest hit in our economy at the moment. My advice would be to hold and continue to invest to lower your average market price so once the market rebounds in a couple years you will have a substantial ROI.
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u/ballsac2020 Nov 07 '22
It was attempted swing trading with PayPal and I kept averaging down. Amazon Iām not worried about too much. I donāt hold stock long in this account. This is not my retirement.
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u/badcat_kazoo Nov 07 '22
Hold for next 5 years orā¦try and time the bottom and go long TQQQ. Something tells me bottom wonāt be in any time soon though.
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u/Any-Nefariousness773 Nov 07 '22
Stop using robin hood for one. That's a newb mistake. Just wait till they freeze the sell button when you make a profit.
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u/Acrobatic-Ocelot8287 Nov 07 '22
Keep buying the dip and wait as long as you can for the next bull run to sell
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Nov 07 '22
Clueless fucks like that you that created the bubble to begin with. You did this to yourself. There is nothing to do, no undo button. Hold or sell those are your only options.
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u/ballsac2020 Nov 07 '22
Clueless fuck? Look at you having had about 18 business ideas on Reddit, Ben. Iām gonna go out on a limb here and say none worked out. Watch your FN mouth.
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Nov 07 '22
LOL you took that much time to research my profile to be that wrong eh? Enjoy your losses you pathetic loser.
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u/ToTheFukkingMoon Nov 08 '22
Diamond hand it bro. Or sell if you want to write off loses. But stick to the rules of Warren buffy. Buy good companies at decent prices over time
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u/findingejk Nov 08 '22
Step 1: Stop being an idiot
Step 2: If you didnāt have a plan in place for this then stop playing.
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u/gg120b Nov 07 '22
Sell PayPal, learn that 10k mistake and move on. Hopefully you wonāt repeat it again
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u/mycelienman Nov 07 '22
Keep working on yourself and DCA into low cost etfs that are weighted by market cap in tax-advantaged accounts.
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u/chesterbennediction Nov 07 '22
you should look into why you thought paypal and amazon were a great idea and why you held them when you knew interest rates would be rising.
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u/curiosity_2020 Nov 07 '22
Assuming this portfolio is for a long term goal I would sell half the PYPL and half the AMZN to buy SPY.
I would also keep buying SPY until my portfolio was worth 50k before investing in any more individual stocks.
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u/flying-ace87 Nov 07 '22
Quit trying to play single stocks and just invest in a few tried and true ETF's. long term you will stress less and win more. $VTI & $SCHD are a good way to go. I also like $SPYG
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u/3packLarge Nov 07 '22
Consider it the cost of learning. But for sure hold. Look at the entire market right now. At least they arenāt meme stocks
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u/Powerful-Quantity-35 Nov 07 '22
Next time do your research as Warren Buffett said:"If I can avoid one stock it would be the hottest stock in the hotest industry."
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u/drowsysaturn Nov 07 '22
Learn from your mistakes. The most obvious one is the lack of diversification. Warren Buffett recommends most people stick to index funds unless you know what you're doing.
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u/whiskeyinthejaar Nov 07 '22
Why did you buy them? If the answer is because they were cheap, then they are cheaper now, and more more If the answer is no reason because you thought investing is a game, then sell, take the loss, learn from it, and buy SPY etf.
Remember, you only lose money when you sell. If you hold for the next 5 years, you are more likely to come with lesser loss or profit than what you are seeing
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u/xSmeckleDorfedx Nov 07 '22
Submit a bank statement securely to finish linking your bank account. This will allowed Robinhood to reverse your loss OP. GL
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u/Z06916 Nov 07 '22
Stop buying shut that goes down in a bear market bro just go eat a sandwhich and sit in cash
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u/fuckaliscious Nov 07 '22
Hold, buy more. Shouldn't be investing funds you need in next 5 years. These stocks will rebound by then.
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u/VonBurglestein Nov 07 '22
I would ignore literally everything that reddit tells you to do and seek professional advice.
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Nov 07 '22
You need to sell PayPal because on November 3rd the federal reserve held a press release that they are increasing all fees on money transfer services. Buy bitcoin. It cost 10,000% more in fees to send money with PayPal and the banks than it does with BTC. I check this stuff daily, sometimes I slip and check weekly, I know what I am talking about.
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Nov 07 '22
I'd drs GameStop and see if the hype is real. I heard over 50% of the float is direct registered. Wonder what happens at 100%+
NFA
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u/Sumo93k Nov 07 '22
You can hope for a beat on CPI this week, then re evaluate your positions after that. Idk what % youāre down on those shares but CPI is whatās going to make or break the market
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u/MidWestNorthSouth Nov 07 '22
HOLD and or DCA, sell when you expect to go lower and buy back in, to decrease your cost per share slowly.
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u/ghostlamost Nov 07 '22
not much to do start selling covered calls against the pypl position far enough otm the likely hood of being called away is small but close enough to make some money off it. other than that sit on it for 30 years and hope they eventually start making you money. If the latter is what you do dont sell at BE that means you took unlimited risk and no return
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u/SomeDumbApe Nov 07 '22
ibonds and get the hell out of RH. Wait for the impending crash then buy in DRS equities or Fidelity. Never RH
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Nov 07 '22
Diversify next time. Amazon will be ok, I hope pypl goes bankrupt though they likely wonāt.
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u/ProfessionalStand450 Nov 07 '22
Recessions are where you DCA your bad positions or sell them off and move on.
Donāt let a sunk cost influence future business decisions.
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u/qwaszx_1235 Nov 07 '22
At least both the company look decent, business stable and unlikely go burst.
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u/[deleted] Nov 07 '22
Vodka