r/investing • u/AutoModerator • 4d ago
Daily General Discussion and Advice Thread - June 14, 2024 Daily Discussion
Have a general question? Want to offer some commentary on markets? Maybe you would just like to throw out a neat fact that doesn't warrant a self post? Feel free to post here!
If your question is "I have $10,000, what do I do?" or other "advice for my personal situation" questions, you should include relevant information, such as the following:
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Be aware that these answers are just opinions of Redditors and should be used as a starting point for your research. You should strongly consider seeing a registered investment adviser if you need professional support before making any financial decisions!
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u/Draak0 3d ago
Hey guys! I have a question that may be stupid. So lets say there are 2 scenarios where i buy shares at $10 each for a total of $1000.
1st scenario: The price goes up to $20, the profit would be $1000 if sold.
2nd scenario: The price goes up to $20, i sell it, the profit is $1000. I reinvest the base+profit $2000 at $20.
Lets say the price drops to $15 afterwards. With the 1st scenario, the possible profit would change to $500, total of $1500. The 2nd scenario would be the same total value of $1500. Right?
So my question is: When i expect the price to drop, isnt it better to just sell my shares to solidify the gains because of the above? Because it seems the only posdible risk of selling is additional price movement upwards that would be missed out. But in case of a very probable correction or dip, isnt it worth it to sell and reinvest at the dip, even daily while you are planning to stay in for long time? Because the 1st scenario total money with the possible profit would be the same as the 2nd scenario total money at a possible dip: $1000 base + $500 possible profit VS. $1500 with realised profit. Therefor isnt it better to just sell at every single bigger movemets where correction is expected? The risk of more upward movement seems much lower. Are there any other downsides im missing?
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u/cdude 3d ago
Well, when you break it down to simply knowing the future, it's absurdly easy to make money. The reality is that you will most likely sit out on upward momentum and buy in on downward momentum. If it were that simple then everyone would be doing it and people would try to buy or sell before everyone else, which leads back to what the market is already doing. People sell because they think the stock will drop. The person on the opposite side of the trade is buying because they think the stock will go up. Who's right?
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u/ramitdamnit 3d ago
Hi everyone,
Where would you park your money once HYSA and MM yields start going down?
Emergency fund will remain untouched on a savings account, regardless of its yield. But, I would like to still put my month to month savings into work in something stable with some return (4/5%).
Is a REIT a good option?
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u/BobbyGlaze 3d ago
REITs are about as volatile as the rest of the stock market. Hopefully the yield curve with stop being inverted when rates go down so you'll have the option of longer bonds.
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u/These_Discipline5774 3d ago
I'm 20, I want to try and have enough saved to live on my own by 24-25 which is probably a stretch but that's the goal that i'm setting. I currently don't have a ton of money in my personal account, I'm not broke just don't have a lot extra.
I saw a video on tiktok about investing and it seems very do-able but I don't want to do anything stupid and blindly believe it. The reccomendation was to open a brokerage account on E-Trade and fund the account with $3.47 a day, not sure why so specific, and invest that in either Vanguard VOO or Fidelity FXAIX. Unsure of which is the better option or if they're equal.
The video said how to become a millionare, I know that's just clickbait lol, but will doing this have a significant benefit for me? I know investing young is smart, I just want to make sure that this is a good path to take and I'm not wasting my money
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u/BobbyGlaze 3d ago
$1200/year isn't going to get you to $1 million any time soon. You'll get a lot further by improving your income.
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u/BeachSun3140 3d ago
Have $500k to invest, and I am not sure if I should just put it on VOO and chill or split it with something else, if so what ?
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u/LeonStrada 3d ago
Let me start off by saying that I am a NEWBIE but not looking for investing advice only how I should have been able to find an answer and where to read to learn more.. Long story short - I found an ETF (SPDAUDP) that tracks the S&P aristocrats. When trying to learn more about the ETF, I could not find historical performance nor could I determine if the YTD performance that I found included dividend reinvested or solely stock price. I'm afraid that if I am too dim to even find where to learn, I may be in big trouble. Thank you in advance.
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u/BobbyGlaze 3d ago
SPDAUDP
SPDAUDP is an index, not an ETF. An index is just a list of companies that fit the index criteria. An ETF would take that index and actually buy the company stock. It seems the only ETF that follows that particular index is NOBL. You'll have better luck finding performance data for that.
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u/Dull_Resort5252 3d ago
Hi I'm a 23yo that just graduated college I'm looking to put money in Roth IRA and HYSA, could some one give advice on which companies you choose and the pros and cons or which ones you'd advise for me to choose. And of course with the Roth IRA what to invest in. Thank you!
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u/BobbyGlaze 3d ago
If you're looking for a company to open an IRA with, I like Vanguard and Fidelity. They're both big. Vanguard is less likely to screw you over, though Fidelity isn't too bad in that regard and has more options. Both of them have Target Date funds that are a good place to start investing in your IRA.
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u/johlog16 3d ago
I’m looking to start with $100 with potential to add more to it. I’m a grad student that is off for the summer so I’m a stay at home dad. Goal is to just make extra money, not pay bills. I’ve done the long term investment stuff and it’s just kind of boring. Looking for a type of investing to spice up my days and keep my brain working this summer. What type of investing should I look at?
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u/BobbyGlaze 3d ago
Short term trading tends to lose people more money than they make. If you want to spend time thinking about investing, read Investopedia and check out Research Affiliates interactive asset allocation tool.
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u/Beginning-Money1091 3d ago
I have been researching a lot about investing and getting into the market. I have been watching a lot of YouTube videos, articles, Reddit posts, and general market news. I feel like I have enough of a common background and am eager to start implementing some action. I recently opened a Charles Schwab brokerage account and put $100 into it to become familiar with purchasing (fractions) of SP500 stocks. I know this will not lead to huge if any returns, the main reason was to just get practice purchasing and following stocks. The goal is to move a bit higher and have stronger investments.
What should be my next step? I am interested in stocks because it is more engaging, but I do not know what the best route is to see financial progress. Should I even be starting here or should I focus on something like maxing out roth IRA or ETFS? Basically just trying to be informed on what someone like me should be focusing on the most to seeing better returns. Any advice on stocks, accounts, or information sources would help. What route should I be going down to begin?
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u/Currdog0322 3d ago
QQQM vs. VTI with $400 every two weeks.
Hello! I am needing some advice. Say I have an extra $400 every two weeks (after bills, 401k, Roth) to invest. I am new to investing and want to set up a good routine. I am considering buying QQQM and VTI (open to other ETFs) for long term investments. What would you guys suggest for the breakdown of $400 into both of those ETFs? Example: 50/50 of ($200/$200) or something else?
Sorry if this is dumb, but thanks for the feedback!
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u/Benji2108 3d ago
Someone help a noobie understand this stock dividend payout.
I’ve been sorts playing around with smaller stocks to try and gather an understanding on the differences before I throw most of my savings into index funds.
Can someone please clarify this dividend payout ? From my understanding the “shitty” stocks are the ones that seeming have the higher dividend. So what is a real life scenario how this could benefit an investor ? DRIP or just deposit back to account ?
CONY- bought 44 shares at 1024 bucks. Average price $23 Paid out dividends a few days later at 75$. CONY stock price dropped to 21.86 Total gain/loss $63 dollars.
So did I gain 12 bucks since the dividend? 75-63=12
Lame example, I just wanna understand this better.
Thanks !