Investment BS Thread - Stocks/Futures/Mutual Funds/Bonds/Commodities/Options/ETFs/401ks/Etc

I did that in 08, I had stocks in the market but I was buying a few months after the bottom and didnt sell anything. I made like 300% in 12yrs on some stock I bought then. I actually sold that at the start of this mess for some rainy day money. I only put in a few grand in 08.

Oh and make sure you tell your brokerage you want all dividends reinvested. Do that first thing tomorrow before you forget. That's how you build up wealth.

 

That’s awesome! I love the stock market. Yes I check the reinvest dividend box with each buy. Don’t really have a need for a dividend now

 

It got to the point with some of my positions I was buying 5-10shares of stock each time the dividend paid out, which you earn a dividend on that which gets reinvested and so forth......

I got like 20shares of disney stock as a literal birthday gift (the day I was born) from my grandpa, 36 years later it's up 650%, most of that from reinvesting the dividends.

 

With free trades, I let some dividends build up, then buy what seems like the best deal at the time. There’s no wrong way to do it as long as you’re doing it though.

 

On this topic, how do dividends pay out? Do they literally mail you a check or are the funds transferred into your existing brokerage account?

 

They just appear in your account.

 

Curious. Is that legal? I know it doesn't count as day trading, but is it legal for me to script trading as a diy trader or is there a license needed for computerized trading? Or can any average Joe tap into a trading platform API and program out their trade plan and just leave it?

 

Brokerage cash account I presume? My betterment account just reinvests into the etfs and bonds. I’ve never “owned” stocks before

nah discussions good. Others can learn from it and others will research and learn things they didn’t know and others will share knowledge the already know. Nobody is around this thread bs ing about stocks and futures and investments and whatnot because they hate it

 

I wouldn't say folks shouldn't - but I would suggest that it's an unlikely to be successful strategy for the reasons you describe.

Effectively the stocks "lose" the value of the expected dividend as they pass their ex-dividend date (typically a couple days before their record date)

 

Exactly. Surprised no one wrote this before.

Good example today. T will be trading ex dividend. Look at the price.

Now sometimes if you want a low basis for a long term hlod then buying ex is ok.

 

I think it is legal, as long as you don’t violate any of the other rules of buying and selling. Read above though, not practical.

 

Who’s our future oracle? Looks like they’re back down again.

Edit: I’m sorry, looks like they’re slightly up.
https://finance.yahoo.com/news/stock-market-news-live-updates-april-8-221334090.html

Yahoo finance thinks it will get worse before it gets better. I tend to agree. CNN also said this morning that we had 50% more cases of coronavirus yesterday than we’ve been having.

 

Here is the reason buying short term just for the dividends usually does not work in my opinion .
Step 1 - buy the stock on the latest date to get the div.
step 2 - The stock is lowered in price on ex dividend date by the dividend but you will get the div on a later date .
step 3- Sell stock after you locked into getting the div. at the lowered price .You now broke even except you now owe taxes on the div . Now you now have lost money.

 

It is true that a company loses exactly the amount of value of the dividend on the ex-dividend date. That is obvious and has to happen. But if you use T as an example. It is ex-dividend today, and up .8% in premarket trading. It just doesn’t work out the same in theory as in practice, for many reasons.

 

Well I guess my question is in the general sense, is there any legality/issues with me, an average joe, scripting my trading without any special licenses.

 

So you want to become an algo? Haha just kidding, I really don't know, but it seems I've heard of people doing this. I'd definitely look deep into it, violating trading rules can get you in some serious trouble.

 

I think the media wants it to get worse. I really do think we’ve already hit bottom. Time will tell, I’m not expert

 

Hey if anyone dislikes the mainstream media it’s this guy. However, with a month of quarantine left (at least) and with the business slow down I don’t think we’re through it yet.