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

That is entirely correct.

If it tanks with a stop loss, there's a chance I won't get out.

If it tanks without a stop loss, it's guaranteed that I won't get out.

Would you rather a parachute that might not work, or no parachute at all?

 

Just want to say this thread has now given me 3 winners, so thanks for the info as I’m doing it self taught and learning as I go...and now NRGU is going on my list to look into.

 

I’d rather take the parachute I know is working right now (donuts )

nrgu is a good one that will benefit from a slow and steady climb. I’m hoping for 50.xx ASAP but realistically I will consider leaving at 30.xx to...take my donuts and go (that one is for a vacation fund actually I’m in at 4.55 or so and will likely look to sell towards the end of this year or early next before vacation season

 

Id rather pull my own parachute.

 

Normally yes, but when everyone is pretty sure a company isn’t going to survive, and if they announce something devastating I’m not sure there will be enough buyers until it fully bottoms out, and I’d think most holding it also have a stop loss. So there could be a lot of people trying to get out and not many to buy.

 

That's great if you're sitting at the computer all day every day.

Stop loss is a safety for when you're not.

but you do you.

 

I don’t disagree but right now we see 5.xx a share or whatever it’s at now and you know what your parachute is. That’s my take at least. I’m taking my donuts. I took them at 3.35 and don’t regret it actually.

 

I sold half my TRTX and moved it into NRGU. Any advice on whether I should sell the rest and just move it all into NRGU?

 

second wave incoming. prepare yourselves

 

I agree, do whatever works for you. I’d have sold early and missed significant gains, so that would be my loss.

 

Is that all you’re invested in? If so leave it split. At least it’s somewhat diversified.

 

I just bought $7,500 worth of NRGU if that tells you anything. I think TRTX can go a bit higher but if it starts coming down a lot, I’m selling. I can’t complain with a 180% return

 

Lol what’s this “diversity” you speak of

 

put it all in htz live dangerously.

 

Question: I’m looking to buy my first house. Once the market comes back, I should have a ton of capital gains to possibly pay down 50% of house in my price range (capital gains taxes included). Would it be better to pay it down or keep as much money in the stock market as possible to keep making money? I know the mortgage rate would be higher but I think it would offset and be positive with the capitol gains

 

Without knowing more, I’d say pay enough to avoid PMI, but keep the rest in stocks. You‘d likely make more in the market than you’d be paying in interest on a home loan (3-4%)

My quick $.02 anyway

 

@pdaddy this is a classic cost-of-capital question.

Consider whether you'll make more with the money in the market than you save in reducing your interest payments.

Factor in the tax deductibility of mortgage interest payments at your marginal rate, as well as the reduced leverage on the house value appreciation.

Also factor in whether you'd be paying long-term or short term capital gains rate on the investments you cash out.

Edit - you wrote pay-down suggesting an existing house/mortgage.

Did you mean put down? As in for a purchase?

If the latter then I'd definitely go along the lines of @Tyler07's advice in put down enough equity to avoid PMI and to secure a solid interest rate. More than 20-25% down probably isn't going to be beneficial from a rate-of-return-over-years aspect IMHO

 

Digital Ally (DGLY), a body cam mfr, is up 70% today. Been on my watchlist for a couple of weeks. Regretting not buying it and several gun stocks so far. I'll throw a few dollars at them but keep my exposure low.

 

Yea i meant first payment or down payment. That’s probably best, find a happy medium. Thanks for the advice