Official Let's Make Some Money Off Stocks Thread
05-05-2009, 10:07 AM
#2071
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Originally Posted by aklucsarits,May 5 2009, 12:47 PM
I can't tell if you are responding to my last post or not. But if you are, you misread my post. I said "I'm totally on board with your thesis..." - as in, I was agreeing with you on both an upcoming pullback and then a nice run upwards.
I just question the merit of someone who is currently invested in this market trying to successfully time the market twice to take advantage of those upcoming moves. Seems to me that the safer, and possibly more profitable bet, is to keep current holdings intact, add on if you have cash and see a good oportunity on the dip, and wait for the extended bounce that you illustrated with the red line.
Andrew
I just question the merit of someone who is currently invested in this market trying to successfully time the market twice to take advantage of those upcoming moves. Seems to me that the safer, and possibly more profitable bet, is to keep current holdings intact, add on if you have cash and see a good oportunity on the dip, and wait for the extended bounce that you illustrated with the red line.
Andrew
05-05-2009, 10:12 AM
#2072
Administrator
Thread Starter
^ 
Apology accepted
It's an old and tired mantra, pigs get slaughtered. A 30% rally and you haven't taken down those profits you're a pig. Keep in mind I haven't changed my basis. I had 750 shares @ $89.07 and I sold 250 of them today at $132.03. 50% gain, I sold 1/3rd of the stock. I'm right back where I started. I bought 5 $120 puts @ $3.10 as insurance on my remaining shares limiting my exposure to between $3.10 and $15.10 of losses. I've taken a guaranteed minimum 2% loss now with a guaranteed maximum loss of 11.5% through mid-June rather than expose my capital to whatever storm the market Gods may send my way. That's the strategy I took for my situation, you'll need to come up with your own to suit you.
I'm in defensive mode and I think it's a wise strategy given the uncertainty, especially with the bank stress tests coming out on Thursday. That is why I suggest taking your profits rather than riding things down even if they will go up again. Besides, you can take those profits and reinvest them back into the market when it's cheaper and multiply your returns. People who got burned last year didn't know when to sell. Now is when.
Never worry about profits you haven't earned. The only ones you need to worry about are the ones you have earned and are at risk of losing. Same goes for taxes. Take profits when you have them and don't be greedy.
Apology accepted
It's an old and tired mantra, pigs get slaughtered. A 30% rally and you haven't taken down those profits you're a pig. Keep in mind I haven't changed my basis. I had 750 shares @ $89.07 and I sold 250 of them today at $132.03. 50% gain, I sold 1/3rd of the stock. I'm right back where I started. I bought 5 $120 puts @ $3.10 as insurance on my remaining shares limiting my exposure to between $3.10 and $15.10 of losses. I've taken a guaranteed minimum 2% loss now with a guaranteed maximum loss of 11.5% through mid-June rather than expose my capital to whatever storm the market Gods may send my way. That's the strategy I took for my situation, you'll need to come up with your own to suit you.
I'm in defensive mode and I think it's a wise strategy given the uncertainty, especially with the bank stress tests coming out on Thursday. That is why I suggest taking your profits rather than riding things down even if they will go up again. Besides, you can take those profits and reinvest them back into the market when it's cheaper and multiply your returns. People who got burned last year didn't know when to sell. Now is when.
Never worry about profits you haven't earned. The only ones you need to worry about are the ones you have earned and are at risk of losing. Same goes for taxes. Take profits when you have them and don't be greedy.
05-05-2009, 10:29 AM
#2073
Former Sponsor
Hey so question. I have a little money in S&P 500 and a small-mid growth equity fund in a 401K. I no longer work for that company so I need to roll it over. What is a safe place to roll it over to? I know nothing about the stock market just that the S&P 500 has been going up but will probably stop shortly.
I know my bank TD Banknorth offers roll over services. I have no idea where to put it though. I can't withdraw it since I will be penalized and also I am on unemployment so if I take it out I will just lose it all as unemployment will subtract that amount from what they are already giving me leaving me with nothing left really.
I know my bank TD Banknorth offers roll over services. I have no idea where to put it though. I can't withdraw it since I will be penalized and also I am on unemployment so if I take it out I will just lose it all as unemployment will subtract that amount from what they are already giving me leaving me with nothing left really.
05-05-2009, 10:29 AM
#2074
05-05-2009, 11:18 AM
#2075
Administrator
Thread Starter
Originally Posted by 2003s2k2003,May 5 2009, 02:29 PM
Hey so question. I have a little money in S&P 500 and a small-mid growth equity fund in a 401K. I no longer work for that company so I need to roll it over. What is a safe place to roll it over to? I know nothing about the stock market just that the S&P 500 has been going up but will probably stop shortly.
I know my bank TD Banknorth offers roll over services. I have no idea where to put it though. I can't withdraw it since I will be penalized and also I am on unemployment so if I take it out I will just lose it all as unemployment will subtract that amount from what they are already giving me leaving me with nothing left really.
I know my bank TD Banknorth offers roll over services. I have no idea where to put it though. I can't withdraw it since I will be penalized and also I am on unemployment so if I take it out I will just lose it all as unemployment will subtract that amount from what they are already giving me leaving me with nothing left really.
05-05-2009, 11:23 AM
#2076
Former Sponsor
Originally Posted by cthree,May 5 2009, 03:18 PM
You can roll it over into an IRA. You should shop around and see what IRA options are being offer by the various institutions. They vary from fully self-managed brokerage accounts to fully managed accounts. Anyone who is offering IRA accounts can create a rollover IRA account for you and help you with getting it done.
Fully managed account means I manage it or what? Hahah sorry really know nothing on the topic.
05-05-2009, 11:43 AM
#2077
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Nice trade in FIG.
Purchased 500ea on 5/1 @ 4.45, sold today at 6.25, not big money but nice return (40%) on a three day trade. I think it might have a bit more room but why risk it.
I have no long term intrest in this one.
Don
Purchased 500ea on 5/1 @ 4.45, sold today at 6.25, not big money but nice return (40%) on a three day trade. I think it might have a bit more room but why risk it.
I have no long term intrest in this one.
Don
05-05-2009, 06:20 PM
#2079
This news should shake up the markets tomorrow. Dow futures down about 100 points currently.
WASHINGTON (Reuters) - Bank of America (NYSE:BAC - News) has been deemed to need an additional $34 billion in capital, according to the results of a government stress test, a source familiar with the results said on Tuesday.
http://finance.yahoo.com/news/BofA-to-need...43790.html?.v=3
WASHINGTON (Reuters) - Bank of America (NYSE:BAC - News) has been deemed to need an additional $34 billion in capital, according to the results of a government stress test, a source familiar with the results said on Tuesday.
http://finance.yahoo.com/news/BofA-to-need...43790.html?.v=3