School me on investing...

With you guys playing penny stocks I feel like I'll live on the edge a bit and go one level down (historically only invested after tax dollars into DIA/SPY) to a more specific/sector focused ETF.

Whatcha recommend and why?

 

Purely to see a possible positive number if it doesn't see 35 again. Physically and mentally take the beating now and pretend it never happened. My market value was about $132 holding 120k @ .0035 avg. Pouring a couple hundred $ more on the flames to "lower cost average" wasnt an option at .001 only to give me .0022 average. Take the loss, put the $130 back in at .001 and have 10k more shares than I currently do. If I had another account to buy otc, I would have bought $100 or more at .001 and nearly doubled my buy in today. Adding $200 more to my existing would burn another $200 if it never breaks .002 again.

On another note, I'm not going to worry to much about it since I won a free share of FB on my webull wheel referral today.

 

i am actually considering expanding my vegetable garden and adding some chickens, maybe goats.

since that will become less money spent (equals $ printed) i might have more success in that vs. beebstreetbets

 

Can @Dave K or @HPPT please change the name of this thread to "Terrible Very Bad No Good Things To Do To Your Money"

 

I still don't know why you guys keep chasing yesterday's news. If a dude is posting in here about some surprise jump on a stock, pennystock, bitcoin, whatever... and you didn't have it before, you're too late. Stop thinking there's gonna be another leap tomorrow. I didn't think that needed to be said.

 

“The stock market is a device for transferring money from the impatient to the patient.” - Some guy.

This thread should be called, "School me on gambling..."

 

For this -one- particular micro/sub penny stock that about 4 of us are chatting about, that's exactly what we are knowingly/admittedly doing. Some may have never looked at that type of stock or looked at the numbers in a gambling way with it. A few others would assume we are betting our next meal on the outcome.

I'm sure the gurus here have never lost money on a "real stock" but at least we're not talking about cooking, clapped out SVs, or lacrosse yet.

 

Yah, for me penny stocks are fun. I can put a few hundred dollars into them and if I get burned I get burned. I piss that money away on other things all the time. More expensive stocks, to get a return you have to put in thousands of dollars. Its less risky for sure. I have done well on a couple penny stocks that have grown my account enough to where I am not constantly putting my own money in. It is really just like gambling. I bring X amount to casino, I win, I put original amount of money back into my pocket and just play with my winnings.

The nay-sayers will always come out when the market is down. Same thing happens on the crypto thread. They go away quickly when the markets turn green and peeps are making money. The market is down still so we are all bitchin about it for sure. It will recover, those red stocks will turn green and those who hold should recover and we can start bragging again.

I will say what @Sweatypants says is true, that by the time the kid who is shining your shoes is talking about a stock, your too late (most cases). I refer to those as meme stocks. I have stayed away as I was too late to the game.

Not always the case. I believe in some stocks are on the brink of breakout at some point I jump in. $SRMX is one. Company is 5G product related, just got a deal with TMobil and Microsoft is using their chip in the modems. This stock could take off. The red market has dropped the stock pretty low this week for me to get in at bottom pricing. Sure people are talking about the stock, but that helps me make a decision as there is a lot of Due Diligence out there when people are talking about a stock.

Dont take my advice as we are talking volatile penny stocks that you could lose on. I come here just to chat about it. The odds are better to me than sitting down and donating it to a black jack table.

 

Please stop with the cost averaging nonsense in terms of buying more to lower your average cost for an existing holding. The only question you should ask yourself is do I like this investment better than all other known possible investments at the time of purchase?

If the answer is yes, proceed. If not, it's simply chasing losses. Also, doing so is different from a true dollar cost average strategy.

 

i mean the math does work, it's another strategy. may not be the best one, but it does allow you to turn green faster, if there is a up-tick, otherwise you're right..may just be adding more weight to a sinking boat

 

yea that math only works if it has long term viability. if its some penny pump n dump or a meme or the fad of the day, it does nothing if you're already on the wrong side of the curve already. the amount of times i've read "buy the dip" in relation to GME or AMC or Dogecoin, etc... is so obnoxiously laughable. the dip of a fad is not a dip/bounce... its just a retraction after smart people took their winnings out and dumb people are left holding their dicks. IF, you were following the message boards day in and day out, you MIGHT have seen it coming, and you MIGHT be able to play that game. unfortunately for me i guess, i don't even really read Reddit nor do i have time to sit on there refreshing the screen all day. if you want to beat the dummies, you gotta be on the pulse, and not try to maximize profits, but rather find an acceptable growth percentage you're happy with taking and GTFO. if you bought GME at $10 or whatever the fuck it was and it went up to $100? or even $200? most smart people woulda gotten out right then. that's insane growth. waiting to see if its $450 peak comes true or if it tanks again shouldn't even have been a thought for anyone. And i get a fair amount of people were doing principled holds for non-profit motives, but whatever. there shouldn't even be a shoulda woulda coulda what if in that scenario. if i saw 1000% in a day or 2, I'm gone. who cares about 4000%.

that brings me to another point though... if you guys are having fun with this, then no biggie and more power to you, no harm in that. playing around with a few hundo to have fun and you don't care if you lose is just fine. to me though, to actually take this seriously takes a lot of time and effort. there's a lot of losses being discussed here, and even if you hit big, who cares about 1000% on $100? i mean a free $1000 is a free $1000, but that's a lot of effort for $1000 when you could just go to work for a couple days or more/less. time v. reward i guess varies with each person. $10k on GME if you caught that shit right woulda paid off a house. $100 on GME even catching it perfectly is what... half a dirtbike purchase? that's a lot of stress and research and reading and rollercoaster of emotions to try and hit the lottery on a meme. I just don't see it.

 

full agreement.

the only thing is that GME did bring a lot of people with no knowledge, or very little of what to expect. you pay to learn, and that's what that experience did. Basically the house always win.

I myself see this as too exhausting, and I gotta work the 9-5, and don't have enough time to devote on really making in-roads to big time wealth

 

Well people have been posting on here about Bitcoin since it was around 3k and I stupidly never bought in.

some guys that I know are much smarter than I am think it is still a buy. I was sooo stung by the tech crash in 99-00 that I never jumped in but I’m thinking about taking a flyer and putting some of my 401k in it, if that is possible to do in a 401k.

 

I have an old buddy that's been all about bitcoin since it was well under $100. He was into mining it back then. Haven't talked to him in a while, but he "should" be a millionaire by now.... I never really knew what it was then, and still really don't. Oh well. Good for those that do. I don't feel left out at all.

 

me currently. i have my 401k and match rockin' at work, and a decent chunk of cash just sitting, but my work is exhausting and relentless and i am frankly nervous to leap without the due diligence i know this needs, which i currently don't have the energy or time to put forth. catch 22 i guess considering it could potentially alleviate the problems preventing it.

 

i WILL not do it now after a 10 month 1000-1800% jump (depending on which crypto you're looking at). to do that and be ok with it is certifiably insane to me at this point. EVEN if, it were to hit $100k, at this point that means doubling your money. the price of it becomes irrelevant when it has no intrinsic value, all you care about is the delta change. is a 100% change this year possible? from what little i know, i wouldn't rule it away. but again, if you're playing with $100 or $1000, do you really care to watch this shit every day, 24 hours a day and deal with that for another $100 or $1000? crypto is worse than the stock market in that regard because it literally NEVER closes. the cycle is continuous. you gotta sleep sometime, so you really can't give it your full attention ever. do i think it'll hit $500k? hell no. so if you've missed this cycle's jump up, and now you're talking about 10, 20, 30, 100%... do you really care to tie up that cash and invest yourself into that? you could try and play the daily/weekly fluctuation patterns maybe, but again that would literally mean watching charts continuously all day and night. i refuse. if the last few patterns hold true... i'll be looking for a loss of anywhere from 60-80% of current value, and then that holding for 4-6 months, and then maybe i'll buy in and sit on it until the next wave. that's my current thought. the last wave took like 2 years too though, so realize you could have money tied up for quiet some time with nothing to show for it. maybe that drop-off doesn't happen this time because there's more large investors? maybe it does? i'll start paying attention again when it gets down near $10k personally.

and full disclosure... i literally had the thought and talked about throwing down when it was $5k at the start of COVID. my thought was, people like in all times of uncertainty, try to hedge the dollar with gold or some other shit, they'll probably do it here too. and i was thinking about a $10-20k level of investment, so... 2-4 bitcoins i guess or whatever amount of ETH. flat out, i was just too much of a pussy to pull the trigger, which given that i look at financial and business strategy risk for a living, i find my natural inclination is to be risk averse and always "what if" everything into inaction. its something i really need to overcome and be more carefree about. i'm in the "missed the boat" camp though now at this point. I wouldn't touch it. also i'm not an investment banker so do with that as you wish.

 

a chick at my work who is not a tech person at all, made like $300k or so on the last boom when it got up to about $18k. she had bought some like 7 years ago, because the USDA banned her favorite diet pill from having ephedrine, and she wanted to buy black market diet pills from india and they would only take bitcoin. true fucking story. she bought a bunch at like $10, some got stolen, saved some. bought some more at like $100, then forgot about it for years until the 2018 run-up. not enough to quit work, but paid off her condo i guess. sometimes dumb luck is just dumb luck. you coulda thrown away $1000 in 2010 and never saw it again and bitcoin coulda never moved, just like the 5 million penny stocks out there.

 

Oh look, another "dip".....FFS.

 

That's awesome, good for her. But like you say, that "could" have been lost money pissed down the drain. I'll take that dumb luck any day though. The guy I know isn't tech savvy at all, aside from back in the day being able to find free porn on the internet. How he got into bitcoin I never found out. Probably from buying porn.

I have a few "penny stocks" in my portfolio, but it's only a couple hundo's and I don't care if it goes to shit. I'm not betting my future on them. A lot of penny stocks aren't listed on wealth simple, and that's probably a good thing lol.

 

No the math doesn't work. Carefully read what I posted. It's an investment bias error based on the tendency to favor cutting losses versus making gains.

Even if you "go green", you may have went greener investing that second tranche somewhere else. Plus you get the added benefit of diversification.