I'm sure you guys get this question all the time, and I'm sorry, but I was wondering how to get into making money off stocks. I have absolutely zero knowledge on the topic. Where would you suggest I start reading?
Hi, I rarely post but I will help you. Don't try to make money off of stocks. Do not try. The gist is that no one can predict shit. The best strategy is to invest in index funds (I.e. a bit in everything) but I haven't looked at those closely.
Rule one of the investing industry is to use someone else's money. Always remember this.
>>1138632
Step1: Completely ignore this guy
Step 2: spend 50% of your investment budget on a number of energy stocks with better than industry average debt to equity ratio (D/E) now
Step 3: spend the next 30% in 3 installments over the next 3 months, buying the same stocks in equal 10% amounts. This will protect you from a sudden downswing
Step 4: keep the last 20% in cash and be ready to use it if you see an incredibly undervalued deal that you must act on fast, so as not to be foiled by clearing periods
Step 5: wait two years and profit big time
>>1138638
:^)
>>1138624
never listen to these guys
>>1138632
ignore this guy completely
>>1138638
somewhat listen to this guy
Sell puts on everything that already dropped a ton. like oil and nat gas and coal, maybe copper.
if they drop further take ownership
keep selling puts on the cheap stuff where everyone is scared.
Sell puts on the stuff that drops in the crash, when everyone is scared.
keep 40% of your shit in cash b/c you're speculating
Sell puts on the way up and use the money to sell more puts forever. scaling into bigger and bigger companies.
when you take ownership of an equity sell covered strangles(simultaneous call and put) against.
eventually get big enough for index and commodity futures, and do away with shitty stocks.
dough.com and tastytrade archives.
>>1138649
Can you explain the strategy of selling covered calls and puts on the same stock? I barely have a grasp on options but this idea always confuses me.
>>1138608
i'd say 3 most important factors in stock investing are knowing crowd psychology and being one step ahead, knowing facts and third one is pretty much luck (things that just are outside your hands that you just cant predict, be the outcome negative or positive)
>>1138672
>>1138672
Buying a put and a call is called a "straddle". You are betting on volatility, if the stock sinks, then you make money on one option (the put) and throw away the other (the call)
Likewise, if the stock skyrockets, you do the opposite. You make money if the stock is volatile and lose only if it stays still (lose the premium x2)
Another trade would be to buy the call, sell the stock and sell the put. You are betting that the stock will move in one direction, but you are also buying insurance on you being wrong about that. The insurance caps your gains at a certain amount. I can check my books to figure out the directiona cause I cbf to do the mental hoops to figure it out atm
>>1138694
Ok actually I said that wrong.
When you buy the call, sell the stock, and sell the put, you're selling the put to offset the cost of buying the call. This caps your gains on the upside though
Fuck my options final is in 12 hours and I haven't even started studying
>>1138699
Just think of it this way, when you buy puts or calls, you're essentially buying an insurance policy against being wrong. If you're wrong, your losses are small, but if you're right you can win big.
Also, you can get way more leverage with options. GOOG options are like $3-$15 right now, while the stock is $700+.
http://www.cboe.com/delayedquote/quotetable.aspx?ticker=goog
Unless you're going to start pricing options thats all you really need to know, the other strategies still require you to make a bet on if the stock is going up or down
>>1138702
Thanks. Ive looked into it. I like the idea of selling covered puts. I hate how speculative everything else seems, but I'm probably wrong. I still dont understand options completely. If anyone has a resource I'd appreatiate it and sorry for derailing OP
>>1138706
Covered put is when you short sell stocks and sell puts. If the stock goes up, you lose on your short sale, and the put is thrown away (by whoever bought the put). You will lose significantly if the stock goes up because the only cash inflow you have is the premium of the put, which is probably like $2-3, while you pay (lose) dollar for dollar on the short-sold stock
Options in general are way more speculative because it's a zero-sum game. Every dollar you win is lost by someone else.
>>1138712
See, I was mistaken. I thought it meant a put covered by actually owning the stock long, and was just a strategy for taking smaller profits earlier. You got a resource I can read more about this stuff?
Getting a old edition of a macroeconomics textbook would be good. Can get them online for $5.
What you want to do is gather up money until the next crash. Then you buy everything, and sell it in 4-5 years, and wait for the next crash. It's like clockwork, every 7-8 years there's a crash. Shouldn't be too long now.
>>1138770
since the potential of technology is more or less due to chance, why would the cycles necessarily have a regular rhythm
>>1138632
t. Watched Martin Shkreli's first video on Investing
LOL
>>1138770
i was born in the 1990s
what does a good economy even feel like?
>>1138632
I seriously can't tell if you are serious or trolling. There are so many things wrong with that statement I'm not sure if you're really that misinformed or just trolling.
>>1138790
ahahaahahhahahahahhahah fucking REKT
>>1138632
>Rule one of the investing industry is to use someone else's money. Always remember this.
How the fuck do you do that? Won't that someone else get mad?
>>1139990
Most funds are people who did finance degrees convincing you that their 'strategy' is somehow better.
Most financial advisers are blasting at you about how much money you'll make and how their proposed strategy will give you a solid base for retirement, but they fail to mention how fucked you get because their funds have .5% expense ratios.
>>1140153
This.
The truth is they are fucking retards and don't know more than you.
E*Trade, Fidelity, or TD Ameritrade?
My goals are investing in ETFs for a year until I learn more about investing and other financial topics, after about a year I want to just go into stocks and invest in foreign markets [not now but later down the line]
Ive been reading up on begginer shit today so I'm still not familiar with all the financial terms. And I didn't put Vanguard up because from what I'm reading on this one page, Vanguard doesn't offer foreign stock.
