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    Saturday, November 27, 2021

    Stocks - I’m completely new and thinking about investing in PayPal ?

    Stocks - I’m completely new and thinking about investing in PayPal ?


    I’m completely new and thinking about investing in PayPal ?

    Posted: 27 Nov 2021 06:32 AM PST

    Thought about buying just 1 share of PayPal and starting from there. I feel bad that I'm starting late at 23 and with so little to even invest, I've only got 8k to my entire name which sucks lol. I'd invest maybe $300, that's what I'm willing to lose, anything more would be irresponsible.

    Any advice? Is this a good start? Anything I should know as a complete newbie?

    Words words words hopefully my post isn't taken down for low effort this time

    Edit: thanks for all the help, also some people misunderstood, I don't have 8k to spend. That's just my savings that I don't touch. I have around $300 to invest with. Any more makes me too nervous.

    submitted by /u/WowItsAShark
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    What's your opinion on TQQQ

    Posted: 27 Nov 2021 01:02 PM PST

    My portfolio current is 100% TQQQ with no margin. My game plan is quite simple. Buy every, single, dip. And simply continue doing that. 3% down buy 5 more. 1% down, buy another 5 more and on and on. Do you consider this a truly good strategy that will end up in success? I have no other positions and will NOT be needing the money in the longterm future. I expect I will hold this position for 5-10 years than revise my strategy when I'm 26-31 years old. Thank you very much for your time reading this and I appreciate all constructive feedbacks.

    submitted by /u/UrMomsFriend1
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    What's your game plan for a market correction?

    Posted: 27 Nov 2021 07:17 AM PST

    Now, the last thing this sub needs is more pointless speculation on whether or not the market's going to crash/correct downward. None of us can predict the future and we've all heard that timing the market is futile. Let's keep that speculation to a minimum.

    For those who are worried about this though, what positions are you taking? Do you have a small percentage of your portfolio in some type of hedge?

    OTM SPY puts? VIX calls? A larger than usual cash position? What are you using and how much is it costing you? What's the potential pay off?

    I want to stay invested, but I also know that the market is historically overvalued, and I want peace of mind at night with some form of hedge. Any suggestions are welcomed. Thank you!

    submitted by /u/scatterblooded
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    What’s the first thing I should invest in my new account?

    Posted: 27 Nov 2021 10:56 AM PST

    I'm 16 and I'm about to open a custodial account through TD Ameritrade. I'll be able to do stocks, mutual funds and ETF's. I have about $2K I could invest. What should I start with, any individual stocks? Open to all ideas and suggestions, thank you! :)

    submitted by /u/Bjwheels4
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    Why are there so many new electric vehicle companies?

    Posted: 27 Nov 2021 06:15 AM PST

    First of all, it's hard enough to build a car on it's own without things falling apart when you hit a bump in the road. Second, to manufacture them is a humongous undertaking and capital expense. If I wanted to start a new company, EV's would be the very last thing on the list, maybe that's why? I don't get it

    submitted by /u/Long-Variation9993
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    Roth IRA vs Mutual Fund

    Posted: 27 Nov 2021 01:52 PM PST

    Hey guys, I'm finally debt free and just paying rent and groceries at the moment. I will have about 500 dollars that I can put away that I don't have to worry about. Is it better if I do a Roth or mutual fund like Vti? Could you tell me the pros and cons?

    submitted by /u/MladiAristotle
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    What's up with the recent Dollar Cost Averaging obsession?

    Posted: 27 Nov 2021 11:06 AM PST

    I see a lot of new investors who are looking to invest their savings and everytime they ask for advice people tell them to dollar cost average to spread out their risk.

    I understand the fear of buying on top, but DCA'ing is in essence betting against the market to trade lower, and on average that bet is not in your favor. The market has historically shown an uptrend and therefore "spreading out your risks" is hurting your investment. In more cases than not throwing all your money in the market at once would produce better results, without even considering trading fees being part of the equation.

    I understand the use of DCA when you have a monthly income and want to invest your savings but not when you have built up a lot of cash and want to spread it out.

    Would love to hear your take and insights on the subject!

    submitted by /u/best_jerky
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    What are your favorite / reliable index funds for 5-10 year timeframe?

    Posted: 27 Nov 2021 06:41 AM PST

    We are looking to move a chunk of money ($20k - $40k) into moderate risk/reward indexed funds over 5-10 years.

    We are already going to move $20k from our terrible CD account into Treasury I Bonds so we have a low risk component of our portfolio.

    We want to invest another $20-$40k in something that's going to grow at least 5%+ per year, on average, over the next decade.

    Considering the pre-COVID tech boom, and the COVID tech boom, would you consider the Nasdaq's total indexed ETF (QQQ) to be superior to the one for S&P 500 (SPY) or for Dow Jones (DIA)?

    Or would you consider it wiser to invest in something like Vanguard's total stock index fund (VTI / VTSAX) or the Wilshire 5000 index fund (WFIVX) instead?

    We essentially want to set it and forget it for 5-10 years.

    submitted by /u/TimboCA
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    Looking to get exposure to Lithium (long term)

    Posted: 27 Nov 2021 09:41 AM PST

    Relatively new investor here looking for suggestions on opening a position in Lithium.

    I'm currently looking more into $LICY as I believe the continued push towards being less wasteful and more mindful of waste in general will lead to battery recycling having a bright future.

    I also came across $SLI and while I haven't done a deep dive into them yet the technology seems interesting.

    I have also seen $LAC get mentioned a lot, but I haven't done much research into them either beyond knowing they are mining company.

    Just looking for some general guidance from people smart than myself to help focus me a bit before I go down a rabbit hole and get lost.

    submitted by /u/lettercarrier86
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    What is a good starter stock?

    Posted: 27 Nov 2021 05:51 PM PST

    I'm 18 and interested in stocks, I haven't decided how much money I want to put in yet but I'm wondering whats a good stock to put some money in. I'm in no rush to get a crap load of money but I'm 18 and have $700 to my name and then though I'm working I just want to see where stocks can go.

    Any suggestions?

    submitted by /u/WoahABanD
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    Blue Chip Stocks vs Income Stocks?

    Posted: 27 Nov 2021 10:19 AM PST

    I'm trying to research about stocks, but can't seem to tell the difference between these two; are they both dividend stocks?

    Are income stocks riskier and yield higher returns in dividends?

    Any answers will be greatly appreciated :)

    submitted by /u/oihsyK
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    Recommendations For Courses?

    Posted: 27 Nov 2021 05:08 AM PST

    I have been trading for a few years with some small successes here and there. Most of it down to luck if I'm honest.

    I'd really like to take an online course in trading stocks. I'm not really interested in forex or day trading, but if anyone has any recommendations for courses that teach the fundamentals - I'd really appreciate it.

    Thanks!

    submitted by /u/Many-machines-on-ix
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    GGPI (Polestar) vs LCID (Lucid) ???? Any thoughts???

    Posted: 26 Nov 2021 11:30 PM PST

    I have been thinking of adding one of these to my monthly investing list. I am a long term investor and I have a list of stocks that I invest in every month.

    My first question..... Does GGPI stock represent Polestar only?

    Also, I want to know your views on these 2 Electric cars manufacturers. I am thinking of investing regularly in GGPI (Polestar) since they have successfully sold a significant number of cars.

    I am not able to see any strong points favouring Lucid. Please fill me in if I am missing something important about them.

    I know that scaling an electric car business is very difficult as stated by Elon Musk in multiple interviews. Keeping that in consideration I think Polestar has already solved its scaling issue since its parent company is Volve. I can't say the same for Lucid though.

    submitted by /u/M0RF3R3R
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    Can Meditation Make Us Better Traders And Investors?

    Posted: 27 Nov 2021 05:58 AM PST

    There is significant evidence that meditation can help us deal with stressful situations, including the recent pandemic and the challenges of doctoral education, as well as mental health concerns such as depression and anxiety.

    The Mindful.org site, in their review of the science behind meditation, notes such benefits as improved attention, increased emotional resilience, greater compassion, and "less rumination about ourselves and our place in the world". The work of Gaelle Desbordes and colleagues finds that mindfulness meditation facilitates emotional well-being, not just by increasing relaxation and reducing stress, but by building interoception: our awareness of our bodies.

    This awareness, which is accompanied by measurable shifts in brain structure and function, breaks cycles of repetitive thought, giving us greater control over worry and negativity. Similarly, the research of Amishi Jha suggests that meditation is effective because of its enhancement of attention and working memory, giving us greater control of the information we select and deselect. As the Mind & Life site notes, there are variety of forms of meditation that Jha studies, including body scan meditation, loving-kindness meditation, and mindful breathing.

    Common to these is an enhancement of awareness, an intensification of our focus on the here-and-now. This can be seen in Mindfulness-Based Cognitive Therapy (MBCT), which adds an intensification of mindful awareness to traditional cognitive work, helping patients change not only what they think about, but also how they filter incoming information.

    We've seen a recent explosion of interest in using meditation to assist traders and investors with their performance in financial markets. The idea is to use the body to program the mind and avoid the fear, greed, and cognitive biases known to color trading decisions. As the Trading Composure site explains, in mastering meditation we can calm the nervous system by cutting out noise, increasing our reflection, and instilling gratitude. Daniel Crosby, in an AlphaMind podcast, notes that the brain is not naturally wired for decisions in financial markets, distracting us from the meta-knowledge—the awareness of what we know and don't know—essential to operating under conditions of risk and uncertainty.

    Could it be the case that meditation does not benefit traders simply by calming them down, but by improving their processing of the present moment? Just as powerful as fear and greed are regret and worry. Regret keeps us anchored in the past; worry projects our concerns about the future. By improving reflection and increasing access to meta-knowledge, meditation may ground us in the present, improving our perception of what is actually happening in the here-and-now of markets.

    https://www.forbes.com/sites/brettsteenbarger/2020/05/26/can-meditation-make-us-better-traders-and-investors/

    submitted by /u/gorays21
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    Can BEER help time the market? Bond Equity Earnings Yield Ratio

    Posted: 27 Nov 2021 08:32 AM PST

    I have been doing some research on the BEER ratio that I'd like to share with you all. You can read all about the BEER ratio on Investopedia, but I will summarize it below anyway. If you already know about Bond Equity Earnings Yield please feel free to jump to the bottom of the post.

    Bond Equity Earnings Yield:

    The ratio consists of dividing the benchmark for yields of bonds and stocks. The most common use case is the calculation of the ratio using the 10 year US Treasury Bonds and the S&P500 yields in the case of the US Stock Market, but you could apply this to any other country or market as well as long as you use government bond yields in the numerator and an index that captures the stock market for the same country in the denominator:

    • BEER for US Stock Market = 10-year Treasuries Yield / S&P 500 Yield
    • If BEER < 1, the stock market is overvalued, and if BEER > 1, the stock market is undervalued.
    • As the last month, the 10-year Treasuries Yield is about 1.57%, and the S&P500 P/E ratio is about 27.07. This gives us a BEER = 0.425 -> No surprise, overvalued.

    The way to interpret the ratio is pretty obvious: if the stock market is overvalued, then the assumption is that the market is bullish and you can expect stocks prices to increase, therefore it's a good time to invest in stocks. The opposite applies if the stock market is undervalued.

    The problem is, that the market will be bullish or bearish until it isn't anymore, and that exact moment of change (i.e. timing the market) is very hard to time or predict. I summarized some historical data (last 25 years) in the table below, and calculated the corresponding BEER for each year.

    Sources: S&P500 historical P/E, 10-year Treasuries historical yield, S&P500 Index Historical.

    Year S&P500 P/E Earnings Yield 10-year Treasuries Yield BEER S&P500 Index
    1996 18.79 5.32% 6.44% 1.21 670.49
    1997 21.75 4.60% 6.35% 1.38 873.43
    1998 28.22 3.54% 5.26% 1.48 1,085.50
    1999 31.16 3.21% 5.65% 1.76 1,327.33
    2000 27.49 3.64% 6.03% 1.66 1,427.22
    2001 36.62 2.73% 5.02% 1.84 1,192.57
    2002 36.68 2.73% 4.61% 1.69 993.93
    2003 25.86 3.87% 4.01% 1.04 965.23
    2004 20.25 4.94% 4.27% 0.86 1,130.65
    2005 18.61 5.37% 4.29% 0.80 1,207.23
    2006 17.17 5.82% 4.80% 0.82 1,310.46
    2007 19.1 5.24% 4.63% 0.88 1,477.18
    2008 34.4 2.91% 3.66% 1.26 1,220.04
    2009 84.42 1.18% 3.26% 2.75 948.05
    2010 16.4 6.10% 3.22% 0.53 1,139.97
    2011 15.13 6.61% 2.78% 0.42 1,267.64
    2012 15.87 6.30% 1.80% 0.29 1,379.61
    2013 17.7 5.65% 2.35% 0.42 1,643.80
    2014 18.87 5.30% 2.54% 0.48 1,931.38
    2015 22.16 4.51% 2.14% 0.47 2,061.07
    2016 23.6 4.24% 1.84% 0.43 2,094.65
    2017 23.4 4.27% 2.33% 0.55 2,449.08
    2018 21.93 4.56% 2.91% 0.64 2,746.21
    2019 21.67 4.61% 2.14% 0.46 2,913.36
    2020 31.51 3.17% 0.89% 0.28 3,217.86
    2021 35.96 2.78% 1.43% 0.51 4,191.57

    Interpretation of the data:

    • As you can see, in the years leading up to the 2008 crisis, the ratio was below 1 so the market was overvalued.
    • In 2009, the market was undervalued considering that the earnings yields for stocks was only 1.18% while the bond yield was 3.26%.
    • Then, earnings yields started to increase while bond yields decreased, causing the ratio to remain below 1 up until now in 2021 and the S&P500 index continues to increase on average.

    Interesting fact:

    Here we have the plot of table above. Something that stood out for me, and the whole point of this post, has to do with the points that I highlighted in purple in the plot. Every time the BEER crosses 1, there seems to be a change in direction of the S&P500 index. This could indicate potential buying or selling signals, but the major caveat here is that the market could continue to climb or drop for many months or even years until a bull or bear trend become obvious.

    Conclusion:

    I have been monitoring the BEER on a monthly basis this year. The ratio keeps on oscillating between 0.19 and 0.49. I have never been an advocate of market timing, but based on the data, until we start to see a clear trend of BEER approaching 1 and going over, I think that the "market crash" that everyone is predicting won't happen in the short term unless we get hit by more COVID-related events.

    submitted by /u/indivinvest
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    Do price targets on Tipranks even have limits imposed?

    Posted: 27 Nov 2021 04:03 PM PST

    I was watching price targets set by various analysts and noticed that some analysts have absurdly unrealistic and high-value prices for a particular stock, which ended up screwing the average price targets set by most of the other analysts combined. For example, let's say 1st analyst sets the price to $30, 2nd analyst sets the price to $60, and the last analyst sets the price to $1,000,000. The last analyst value really is a major outlier that screws up the average. So, is there a limit on the price set by analysts on tipranks or can any value be set up to Infiniti?

    submitted by /u/Gary0915
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    Questions about depositing funds into a margin account/Regulation T

    Posted: 27 Nov 2021 05:58 AM PST

    I recently upgraded to a margin account. I understand that Regulation T says you can only use margin for 50% of a purchase. My broker's margin page also says that any funds I deposit into the account will automatically be applied to margin debts.

    Taking those two together, does that mean I can only use margin for one stock position at a time? If I can't use 100% margin at time of purchase, I will need to deposit money, but that deposit will automatically be applied to my outstanding margin debts. Am I misunderstanding this?

    submitted by /u/CoffeePorters
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    Lot of post abt tqqq recently, but a lot of people seems they don't understand volatility decay

    Posted: 27 Nov 2021 06:32 PM PST

    Volatility decay basically means if the market goes flat for a certain period of time, you are going to lose money.

    So, for TQQQ, to dumb it down

    If the market goes up next 10 years, you gain 3 times.

    If the market goes down next 10 years, you lose 3 times

    If the market goes flat next 10 years, you still lose (not 3 times, but you are still losing)

    It's like a game of rock, paper, scissors, if you win, you win, if you lose, you lose, if it is a tie, you still lose.

    Assuming in the game of investing, the odds of you winning is slightly bigger than the odds of you winning, given long enough time, you will always come out at the top. But with TQQQ, because in a tie game you still lose (albeit not as much), thus give it a long enough time, you will lose. This is why they said that given a long enough time horizon, any triple leveraged ETF will go to zero.

    submitted by /u/soysssauce
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    Long-term investing

    Posted: 27 Nov 2021 06:22 PM PST

    So after 2021, I started getting into options, SPACs and other volatile stocks. Started trading more than my normal investment style of long term holding. I only played with 20% of my portfolio, but have decided to go back to long-term holding.

    I have motleyfool Stock Advisor and Rule Breakers. I usually put a little into those, but also have some other momentum plays. I'm looking into getting into another of their subscriptions so I can diversify a bit. I have more of an aggressive growth outlook and can hold for 5+ years.

    Anyone where a Fool member or can recommend another service? We can even split if you're interested.

    Thanks in advance for your help!

    submitted by /u/FartCentral55
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    Advice for selling puts

    Posted: 27 Nov 2021 05:40 PM PST

    What's something, besides elevated volatility, that you look for or use when selling puts? Do you have a favorite chart patterns? Or use Bollinger?

    Currently I am mostly using credit spreads but would prefer to sell puts. At least with selling puts I can end up with shares vs nothing if the trade goes completely wrong. I use double bottoms, trend lines, and some basic chart patterns.

    submitted by /u/bellyache121
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    European ETF long term holds

    Posted: 27 Nov 2021 04:15 AM PST

    Hey everybody! Hope all is fine!

    I believe us Europeans have a tougher time accessing ETFs such as VOO, VTI with low expense ratios. For this, I am mostly invested in VWCE and, to protect from currency risk, Amundi S&P 500 Currency Hedged EUR. Both are performing well (well, except fir yesterday).

    However, since these are long term holds (50+ years), I want to make sure I have THE best options in my portfolio, since even a extra 1% compounding can make a huge difference.

    For this, I am reaching out to my fellow Europeans: what do you have and why are you convinced they are the best solution out there?

    submitted by /u/pridestaiker-godd
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    Is there a limit to the amount of backstopping occurring in the markets ?

    Posted: 27 Nov 2021 08:29 AM PST

    If we keep getting covid mutations causing drops in the markets will there just be a continuing support into the markets?

    At this rate good news and bad news are both positive signs to put money into the market.

    Even Inflation doesn't seem like a reason to stop pumping the markets anymore . It will either gets blamed on other reasons or the lesser of two evils .

    submitted by /u/last-resort-4-a-gf
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