Investing in the stock market - Discussion

[CBH1926]

30 minutes ago, Down by the River said:

Appreciate everyone's responses. I was only up 11.5% in the month of November and worked way too hard to earn that little. For those that creep this thread and want to know what my mistakes were in strategy/thinking, here are the main things I think I did wrong: Nothing wrong with 11.5% profit in one month, also remember that people like to exaggerate and not talk about their loses. I used to gamble very heavily so I am very familiar with the underlined portion.

 

1. Working way too hard on researching way too many stocks. In hindsight I would spend less overall time researching different stocks and more time researching 4-5 specific stocks. I might have spent 20 hours on 10 stocks when I could have spent 15 hours on 5 stocks (all estimates). Less time overall but more time devoted to having a more nuanced understanding of the stocks I'm targeting (when to buy, target pricepoint to sell, etc.). I don’t see this as bad thing either, you are getting to know the market, once you get familiar you can start focusing on sectors or specific stocks.

 

2. Related to the above, I was too scared to put too much money into a single stock. The consequence was probably being too diverse... this diversity lead to poorer decision making (e.g., picking stocks that were maybe a little less ideal solely for the purpose of finding balance). For me diversity is the key to have even keeled portfolio, rarely I have a day when all my holdings are down and also not having duplicate holdings. My biggest utility holding is next era energy, today it was down but also D, DUK, AWK, AEP etc. we’re all down. No point in owning all of them. Also people that put all their money on one stock are gamblers. You want to be an investor not balls to the wall kind of a guy that loses his shirt.

 

3. Not knowing when to sell. I don't have good insight on how I need to improve here. I never sold stocks at a loss, but I would sell too early or too late. I get that selling right at the peak is difficult, but to me I sold things way too early or way too late... still made money, but not as much as a I should have. This takes time and experience and watching market day after day. 

 

Anyway, appreciate the advice and insight provided in this thread. 

 

[Down by the River]

5 minutes ago, NucksPatsFan said:

I don't know what your capital and profit numbers are and certainly don't share if you don't want to, but just using a round number of say that 11.5% profit was $1000, that's about $50/hour for your 20 hours of work. Pretty good if you ask me. 

That's a good way of looking at it. I made some rules for myself and so capital is low but growing. 

 

For those just starting, here is what I did (for those that have been doing this awhile, any feedback is appreciated but please don't feel obligated as I feel like I've leeched off of enough of you already):

 

I have two accounts. The strategy is the same for both (some short-term, some long-term). For one account, the max I'll ever have in the account in $10,000 (so your estimate was pretty bang-on!). Wife and I own a small condo that we've outgrown and are looking to buy in the next ear so I'm unwilling to take a big risk with our current savings/TFSAs. For the second account, I have a side-gig doing consulting. Up to half of all money I earn from this gig goes into this account and so I have no limit on this account as I consider the consulting gig to just be bonus money in the first place. It is a little more focused on long-term plays. 

[I.Am.Ironman]

I feel this is a very healthy self reflection exercise. This is my fav thread in CDC. No pissing contests, no judgement, just learning and sharing. I have learned a tonne from this thread and since the start of covid, so thank you to everyone.

 

I've been lucky with EVs this year but am kicking myself for jumping into the market too late. I was a victim of paralysis by analysis in March during the big crash. Was waiting for the "bottom" but waited for too long to jump in. Lesson learned. My EV and PLTR gains have luckily helped me get over that but I still missed out on Tesla (bought at 400 post split) and some other blue chip dividend paying companies at insane discounts, though happy with my BMO purchase at $67. I played SBE, KCAC and Li auto pretty perfectly and am no longer in those, sold close to the highs. I'm in Tesla, NIO and a comparatively small amount in XPEV - all three carry a fair amount of risk at this juncture for various reasons. Holding Tesla for years. Waited too long to get into VERY as well, entered around 4.50 I think.

 

Important to acknowledge the losses as well. I bought CloudMD (DOC.V) too high ($3ish) but don't have too much tied up and haven't sold so haven't lost money. I like the long term prospects of online health platforms. Likely going to average down on this one. I bought Shell at an average price of 31 and had to wait 5 months for it to get back there.

 

My general plan is to re-adopt the steady investments into ETFs (VGRO + ARKK + ARKW ) again once things stabilize in 2021 (hopefully). There has frankly just been more money to be had else where, I own ARKK though. Once the dust settles I think I'll have ~40% in companies that I like/want more exposure to (cdn banks, tsla, renewables, EVs etc) and 60% in the ETFs (mostly VGRO). I have near zero expectation to consistently do this well in markets year over year. I am of the mindset of steady long term investing, I am in my late 20s so time is still on my side. Everything I have read and been told is that steady index based long term horizon investing performs best over the course of decades. I'm not going to be in the 95th percentile that can out perform the market year over year over year... I still have a day job.

 

I am taking lessons learned from this thread, and some books, and applying them to my long term financial strategy.

 

[24K PureCool]

43 minutes ago, I.Am.Ironman said:

I feel this is a very healthy self reflection exercise. This is my fav thread in CDC. No pissing contests, no judgement, just learning and sharing. I have learned a tonne from this thread and since the start of covid, so thank you to everyone.

 

I've been lucky with EVs this year but am kicking myself for jumping into the market too late. I was a victim of paralysis by analysis in March during the big crash. Was waiting for the "bottom" but waited for too long to jump in. Lesson learned. My EV and PLTR gains have luckily helped me get over that but I still missed out on Tesla (bought at 400 post split) and some other blue chip dividend paying companies at insane discounts, though happy with my BMO purchase at $67. I played SBE, KCAC and Li auto pretty perfectly and am no longer in those, sold close to the highs. I'm in Tesla, NIO and a comparatively small amount in XPEV - all three carry a fair amount of risk at this juncture for various reasons. Holding Tesla for years. Waited too long to get into VERY as well, entered around 4.50 I think.

 

Important to acknowledge the losses as well. I bought CloudMD (DOC.V) too high ($3ish) but don't have too much tied up and haven't sold so haven't lost money. I like the long term prospects of online health platforms. Likely going to average down on this one. I bought Shell at an average price of 31 and had to wait 5 months for it to get back there.

 

My general plan is to re-adopt the steady investments into ETFs (VGRO + ARKK + ARKW ) again once things stabilize in 2021 (hopefully). There has frankly just been more money to be had else where, I own ARKK though. Once the dust settles I think I'll have ~40% in companies that I like/want more exposure to (cdn banks, tsla, renewables, EVs etc) and 60% in the ETFs (mostly VGRO). I have near zero expectation to consistently do this well in markets year over year. I am of the mindset of steady long term investing, I am in my late 20s so time is still on my side. Everything I have read and been told is that steady index based long term horizon investing performs best over the course of decades. I'm not going to be in the 95th percentile that can out perform the market year over year over year... I still have a day job.

 

I am taking lessons learned from this thread, and some books, and applying them to my long term financial strategy.

 

Any recommended books? Think it is high time for me to educate myself a bit more about the market.

[I.Am.Ironman]

1 hour ago, 24K PureCool said:

Any recommended books? Think it is high time for me to educate myself a bit more about the market.

Tony Robbins Unshakeable and Master the Game would prob be my recommendaton for a place to start. Master the Game is the more in depth version of Unshakeable. I still found Unshakeable valuable as a beginner, easier to read cover to cover. I have spot read chapters in Master the Game.

 

I should add that these are more investing books and not trading books.

Edited December 4, 2020 by I.Am.Ironman

[kurtis]

So Air Canada is looking pretty good eh! Thinking of buying some stocks. Friends of mine bought a ton and have already made a killing! 

 

I'm brand new into the stocks and stuff. I've gone with an APP called Wealth Simple. So far I am liking them. 

Edited December 4, 2020 by kurtis

[NucksPatsFan]

13 minutes ago, I.Am.Ironman said:

Tony Robbins Unshakeable and Master the Game would prob be my recommendaton for a place to start. Master the Game is the more in depth version of Unshakeable. I still found Unshakeable valuable as a beginner, easier to read cover to cover. I have spot read chapters in Master the Game.

 

I should add that these are more investing books and not trading books.

I’ll add Trading in the Zone by Mark Douglas and How to Swing Trade by Brian Pezim and Andrew Aziz 

[NucksPatsFan]

3 hours ago, I.Am.Ironman said:

 

 

Important to acknowledge the losses as well. I bought CloudMD (DOC.V) too high ($3ish) but don't have too much tied up and haven't sold so haven't lost money. I like the long term prospects of online health platforms. Likely going to average down on this one. I bought Shell at an average price of 31 and had to wait 5 months for it to get back there.

 

 

 

Look into GIX 

[24K PureCool]

Lol RIP NIO

[Boudrias]

15 hours ago, CBH1926 said:

Yeah, I have been in and out of CVS for the last few years, this time my position is biggest ever.

T, I don’t know, I almost bought it the other day but got salesforce, Palantir and splunk instead.

 

It never moves, I get that the dividend is great but it’s in that magic zone of high 20s and low 30s every time I look.

I rather own Verizon tbh.

I appreciate the USA exposure but have to make choices. I cashed out of BCE but kept T because of diversification. The div is great and you get the tax credit. If T hits $30 I will reassess. Actually bought some MFC this morning. 1/3 of sales in SE Asia. 5% Y

[Boudrias]

14 hours ago, I.Am.Ironman said:

I feel this is a very healthy self reflection exercise. This is my fav thread in CDC. No pissing contests, no judgement, just learning and sharing. I have learned a tonne from this thread and since the start of covid, so thank you to everyone.

 

I've been lucky with EVs this year but am kicking myself for jumping into the market too late. I was a victim of paralysis by analysis in March during the big crash. Was waiting for the "bottom" but waited for too long to jump in. Lesson learned. My EV and PLTR gains have luckily helped me get over that but I still missed out on Tesla (bought at 400 post split) and some other blue chip dividend paying companies at insane discounts, though happy with my BMO purchase at $67. I played SBE, KCAC and Li auto pretty perfectly and am no longer in those, sold close to the highs. I'm in Tesla, NIO and a comparatively small amount in XPEV - all three carry a fair amount of risk at this juncture for various reasons. Holding Tesla for years. Waited too long to get into VERY as well, entered around 4.50 I think.

 

Important to acknowledge the losses as well. I bought CloudMD (DOC.V) too high ($3ish) but don't have too much tied up and haven't sold so haven't lost money. I like the long term prospects of online health platforms. Likely going to average down on this one. I bought Shell at an average price of 31 and had to wait 5 months for it to get back there.

 

My general plan is to re-adopt the steady investments into ETFs (VGRO + ARKK + ARKW ) again once things stabilize in 2021 (hopefully). There has frankly just been more money to be had else where, I own ARKK though. Once the dust settles I think I'll have ~40% in companies that I like/want more exposure to (cdn banks, tsla, renewables, EVs etc) and 60% in the ETFs (mostly VGRO). I have near zero expectation to consistently do this well in markets year over year. I am of the mindset of steady long term investing, I am in my late 20s so time is still on my side. Everything I have read and been told is that steady index based long term horizon investing performs best over the course of decades. I'm not going to be in the 95th percentile that can out perform the market year over year over year... I still have a day job.

 

I am taking lessons learned from this thread, and some books, and applying them to my long term financial strategy.

 

I think you could run a portfolio of just VBAL and VGRO. Adjust the weighting’s based on market sentiment. A degree of active management from Vanguard and whatever weighting’s you decide. MERs are very cheap. VBAL rode thru the down turn quite well.

[Down by the River]

Vaccine announced: pharma stocks go boom.

Companies actually announce specific deals with countries/approvals for the vaccine: pharma stocks go down. 

 

I don't understand. Pfizer gets approval in UK. Down. Moderna providing Israel with 4 million doses. Down 4+%. What am I missing?

[Boudrias]

In Pfizer's case it was the volume of product they could produce. IMO there is so much money floating around playing the momentum game that spikes up or down can almost be counted on. 

[Aladeen]

7 minutes ago, Down by the River said:

Vaccine announced: pharma stocks go boom.

Companies actually announce specific deals with countries/approvals for the vaccine: pharma stocks go down. 

 

I don't understand. Pfizer gets approval in UK. Down. Moderna providing Israel with 4 million doses. Down 4+%. What am I missing?

Though the market is not always logical, I think the reasons for down ticks in stock prices would probably have to do with

1) the logistics of getting an overseas country the vaccinations hey purchase/require - refrigeration/transport/production etc. - would probably be easy for a European company to undercut them in the UK at some point. 

2) possibly that the stock market was wanting to see a deal with Israel from Moderna that was more than only enough doses for less than half their population.

[NucksPatsFan]

47 minutes ago, Down by the River said:

Vaccine announced: pharma stocks go boom.

Companies actually announce specific deals with countries/approvals for the vaccine: pharma stocks go down. 

 

I don't understand. Pfizer gets approval in UK. Down. Moderna providing Israel with 4 million doses. Down 4+%. What am I missing?

We're in an ADHD market.

 

News that was announced on November 9 gets reposted and stock price falls.

 

Just the tiniest hint that a vaccine *might* be available and cruise and hotel stocks sky rocket.

 

People are just jumping around to whatever has news

[NucksPatsFan]

House passes marijuana bill.

 

Will go to Senate vote in January.

 

TLRY calls paying for Christmas this year!

Edited December 4, 2020 by NucksPatsFan

[I.Am.Ironman]

3 hours ago, 24K PureCool said:

Lol RIP NIO

Keeps meeting resistance at 40-41ish. Traders making bank off it i'd wager

[nuckin_futz]

1 hour ago, Down by the River said:

Vaccine announced: pharma stocks go boom.

Companies actually announce specific deals with countries/approvals for the vaccine: pharma stocks go down. 

 

I don't understand. Pfizer gets approval in UK. Down. Moderna providing Israel with 4 million doses. Down 4+%. What am I missing?

In it's purest form the market is nothing more than a forward pricing mechanism. At some point the price accurately reflects all known news. It sounds as if you are of the opinion the news is not priced in and the other market participants disagree (at least in the current moment).

[250Integra]

Anyone in on IPOB? 

 

Also, another VERY good day. Thinking of averaging up when the next dip comes around..

[CBH1926]

Oil stocks!!!