Author Topic: Stocks  (Read 399941 times)

Online ExGingi

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Re: Stocks
« Reply #3705 on: January 29, 2020, 08:15:25 PM »
If by ďlong positionĒ you mean as in the opposite of a short position as oppose to long as in long term, then yeah we agree

When talking in terms of "positions" long and short mean the direction in which the stock move that will generate a profit. A long position generates profits when the stock (or other underlying asset) goes up, while a short position generates a profit when the price of the stock declines.

If a holding time frame is meant one must indicate that with the word "term".  (BTW, a short position, by virtue of its mechanics and costs, will never be a longer-term position).
« Last Edit: January 29, 2020, 10:02:11 PM by ExGingi »
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Offline Ephraimh

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Stocks
« Reply #3706 on: January 29, 2020, 09:02:31 PM »
When talking in terms of "positions" long and short mean the direction in which the stock move that will generate a profit. A long position generates profits when the stock (or other underlying asset) goes up, while a short position generates a profit when the price of the stock declines.

If a holding time frame is meant one must indicate that with the word "term".  (BTW, a short position will, by virtue of its mechanics and costs, will never be a longer-term position).
Agree to all of the above.

Just in your original post you wrote ďwhatever position one takesĒ which also includes long term positions..  but if by ďwhatever positionĒ you meant ď whatever position, besides long term positionsĒ than youíre right my bad..

Online ExGingi

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Re: Stocks
« Reply #3707 on: February 02, 2020, 01:50:35 PM »
Just read the memo . Full of gems. Would recommend to anyone interested in investing (of any sort, not just the stock market).

And here's another interesting one for you (though not as deep IMHO).

https://www.mauldineconomics.com/frontlinethoughts/dismissing-the-experts
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Offline Iz

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Re: Stocks
« Reply #3708 on: February 02, 2020, 03:41:44 PM »

If someone has a significant amount of funds to invest, and wants to invest it all in the stock market, is it better to invest it all asap (to take advantage of generally rising markets), or invest it a little at a time (to get the advantage of dollar cost averaging)?
Thoughts? Sources?
Thanks.

Online ExGingi

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Re: Stocks
« Reply #3709 on: February 02, 2020, 04:19:11 PM »
If someone has a significant amount of funds to invest, and wants to invest it all in the stock market, is it better to invest it all asap (to take advantage of generally rising markets), or invest it a little at a time (to get the advantage of dollar cost averaging)?
Thoughts? Sources?
Thanks.

If someone has a significant amount of funds to invest, and wants to invest it all in the stock market and is asking such questions on an anonymous online forum, such person should probably not be putting the money in the stock market.
I've been waiting over 5 years with bated breath for someone to say that!
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Offline Iz

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Re: Stocks
« Reply #3710 on: February 02, 2020, 04:44:08 PM »
If someone has a significant amount of funds to invest, and wants to invest it all in the stock market and is asking such questions on an anonymous online forum, such person should probably not be putting the money in the stock market.
גוט געזאגט!

Online ExGingi

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Re: Stocks
« Reply #3711 on: February 02, 2020, 04:57:00 PM »
If someone has a significant amount of funds to invest, and wants to invest it all in the stock market, is it better to invest it all asap (to take advantage of generally rising markets), or invest it a little at a time (to get the advantage of dollar cost averaging)?
Thoughts? Sources?
Thanks.

In addition to recommending reading the above article where Mauldin mentions the importance of the entry point in relevance to expected future returns (and if you really want that point drummed in just look through John Hussman's letters, you can probably almost throw a dart and hit one where he mentions it) I always refer myself and others back to the timeless article by Richard Russell ע"ה which was reprinted in many places, I like this one as it is more complete (some other reprints leave out some sections).
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Offline Ephraimh

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Stocks
« Reply #3712 on: February 02, 2020, 04:57:02 PM »
If someone has a significant amount of funds to invest, and wants to invest it all in the stock market, is it better to invest it all asap (to take advantage of generally rising markets), or invest it a little at a time (to get the advantage of dollar cost averaging)?
Thoughts?
Dollar cost averaging.
Sources?
Common sense. You canít time the market.
Thanks.
Youíre welcome.

Online ExGingi

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Re: Stocks
« Reply #3713 on: February 02, 2020, 04:59:14 PM »
You canít time the market.

And neither can I, but there are definitely people that use effective timing strategies. If this is for a long-term buy and hold, I refer everyone back to the article by Mauldin I posted above.
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Offline aygart

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Re: Stocks
« Reply #3714 on: February 02, 2020, 05:15:52 PM »
Dollar cost averaging.Common sense. You canít time the market.Youíre welcome.
This has been discussed a number of times and the math is against cost averaging. You are more likely to just miss gains.
The thing with the hamster is that running on the wheel is actually what it is trying to do.

Offline Iz

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Re: Stocks
« Reply #3715 on: February 02, 2020, 05:26:36 PM »
So now my ספק is a מחלוקת.  ::)

Online ExGingi

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Re: Stocks
« Reply #3716 on: February 02, 2020, 05:31:17 PM »
This has been discussed a number of times and the math is against cost averaging. You are more likely to just miss gains.

That might depend in the direction of the price movement and time given to DCA.

However, if one decides to diversify between non-correlated asset classes rather than just put everything in one basket, then periodic rebalancing makes a lot of sense IMHO, in which case DCA is meaningless. You decide on the allocation and set up periodic rebalancing (best if you use an vehicle that will allow for that rather than relying on yourself to manually do it).
« Last Edit: February 02, 2020, 07:08:50 PM by ExGingi »
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Offline yuneeq

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Re: Stocks
« Reply #3717 on: February 02, 2020, 05:44:54 PM »
This has been discussed a number of times and the math is against cost averaging. You are more likely to just miss gains.

Personally, if I have funds to invest, I feel most comfortable investing a lump sum in one shot -  somewhere between 30-80% of the total funds, and dollar cost averaging the rest. In a long term bull market Iíd start with a lower lump sum and a larger amount during a bear market. I donít remember reading this anywhere, but itís what Iím comfortable with and it makes sense to me.

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Stocks
« Reply #3718 on: February 02, 2020, 07:55:02 PM »
Personally, if I have funds to invest, I feel most comfortable investing a lump sum in one shot -  somewhere between 30-80% of the total funds, and dollar cost averaging the rest. In a long term bull market Iíd start with a lower lump sum and a larger amount during a bear market. I donít remember reading this anywhere, but itís what Iím comfortable with and it makes sense to me.
Like. Same.

Offline Iz

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Re: Stocks
« Reply #3719 on: February 02, 2020, 08:04:00 PM »
Dollar cost averaging.Common sense. You canít time the market.Youíre welcome.
Personally, if I have funds to invest, I feel most comfortable investing a lump sum in one shot -  somewhere between 30-80% of the total funds, and dollar cost averaging the rest. In a long term bull market Iíd start with a lower lump sum and a larger amount during a bear market. I donít remember reading this anywhere, but itís what Iím comfortable with and it makes sense to me.
Like. Same.
How's that?