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(Vox)   Does anyone get to be truly reckless on Wall Street, and if so, who?   (vox.com) divider line
    More: Murica, Stock market, rabbit hole of stock videos, trading app Robinhood, stock market, Barstool Sports' Dave Portnoy, dozen traders, much money, options trading  
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463 clicks; posted to Business » on 10 Jul 2020 at 6:18 AM (3 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



21 Comments     (+0 »)
 
View Voting Results: Smartest and Funniest
 
2020-07-10 6:27:08 AM  
People who don't have to worry about the repercussions of their actions. Like big banks, because they will get government bailouts when things crash.
 
2020-07-10 6:46:15 AM  
Hears them chanting Wolfie, Wolfie...

Yeah, he gets a pass to be reckless.
 
2020-07-10 6:47:25 AM  
Fark user imageView Full Size
 
2020-07-10 7:04:15 AM  
An unemployed non-profit peasant worker trading options hoping to make it big says a lot about the US right now.
 
2020-07-10 7:07:36 AM  
Joseph Kennedy had an anecdote that in the summer of 1929 he went to get his shoes shined and he overheard the shoe shine boys talk about the stock market and what stocks to buy.

The next day he sold all his stock. He figured: If even the shoe shine boys are getting into the market, it's overloaded with too much stupidity. Time to get out.
 
2020-07-10 7:18:49 AM  

Ishkur: Joseph Kennedy had an anecdote that in the summer of 1929 he went to get his shoes shined and he overheard the shoe shine boys talk about the stock market and what stocks to buy.

The next day he sold all his stock. He figured: If even the shoe shine boys are getting into the market, it's overloaded with too much stupidity. Time to get out.


Next time I get my shoes shined by the local Fed president I'm doing to listen.
 
2020-07-10 7:55:47 AM  
"It's boring watching stocks, it's not exciting, they're not making these crazy prices," said Adam Barker, a 31-year-old software engineer in Massachusetts. "You don't get a rush throwing money at Berkshire Hathaway and waiting 15 years."

Boring is where the money is, Adam.  Starbucks sells boring coffee to bored people on their way to boring jobs.  Money.  Disney sells franchises to bored people.  Money.  Amazon is a boring middleman who executes boring logistics to get boring items to your boring house.  Money.
 
2020-07-10 8:23:54 AM  
Sure, just make sure your Senator payments are up to date.
 
2020-07-10 8:41:16 AM  

untoldforce: Hears them chanting Wolfie, Wolfie...

Yeah, he gets a pass to be reckless.


Oh Wollfy Tex Avery
Youtube YtcJ7gvJP0Q
 
2020-07-10 8:47:00 AM  
 
2020-07-10 9:35:49 AM  
Once I built a railroad - now it's done.
Buddy, can you spare a dime?
 
2020-07-10 9:47:38 AM  

jso2897: Once I built a railroad - now it's done.
Buddy, can you spare a dime?


I've always loved Tom Waits take on that song.

Tom Waits - Brother, can you spare a dime?
Youtube YtS6Ga0AWjc
 
2020-07-10 9:56:10 AM  
My wife and I are trading everyday.  I agree it's largely gambling, the valuations are absolutely worthless now and it's a bubble waiting to pop.  But we agreed that we don't do options and our daily trading positions are very small, and we close as soon as possible.  We're realizing somewhere between 30 bucks and a couple hundred bucks a day - instead of 1000s if we did options.  Chump change I know but I'm not planning on getting wiped out on the inevitable coming correction.  And towards that end, we're also slowly but surely liquidating most positions into cash or repositioning.

Normally I'm fine with with just buying an exchange fund or ETF, but I think this is one of those rare times where buying an S&P500 fund right now is a bad idea.

Is this the correct strategy in this admittedly insane market?  I don't know.  Ask me at the end of the year.
 
2020-07-10 10:19:59 AM  

SirEattonHogg: My wife and I are trading everyday.  I agree it's largely gambling, the valuations are absolutely worthless now and it's a bubble waiting to pop.  But we agreed that we don't do options and our daily trading positions are very small, and we close as soon as possible.  We're realizing somewhere between 30 bucks and a couple hundred bucks a day - instead of 1000s if we did options.  Chump change I know but I'm not planning on getting wiped out on the inevitable coming correction.  And towards that end, we're also slowly but surely liquidating most positions into cash or repositioning.

Normally I'm fine with with just buying an exchange fund or ETF, but I think this is one of those rare times where buying an S&P500 fund right now is a bad idea.

Is this the correct strategy in this admittedly insane market?  I don't know.  Ask me at the end of the year.


Not so cool story bro:

In high school I begged my parents to let me open a trading account.  They finally relented and let me put $2K or so in and I bought Best Buy and Home Depot.  After a few months that was boring to me.

So, somehow I stumbled upon penny stock forums on Yahoo or some other site like it.  I did some day trading and doubled my money in a few short weeks.  Aaaaaaand then I slowly lost it all.  That was a fun conversation to have when my parents asked where the money was since they were joint holder on the account.

/NSCSB
 
2020-07-10 10:57:32 AM  

TheFoz: Not so cool story bro:

In high school I begged my parents to let me open a trading account. They finally relented and let me put $2K or so in and I bought Best Buy and Home Depot. After a few months that was boring to me.

So, somehow I stumbled upon penny stock forums on Yahoo or some other site like it. I did some day trading and doubled my money in a few short weeks. Aaaaaaand then I slowly lost it all. That was a fun conversation to have when my parents asked where the money was since they were joint holder on the account.

/NSCSB


I find it amusing how day trading stories so closely resemble poker stories/careers.
 
2020-07-10 11:05:54 AM  

TheFoz: Not so cool story bro:

In high school I begged my parents to let me open a trading account.  They finally relented and let me put $2K or so in and I bought Best Buy and Home Depot.  After a few months that was boring to me.

So, somehow I stumbled upon penny stock forums on Yahoo or some other site like it.  I did some day trading and doubled my money in a few short weeks.  Aaaaaaand then I slowly lost it all.  That was a fun conversation to have when my parents asked where the money was since they were joint holder on the account.

/NSCSB


Your parents were smart enough to let you fail so you could learn from it, before you were old enough to do it on your own without limits.  Good on them.

// I bought USAir and MCI WorldCom in 2001.
 
2020-07-10 11:14:43 AM  

Ishkur: Joseph Kennedy had an anecdote that in the summer of 1929 he went to get his shoes shined and he overheard the shoe shine boys talk about the stock market and what stocks to buy.

The next day he sold all his stock. He figured: If even the shoe shine boys are getting into the market, it's overloaded with too much stupidity. Time to get out.


There was a similar scene in The Big Short, but it involved strippers flipping houses.
 
2020-07-10 11:15:52 AM  

Ishkur: TheFoz: Not so cool story bro:

In high school I begged my parents to let me open a trading account. They finally relented and let me put $2K or so in and I bought Best Buy and Home Depot. After a few months that was boring to me.

So, somehow I stumbled upon penny stock forums on Yahoo or some other site like it. I did some day trading and doubled my money in a few short weeks. Aaaaaaand then I slowly lost it all. That was a fun conversation to have when my parents asked where the money was since they were joint holder on the account.

/NSCSB

I find it amusing how day trading stories so closely resemble poker stories/careers.


They are very similar activities.  In theory you can make a lot of money.  In practice most people lose a lot of money.
 
2020-07-10 12:15:13 PM  
"It's boring watching stocks, it's not exciting, they're not making these crazy prices," said Adam Barker, a 31-year-old software engineer in Massachusetts. "You don't get a rush throwing money at Berkshire Hathaway and waiting 15 years."

I had a conversation like this with one of the younger guys at work the other day about investing for short term cap gains vs investing in reliable dividend bearing stocks.  He said dividend stocks were boring, and I told him that the most boring seat at a roulette table is the guy who owns the table, but he just sits there collecting his 5% each game and doing just fine.
 
2020-07-10 12:33:21 PM  

Geotpf: Ishkur: TheFoz: Not so cool story bro:

In high school I begged my parents to let me open a trading account. They finally relented and let me put $2K or so in and I bought Best Buy and Home Depot. After a few months that was boring to me.

So, somehow I stumbled upon penny stock forums on Yahoo or some other site like it. I did some day trading and doubled my money in a few short weeks. Aaaaaaand then I slowly lost it all. That was a fun conversation to have when my parents asked where the money was since they were joint holder on the account.

/NSCSB

I find it amusing how day trading stories so closely resemble poker stories/careers.

They are very similar activities.  In theory you can make a lot of money.  In practice most people lose a lot of money.


My parents would occasionally go to a casino, and had a very simple strategy - their very first bet was to bet all the money the planned to spend (considered an entertainment expense) or either red or black at the roulette wheel.  If they won, their original stake went back in their pocket, and they were free to gamble the winnings away for the rest of the night.  If they lost, they finished their free drink and left.
 
2020-07-10 6:44:52 PM  
*Buying* options, particularly out-of-the-money options, is actually a pretty good way to go if you insist on day-trading - your downside is limited to the price of the contract and your upside is effectively unlimited.  You're probably going to lose money in the long term, but that applies to any sort of day trading and buying options can lead to some fun windfalls.

*Selling* options is where you can get into crazy amounts of trouble.  Naked out of the money puts in particular seem really seductive - you're picking up a steady stream of income in return for what is basically insurance against a stock crash that you assume will never happen.  When that crash does happen, though, you are farked.
 
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