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Stock-Age: Stocks, Options and Dividends oh my!

percephone

Neo Member
Can someone please explain to me why the Overall return in my google portfolio differs from my gains, when I haven't made any contributions/withdrawals to/from my cash balance?

Like, (current-initial)/initial gives me the value that's listed as gains (which I think is accurate), whereas the overall return is listed as lower?

Overrall return include closed positions. Check your transactions to see if there is some shenanigan there.

Google finance is not that good, i prefer a spreadsheet i made myself to add everything up.
 

Smiley90

Stop shitting on my team. Start shitting on my finger.
Overrall return include closed positions. Check your transactions to see if there is some shenanigan there.

Google finance is not that good, i prefer a spreadsheet i made myself to add everything up.

That's what I figured, BUT

If I just compare the value of my portfolio right now to where it was January 1st, without having made any cash withdrawals/contributions, that should be my overall return, no? The gains listed are correct (and so is the value displayed in the graph), it's just the overall return value that's off.

my second portfolio I HAVE made withdrawals, there the gains is obviously without withdrawals, but the overall return is STILL off. Whereas the value displayed in the graph is correct. (lower than gains, but correct when you look at gains-withdrawals/everything)
 

percephone

Neo Member
That's what I figured, BUT

If I just compare the value of my portfolio right now to where it was January 1st, without having made any cash withdrawals/contributions, that should be my overall return, no? The gains listed are correct (and so is the value displayed in the graph), it's just the overall return value that's off.

my second portfolio I HAVE made withdrawals, there the gains is obviously without withdrawals, but the overall return is STILL off. Whereas the value displayed in the graph is correct. (lower than gains, but correct when you look at gains-withdrawals/everything)

They might be using continually compounded return which is Ln(1 + simple return) which is always smaller than simple return.
 
Doing great. Riding 6.2 million shares and plan to sell in the 0040-0050's tomorrow with the right catalyst. If not, I'll be selling in the 30's. I did email the CEO and he told me a shareholder update/news is coming tomorrow so... yeah. :)

Put a $1000 into this at .0027 just out of what the hell will another -$1K due to me and out at .0044 That was the most insane $500~ I've ever made, insane... still not going to penny stocks but crazy
 

No Love

Banned
Put a $1000 into this at .0027 just out of what the hell will another -$1K due to me and out at .0044 That was the most insane $500~ I've ever made, insane... still not going to penny stocks but crazy

Not bad, huh?

I'm up over $20k on this... going to sell half on news and then the other half on Monday's news. :)
 
Maybe I should put money under a mattress! the day after I decide to go long and put all my money in mutual funds, Ukraine explodes and the markets tanks. How much of an effect do you think this is going to have on the markets?

How in the world did my one long since December stock nexon lose 11% in five days on no news and no earnings reports
 

Ether_Snake

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Maybe I should put money under a mattress! the day after I decide to go long and put all my money in mutual funds, Ukraine explodes and the markets tanks. How much of an effect do you think this is going to have on the markets?

How in the world did my one long since December stock nexon lose 11% in five days on no news and no earnings reports

It doesn't matter unless you like to panic. I said contribute the same amount monthly. Unless you are not doing that, you have no reason to panic.
 
Following along ether_snake and sharing my trade history for this year(as of the end of feb, so there still is another -4K from dreamworks not settled yet)

These are completed trades/ I'm not a multimillionaire(I had at max less then 70k in my account), these high numbers are from flipping stocks rapidly on margin.

Furthest number over is realized profit from total trades not my portfolio

my_portfolio.png



Lesson: Don't day trade, 3/4ths would be so much more in the green if I had just followed through with the trade....
Including +30 for Telsa, +45% For Jcpenny, +12~ for Nvidia / Sprint
+20% for my shorts in Groupon and twitter which I sold at a loss before earnings.....
 
Even if it's margin it just means 50% of the money on there is yours? ;)

Nah, I had 4 times my capital in margin, and this is my realized gain / loss completed trades, so over the course of my trading this year I had that amount of stock cross my path, not owning them all at once. Flipping $100,000 on margin three times in a day would show up there as $300,000 which is why the numbers are so high.

Believe me if i had 3 million bucks I could probably care less about losing $22k~ on Dreamworks
 

RevoDS

Junior Member
Nah, I had 4 times my capital in margin, and this is my realized gain / loss completed trades, so over the course of my trading this year I had that amount of stock cross my path, not owning them all at once. Flipping $100,000 on margin three times in a day would show up there as $300,000 which is why the numbers are so high.

Believe me if i had 3 million bucks I could probably care less about losing $22k~ on Dreamworks
How could you have 4x your capital in margin when the margin for most stocks requires 50% capital and 30% for "safe" blue chip stocks?

Serious question, I'm curious. I don't understand how you were able to trade these kind of amounts under current rules.
 

Presco

Member
Dude, stop trading on margin as a beginner. You're literally going to go bankrupt. Yes, leverage can be a way to make money, but you are throwing money in a fire with your current trading style.

Stop trading, start investing. You mentioned at one point that you'd be happy with a modest return and that is easily achievable with a disciplined investment strategy. Read the how to invest for retirement thread.
 
How could you have 4x your capital in margin when the margin for most stocks requires 50% capital and 30% for "safe" blue chip stocks?

Serious question, I'm curious. I don't understand how you were able to trade these kind of amounts under current rules.

I know I'm a moron, but I can answer this one:

Buying power of 2X + Margin of 2x = buying power of 4X(you will only get a free-riding violation if you stay in the position overnight...) allows you to make $200,000 day trades when you only have $50,000 in your account

Presco - That's why all but 10,000 of my money is now in Mutual funds ^_^

I like this Quote from today's fool:

Another quality dividend paying company that many investors own is Coca-Cola (KO). If you buy Coca-Cola at $38 and keep getting a $1.12 in annual dividends that grow by 7% per year, would it matter if the market price goes down to $20 or up to $60 in the next 5 years? Unless you plan on putting the dividend and any fresh capital back in the stock, you should pretend that the stock market is closed for the next five years and spend your time with family, on your day job or your hobby instead. I recommend going to bars or the movies also.
 

Presco

Member
Presco - That's why all but 10,000 of my money is now in Mutual funds ^_^

That's very good to hear (though why not index funds?). I lost the first $5k I "invested" by trying to play options before I really understood what I was doing and without the time to sit in front of a computer and really time my entries and exits. It wasn't investing, it was gambling, red vs. black, up or down. It was a necessary lesson and I'm glad I learned it while I was young. There is money to made with momentum trading but it really requires your full attention for the period of time you're in the trade, or at the very least you need to be absolutely ruthless with stops and limits. I'd much rather live a life where I never think about my investments, much like the quote you posted. There's enough other stuff in life to stress about.
 
That's very good to hear (though why not index funds?). I lost the first $5k I "invested" by trying to play options before I really understood what I was doing and without the time to sit in front of a computer and really time my entries and exits. It wasn't investing, it was gambling, red vs. black, up or down. It was a necessary lesson and I'm glad I learned it while I was young. There is money to made with momentum trading but it really requires your full attention for the period of time you're in the trade, or at the very least you need to be absolutely ruthless with stops and limits. I'd much rather live a life where I never think about my investments, much like the quote you posted. There's enough other stuff in life to stress about.

Presco you've been a rocking guy - out of curiosity, does a service exist where you can lock in your money in index funds so you can't touch it for a certain amount of time? (not a 401K though, I want my money before I retire).
 

Presco

Member
Presco you've been a rocking guy - out of curiosity, does a service exist where you can lock in your money in index funds so you can't touch it for a certain amount of time? (not a 401K though, I want my money before I retire).

As far as I know (and I'm no expert), the closest thing to what you are describing are called market-linked GICs. Your principle is always guaranteed but you can benefit from higher returns assuming the stock market does well over the term.

These are available in Canada, not sure about the USA. I would personally avoid them because they seem hard to monitor, unlike something traded on the market, and you have no control over when you have to sell them. A 3 or 5 year term means that you have to sell at the conclusion of the term, regardless of how the market is doing. Your principle is always protected but you might make nothing just due to unfortunate timing.

Maybe other posters have more insight into other products that might fit what your looking for. You can always PM Piecake, that guy knows his index funds.
 

Zeppu

Member
I've been doing a fantasy stock market game on investopedia with my friends for the past month(-ish) and I think I'm ready to start investing IRL. I am outside the US but I'd like to deal in US based markets. What sites would you guys recommend to get started?

I tried looking into local services but they charge €25 euro per transaction which is utterly ridiculous.

Thanks.
 

Ovid

Member
Right - if the shareholder update wasn't public knowledge then it absolutely would fall into insider trading, even without knowing what the shareholder update was going to be about.
Yup.

NoLove, did the company put out a press release stating that info related to the company was imminent?

You don't have to answer of you don't want to.
 

Ether_Snake

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I've been doing a fantasy stock market game on investopedia with my friends for the past month(-ish) and I think I'm ready to start investing IRL. I am outside the US but I'd like to deal in US based markets. What sites would you guys recommend to get started?

I tried looking into local services but they charge €25 euro per transaction which is utterly ridiculous.

Thanks.

It cost me 30$ (Canadian) a trade until I had enough money in my account (forget how much). Now it's 10$. Still a lot but whatever. I do it through my bank.
 

No Love

Banned
Um...yeah....okay. Let's hope the SEC isn't browsing GAF.

Right - if the shareholder update wasn't public knowledge then it absolutely would fall into insider trading, even without knowing what the shareholder update was going to be about.

Yup.

NoLove, did the company put out a press release stating that info related to the company was imminent?

You don't have to answer of you don't want to.

He just said it was coming eventually but did not give an exact date. So yeah, no insider trading.

Still making great money off VGPR... that early dip to 0019-0020... mmm yeah.
 

No Love

Banned
Oh, ok. Your initial post said it is coming "tomorrow" which seemed like an exact date lol.

That was what I was led to believe... at least on one PR. Still waiting on that shareholder update. My friends and I have really enjoyed the trading action on VGPR, been making lots of cash off of it.

Nobody would ever lie on the internet ;)

Don't ever infer that I'm a liar. I have no need to lie. Thank you.
 

Graf

Neo Member
Were these not the news releases that were expected? Seems like the promise was kept, at least with regard to a news release on Friday.

http://www.marketwatch.com/story/bi...-the-marijuana-and-hemp-industries-2014-02-28

http://www.marketwatch.com/story/ve...-its-bio-coal-and-biochar-products-2014-03-04

I'm still curious how this was even on the radar as a hemp/marijuana play a week before the PR. NoLove, do you know why your friend picked this stock? CEO leaking information a week early? Both news releases seemed to trigger sell offs, especially that massive drop on Tuesday. "Buy the rumor, sell the news" and all that, but what's the source of the rumor?

Edit: Not particularly relevant to the trading of this stock, but I'm loving this income statement: http://finance.yahoo.com/q/is?s=VGPR

This company has literally done nothing but pay salaries in the last 3 years.
 
Hey Stock-age, I don't visit often but I'm wondering if anyone here can provide some advice. I recently came into some restricted company stock and I'm wondering what's more beneficial to me: paying the quarterly tax obligations in cash (around $1200 every quarter) or using the sell-to-cover option. I don't know much about this whole process, but I feel like I'm losing out by selling off shares to cover the tax. On the other hand, dishing out that much cash every 3 months is a lot of money to secure all my shares.
 
Hey Stock-age, I don't visit often but I'm wondering if anyone here can provide some advice. I recently came into some restricted company stock and I'm wondering what's more beneficial to me: paying the quarterly tax obligations in cash (around $1200 every quarter) or using the sell-to-cover option. I don't know much about this whole process, but I feel like I'm losing out by selling off shares to cover the tax. On the other hand, dishing out that much cash every 3 months is a lot of money to secure all my shares.

I've done enough research on RSU to make me not seem like a complete fool!

Ask yourself this: If you had extra money that came from a regular bonus - would you invest into your company's stock or something else? That gives you your answer here.

If you are going for financial soundness, I'd strongly suggest not doubling down on your company's stock and paying with sell to cover, don't want all your eggs in one basket for future bonuses etc
 

Husker86

Member
I'm thinking of selling my mutual fund holdings in my Roth IRA and buying ETF equivalents. Is there any downside to doing this assuming I don't sell on a hugely negative day? I realized Vanguard's ETFs offer better expense ratios and see no reason to continue investing in mutual funds.

I can't think of one, even if you do it on a hugely negative day. You'd be buying the ETF that same day so theoretically it'd be cheaper than other days.
 
I've done enough research on RSU to make me not seem like a complete fool!

Ask yourself this: If you had extra money that came from a regular bonus - would you invest into your company's stock or something else? That gives you your answer here.

If you are going for financial soundness, I'd strongly suggest not doubling down on your company's stock and paying with sell to cover, don't want all your eggs in one basket for future bonuses etc

Very good point. Thank you for the insight!
 

Smiley90

Stop shitting on my team. Start shitting on my finger.
With the new Earnings report today, NDN.TO now up 25% since I bought it early January. <3
 

Ether_Snake

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AAPL, AMZN, DDD, SSYS, all at good prices to add to I think. I added some earlier to DDD and SSYS. Might add later this month or early next month.
 

Piecake

Member
Alright. I was very apprehensive to ETFs, basically I didn't understand what they were, but reading into them more it seems like a no-brainer to move to them. Thanks.

I prefer mutual funds. I find ETFs annoying to work with. Having extra money left in your money market account because that amount doesnt equal the ETF stock price is just annoying. So long as you got enough money in, mutual funds are just as cheap as etfs and you can actually put all of your money towards it
 

Smiley90

Stop shitting on my team. Start shitting on my finger.
I prefer mutual funds. I find ETFs annoying to work with. Having extra money left in your money market account because that amount doesnt equal the ETF stock price is just annoying. So long as you got enough money in, mutual funds are just as cheap as etfs and you can actually put all of your money towards it

........ say what?

EDIT: Nvm I get it now, though I heavily disagree. I rather keep 5 dollars in my account that I can't invest and instead pay 2% less in management fees.
 

Ether_Snake

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So tempted to add to SSYS and DDD, but I will wait another two weeks.

TSLA and SCTY are starting to fall, hopefully it continues (for me, so I can eventually get in at a good price).
 
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