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[BigBooper]

I've been seriously considering getting into the stock market, basically my day job isn't enough to support me and I need to increase my yearly income. I don't think I have the stomach to invest in individual companies because I'd be glued to my computer looking at updates every chance I could but I was thinking about getting into index funds.

I looked up the history of the annual return for the SP 500 and its averaging over 10% and it got me thinking, if I put 100k in that I increase my yearly income by 10k. Is this a naïve way of thinking about this? I know some years are worse than others, but it seems to be very very rare that it actually goes down so it looks like a safe investment.
I also looked up the graph showing the value of multiple index funds over time and they have been increasing at an insane rate the past couple years (excluding the covid dip), way more than they used to as far as I can tell. SP500 went from under $3000 to over $4000 in less than 2 years, that seems like an insane increase in such a short time. This has me worried that a drop is inevitable.

Are these as safe as they look like on paper and should I be worried about this recent increase? If I get in now it seems like I'm buying high. I'm trying to do as much research as I can but advice from people that actually do this daily is appreciated.

Only thing I'd say is I personally wouldn't consider index funds as yearly income. They are long term slow growth safer investments. There's many ways to go though, if this is what you're comfortable with, it's better than sitting in a bank.

 

[ipukespiders]

I've been seriously considering getting into the stock market, basically my day job isn't enough to support me and I need to increase my yearly income. I don't think I have the stomach to invest in individual companies because I'd be glued to my computer looking at updates every chance I could but I was thinking about getting into index funds.

I looked up the history of the annual return for the SP 500 and its averaging over 10% and it got me thinking, if I put 100k in that I increase my yearly income by 10k. Is this a naïve way of thinking about this? I know some years are worse than others, but it seems to be very very rare that it actually goes down so it looks like a safe investment.
I also looked up the graph showing the value of multiple index funds over time and they have been increasing at an insane rate the past couple years (excluding the covid dip), way more than they used to as far as I can tell. SP500 went from under $3000 to over $4000 in less than 2 years, that seems like an insane increase in such a short time. This has me worried that a drop is inevitable.

Are these as safe as they look like on paper and should I be worried about this recent increase? If I get in now it seems like I'm buying high. I'm trying to do as much research as I can but advice from people that actually do this daily is appreciated.

For yearly/quarterly/monthly income you could get into dividends. You could pick modest dividend payers that have some capital growth, or even toss out the idea of capital growth and go for big payers. Opinions are mixed on this.

He's Canadian, but "passive income investing" on youtube takes this approach.
It may depend on whether or not your accounts are registered, and there are tax implications as well.

 

[KingdomHeartsFan]

For yearly/quarterly/monthly income you could get into dividends. You could pick modest dividend payers that have some capital growth, or even toss out the idea of capital growth and go for big payers. Opinions are mixed on this.

He's Canadian, but "passive income investing" on youtube takes this approach.
It may depend on whether or not your accounts are registered, and there are tax implications as well.

Thanks Ill look it up, I'm Canadian too so maybe it'll relate to me.

 

[Myths]

You know what ASTC, you’re pretty alright yourself.

 

[HawksWinStanley]

Only thing I'd say is I personally wouldn't consider index funds as yearly income. They are long term slow growth safer investments. There's many ways to go though, if this is what you're comfortable with, it's better than sitting in a bank.

This. Index funds should be treated as savings accounts that give you exponentially more return than an actual savings account ever would.

 

[Nikana]

For yearly/quarterly/monthly income you could get into dividends. You could pick modest dividend payers that have some capital growth, or even toss out the idea of capital growth and go for big payers. Opinions are mixed on this.

He's Canadian, but "passive income investing" on youtube takes this approach.
It may depend on whether or not your accounts are registered, and there are tax implications as well.

Just curious to why the opinions are mixed on this?

 

[ipukespiders]

Just curious to why the opinions are mixed on this?

Some of the bigger dividend payers might be seen as slowly collapsing on themselves. One example that is controversial is DFN.

It missed four dividend payouts in 2020, attributed to the affects of Covid on the market last year.
The higher the dividend, the riskier, and this one is crazy high.
I only hold a hundred shares of this one.

 

[KingdomHeartsFan]

Nvm

 

[ManofOne]

 

[Taxexemption]

Some of the bigger dividend payers might be seen as slowly collapsing on themselves. One example that is controversial is DFN.

It missed four dividend payouts in 2020, attributed to the affects of Covid on the market last year.
The higher the dividend, the riskier, and this one is crazy high.
I only hold a hundred shares of this one.

In an intro to accounting class I took back in the day the professor told me that 3-5 percent dividend was considered reasonable, and that anything more than that was likely risky, and that you should really do some research before putting your money into anything with a high dividend percentage. Not sure if 3-5% still holds, I personally think it's reasonable.


At the very least you should see if their yearly net income pays for their yearly dividends. If not, it's not sustainable.

 

[ManofOne]

Some of the bigger dividend payers might be seen as slowly collapsing on themselves. One example that is controversial is DFN.

It missed four dividend payouts in 2020, attributed to the affects of Covid on the market last year.
The higher the dividend, the riskier, and this one is crazy high.
I only hold a hundred shares of this one.

You should calculate the dividend coverage ratio for stocks that pay dividends.

Compare that ratio with industry standards

 

[joe_zazen]

lots of very negative crypto news and rumors after an epic week with coinbase and all. we have us crackdown on money laundering, more rumors about India actually criminalizing crypto, and Turkey's restrictions = a crashing market in Eth and BTC.

assuming nothing changes, Monday I am moving my ABXX defi high risk money to crypto miner HIVE.V (not the shitcoin hive). Why? crypto whales are buying https://unusualwhales.com/crypto are buying. Plus some glassnode charts are nice.



Of course things could change dramatically between now and monday moring, but it looks like an opportunity here. I expect a 30-50% discount on the $4.40 price from panic selling (miners tend to have outsided movment from changes in crypto prices) and a good rebound within a month. Or this will be 2017, whoops.

edit: looks like the panic has dissipated mostly. why couldn't this have happened Sunday night/Monday morning.

edit #2: hours before the crash from an asian account. Someone knew.

 

[joe_zazen]

 

[12Goblins]

Q

 

[ipukespiders]

Miners are dropping.

 

[HawksWinStanley]

Buyin' that MU dip.

 

[GHG]

Time to go shopping or wait?

It's always a bit of a conundrum on days like this. How long are we expecting this to last?

 

[ipukespiders]

Time to go shopping or wait?

It's always a bit of a conundrum on days like this. How long are we expecting this to last?

I just got a call from future me. Too much static on the mine, all I heard was "Whatever you do, don't..." and the line went dead.

 

[Nikana]

I just got a call from future me. Too much static on the mine, all I heard was "Whatever you do, don't..." and the line went dead.

LOIS IS THE KEY!

 

[GHG]

I just got a call from future me. Too much static on the mine, all I heard was "Whatever you do, don't..." and the line went dead.

Fuck it I'm buying.

If it dips again tomorrow I'll buy more, rinse repeat.

 

[dem]

So I guess i shouldn't have bought bitcoin last week
Bought some more this morning.

I may end up the greatest fool on this one..


Can't help it.. When I see red I charge.

 

[Nikana]

So I guess i shouldn't have bought bitcoin last week
Bought some more this morning.

I may end up the greatest fool on this one..


Can't help it.. When I see red I charge.

Ive been playing the volatility. Im up $50. Was down $150 at one point so I see that as win during a boring work day.

 

[HawksWinStanley]

Fuck it I'm buying.

If it dips again tomorrow I'll buy more, rinse repeat.

Amen.

Future bag holders unite!

 

[GHG]

Amen.

Future bag holders unite!

Current bagholders are future millionaires

 

[ipukespiders]

 

[Nikana]

So whats the worst trade/move/thingy everyone has had here? I am just curious as I look at a loss I will likely not recover from an option that I was too stupid to cut my losses with.

 

[ipukespiders]

So whats the worst trade/move/thingy everyone has had here? I am just curious as I look at a loss I will likely not recover from an option that I was too stupid to cut my losses with.

For me it was years ago. I had 1000 vested stock options from a company I worked for that rose to a value of $10,000 and I ended up exercising them at $3000.

 

[Nikana]

For me it was years ago. I had 1000 vested stock options from a company I worked for that rose to a value of $10,000 and I ended up exercising them at $3000.

Ouch. That could have been much worse though I feel like.

 

[dem]

Stupidest loss was some penny stock bullshit I was playing around with. Really I didn't lose much... maybe 1k in the end. Just mad at myself for even messing with penny stock garbage. Don't do it kids.


The other that really annoys me is Ovintiv (Formerly Encana). The one stock I panic sold during Covid/Oil crises... took a large hit.
Then I decided.. fuck it im going in again once it was bottoming out. Bought a bunch and cashed out wayyyy too early. If I held like a man I would have crushed it with a 10x.

 

[Nikana]

Stupidest loss was some penny stock bullshit I was playing around with. Really I didn't lose much... maybe 1k in the end. Just mad at myself for even messing with penny stock garbage. Don't do it kids.


The other that really annoys me is Ovintiv (Formerly Encana). The one stock I panic sold during Covid/Oil crises... took a large hit.
Then I decided.. fuck it im going in again once it was bottoming out. Bought a bunch and cashed out wayyyy too early. If I held like a man I would have crushed it with a 10x.

After reading Penny Stocks for Dummies i thought about dabbaling and eventually noped out. I have enough stress playing crypto.

 

[Nikana]

Everything was red for me except some options that I feel like I did no DD on and playing the crypto.

 

[GHG]

Everything was red for me except some options that I feel like I did no DD on and playing the crypto.

That's what I'm currently doing and I'm enjoying it even in the days when the market is red.

Hover up cheap shares for my ETF's and high conviction stocks, and day trade where appropriate. I have a couple of things in my portfolio that I'm still stuck with from failed swing trades back in February but I've learn't to stop caring about them. If they come back they come back and I'll sell for break even/profit. If they don't... whatever.

 

[ManofOne]

Last two days have been bad.

 

[ipukespiders]

Everything is down except what I actually want to buy.

 

[BigBooper]

My $500 of Dogecoin funny money is the only thing that's worked out the past few trading days.

 

[Nikana]

My $500 of Dogecoin funny money is the only thing that's worked out the past few trading days.

I finally got burned by DOGE yesterday playing the volatility but still up like $450 on dicking around with it.

 

[GHG]

Tobacco stocks in the mud today

What ever happened to letting adults make their own decisions about what they buy?

 

[GHG]

Also what the fuck is going on with Oil stocks today? What's causing this?

 

[BigBooper]

I finally got burned by DOGE yesterday playing the volatility but still up like $450 on dicking around with it.

Oh man, I can't imagine trying to play the volatility. I bought $500 when it was .07 and if it makes me a millionaire in ten years, so be it.

 

[Nikana]

Oh man, I can't imagine trying to play the volatility. I bought $500 when it was .07 and if it makes me a millionaire in ten years, so be it.

Its honestly something I really need to stop. My mood and overall health is lower when I do it. I am far more agitated and less receptive in general.

Looks like the bottom just fell out of Doge as well. I need to take my profits from it and go.

 

[GHG]

Ok seriously wtf was that? The whole market just took a dump in the space of 15 minutes?

 

[Nikana]

Im down 6 percent in 22 minutes of my entire year.

This is why I drink Chocolate milk all day.

 

[ipukespiders]

Im down 6 percent in 22 minutes of my entire year.

This is why I drink Chocolate milk all day.

Stocks on sale.

 

[Nikana]

Stocks on sale.

Maybe you dont know this but....

IM POOR

 

[BigBooper]

Maybe they worried about another summer of love?
https://www.neogaf.com/threads/minnesota’s-walz-declares-state-of-emergency-prior-to-derek-chauvin-verdict.1601687/

 

[CrankyJay™]

Welp, stocks fucking suck.

 

[GHG]

What's funny is that while that dump happened the tobacco stocks went up on a day when they have terrible news.

That perfectly sums up the market so far this year.

 

[ManofOne]

Down 3.0%

My only portion up today is utilities.

 

[dem]

Ooof... getting crushed.

 

[HawksWinStanley]

Jumped into a small position of MO.