Market advice

[niltes]

they cater to larger accounts, you must generate $30/month in commissions
or there is a monthly fee for data, margin acct interest rate is less than 2%
while many other brokerages charge 4-7%. I get better prices on my
option spreads at IB compared to my TDAmeritrade acct. I have done
multiple duplicate almost simultaneous transactions to verify that.
the cost of a transaction is consistently less at IB.

 

[JustinCruise]

Anyone mess with wealthfront?

 

[PatsFan1283]

Anyone mess with wealthfront?

Robo-advisors are an interesting product. They take care of asset allocation and tax-harvesting/efficiency.

Not really worth paying them the fees when you can do most of this yourself though. Especially someone with a background in finance like yourself.

Most people should have the lions share of their investments in tax-deferred/advantaged accounts anyway, thus defeating the purpose of the tax-harvesting part.

 

[CHOPTALK]

NEVER do a market order, ALWAYS do a limit order.
ETF's and mutual funds usually have management
fees. .5-1% is normal.

for serious traders, especially those into options,
futures, or tend to have a negative margin account
balance, I would highly recommend interactive
brokers as their transaction fees, broker loan
rates, and executions are MUCH better than
their competitors.

hope this helps

You can do a market order if it's a buy and hold on a heavily traded ETF

 

[dirtymoose]

So if I wanna buy some shares os Vanguard Energy ETF (VDE), market order the way to go?

 

[CHOPTALK]

So if I wanna buy some shares os Vanguard Energy ETF (VDE), market order the way to go?

Yes that's a vanguard ETF that I have owned many times. A market order is fine if you plan on holding it for 3 years or more.

You do a limit order on a buy and hold like that the ETF can jump above the limit price and you will be constantly chasing a good entry point.

On a market order the trade gets executed instantly at the current ask price and you don't have to worry about not getting the trade executed.

Now if you were purchasing something that is lightly traded with a large spread or if you were making day trade or a very short term trade where every penny matters then a limit order would be what you would want.

But in your case you won't even remember POTENTIALLY saving a few cents on such a long hold.

 

[CHOPTALK]

So if I wanna buy some shares os Vanguard Energy ETF (VDE), market order the way to go?

A market order is kind of like the current line at a sports book.

Limit is kind of like speculating that later on the line will move more in your favor so you decide to wait until the line goes your way.

Only problem is sometimes the line never goes your way and it ends going even more against you then it was the first time you had the opportunity to make the play.

So at that point you either have to abandon the bet or take the even worse odds then you passed up on the first time.

For something you gonna be holding for such a long period of time a market order is more then fine.

Limit orders for short trades when every penny counts but not in your case

 

[dirtymoose]

Good stuff man, thank you.
Hypothetically, if the ETF jumps from 89.63 (now) to say 147 (5 year high) in 6 months, and I wanted to sell it off.... Would I still be able to with a market order?

 

[Ricboff]

regarding variability of returns, asset allocation is way way way more important than actual products . This has been shown (BHB study). You are making a sector play. Cool. Ask yourself a few questions?

is this a long term hold (then ask your self what is a 'long term' hold for you)? Go ahead and place a market order.


if it's not a long term hold. This means you intend on trading this; you're timing the market. This means you CANNOT ignore the chart. That would be like driving in the rain with no windshield wipers. You're going blind. This means you must consider educating yourself on technical analysis. It's not hard. Stick to simple.


here's the chart


the 2 yr chart;

not very pretty eh? how are the people who bought at $145 feeling? they still holding? ....have they 'added more' as the price dropped?

obviously a downward trend that mirrors the stunning fall of oil. Is the trend reversing? A break thru $90would be very very nice


3 month chart

massive , glorious day today.....however, it is approaching significant resistance AND has a small gap left thru its most current move upwards. ($85.50-$86 ish). Approximately 80% of gaps are filled; meaning likely this etf retraces to at least that number.


wahtever entry you take, then ask yourself two VERY IMPORTANT QUESTIONS;

what is my profit target ?

what is my stop loss target?


NO THINKING, stick to what you wrote down to those two questions and execute.............


if you plan on trading, you must have a PLAN. Write it down. Adapt and change as you learn. Evaluate your moves, post trade.


IMO, speaking in gross generality, woman make better traders than men. Why? Ego...they tame it better. Traders fail because of ego. Einstein's formula; ego is in the inverse of knowledge.



gl


-another strong consideration if you're trading; paper trade first. However, if you have the itches....then off you go.....

 

[CHOPTALK]

Good stuff man, thank you.
Hypothetically, if the ETF jumps from 89.63 (now) to say 147 (5 year high) in 6 months, and I wanted to sell it off.... Would I still be able to with a market order?

If you have a specific sell price target you can set up a limit order at the price you want to sell GTC (Good Till Cancelled) for the target sell price and it will automatically sell your equity at your target price.

Limit orders are much more important when you are selling then when you are buying on buy and holds.

 

[CHOPTALK]

But there can be instances when your order only gets partially filled so you run the risk of only selling a portion of not the whole thing.

But that is less likely when dealing with such a highly liquid ETF like the one your are talking about.

Limit orders do serve a purpose but in your case market order is fine.

You care more about what it's going to be worth 3 years from now then you care what it's going to be worth 3 days from now

 

[CHOPTALK]

If you have a specific sell price target you can set up a limit order at the price you want to sell GTC (Good Till Cancelled) for the target sell price and it will automatically sell your equity at your target price.

Limit orders are much more important when you are selling then when you are buying on buy and holds.

And you can also do this for the downside also it's called a stop loss.

 

[bounceback]

Maybe someone else can chime in but for starters, check out robinhood.com

no fees trading app...not going to be extensive like some of the actual broker sites but can't beat no fees ect.

got pretty good reviews too.

My supervisor at work that is well versed in stocks let me know about it and I am going to check it out.

anyone have an opinion or criticism on the app or maybe a similar one?

Im in the same boat as the OP, a beginner looking to dive in to stocks soon.

 

[dirtymoose]

Solid advice all around guy, thank you.
Weather you're holding long term or not, could one argue you should never "ignore" those charts?

If I was to buy and tell my self this is meant to be long term, but the price shoots way up, I'd have to think about calling an audible.

 

[Ricboff]

Yes, i agree. Others may not share this opinion. Certainly those weighing heavy in the 'fundamental analysis' corner may actually go as far as mock tech. analysis. With that said; if you're buying a broad market dividend paying ETF for 10-20 yrs? then the chart isnt too important, other than to consider buying on the dips/major market corrections (keeping in mind one is comfortable in betting/investing on the long term health of the US economy) .

Sector/individual countries? We just posted the Vanguard Energy ETF...that was an ugly picture. Can you imagine blindly taking an entry position without having looked at that ?


keep in mind you're playing an ETF; it holds MANY individual stocks. Immediate diversification. As an example, if one stock held by the ETF has awful news (death of its CEO, lawsuit....etc) and tanks? Well if you held ONLY THAT stock, you're kinda fucked. ETF's gives you that buffer. Works both ways tho; if that ONE STOCK sky rockets on fantastic news (earnings, etc) your ETF is not going to go anywhere near as high. In other words if you're lookign for 'grand slam homeruns' , ETF's aren't your best bet.


i cannot say enough about the importance of risk management. That is, having your exit point to the downside defined per trade. A MUST. Exit should be based on the chart ; just below support levels...keeping in mine the ENTIRE portfolio amount ex., ___% (say 1%)rule is a great way to go....that is you are willing to lose __% of your entire portfolio per swing trade--but NO MORE.effectively you have capped the most you can lose per trade.


my 2 cents

 

[bounceback]

Yes, i agree. Others may not share this opinion. Certainly those weighing heavy in the 'fundamental analysis' corner may actually go as far as mock tech. analysis. With that said; if you're buying a broad market dividend paying ETF for 10-20 yrs? then the chart isnt too important, other than to consider buying on the dips/major market corrections (keeping in mind one is comfortable in betting/investing on the long term health of the US economy) .

Sector/individual countries? We just posted the Vanguard Energy ETF...that was an ugly picture. Can you imagine blindly taking an entry position without having looked at that ?


keep in mind you're playing an ETF; it holds MANY individual stocks. Immediate diversification. As an example, if one stock held by the ETF has awful news (death of its CEO, lawsuit....etc) and tanks? Well if you held ONLY THAT stock, you're kinda fucked. ETF's gives you that buffer. Works both ways tho; if that ONE STOCK sky rockets on fantastic news (earnings, etc) your ETF is not going to go anywhere near as high. In other words if you're lookign for 'grand slam homeruns' , ETF's aren't your best bet.


i cannot say enough about the importance of risk management. That is, having your exit point to the downside defined per trade. A MUST. Exit should be based on the chart ; just below support levels...keeping in mine the ENTIRE portfolio amount ex., ___% (say 1%)rule is a great way to go....that is you are willing to lose __% of your entire portfolio per swing trade--but NO MORE.effectively you have capped the most you can lose per trade.


my 2 cents

Thanks for the info...

 

[dirtymoose]

Ended up in 3 different Vanguard ETF's. Commission free via Vanguard. Good deal. Still have money left to play.

 

[dirtymoose]

Not to get too specific, but what do you guys think about The Gap Inc. (GPS).....
From this novice point of view, looks like it has bottomed out.

 

[dirtymoose]

How bout this question... I was thinking about 2009. I really didn't know much about the market, I knew I was putting money into my 401k and that was that.
I also remember everyone losing a lot of money in their 401k's.
If you would have moved your 401k money out of the open market and into something like bonds, would you have saved a ton of money?
Or was everything losing money at that point? Even the bonds?

 

[Ricboff]

Not to get too specific, but what do you guys think about The Gap Inc. (GPS).....
From this novice point of view, looks like it has bottomed out.

did you buy VDE?...hope so, broke through resistance at $90....


i know nothing of the fundamentals of GPS, or its sector. I'll give my 2-cents on its chart.


2 yr chart

safe to say you're bottom feeding. For two years this stock has been trending down. Ask yourself this; why are you buying a stock that's trending down? Are you 'hoping' to catch the bottom? This stock has gapped down aggressively twice the last yrs; Oct 2014 and April 2016. Disturbing.



the 6 month chart;

IF she can break through this trading channel to the upside, LOADS of room to run; a big gap to fill (i'd sell just before the gap is filled, but that's me..). When to enter? - preferably on a green day, higher volume and breaks through $24.5; WAIT until she breaks through $24.5-$25. Again, ideally on higher vol, green day .

where's support? $22.50. If you do buy, ya gotta put a stop loss just below this level, say at $21.75-$22. GOTTA PROTECT. You want a minimal loss.....all it takes is ONE massive loser, and well...for most, that short term trade then turns into long term hold.........

gl