PP humming along again
Posted: Thu Mar 31, 2016 4:42 pm
I notice a distinct absence of threads bemoaning the PP's poor performance now that things are going well. Everyone happy again?
Permanent Portfolio Forum
https://www.gyroscopicinvesting.com/forum/
https://www.gyroscopicinvesting.com/forum/viewtopic.php?t=8315
Could you throw in a toaster?Pointedstick wrote: Everyone happy again?
No, because I only look in January. I'll get back to you then.Pointedstick wrote: I notice a distinct absence of threads bemoaning the PP's poor performance now that things are going well. Everyone happy again?
Now that's willpower!curlew wrote:No, because I only look in January. I'll get back to you then.Pointedstick wrote: I notice a distinct absence of threads bemoaning the PP's poor performance now that things are going well. Everyone happy again?
I had the same reservations to adding additional capital with the portfolio doing so promising YTD.drumminj wrote: Yes and no.
Yes because my current PP investments are doing well. No because I have more money I'd like to move into the PP, but not thrilled about doing it at near-highs for the assets :/
(clearly I'll never be happy)
I don't think HB was suggesting you invest your entire nest egg at once (lump sum or dollar cost average).Matthew19 wrote: Isn August decided that I was going to put 100% of my money in the PP over the next year, so I split it into 4 purchases. Bought in mid august and again in January. I still have two more purchases to go. In hindsight I'd had been better buying all at once as is suggested by HB.
But I'm very happy! 6% gain on 50% of my net worth is way more than the amounts I was getting trying to play the market. More time to focus on business and life too.
I never put in market orders because I'm concerned about a flash crash (or the opposite), or just a really slow market where someone has a "stink bid" in far from the current price.sophie wrote: Good for you, Budd. If only I took my own advice! I put in limit orders a few days ago for equal amounts of stocks, bonds and gold in a Roth account. Guess which asset purchase went through, and which are still sitting there because the assets took off skyward and left my limit order in the dust.
Argh!!!
Next time I'll just put in market orders and call it a day.
I understand why you added, "If things are normal." I remember ~1999 something weird happened with a limit order. I called the brokerage house and was told that my limit price was only the trigger, but that the trade would still execute "at market." Normally, that doesn't matter, but things can get screwy.Libertarian666 wrote: Instead, I put in a limit order slightly above the market price when buying and one slightly below the market price when selling. If things are normal, I get that price or better; otherwise I try again shortly afterwards.
That's exactly what I did. It's not the first time it's backfired. I have never put in a market order because the price fluctuations can be a bit unpredictable, but this was probably no worse than the occasional flash crash would be.Libertarian666 wrote: I never put in market orders because I'm concerned about a flash crash (or the opposite), or just a really slow market where someone has a "stink bid" in far from the current price.
Instead, I put in a limit order slightly above the market price when buying and one slightly below the market price when selling. If things are normal, I get that price or better; otherwise I try again shortly afterwards.
I believe that you were told a lie. There is an order type like that, but it is called "market if touched", not "limit". A limit order should not be executed unless you get the limit price or better.dualstow wrote:I understand why you added, "If things are normal." I remember ~1999 something weird happened with a limit order. I called the brokerage house and was told that my limit price was only the trigger, but that the trade would still execute "at market." Normally, that doesn't matter, but things can get screwy.Libertarian666 wrote: Instead, I put in a limit order slightly above the market price when buying and one slightly below the market price when selling. If things are normal, I get that price or better; otherwise I try again shortly afterwards.
If you put a limit bid in slightly above the last price, it should have been executed. Was there a big gap?sophie wrote:That's exactly what I did. It's not the first time it's backfired. I have never put in a market order because the price fluctuations can be a bit unpredictable, but this was probably no worse than the occasional flash crash would be.Libertarian666 wrote: I never put in market orders because I'm concerned about a flash crash (or the opposite), or just a really slow market where someone has a "stink bid" in far from the current price.
Instead, I put in a limit order slightly above the market price when buying and one slightly below the market price when selling. If things are normal, I get that price or better; otherwise I try again shortly afterwards.
That had always been my understanding, too.Libertarian666 wrote: I believe that you were told a lie. There is an order type like that, but it is called "market if touched", not "limit". A limit order should not be executed unless you get the limit price or better.
Fidelity doesn't let you put in limit bids to buy above the price at market close when it's after hours. Not sure why. So I always put it in for just under the current price.Libertarian666 wrote:If you put a limit bid in slightly above the last price, it should have been executed. Was there a big gap?sophie wrote:That's exactly what I did. It's not the first time it's backfired. I have never put in a market order because the price fluctuations can be a bit unpredictable, but this was probably no worse than the occasional flash crash would be.Libertarian666 wrote: I never put in market orders because I'm concerned about a flash crash (or the opposite), or just a really slow market where someone has a "stink bid" in far from the current price.
Instead, I put in a limit order slightly above the market price when buying and one slightly below the market price when selling. If things are normal, I get that price or better; otherwise I try again shortly afterwards.
Why would you put orders in after hours? You are asking to get a bad price.sophie wrote:Fidelity doesn't let you put in limit bids to buy above the price at market close when it's after hours. Not sure why. So I always put it in for just under the current price.Libertarian666 wrote:If you put a limit bid in slightly above the last price, it should have been executed. Was there a big gap?sophie wrote: That's exactly what I did. It's not the first time it's backfired. I have never put in a market order because the price fluctuations can be a bit unpredictable, but this was probably no worse than the occasional flash crash would be.
I know little about the way the exchanges work, but I remember hearing something about limit orders being "visible" to counterparties making it somehow more likely that you get the exact limit price you set and not better... maybe something about your own own brokerage being allowed to execute on that limit price. That said, it's a vague recollection and I still do the exact thing you all mention by setting a limit price slightly above/below the current market price. If I'm not in a hurry I just use the current bid/ask.Libertarian666 wrote:I never put in market orders because I'm concerned about a flash crash (or the opposite), or just a really slow market where someone has a "stink bid" in far from the current price.sophie wrote: Good for you, Budd. If only I took my own advice! I put in limit orders a few days ago for equal amounts of stocks, bonds and gold in a Roth account. Guess which asset purchase went through, and which are still sitting there because the assets took off skyward and left my limit order in the dust.
Argh!!!
Next time I'll just put in market orders and call it a day.
Instead, I put in a limit order slightly above the market price when buying and one slightly below the market price when selling. If things are normal, I get that price or better; otherwise I try again shortly afterwards.
I'm actually running a free service these days to help people who have this problem. Just PM your brokerage login details to me, and the trades you want me to execute. I'll handle it all for you! No need to pay me, I'm just a really nice guy.dualstow wrote: Probably a lot of people have this issue if they're at work and unable to trade.
Harry suggested doing the PP with the money that you can't afford to lose. The rest can be variable portfolio, which for me is about 3%. The money that I could afford to lose was already lostbuddtholomew wrote:Matthew19 wrote: I don't think HB was suggesting you invest your entire nest egg at once (lump sum or dollar cost average).
I think most people could use their smartphones to place a trade during lunch hours.dualstow wrote: Probably a lot of people have this issue if they're at work and unable to trade.