Gyroscopic Investing

dualstow wrote: ↑Wed Nov 06, 2019 8:16 am We may not have a recession for another year or more. I'm sticking with my allocation.

mathjak107 wrote: ↑Mon Nov 11, 2019 2:59 am
there is noooooooooo difference selling , closing out your positions each day and rebuying at the open vs keeping the same money in play over night hypothetically .

dualstow wrote: ↑Mon Nov 11, 2019 6:19 am

mathjak107 wrote: ↑Mon Nov 11, 2019 2:59 am
there is noooooooooo difference selling , closing out your positions each day and rebuying at the open vs keeping the same money in play over night hypothetically .

I can think of one difference off the top of my head. If the market opens down 300 pts, you’ve missed out on a crash. If it opens up 300 pts, you’ve missed out on a gain. If you are out of enough of those significant morning opens, your portfolio total will look very different from someone who buys and holds.

#2: Taxes. You can generate a big tax bill for yourself day trading and still lose it all afterwards.

Of course holding is akin to buying, but there are significant differences between holding stocks and daytrading them.

so that is all i am saying. our brains tend to hand us faulty logic when it comes to our money .

mathjak107 wrote: ↑Mon Nov 11, 2019 2:59 am keep in mind , every day we are effectively buying in to our assets ... everyday the markets open we are committing our money back in to play .

there is noooooooooo difference selling , closing out your positions each day and rebuying at the open vs keeping the same money in play over night hypothetically .

so if you would not buy any of the assets because the prices are to high you better rethink the fact that in effect you are buying in daily whether we think of it that way or not.

on the other hand , we may choose to hold some cash like we would a stock option and take a shot at waiting for a dip , but that is not the same thing as this is speculating ...you still have those waiting since 2008 who missed 300-400% in gains . they can never make that up .

we all tend to believe our own bull-shit many times , like gains and losses are only on paper because i didn't sell or i am playing with something called the houses money because i am up or i am not going to spend principal .


news flash---it is all your money -period --- at any point in time that is the assets value and the money is all yours for the taking .. we just choose to keep the money in play hoping in the future the asset is worth more . but to think anything changes if we sell at night and put the money back in to an investment in the morning is somehow different than keeping the money in play overnight is mental masturbation .

somehow we convince ourselves it is okay to keep our old money and likely the biggest chunk of our money in the investments , effectively buying in each day again , yet we think they are to high to risk putting new money in and likely the smallest piece in .

when you think this logic through our action almost seem silly .

ochotona wrote: ↑Mon Nov 11, 2019 11:17 am Every day spent with a wife beater is like saying "I Do" all over again... TLT

dualstow wrote: ↑Mon Nov 11, 2019 1:38 pm I wouldn't read so deeply into it, Vinny.

Kriegsspiel wrote: ↑Mon Nov 11, 2019 4:45 pm Speaking of congenitals.. spay and neuter your cats.

Kriegsspiel wrote: ↑Mon Nov 11, 2019 4:45 pm Speaking of congenitals.. spay and neuter your cats.

Smith1776 wrote: ↑Wed Nov 13, 2019 1:11 pm If you split up your equity allocation with different tilts, then at least you minimize your exposure to the most expensive stocks to only part of your portfolio.

Diversification!