Long term plan for my self directed IRA

Discussion in 'Investing' started by gtrudeau88, Mar 23, 2021.

  1. Rustic1

    Rustic1 Well-Known Member

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    WXYZ is my daily amusement thread, I posted awhile back how to observe the overall metrics of the markets and rotate with the sectors. At the time yields were spiking at a alarming rate and from past experience I knew how the markets would react. The cheerleaders went all out on the crusade to prove me wrong, I kept trying to no avail. As estimated, it happened and we had a DECENT correction and they quickly dropped their pom poms and refused to realize the fully invested that have no cash reserves to average down, quickly become the fools that are trapped in their own game. The smarter ones had either rotated sectors, insured with options, or simply bought the dips to fortify their positions.
    The ones that listened are now well in the green while the regular 3 or 4 regular posters are finally catching up.

    Timing the market is a figure of speech, observing how the markets behave and using those skills to better position myself is more of my style. I consider that,ability to help time decisions.
    I never have 100% accuracy and I know I never will.

    Spindr0. I've read enough into his post and know how to backtest his methods, I can assure you he is one of the longterm investors that can remain profitable in any market conditions or have very small limited losses, even in severe market corrections. These new investors don't have a clue what SEVERE is just yet.

    Trading, it is not easy but some have become very good and profitable in the process. I have to put myself into the average traders mindset. Most use very tight stops to minimize losses and simply lose on a regular basis. The markets are designed to fluctuate within their range and the big sharks, algos, etc, shake the trees and use their stops against them.
    One of my best methods is to watch the open, some quickly take off out of the gate and after the first hour quickly fall back down. That is weakness and can be very profitable.
    On a good day "choppy waters" the S&P can be outperformed X3 by using leveraged funds.
    The list is infinite, keep in mind I dont have 100% accuracy but I dont fall under the myth of 95% fail. I dont have to trade everyday, that is my main edge.

    THIS THREAD, is the perfect example of what not to do if your new in the markets. In these cases I recommend a INDEX FUND like most will advise and slowly ease your way into the market after understanding how they function. I ALWAYS advise to keep a cash reserve built up and to never fully invest at any given time. Although the dividends may look juicy and tasty, you need to learn how they are doing the payouts. When I read into the financials and learn its a return of capital or thru debt, I stay away. That's where DUE DILLIGENCE comes into play and becomes your best friend.
    Defense is your best soldier, cash is king. The market has plenty of opportunities. FOMO is for fools.


    On a side note TOM, maybe you should open a robinhood account or coinbase. Dont trade stocks or options though. Instead buy some BTC go all in with whatever amount 100 or 500 is enough. Hold it and leave it alone for a year and see what that does.

    I would be willing to say BUFFETT and MUNGER are scratching their heads and wondering why they didn't toss in 500 bucks 10 years ago just to prove the World wrong. Thats some serious moat my friend. :D
     
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  2. gtrudeau88

    gtrudeau88 Active Member

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    I inserted a few points below and eliminated a few lines to shorten things up. Hope Rustic1 doesn't mind

     
  3. gtrudeau88

    gtrudeau88 Active Member

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    I've been in charge of my ira for almost a month now and here's my take on the results so far. Had I left my money with Edward Jones in the mutual funds they selected I would have gained approximately $6688 on an original balance of $99734. From that gain would have gone $117 in their monthly fee. I've gained approximately $5900 but I would also add that I'm getting about $145 or so in dividends over the course of the next week, starting tomorrow actually. This will be the 1st time the account gets dividends since I took it over.

    To summarize I would be about $526 ahead had I stayed with EJ. I am underperforming I guess but my results may ultimately even out. I get more in dividends now than I ever did with EJ and I did suffer a sharp loss in GOF when the managing firm announced they were merging 2 other funds into it. GOF has started to come back now so I'm probably not far off from being even with them.

    Am I sorry I left EJ? No. Is the 1.35% fees that EJ charges worth it? Probably not. Someone more experienced than I could probably beat EJ handily.
     
  4. Bridget Mallory

    Bridget Mallory Active Member

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    I am really learning a lot from this discussion
     
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