The Stock Market is gonna crash!?

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StillwaterTownie

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Probably my biggest investment mistake was putting $5000 in the Fidelity Magellan stock mutual fund in 1995 for an IRA and then not adding more to it as the years went by. It's now worth close to $60,000. If only I was smart enough to put in at least $1000 to it every year since 1995, I'd be a millionaire by now. I also should have bought stock in Wal-Mart during the 1990s, or better yet during the 1980s. Young people listen up! Amazon, too!
 
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oks10

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It’s interesting to see these apps and in an environment where even the dredge is being dragged along by momentum it’s great. When prices start following fundamentals again these apps will be useless. As a playground they’re fine but they’re being marketed as investing and worse investing without education, a recipe for disaster, long term.
Yeah, I definitely would not use these for heavy investing. Robinhood could definitely be dangerous for someone to invest a ton of money. Stash at least some resources to be able to educate yourself on though. Still, I wouldn't be comfortable putting any more than a couple hundred bucks in either of these. I've seen guys put THOUSANDS into Robinhood though. Sure, it's paying off right now but just seems like there's a huge risk there to get screwed.
 

steross

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Yeah, I definitely would not use these for heavy investing. Robinhood could definitely be dangerous for someone to invest a ton of money. Stash at least some resources to be able to educate yourself on though. Still, I wouldn't be comfortable putting any more than a couple hundred bucks in either of these. I've seen guys put THOUSANDS into Robinhood though. Sure, it's paying off right now but just seems like there's a huge risk there to get screwed.
I'm confused. Why would putting thousands in Robinhood be riskier than using Schwab, Fidelity or whatever?
 

oks10

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Yeah, I definitely would not use these for heavy investing. Robinhood could definitely be dangerous for someone to invest a ton of money. Stash at least some resources to be able to educate yourself on though. Still, I wouldn't be comfortable putting any more than a couple hundred bucks in either of these. I've seen guys put THOUSANDS into Robinhood though. Sure, it's paying off right now but just seems like there's a huge risk there to get screwed.
I'm confused. Why would putting thousands in Robinhood be riskier than using Schwab, Fidelity or whatever?
I just mean in regards to blindly throwing your money at individual stocks. Risk from not knowing what you're doing and not having any mediation or education there. If you have no knowledge or experience with it, Robinhood probably isn't the best place to start vs Stash if you're just comparing the two. It's fun to play with but I'm hesitant to use it for much more than that.

Sent from my Pixel 2 XL using Tapatalk
 
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steross

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I just mean in regards to blindly throwing your money at individual stocks. Risk from not knowing what you're doing and not having any mediation or education there. If you have no knowledge or experience with it, Robinhood probably isn't the best place to start vs Stash if you're just comparing the two. It's fun to play with but I'm hesitant to use it for much more than that.

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Gotcha. I thought you were saying that particular platform did something.

Just like the early 2000s, about the time regular people are talking about stocks, probably time to take a good hard look at what you are doing.

Similarly, when I was living in Vegas, and junior airmen were buying houses and selling them a year later after a fresh coat of paint for more than their salary, I told my wife, "We need to get out of here, this is gonna end badly."
 

Rack

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Probably my biggest investment mistake was putting $5000 in the Fidelity Magellan stock mutual fund in 1995 for an IRA and then not adding more to it as the years went by. It's now worth close to $60,000. If only I was smart enough to put in at least $1000 to it every year since 1995, I'd be a millionaire by now. I also should have bought stock in Wal-Mart during the 1990s, or better yet during the 1980s. Young people listen up! Amazon, too!
Dude, look on the bright side, your 5K investment is now 60K...that's some VERY nice growth.
 
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https://www.cnbc.com/2020/02/14/whi...centive-for-more-americans-to-buy-stocks.html
White House considering tax incentive for more Americans to buy stocks, sources say

As part of a forthcoming package of proposed tax cuts, the White House is considering ways to incentivize U.S. households to invest in the stock market, according to four senior administration officials familiar with the discussions.

The proposal, one of many new tax cuts under consideration, would see a portion of household income treated as tax-free for the purposes of investing outside a traditional 401(k). Under one hypothetical scenario described by multiple officials, a household earning up to $200,000 could invest $10,000 of that income on a tax-free basis, although officials noted these numbers are fluid.
 

ksupoke

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https://www.cnbc.com/2020/02/14/whi...centive-for-more-americans-to-buy-stocks.html
White House considering tax incentive for more Americans to buy stocks, sources say

As part of a forthcoming package of proposed tax cuts, the White House is considering ways to incentivize U.S. households to invest in the stock market, according to four senior administration officials familiar with the discussions.

The proposal, one of many new tax cuts under consideration, would see a portion of household income treated as tax-free for the purposes of investing outside a traditional 401(k). Under one hypothetical scenario described by multiple officials, a household earning up to $200,000 could invest $10,000 of that income on a tax-free basis, although officials noted these numbers are fluid.
I completely disagree with this, I hadn’t seen it so thanks for posting.
 

ksupoke

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I'm confused. Why would putting thousands in Robinhood be riskier than using Schwab, Fidelity or whatever?
Depending on your balance you’ll pay 2-20x’s what you pay at a commission free brokerage house, remember they aren’t brokerage houses. The bigger concern, imo, several times in this thread it’s been alluded to that a decent number of people shouldn’t buy and sell stocks and while I generally agree, I’ve also mentioned it depends on what that means, if someone has a sandbox of a $1000 or so then these are probably safe albeit expensive.
These apps open people up to liabilities without the protection of a financial professional that most don’t know what they are or the consequences associated. In about 72 hours in 2011 I lost 30% of my net worth but it wasn’t my portfolio that was the problem it was the calls on margin, within a month I was ahead again, based on the cash position he had suggested. My guy protected me by not letting me go to deep, Robinhood and others simply send you to the trough but they don’t lock the gate to keep the wolves out. They offer margins gold options (most people think who think of themselves as ‘knowledgeable’ investors don’t know how to trade options) for a fee. A kid (or adult ftm) making 20$ / hr thinks of a $1000 a lot different than some others do and unfortunately many/most are uninformed and either are to lazy learn or simply believe they’re invincible. Their lessons tend to be very costly.
 
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