Quote:
Originally Posted by mooby
Not gonna lie, I wish I was smart enough to understand the stock market enough to buy in on the Gamestop/AMC/etc. stocks while the gettin' was good.
But everybody smart enough to understand the stock market says the first rule is if you don't know what you're doing, don't buy individual stocks.
So here I sit watching everybody else get rich off the action.
I understand the basic concept of stocks, you buy low and sell high. Don't put all your eggs in one basket. Diversify your bonds, ninja. But this whole concept of short-sales and selling stocks you don't own so you can buy them back later at a lower price doesn't make sense to me at all. I just can't understand why you would be allowed to sell a stock you don't own.
Makes me happy seeing people who manipulate the market for a living (and get rich doing it) getting a taste of their own medicine though. |
Tell you what, people who understood the market got richer over the past 10 months. I can just say with very limited funds, I made 300% growth with very select funds. Definitely not normal, but taking the simple concept that certain stocks got caught up in the panic selling for no reason enabled simple decision making. An example is DELL, a decent stock with no serious reason to have tanked when the market did. I bought it at $27 because the year leading up to the crash it was around $55. It's now over 60, but admittedly I sold it around 50 to lock in that and bought other stocks I saw similar potential with. And I bought several Cannibas stocks in November that have seen significant growth too.
The one question I have to see is taxes, it is all within an IRA so I don't think I have taxes due for the short term gains, but have to confirm that.