Investing question...

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11/25/2020 9:43 PM

Anyone here have any experience with the ETF TZA? I know somewhat how shorting the market or stocks works, but I've never done it before. Do you guys with any experience on this do it quite a bit? Seems like it might be a good time, we've had a killer run since pretty much 2008, I know you can't time the market, but it might be time!

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11/26/2020 6:28 AM

silver753 wrote:

Anyone here have any experience with the ETF TZA? I know somewhat how shorting the market or stocks works, but I've never done it before. Do you guys with any experience on this do it quite a bit? Seems like it might be a good time, we've had a killer run since pretty much 2008, I know you can't time the market, but it might be time!

It won't be long before it tanks ,you can bet on it.

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11/26/2020 6:59 AM

silver753 wrote:

Anyone here have any experience with the ETF TZA? I know somewhat how shorting the market or stocks works, but I've never done it before. Do you guys with any experience on this do it quite a bit? Seems like it might be a good time, we've had a killer run since pretty much 2008, I know you can't time the market, but it might be time!

JeremyK wrote:

It won't be long before it tanks ,you can bet on it.

I agree, but I don’t think an inverse ETF is the way to go. Most of those are only good for a day, then they reset. If you plan to buy an inverse ETF and hold it, you’ll lose your ass. A better bet is to just stockpile some cash, wait for the next correction, then buy as much as you can while it’s cheap.

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11/26/2020 7:25 AM

You won't see me shorting this market, not that I don't think it because it's in a mega bubble, but because I think the federal reserve will destroy any of the remaining purchasing power of the dollar to keep it propped up (through printing)

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11/26/2020 11:18 AM

Investing advice- You came to the right place...

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11/26/2020 11:34 AM

Brad460 wrote:

Investing advice- You came to the right place...

I know, haha, but there's a few guys on here I would trust. You ever been on one of those investing forums? Nobody talks in laymans terms, and if you don't understand their terminology, they act like guys on Vital do when someone makes a rough pass in supercross. 2 pages of people busting my chops because I can't talk the lingo.

If I copied and pasted the exact same question and put it on Financial Webring or Quora it would be a 3 pager of asshole smaking fun of the way I worded the question.

So yes, I came here to ask my informed moto-brethren. There's a few of them on here that are pretty smart, I'm guessing you're not by your initial response? Sorry if that came across as rude, I'm just here to get some opinions on the matter.

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11/26/2020 12:53 PM

silver753 wrote:

Anyone here have any experience with the ETF TZA? I know somewhat how shorting the market or stocks works, but I've never done it before. Do you guys with any experience on this do it quite a bit? Seems like it might be a good time, we've had a killer run since pretty much 2008, I know you can't time the market, but it might be time!

JeremyK wrote:

It won't be long before it tanks ,you can bet on it.

SEE ARE125 wrote:

I agree, but I don’t think an inverse ETF is the way to go. Most of those are only good for a day, then they reset. If you plan to buy an inverse ETF and hold it, you’ll lose your ass. A better bet is to just stockpile some cash, wait for the next correction, then buy as much as you can while it’s cheap.

Damn, I had no idea it resets. That makes a world of difference, I'm not close to buying these type of funds, just trying to learn a little bit about them. Like I was telling Brad460, trying to learn off the investing sites is a little difficult. An insane amount of terminology to learn and research before I can even understand the question I asked! Feels as if I'm learning Chinese. Thanks for the response!

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11/26/2020 3:22 PM

Isn't shorting pretty much the opposite of investing? It certainly is if you're shorting TSLA. smile

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11/26/2020 4:41 PM

I've never shorted, at this point I don't know enough about it, just trying to learn a little about it. Maybe try it years down the road. XXVoid, I see you post a bit about investing on here, what do you think about bitcoin? Was thinking about buying some greyscale GBTC, and as far as I know, that's one of the only ways I can buy without having $20,000 sitting around, correct?

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11/26/2020 4:48 PM

Do you have a margin account?

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HAF

11/26/2020 4:50 PM

I have a friend who made a lot in Bitcoin but to be honest I have never put any money into it, nor would I any time soon because I just don't understand it. Not saying it isn't a good investment, it may very well be. There are many ways to invest, and there is a difference between investing and trading. Personally, I've found I'm better at investing than trading. If I would have left my stocks alone rather than trying to time the highs and lows I would have been better off. Again, just my personal experience. I just look for things that I believe are disrupting and transforming technologies although as of yesterday I have scaled my portfolio down to just 4 stocks. I was juggling around 30 at one time. I still consider myself a n00b when it comes to the stock market. I started around the beginning of 2016 and so far I am very happy with the returns I've made. Although this tax year is probably going to be painful. smile

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11/26/2020 10:02 PM

Have no idea if it's a margin account. It's an Ameritrade account, that's about all I know. I pretty much buy stuff for the long term, I don't think I've sold anything in a few years, have no plans to sell anything in the next few years also, unless it's for some real estate.

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11/26/2020 10:09 PM

I kinda wanted to get into options but I'm too stupid.

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11/28/2020 11:27 PM
Edited Date/Time: 11/28/2020 11:31 PM

XXVoid MainXX wrote:

Isn't shorting pretty much the opposite of investing? It certainly is if you're shorting TSLA. smile

Shorting a stock is placing a bet that it will go down in value in a relatively short time. You are borrowing the stocks at current prices, selling them, and hoping to repurchase at a lower price to repay the loan. Then you would pocket the difference as profit. Theoretically.

The risk is that the stock goes up in value and you have to repurchase at a price higher than you paid, which would be a loss of course.

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11/29/2020 5:40 AM

XXVoid MainXX wrote:

Isn't shorting pretty much the opposite of investing? It certainly is if you're shorting TSLA. smile

mx617 wrote:

Shorting a stock is placing a bet that it will go down in value in a relatively short time. You are borrowing the stocks at current prices, selling them, and hoping to repurchase at a lower price to repay the loan. Then you would pocket the difference as profit. Theoretically.

The risk is that the stock goes up in value and you have to repurchase at a price higher than you paid, which would be a loss of course.

Yes, the opposite of investing.

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11/29/2020 3:44 PM
Edited Date/Time: 11/29/2020 3:44 PM

XXVoid MainXX wrote:

Isn't shorting pretty much the opposite of investing? It certainly is if you're shorting TSLA. smile

mx617 wrote:

Shorting a stock is placing a bet that it will go down in value in a relatively short time. You are borrowing the stocks at current prices, selling them, and hoping to repurchase at a lower price to repay the loan. Then you would pocket the difference as profit. Theoretically.

The risk is that the stock goes up in value and you have to repurchase at a price higher than you paid, which would be a loss of course.

The last part is where I have a question. With a normal investment, the stock can only crash to $0 (right?). That would limit your loss to whatever the investment amount is.

With shorting stocks, what is there to limit your loss in the event a stock just rises like say tsla? You could theoretically lose an unlimited amount of money unless I’m missing the stop loss on a short.

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11/29/2020 3:53 PM

IWreckALot wrote:

The last part is where I have a question. With a normal investment, the stock can only crash to $0 (right?). That would limit your loss to whatever the investment amount is.

With shorting stocks, what is there to limit your loss in the event a stock just rises like say tsla? You could theoretically lose an unlimited amount of money unless I’m missing the stop loss on a short.

You got it. I think you can put a limit in place, but your theoretical losses can be pretty huge.

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11/29/2020 4:08 PM

Just ask David Einhorn.

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11/29/2020 4:10 PM

mx617 wrote:

You got it. I think you can put a limit in place, but your theoretical losses can be pretty huge.

I reckon my dumbass will stay out of that game.

I started about 6 months ago and am up roughly 40%. Waiting for this damn cruise liners to start sailing again. Lol. Got another stock that is doing really well. It’s more of a long term hold but it has taken off quite a bit.

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11/29/2020 4:42 PM

I would look into options trading before getting into shorting. I don't do either personally, and doubt I ever will.

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12/9/2020 4:29 PM

Vanguard has some good ETFs, im up about 50% on 2 of them

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"So you're telling me there's a chance!!"