Investing question...

silver753
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silver753
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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JeremyK
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JeremyK 11/26/2020 6:28am
11/26/2020 6:28am
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...
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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SEE ARE125
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SEE ARE125 11/26/2020 6:59am
11/26/2020 6:59am
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...
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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factoryfatty
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factoryfatty 11/26/2020 7:25am
11/26/2020 7:25am
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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Brad460
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Brad460 11/26/2020 11:18am
11/26/2020 11:18am
Investing advice- You came to the right place...
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The Shop

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silver753
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silver753 11/26/2020 11:34am
11/26/2020 11:34am
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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silver753
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silver753 11/26/2020 12:53pm
11/26/2020 12:53pm
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...
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...
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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XXVoid MainXX
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XXVoid MainXX 11/26/2020 3:22pm
11/26/2020 3:22pm
Isn't shorting pretty much the opposite of investing? It certainly is if you're shorting TSLA. Smile
silver753
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silver753 11/26/2020 4:41pm
11/26/2020 4:41pm
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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ns503
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ns503 11/26/2020 4:48pm
11/26/2020 4:48pm
Do you have a margin account?
XXVoid MainXX
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XXVoid MainXX 11/26/2020 4:50pm
11/26/2020 4:50pm
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
silver753
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silver753 11/26/2020 10:02pm
11/26/2020 10:02pm
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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mx617
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mx617 11/28/2020 11:27pm
11/28/2020 11:27pm Edited Date/Time 11/28/2020 11:31pm
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.
XXVoid MainXX
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XXVoid MainXX 11/29/2020 5:40am
11/29/2020 5:40am
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...
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.
IWreckALot
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IWreckALot 11/29/2020 3:44pm
11/29/2020 3:44pm Edited Date/Time 11/29/2020 3:44pm
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...
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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mx617
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mx617 11/29/2020 3:53pm
11/29/2020 3:53pm
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...
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.
IWreckALot
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IWreckALot 11/29/2020 4:10pm
11/29/2020 4:10pm
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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XXVoid MainXX
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XXVoid MainXX 11/29/2020 4:42pm
11/29/2020 4:42pm
I would look into options trading before getting into shorting. I don't do either personally, and doubt I ever will.
rucka356
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rucka356 12/9/2020 4:29pm
12/9/2020 4:29pm
Vanguard has some good ETFs, im up about 50% on 2 of them

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