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It's really for the best. Trading like that it's much easier to end up on the wrong side of than it appears from the outside. Take that $200 and put it in a rot
by trotsky 15y ago
It's really for the best. Trading like that it's much easier to end up on the wrong side of than it appears from the outside. Take that $200 and put it in a roth ira or similar - you 20 years from now will appreciate it.
- nostromo 15y agoThis is generally good advice, but I'd point out two things: 1) It's only $200. Even the most conservative investors will often put aside 5% or 10% of their portfolio for active investing. 2) 10 years ago, the S&P 500 was around $125 a share, and is now about $130. If we have another decade like that, $200 invested in the S&P 500 10 years ago will be a whopping $216 after being invested 20 years -- barely keeping ahead of inflation.
- trotsky 15y agoI agree it's not always good advice, but I do think it's good advice for someone without investing experience and of limited means when they ask about day trading a stock on its IPO day. You can of course actively manage your investments in a roth just fine, but cap gains don't incur a tax liability.
- jerf 15y agoThis infographic is so good I just can't resist whipping it out every time it's even remotely related to the conversation: http://www.nytimes.com/interactive/2011/01/02/business/20110102-metrics-graphic.html http://www.nytimes.com/interactive/2011/01/02/business/20110...
- nostromo 15y agoFantastic link, thanks! I'm amazed that money invested in 1928 was negative in real dollars if withdrawn in 2011. It's also interesting how devastating inflation can be -- notice how the great depression and the dot com bubble look mild compared to stagflation in the 1970s.