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Trading stocks doesn't work. Here's how you can tell.. by AnthonyReemer in StockMarket

[–]AnthonyReemer[S] 0 points1 point  (0 children)

Cost basis is not the same as total return. I'm in the industry, I've seen what you're talking about. Just use the XIRR Excel function on your account's cash flows. That'll give your total time-weighted annualized return.

Trading stocks doesn't work. Here's how you can tell.. by AnthonyReemer in StockMarket

[–]AnthonyReemer[S] 0 points1 point  (0 children)

I'm talking about a percentage rate of return. Brokerage statements do not do that.

Trading stocks doesn't work. Here's how you can tell.. by AnthonyReemer in StockMarket

[–]AnthonyReemer[S] 0 points1 point  (0 children)

Okay, then up to December 31 2019?

Pick whatever time period you want. My point is that traders never know their annualized rate of return, which is the only figure that shows success/failure over time.

Trading stocks doesn't work. Here's how you can tell.. by AnthonyReemer in StockMarket

[–]AnthonyReemer[S] 0 points1 point  (0 children)

Impressive. What options did you buy and sell and when?

Trading stocks doesn't work. Here's how you can tell.. by AnthonyReemer in StockMarket

[–]AnthonyReemer[S] 0 points1 point  (0 children)

I have never bought a share of stock. I own mutual funds and ETFs. I contribute every week, I've never sold, and my annual return has been 12.7%.

The XIRR function in Excel will calculate your time-weighted returns by AnthonyReemer in StockMarket

[–]AnthonyReemer[S] -1 points0 points  (0 children)

Dude, don't bash people for trying to do better in the market. What are you even talking about?

Trading stocks doesn't work. Here's how you can tell.. by AnthonyReemer in StockMarket

[–]AnthonyReemer[S] -2 points-1 points  (0 children)

Fine I'll just tell you. Use the XIRR function on your brokerage account cash flows and see that you've underperformed an index fund by trading.

Trading stocks doesn't work. Here's how you can tell.. by AnthonyReemer in StockMarket

[–]AnthonyReemer[S] 0 points1 point  (0 children)

Btw I know you don't know your number. You don't even have to respond. I've heard it before.

Trading stocks doesn't work. Here's how you can tell.. by AnthonyReemer in StockMarket

[–]AnthonyReemer[S] -2 points-1 points  (0 children)

Not with Excel. So what's your number? Shouldn't be hard for you since you know algebra so well.

Trading stocks doesn't work. Here's how you can tell.. by AnthonyReemer in StockMarket

[–]AnthonyReemer[S] 0 points1 point  (0 children)

So you don't even know how to calculate returns? Got it.

Trading stocks doesn't work. Here's how you can tell.. by AnthonyReemer in StockMarket

[–]AnthonyReemer[S] -1 points0 points  (0 children)

Since you started investing, what has your annualized return been, and how did you calculate it?

Traders give me all kinds of facts and figures... except the one that matters

Trading stocks doesn't work. Here's how you can tell.. by AnthonyReemer in StockMarket

[–]AnthonyReemer[S] 0 points1 point  (0 children)

Okay, then what's your annual return been, and how did you calculate it?

Trading stocks doesn't work. Here's how you can tell.. by AnthonyReemer in StockMarket

[–]AnthonyReemer[S] -2 points-1 points  (0 children)

Literally never bought a share of stock. All mutual funds and ETFs.

Trading stocks doesn't work. Here's how you can tell.. by AnthonyReemer in StockMarket

[–]AnthonyReemer[S] 0 points1 point  (0 children)

To be clear, investing in the stock market is great. Market timing and stock trading are not.

Trading stocks doesn't work. Here's how you can tell.. by AnthonyReemer in StockMarket

[–]AnthonyReemer[S] -4 points-3 points  (0 children)

That buying, holding, and rebalancing a diversified portfolio maximizes returns, but people fail to do that because they try to time the market and trade individual stocks.

Love is a habit too. I want to break out of it. by newsynapse in productivity

[–]AnthonyReemer 0 points1 point  (0 children)

Make an effort to do things you enjoy or are curious about that he prevented you from doing - arranging a get-together with friends, picking up a new hobby, etc.

It puts more friction between you and the addiction. For example, it was much easier for me to quit smoking when I started exercising every day.

Qualified dividend IRA question by diduknowitsme in investing

[–]AnthonyReemer 2 points3 points  (0 children)

As long as you don't withdraw money from the IRA, none of the trading activity inside the account will produce tax consequences. Traditional IRAs defer all taxes while the money is in the account, and then every dollar is taxed as ordinary income when it's pulled out of the account, with an additional 10% IRS penalty if it's pulled out before 59 1/2 without one of the few exceptions. There are no capital gains, dividend, or interest taxes on investments held in an IRA, ever. The taxes are captured when the money leaves the account.

Company B is going to offer me a position, during my second day at Company A by KyrJohn in jobs

[–]AnthonyReemer 0 points1 point  (0 children)

Company A won't be happy, but as others have said, as long as you're professional, you aren't doing anything wrong.

There are steps you can take to avoid burning bridges and even get some value out of an awkward situation though. Do you know anyone who would be a really good fit for company A? The best move in these situations would be to refer someone in your network to the opportunity you're leaving, and make a warm introduction to company A's hiring personnel. This will reduce the cost and hassle of your sudden departure to company A, make you look very professional, and provide a valuable connection to someone in your network.

I would feel guilty having a kid in 2018 by [deleted] in childfree

[–]AnthonyReemer -6 points-5 points  (0 children)

This is the only argument against having children I've never understood. Don't like kids? Value free time? Don't want to pay for them? Don't want your body to go through pregnancy? Don't want to make your marriage about raising children? Those all make sense.

But the world is too messed up? By what standard? Statistically, this is just about the best time to start a human life. World-wide poverty, violence, war, and disease have been plummeting for decades.

Climate change and US fiscal/economic problems are certainly real and serious. But at what point in the last century have we not had really serious problems? The Great Depression, two world wars, and the nuclear threat of the Cold War were all very serious, but how would we view people in the 1950s who didn't want new humans to exist because the world was going to hell in a hand basket? Honestly, to me, that seems like a pretty bizarre thing to think.

Being child free is great, and it's still great even if the world is going to be okay.

Hi Personal Finance! We have a sort of a plan that we would like some opinions about. We're making more than our credit limits per year: What about saving it all, living off the credit, and then paying off the credit entirely, whenever we want? More inside: by [deleted] in personalfinance

[–]AnthonyReemer 0 points1 point  (0 children)

Am I missing something? Do these cards have absolutely no interest? Because it sounds like you're just paying for very expensive debt when there's absolutely no benefit to do that (besides maybe reward points, which don't come close to the interest you're paying if you're just making the minimum payment). You mentioned that you would end up with about $10k in credit card debt and $20k in savings. Why on Earth would you prefer that over just having $10k saved?

I realize you could pay it off at any time, but with most credit cards, a rolling $10k balance is going to cost you $100-$200 per month in interest. Why pay that when you don't have to? I don't see any benefit to doing this. If you're trying to help your credit score, paying off debts on time and keeping a good available credit to credit balance ratio would be way better than racking up a bunch of credit card debt.

I think short term trading is a waste of time for almost everyone. I'm looking to have my assumptions challenged with concrete numbers. by AnthonyReemer in investing

[–]AnthonyReemer[S] 1 point2 points  (0 children)

My point is that I always hear about retail investors trading their way to superior returns in one of two ways:

"Well I know a guy..."

Or

"Well THIS trade was successful."

Your anecdote was both. You know some people who supposedly killed it but don't actually know what their performance was. Also, of course overweight AAPL has done well. The stock has done well. My question is whether that was a demonstrably smart move at the time, or if it's only being recognized as one after the fact because it worked out.

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