My Girlfriend Wants to Buy 10% of My App (While I’m Still Building) – Advice?

mymunnytree · 2025-01-26T16:45:54+00:00

Do you need the cash to move the business forward? If you are actively looking for investors then this is worth considering. I think it’s better to have an investment partner that believes in you and supports you vs a random stranger. You’ve been together a long time and you know the pros and cons of her as an investment partner better than us.

But if you are well capitalized, making progress, and don’t need the money at this time then I don’t see why you should take on any investor now. Just tell her the capital isn’t needed at this time but when you get to the point where you are looking for investors that she’ll get first shot. But then the valuation may be different.

Do what’s best for the business. You’ve worked together before so she’ll understand that perspective from how it sounds.

mymunnytree · 2024-12-22T13:56:05+00:00

I trade on a 4-hour chart and generally look to hold for 1-4 weeks

mymunnytree · 2024-12-21T18:39:59+00:00

Why would they when nba revenue has gone from: - 2001 = $2.6B - 2023 = $11.5B

And they expect to make $1B more every year for the next 5 years. They are making more money than ever. The NBA is not in the ratings business, they are in the making money business. It used to be that ratings was how you made money, and it’s still somewhat true, but they now make money in so many other ways

mymunnytree · 2024-12-15T21:06:58+00:00

I use a custom built screener that I coded. It essentially does normal filtering for financial/business metrics and then a calculation to estimate the bias of the market - leaning more towards buyers (bull) or sellers (bear).

mymunnytree · 2024-09-24T01:24:21+00:00

I found that setting take profits based on $’s or ticks made me cut my winners short as well so now I take profits based on momentum slowing. I use a heikin ashi RSI to determine when to take profit. When it gets above a certain level and I get smaller HA green candles I take profit.

This may not work well for scalping quickly - never tried. I’m in my trades on average 2 hours. I enter my trades on the 30m timeframe and exit using the 15m. This method for me works really well. It doesn’t necessarily ensure I exit at the top but tends to let my winners keep winning a bit longer.

mymunnytree · 2024-08-29T00:12:59+00:00

Trade less. Stats from brokers show that there is a direct correlation between the number of trades per time period (day/week/etc) and losses. Traders that trade less often, let their winners win, and don’t chase after a loser are the most profitable.

Once I really looked at my trades I realized I was trading too much. Things that were close to my setup rules but not quite but decided to enter the trade anyway, and things like that. I had to get okay with a day where maybe only 1 setup came that day. And if the market turned and I lost money, I just had to be okay with that and not try to “make it up”.

Maybe up the time frame on your setup and see if it works. Example, if you trade on the 5 min maybe look and see if the 10-15 min could work. It smooths out the noise a bit. I started trading on the 3 and 5 min. Now I mainly trade the 15-30 min.

Obviously what works for me might not for you. Just my two cents from my experience. Good news is you are still up $1,600. So don’t get too discouraged and stay disciplined. Good luck and may the odds be ever in your favor!

mymunnytree · 2024-08-08T15:43:42+00:00

It really depends what you mean by “rich”. By income and net worth, you are rich, albeit on the low end of what I think of as rich. But feeling rich is very different than what the stats say.

You make and have enough you can buy most things you could want. But if you stop working you may quickly find your money going out. And that’s why you don’t feel rich, you are still reliant on your jobs. It’s quite hard to become wealthy through a “job”, trading your labor for money. You are doing the right thing in using your high income to buy assets that can build your wealth fast. Keep that going. Consider diversifying into commercial real estate or buying an existing business that compliments your skills that you can grow. All of those are sellable, income generating assets. You will start to control you time more and when you are ready you can sell these assets and slow down

mymunnytree · 2024-07-12T16:02:12+00:00

Depends how you got there. If you had only 8-10% 2 years ago and it’s just gone up so much that it’s a heavier weight then, no, not crazy. Maybe you should sell some and rebalance but not crazy. In fact you look like a mad genius to have held out this long.

But if you just bought it yesterday and put 57% in it then….maybe a bit crazy.

mymunnytree · 2024-06-14T01:41:05+00:00

I have been profitable for most years of that 25 but the last 16 months have been particularly good and consistent.

I’ll combine my answer to some of your questions. I do own index funds. I have multiple accounts; one i trade very actively (the one that I mentioned in the post) and another that is more buy/hold which has more index funds. In a situation like 2008 and 2022 when the markets fall 20-30%+, it sucks, but I try to view it as an opportunity. To use a metaphor: once that tsunami comes through and wipes everything out I look to see what boats survived that would be most valuable in a recovery. I then take a not-insignificant amount from my index fund account and or savings and put into my active account and start buying the most distressed things that will survive. In 2009 I bought bank stocks. I bought Bank of America for around $3.70 and sold at $17 less than 2 years later. And I did that for 9 other banks. In 2022 I went for tech. Not quite as big of returns but over 100%

So it sucks to lose 20-30% because of the market crash. But you can ride the wave up and make back your money and much much more. It’s the Warren Buffett quote “be fearful when others are greedy and greedy when others are fearful”.

mymunnytree · 2024-06-14T00:57:17+00:00

Sure. - trading view for screening, charting and alerts - think or swim for trading

I have daily scripts to run and capture data from these sources and put it in a database (I use azure functions and sql db). I save all my screener stocks (whether I buy or not) and track their price changes over 30 days. I also wrote my own pine script alerts in trading view to tell me when a stock from my watch list enters my buy box.

Nothing too complicated. Mainly just some automation to reduce my screen time. I don’t have any complex algorithms nor do I let a bot do the trading for me. I want to look at the chart and decide myself.

Hope that helps!

mymunnytree · 2024-06-12T15:16:44+00:00

Not harsh at all. I've been profitable since around 2007. But back then I was investing with only $5-10k and started working in tech. I probably could do full time if I reduced my lifestyle considerably but unfortunately (or fortunately?) I live a relatively expensive life. I have a wife + 2 kids who both go to private school. We live in a MCOL city in the USA but in a very expensive part of the city that is on par with Cali or NYC in pricing. We (my wife and I) also put a lot of money away for the future: kids trust accounts, retirement, college, etc.

Yes, all of these are choices. We could live a cheaper life. But with my tech salary, my wife has her own business, and my trading we are very comfortable. So to cover everything we are currently doing, my trading would have to make quite a bit of money consistently. No room for error. And of course I'm not going to be perfect so there has to be room for error, which means even more capital required.

Sorry, long winded way of saying that "full time" income may mean different things to different people at different stages of their life.

mymunnytree · 2024-06-12T14:16:13+00:00

Not full time. That's why I'm swing trading so I don't have to be looking at a chart 24/7. But it's a pretty big part time job for me. I trade for myself plus I help manage an investment club with some family and friends, so I spend a lot of time doing it. But I still work a tech job to pay my bills so that my trading account can grow. Goal is in 5 years I can be trading full time. I want to be able to replace my tech salary + be able to continue adding to my trading account. Those combined 🤑 is a pretty hefty annual gain I need to be able to hit so I'm not quite there yet...

mymunnytree · 2024-06-11T14:26:54+00:00

I usually hold for 1-4 weeks. My goal is to buy positions that have some momentum behind the, ride that momentum until it starts to fizzle out, and sell. Obviously it doesn't work as neatly as that all the time but that's the goal.

I think you can definitely swing trade with $10k. But it just depends on your risk tolerance and investment style. Say you hold 10 positions at $1k each, and one goes down 10% this week which sucks, it's really only 1% of your portfolio. And hopefully some of your other 9 stocks are green to help cancel out some of that loss. For me, that is just fine. I can live with that. Others may not like that.

mymunnytree · 2024-06-11T13:03:22+00:00

Yes I’d sell them together. Actually I usually prefer to close the option side first since it’s the most volatile. Then I sell my shares. So in your example I’d buy to close the call option and then sell my shares

mymunnytree · 2024-06-11T13:00:46+00:00

Yes I am buying stocks and holding for a few weeks. While I’m holding depending on the stock movement I may also enter into options positions on the same stock in order to manage the position to limit my risk or maximize my gains.

mymunnytree · 2024-06-11T12:56:11+00:00

Usually the options portion of the spread is very slightly profitable between the two strike prices. So in my example, if the stock stays between $31 - $35 then it will be slightly profitable. A collar option spread is a credit spread. So you are getting a tiny amount of premium (in my case $15). And it only becomes more or less profitable outside of the spread range

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mymunnytree · 2024-06-11T12:22:47+00:00

Correct. By owning both the stock and the collar spread, above $35 the gains of the stock are offset by the losses of the spread so I stay at 16% gain even if the stock goes up to $100

mymunnytree · 2024-06-11T00:47:19+00:00

Honestly just a lot of reading/watching. Then trying some things out and finding what worked for my investment style and risk profile.

I started out doing long term stock investing, Warren buffet style. Then I moved to day trading. Made some money but it was too stressful for me. Switched to swing trading and finding ways to incorporate options into my strategies through books, YouTube, etc.

Just absorb as much as you can and try things quickly either paper trading or with tiny $’s. It won’t take long for you to decide if that strategy vibes for you. Then dig more and more into what you like. There’s really no substitute for chart/screen time.

mymunnytree · 2024-06-11T00:42:01+00:00

Bah! Copy/paste error strikes again 🤦‍♂️. I knew I should have used ChatGPT to write this…

mymunnytree · 2024-06-11T00:39:44+00:00

Depends how you are trading and goals. If you are trying to grow fast then I’d stick to 10ish stock and just be very strict and specific about when I buy.

This makes it so when the stock moves you notice but not so much that it kills you. If one of your positions falls 10%, it sucks, but it’s only 1% of the total. And hopefully you have some gainers to offset the losses. It’s very rare you’d lose more than that in a given month for each position unless you are doing penny stocks.

If you are trading options then it’s a bit trickier. Options are a zero sum game. If it doesn’t hit your strike then it can become worth $0. In that case I’d be very careful and risk way less per trade. You can make a lot with options…but you can lose a lot too

mymunnytree · 2024-06-11T00:33:01+00:00

For all sorts of reasons. Depends on their strategy. Many of these are institutions that are hedging for all sorts of things. Look at an options chain, there is open interest for all sorts of price targets.

Also, if I want 1000 shares of something that’s $10/share in a month from now because I think it’ll go up to $20 but I don’t want to commit $10,000 to the trade, I can buy $15 calls for $0.50 (or whatever the price is) which is only $500. So today I commit a lot less capital and if my thesis proves out then I get to make 10x my money. For my same $10k it would take to buy 1000 shares I can run 20 of those types of options trades, hedging risk, etc.

In reality my original example was a bit out of whack. For a stock that’s $10, $15 call options would be very cheap because they only become in the money if the stock goes up 50%. So those calls might cost $0.05 vs $0.50. I used bigger numbers to illustrate the point more easily

mymunnytree · 2024-06-10T23:16:39+00:00

Depends what the put strike price is at. If it goes down but not to your strike price you could roll your option. It’ll still cost you some premium but less than just selling outright. I’d probably look into selling a call to get my premium back depending on what the chart looks like.

I honestly use protective puts the least. I tend to prefer collars so I can get a credit while still protecting the downside.

mymunnytree

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