Investing General Discussion

Tmac said:

Are there limit orders to prevent losses?

I guess that'd be a stop loss. How do you do this in Fidelity?

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There are a couple of versions and so they mostly operate the same. Fidelity recently modified them to basically operating as If/Then statements. So if you have AVYA you would write if (condition) is met (we will use last trade price for this example) "last price is $1.40 or above" THEN activate trailing stop with (condition) either a percentage or a straight amount. In our example lets say we put in 10 cents.

So it would play like this... Last trade hits $1.40 . Condition is met and the trailing stop order is now active. Stock keeps moving up to $1.60 and then retreats. Since it hit a high of $1.60 since activation it will trigger the sale at $1.50 (1.60 less the 10 cent trail you set).

It can fuck you on illiquid stocks or stocks that are really volatile where the spreads on the bid ask get wide so keep that in mind. You might trigger the sale at $1.50 but the spread might be 1.30 - 1.50 and you end up filling at 1.30 since thats the bid.

Also you can set the trail as a percentage also instead if a fixed amount and it will trigger that way.

Mist said:

What's a good thing to buy a bunch of and then sell covered calls on?

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Low beta stocks that tend to go sideways alot. If they oay a nice dividend so kuch the better. Basically shit that doesnt move up in large chunks (hello to you TSLA and meme stocks). I have used KO, CSCO, PFE (pre-covid of course), T, VZ, etc in the past.

Kuro said:

Yeah, it's in my retirement account so it's fine, just amused/annoyed at it it doing garbage next to the rest of the stuff I've invested in since I started retirement investing.

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Its like a club. Everyone has to endure shitty returns on Intl funds at least once. You earned your handstamp.

Thread. A number of you might benefit from reading it.

Gravel said:

Looks like we're going to be pushing back into bear territory again soon.

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Taiwan shooting at Chinese drone this morning sort of caused some nerves to be rattled.

Euro numbers out today are abysmal too, everything is bad. Inflation up, debt up, spending down, forecasts down.

Things look to have kinda stopped getting worse here, but not so much across the pond. For some reason....

Jysin said:

If things are this bad now, winter is going to be significantly worse.

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Kirun said:

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Jysin said:

Europe is getting annihilated in energy costs. Over-reliance on Russian supplied gas supply into Germany.

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If only someone had warned them about that reliance on Russia for energy. If only...

Things I am keeping an eye on. BHP and RIO. I generally dislike ADRs. Global slowdown is impacting them in terms of materials like iron and copper but they both also have exposure to uranium and are both big enough to survive the economic downturn. Both have debt less than 1x EBITDA and pay a sizable dividend (which varies by quarter depending on profits) with lots of free cash flow. Very sensitive to materials prices.

ps.. BHP trades ex-dividend on Thursday so any shares bought today/tomorrow means capturing the dividend.