I'm surprised there is no investing general, so guess I'll just ask here.
I bought a into a few mutual funds a few years back and just let them sit. Since then they have all been rising.
I saved up some extra cash again and am looking to invest for the long term again. Would it be wise to buy more of what I have since it's been doing well? Or is that a bad idea because I bought it lower in the past, meaning I should find something new?
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>>2088935 (OP)
If you're satisfied with what you own and you're in it for the long term then you just keep buying more of it because chances are it'll continue going up (unless there is a recession in the future but nobody knows that).
If you'd like then stockpile some cash and wait for the fund to have a few red days and dip in price so that you can buy the dip. Also call your broker and ask if your dividends are being reinvested (most funds pay you a dividend which can either sit idle in cash in your account or can be reinvested. Have them reinvested, and purchase more.
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>>2088984
Good to know, I'll just keep getting more then. It's three different funds, so I guess that's diverse enough for now.
That brings me to my next question, in the future should I save up and buy multiple shares at once or as my investing money becomes available should I just immediately buy one more share at a time?
Good idea above the dividends, I know they aren't being reinvested. I'll see if I can set that up.
Thanks anon.
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>>2089015
3 different funds is good enough as long as theyre all not in the same sector or very specific. I wouldnt recommend buying something like a healthcare fund or an oil fund or whatever. Buy something general with large cap growth stocks in the portfolio. Look for something with low management fees/expenses because over long term they will have a bit of an impact, and most funds fail to beat the S&P anyway. And reinvest those dividends, if you're thinking long term this will have the greatest impact on your returns.
Buying 1 share at a time is too often and too time consuming but you should be buying "continuously". Most brokers allow you to automatically deposit a certain amount into your brokerage account so you can set that up, and then once a month or once every 2 months buy as many shares as you can.
My account is almost exclusively VOO, a low cost index fund. I have it set up so that every month 1000 dollars comes out of my checking account and goes into my brokerage account, and once a month I purchase more shares. Dividends reinvest automatically and purchase shares for me quarterly because thats how theyre paid out
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>>2088935 (OP)
You should diversify.
Don't put all your eggs in one basket.
Put some of your money in a hedge fund and invest the rest in something a little more risky.
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>>2088935 (OP)
Whose your broker. Vanguard has a plethora of mutual funds that are really easy to browse and compare. Super competitive expense ratios as well, I'm sure they have a few that would peak your interest
Wherever you go with mutual funds just remember to keep in mind the diversity of its portfolio, the expense ratio, and try to find something that pays out dividends
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>>2089310
>Put some of your money in a hedge fund
I don't recall OP saying he had $1 million in net worth. You do know that hedge funds only accept accredited investors as clients, right?
>>2089553
>Is there something as legit as Vanguard available for Europeans?
https://www.bogleheads.org/wiki/EU_investing
>>2089154
>My account is almost exclusively VOO
Why not VTI? Do you hate small and mid-caps that much, despite their superior long-term performance?
>not kidding
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>>2089652
>why not VTI
i dont know actually. I have less faith in small cap companies because I also day trade small cap momentum stocks and most of them are shit. I do have VB and VO on my watchlist but I'm not sure if I should pull the trigger
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>>2089862
lmao I got started daytrading a few years ago back in college as a way to make a little money and I now daytrade occasionally when I have time at work. But I've devoted so much time to learning how to daytrade that I know little about longer term investing. So Index funds are just a simple way for me to throw my extra money at and have it grow.
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>>2089915
Well, I don't have the time or energy to get into a debate, but you can probably understand my confusion at your approach. Usually people who day-trade are those who think they can beat the market, while people who buy index funds are those who have learned that you cannot. They're pretty much inconsistent philosophies.
But as I said, I'm not going to start a debate on the topic. Good luck with your investing, however you choose to do it.
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>>2089983
I dont think there has to be a debate at all.
I've had success in daytrading as a source of income. I know that I can "beat the market" by making 10% gains in 1 day as opposed to a whole year. I view myself as a trader and that is my job (on the days that I am trying to trade).
That's one strategy I employ.
When I have extra money, I just dump my extra money in an index fund and dont worry about it.
I have a short term trading plan and a long term investing plan and thats it. What's wrong with having 2 strategies?
In fact, I wouldnt call my index fund an investing plan. It's just where I put my extra money. I view it as a savings account but I'm getting a better interest rate than I would at the bank. That's all.
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>>2090053
>What is trading with two different accounts?
Having two different accounts doesn't reconcile the inconsistency of daytrading while buying index funds. It just makes it easier to track your losses.
>Dumbass
>>2090061
>Subscribing to the efficient market hypothesis AND believing that there's a buck to be made in calculated daytrading is not contradictory.
said no intelligent person, financial academic, experienced investor, or market analyst, ever.
>>2090149
So you use index funds to hold your short-term free cash between trades? That's much worse.
Forget what I said earlier. You're just another market timing idiot. Well, at least you're in good company. Welcome to /biz/ -- you'll fit right in.
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>>2088935 (OP)
Is M.A Larson our guy? Will he put wings in my lambo?
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>>2090820
anon what is it that you're not understanding here? It's an account. For storage. Of my money. Except instead of storing my money in a savings account where I earn 0.00001% interest, it's in an account where I own VOO and gets me 8% a year including dividends.
>have 15k in my checking account where I pay bills out of
>have 80k in my IRA
>have 35k in my daytrading account
>currently have 110k in an account where VOO is my primary asset
>when daytrading account approaches 50k, money withdraw to the VOO account back to 35k
>when checking account gets to 10k, add 5k from the VOO account
>when I want to add funds to my IRA, add from the VOO account.
What's so confusing here? Are you saying that being an investor and a daytrader is impossible because you believe daytrading is a scam? Just because most people lose money daytrading doesn't mean that I do. I have a very specific strategy which uses technical analysis, I'm not some random "buy low and try and sell high but usually sell lower because I still bought too high" person who thinks they're an investor
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