Speak Your Mind.
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I think what put's me off ETF's is that I would only be buying a contract. Therefore no underlying asset. That's the part my brain struggles with lol. Anyhow I know plenty of people like them and have made money with them.
I pray your legs get better
I pray your legs get better
I want to thank everyone who is taking their precious time and input to answer questions about these subjects.
I understand ETF's to be a computer-managed mutual fund (but as John said, even the mechanically-run funds need some management.)
I look at it like this -- think of a McDonald's Happy Meal. You have the burger, fries, drink, and a toy. If you think of those things as individual stocks, you could buy them one by one if you wanted. But a mutual fund/ETF is a company that buys into all four things, thereby acquiring access to the whole meal, then offers to sell you a share of their holdings, which is also a small part of the entire meal.
So as a shareholder in the mutual fund/ETF, you essentially own a piece of the entire Happy Meal with all four components, instead of just having to buy them individually yourself.
The stocks/funds that the mutual fund/ETF own ARE, in and of themselves, the underlying assets.
But perhaps my understanding of this is way out of whack? As you can tell, I like to break things down as simply as possible.
I find it makes it a lot easier to talk to other people about them this way.Please feel to correct any misconceptions I'm presenting.
What an awesome way to help educate each other!
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Yes, I've been interested in mutual funds that have a FAANG portfolio (Facebook, Apple, Amazon, Netflix, Google) because of course, who can afford to buy them individually (with Amazon being over $3200 per share today.)
But of course, an ETF that has a lower maintenance fee and no commission sounds even better.
I think you've mentioned day trading... May I ask, do you have to have any special kind of license or permit to do so?
And is it hard to keep your returns above water when considering any commissions/trading fees, and short-term capital gains taxes?
Also, prayers over you that your legs will get better.
Thanks very much -- it's so nice, and very unique (to me at least,) to have other Christians to talk to and ask honest questions about this without being told how the love of money is the root of all evil and that I'll turn into the camel who can't get through the eye of a needle.
As you have said in other posts, some of us are just trying to support our families.
But of course, an ETF that has a lower maintenance fee and no commission sounds even better.
I think you've mentioned day trading... May I ask, do you have to have any special kind of license or permit to do so?
And is it hard to keep your returns above water when considering any commissions/trading fees, and short-term capital gains taxes?
Also, prayers over you that your legs will get better.
Thanks very much -- it's so nice, and very unique (to me at least,) to have other Christians to talk to and ask honest questions about this without being told how the love of money is the root of all evil and that I'll turn into the camel who can't get through the eye of a needle.
As you have said in other posts, some of us are just trying to support our families.
But essentially it's a very risky type of trading that should be reserved for those who know exactly what they are doing. (Usually buying and selling a stock on the same day) Most people who try this without really being trained lose most of their money. Swing Trading is easier and slower over a week or so usually...but can last for a month... maybe 3 months at the most.
And it isn't for the faint of heart either. Again lots of training and swallowing lots of information are needed to make successful trading.
Then there's investing...very much like buying a mutual fund but for longer periods of time. Monthly trades are not common. Usually in the "growth and income" stocks... meaning that they pay a dividend that you re-invest into the stock itself. Like buying Energy Transfer Ltd....they pay a great dividend quarterly and are undervalued. So I bought when it was under $9/share and then this coming winter I'll have 2% more stock and capital gains of 40%... totally gaining around 50% returns total.
I get better returns for the tons of research, reading, understanding and risk than a mutual fund will return. (Currently I'm up about 10-12%) It's not easy or free money...I worked hard for the investment money and then worked hard pouring over boring reading materials to understand what I was buying and when to sell.
It's not luck...it's work.
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I want to thank everyone who is taking their precious time and input to answer questions about these subjects.
I understand ETF's to be a computer-managed mutual fund (but as John said, even the mechanically-run funds need some management.)
I look at it like this -- think of a McDonald's Happy Meal. You have the burger, fries, drink, and a toy. If you think of those things as individual stocks, you could buy them one by one if you wanted. But a mutual fund/ETF is a company that buys into all four things, thereby acquiring access to the whole meal, then offers to sell you a share of their holdings, which is also a small part of the entire meal.
So as a shareholder in the mutual fund/ETF, you essentially own a piece of the entire Happy Meal with all four components, instead of just having to buy them individually yourself.
The stocks/funds that the mutual fund/ETF own ARE, in and of themselves, the underlying assets.
But perhaps my understanding of this is way out of whack? As you can tell, I like to break things down as simply as possible. I find it makes it a lot easier to talk to other people about them this way.
Please feel to correct any misconceptions I'm presenting.
What an awesome way to help educate each other!
I understand ETF's to be a computer-managed mutual fund (but as John said, even the mechanically-run funds need some management.)
I look at it like this -- think of a McDonald's Happy Meal. You have the burger, fries, drink, and a toy. If you think of those things as individual stocks, you could buy them one by one if you wanted. But a mutual fund/ETF is a company that buys into all four things, thereby acquiring access to the whole meal, then offers to sell you a share of their holdings, which is also a small part of the entire meal.
So as a shareholder in the mutual fund/ETF, you essentially own a piece of the entire Happy Meal with all four components, instead of just having to buy them individually yourself.
The stocks/funds that the mutual fund/ETF own ARE, in and of themselves, the underlying assets.
But perhaps my understanding of this is way out of whack? As you can tell, I like to break things down as simply as possible.
I find it makes it a lot easier to talk to other people about them this way.Please feel to correct any misconceptions I'm presenting.
What an awesome way to help educate each other!
Well, I'm not educated in it. But that's how I see it as well.
An index fund in stocks will buy a representative amount of stocks in each category like textiles, mining,financials etc. I'm sure ETF's will be the same only it's the contracts of future sales (I think??). So when I buy a unit in the index fund I own a a share of the whole happy meal.
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Generally speaking and not specifically your retirement at work...your 401K is purchasing commissioned mutual funds. You just don't get to meet the salesman. You are purchasing "B" or "C" shares of a mutual fund. "A" shares pay the commission up front....the others do so as well but on a different basis.
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I pray your legs get better
But my pants are fitting better.
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It's not contracts on futures usually...there aren't many of those...I've bought into one like you have erroneously stated and it is NOT something I recommend for others to do. Mine is based on coffee futures... again high risk for most people.
But index fund ETFs are just as safe as any mutual fund.
But index fund ETFs are just as safe as any mutual fund.
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Sitting around can certainly pile the weight on lol.. Hope all goes well with going back to work
I make them work hard and don't play games...and they respect that.
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I want to thank everyone who is taking their precious time and input to answer questions about these subjects.
I understand ETF's to be a computer-managed mutual fund (but as John said, even the mechanically-run funds need some management.)
I look at it like this -- think of a McDonald's Happy Meal. You have the burger, fries, drink, and a toy. If you think of those things as individual stocks, you could buy them one by one if you wanted. But a mutual fund/ETF is a company that buys into all four things, thereby acquiring access to the whole meal, then offers to sell you a share of their holdings, which is also a small part of the entire meal.
So as a shareholder in the mutual fund/ETF, you essentially own a piece of the entire Happy Meal with all four components, instead of just having to buy them individually yourself.
The stocks/funds that the mutual fund/ETF own ARE, in and of themselves, the underlying assets.
But perhaps my understanding of this is way out of whack? As you can tell, I like to break things down as simply as possible. I find it makes it a lot easier to talk to other people about them this way.
Please feel to correct any misconceptions I'm presenting.
What an awesome way to help educate each other!
I understand ETF's to be a computer-managed mutual fund (but as John said, even the mechanically-run funds need some management.)
I look at it like this -- think of a McDonald's Happy Meal. You have the burger, fries, drink, and a toy. If you think of those things as individual stocks, you could buy them one by one if you wanted. But a mutual fund/ETF is a company that buys into all four things, thereby acquiring access to the whole meal, then offers to sell you a share of their holdings, which is also a small part of the entire meal.
So as a shareholder in the mutual fund/ETF, you essentially own a piece of the entire Happy Meal with all four components, instead of just having to buy them individually yourself.
The stocks/funds that the mutual fund/ETF own ARE, in and of themselves, the underlying assets.
But perhaps my understanding of this is way out of whack? As you can tell, I like to break things down as simply as possible.
I find it makes it a lot easier to talk to other people about them this way.Please feel to correct any misconceptions I'm presenting.
What an awesome way to help educate each other!
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Winner...
For most people....that means 80% of the traders and Investors I meet really should just buy ETFs and mutual funds...they really shouldn't be trading stocks. Most of them are losing their retirement savings playing around with options and other trades.
Or they are barely breaking even.
The 80/20 rule firmly in place...80% of people trading stocks have no clue and lose their money. 20% of the people trading stocks make 80% of the money that is traded.
It's not for everyone...and just because you read some forums and watched some YouTube videos you really shouldn't be trading. You might think that you should...but that would make you part of the 80%.
For most people....that means 80% of the traders and Investors I meet really should just buy ETFs and mutual funds...they really shouldn't be trading stocks. Most of them are losing their retirement savings playing around with options and other trades.
Or they are barely breaking even.
The 80/20 rule firmly in place...80% of people trading stocks have no clue and lose their money. 20% of the people trading stocks make 80% of the money that is traded.
It's not for everyone...and just because you read some forums and watched some YouTube videos you really shouldn't be trading. You might think that you should...but that would make you part of the 80%.
It’s nice to talk to you and meet you on here I need to get focused on my life and I pray that you will understand why that I’m leaving it’s best for me and my Heath to get my life started I have a dream to get my Country music dream started now I’m moving to Nashville and I’m so excited about starting my own journey I have dreamed about this my entire life,
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