46
votes
Does it make sense to repeatedly increase your limit order price in small increments until your order fills?
"If the price dips .01 before I hit enter, my method saves me .01!"
And what happens if the price bumps up .01 before you hit enter? And then you raise it a smidgen, and the price bumps up ....
- 37k
36
votes
Why should I hold stocks for the long term when the risk of more companies going bankrupt increases over time?
Whenever I see advice for "long term investing" it usually includes the caveat of making those investments into diversified index funds such as VOO or VTI. As opposed to investments into ...
- 7,998
23
votes
Does it make sense to repeatedly increase your limit order price in small increments until your order fills?
I don't see how your approach achieves anything.
If the current price is 21.9, then offering to buy at a limit of 21.8 will always fail. Even 21.89 will fail. You'll end up increasing the limit bit ...
- 8,255
20
votes
Why should I hold stocks for the long term when the risk of more companies going bankrupt increases over time?
While some companies go bankrupt, some continue to exist, paying dividends until they ultimately liquidate or get bought out by another company. 'Nearly all companies go bankrupt' is an incredibly ...
- 37k
17
votes
Does it make sense to repeatedly increase your limit order price in small increments until your order fills?
You're basically emulating what a market order will do. Thought at a much slower timescale.
You can claim that you're saving pennies here and there, but you have to remember that every time you change ...
- 414
12
votes
Accepted
Mutual fund historic prices, seen @ Google and Yahoo, don't match my activity
VFIAX closed at 421.39 on 12/20/2021 (both Google and Yahoo show this). I suspect that Vanguard filled your order on the 20th, not the 21st. It's possible that the funds were settled the next day - ...
- 113k
11
votes
Accepted
Why should I hold stocks for the long term when the risk of more companies going bankrupt increases over time?
Your reasoning might make sense if you buy a specific set of N stocks and then leave them completely untouched. Eventually, one of them will go bankrupt and then you are invested in (N - 1) stocks. ...
- 28k
9
votes
Why should I hold stocks for the long term when the risk of more companies going bankrupt increases over time?
According to Goldman Sachs, 10-year stock market returns have averaged 9.2% over the past 140 years. From 2010 and 2020, the S&P 500 has returned of 13.6% in the past 10 years.
Companies have been ...
- 73.6k
6
votes
Does it make sense to repeatedly increase your limit order price in small increments until your order fills?
I do not see how your mechanism is beneficial for a couple of reasons.
First, when you place a limit order, it is an upper (or lower) bound. If the market maker can improve upon it, they are ...
- 3,868
5
votes
Why should I hold stocks for the long term when the risk of more companies going bankrupt increases over time?
When you invest long-term, you don't invest into startup companies that might go bust any moment. Many companies have been around for decades, some have been around for over a century. It is unlikely ...
- 1,823
4
votes
What are my investment options as a perpetual traveller?
Answering my own question and adding some clarifications based on what I've learned in the last 4 years.
I still have ongoing tax-residency in the UK, as I generally don't spend long enough anywhere ...
- 93
4
votes
Does it make sense to repeatedly increase your limit order price in small increments until your order fills?
For normal trading where you're looking for price improvement on a wide bid/ask spread, if your broker offers it, you can use a Pegged-to-Primary order.
You select a maximum amount that you are ...
- 73.6k
4
votes
Why should I hold stocks for the long term when the risk of more companies going bankrupt increases over time?
Companies don't go bankrupt at random. If a company is in trouble, there are usually warning signs, and you don't hav to keep holding it if things look bad. And well-run companies are often able to ...
- 1,660
3
votes
Accepted
Is this article correct about leveraged tokens?
I didn't realize that it reinvests daily and that's how $91 comes out.
Start with $100 ($300 on the margin account)
The price goes up 10%, you have $100 + ($30 * 0.1) = $130 ($300 + ($300 * 0.1) = $...
- 161
2
votes
Why should I hold stocks for the long term when the risk of more companies going bankrupt increases over time?
Stocks on average go up, but sometimes they go down. So when one invests in stocks, one is accepting risk in exchange for a positive expected value. You're making a trade of a benefit (positive ...
- 8,753
2
votes
Accepted
Does it make more sense to purchase VTI or VUN?
Generally Canadian listed ETF's are a better choice, they have less paperwork, better currency conversions, etc. The higher the tax bracket the more true this is, and the more you want to pay the 15% ...
- 136
2
votes
Why is investing in commodities recommended during a stagflation period?
They, generally, are not investments unless you need three train cars of heating oil.
The perception, and it is to some extent just perception, is that there is some pure play on inflation via ...
- 3,868
2
votes
Why should I hold stocks for the long term when the risk of more companies going bankrupt increases over time?
You don't buy stocks and then ignore them.
Either you or your advisor needs to either keep up on trends and news, buying and selling stocks dynamically on a "best bet" basis... this is ...
2
votes
Changing Investing Strategy Near Retirement
There are many variables that cannot all be considered in this type of forum. How much in total do you have saved now? How much are saving now? What standard of living do you expect to have in ...
- 113k
1
vote
Relationship between interest rates and DCF discount rates
The rate used in a DCF model is the required rate of return for that investment. It implies that you have other options for where to put your money, and that there is an opportunity cost to committing ...
- 37k
1
vote
Changing Investing Strategy Near Retirement
If you retire at 65 and plan to use the retirement savings until you're 85 years old, then the average age at which you withdraw your money is 75.
You're 40 now so if you save something, you keep it ...
- 6,355
1
vote
Why is investing in commodities recommended during a stagflation period?
The logic of commodities as a hedge against inflation is that commodities have an intrinsic value, and they sell for however much money it takes to equal that value. Therefore, in this view, when ...
- 1,913
1
vote
Why is investing in commodities recommended during a stagflation period?
They hold value.
During times of high inflation, money loses value (that's the definition of inflation). Bonds obviously lose value because of this (unless you can get an interest rate equal to ...
- 1,524
1
vote
Why should I hold stocks for the long term when the risk of more companies going bankrupt increases over time?
As Nosjack pointed out, passive investment is more wisely done on a diversified group of large well-managed companies than on a small selection.
If you really want to focus on a small selection, you ...
- 109
1
vote
What are my investment options as a perpetual traveller?
You should open your investment account where it is most convenient to you while the brokerage/bank provides least friction. Usually, that would be where you are a tax resident.
For the last 18 ...
- 127k
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