TVT

Time value of time (away from work)

 

Sorry for the hijack but I’d like to pick the brains of you regular investors. Yes, I’ve heard not to ask investing advice from pilots but screw it. We know everything, right?

I’m new to investing and am currently playing with a few thousand of fun money until I get some experience. I’m looking for good stocks that I can buy and sell a month or so later (on average) with a decent return. I guess those would be ones with a fairly regular up & down cycle. I’d also like some advice on some good dividend stocks.

The ones I’m currently playing with are TSLA, MA, NVDA, AMD, AMZN, & ZM. I also dabble a bit in BTC.

Also, I’m currently using the cash app for my trading as fees are very low (except BTC) and I can do stocks and BTC on one platform. Are there other options I should look into?

 

Yes. Park your money in an S&P500 or Target date fund and thank me in 30 years.

You aren’t investing, you are trading. You’re going to get killed but since it isn’t a lot of money look at it as tuition. I did the same and it eventually led me down the simple path towards low-cost, long term investing.

Good luck.

 

Over the last 30 years I flew with lots of financial experts and traders who were making a fortune as they told about their success. Strangely they only appeared during sustained strong markets and completely disappeared in down or neutral markets. The above is great advice and if you have some extra cash put it into real estate.

 

No pain, no gain. Day Trading requires a lot of study, practice and patience. I spend most of 2020 trying to get into it, and it was successful when I gave it time.
You're much better off following the advice above and parking your spare cash in an ETF.
Otherwise be like Buffett and pick a couple dozen solid companies that you know will be there in 50 years. I bought F (Ford) on August 4th, 2020 for $6.75 and today it's trading at $21.56. That's a 220% gain.

 

I’d like to thank whoever told me to buy and read The Simple Path to Wealth.

Great read, very simplistic, and makes perfect sense.

Cheers!

 

Thanks for the recommendation. It was a quick read, easily digestible and a great foundation for financial responsibility. It follows a parallel path to the Dave Ramsey program without the marketing hype and fee laden mutual funds. It should be required reading in high school and revisited upon entry into the workforce.

In Part 1, Chapter 1 he does a great job of covering the burden of debt and quickly dismisses business debt as being out of the scope of the book. After understanding and applying the basics in the book, I would suggest that learning and using business debt properly can be an excellent source of expanded financial freedom and security. Borrowing money to buy a stream of cash flow puts the power of inflation on your side not against you. The loan balance is fixed in today's dollars, while the acquired stream of cash rises with inflation. The ratio of leverage is your inflation multiplier. Understanding which debt, how to use it and what to buy would be a good Vol 2 for this book.

 

The Masters is approaching, which is a good reminder of this little tax gem.

IRS Section 280A (aka The Augusta Rule) allows 14 days of tax free rental income of your residence. You can rent it to guests or rent it to your business. As a business owner, I am renting out the house for a weeklong planning meeting. For non business owners, you can rent it out on AirBNB or equivalent up to 14 days, if you go over by even 1 day it all becomes taxable income.

There are several potential gotchas on this one, so please DYODD, get competent advice or at a minimum LMGTFY

Augusta Rule: Loophole for Tax-Free Rental Income (corvee.com)
The Augusta Rule - Tax Free Rental Income | HLB Gross Collins
What They Don’t Tell You About the Augusta Rule That Can Cost You Big-Time | USTaxAid

Happy Side Hustling...

 

Score. Thanks!

 

Interested in being a mortgage loan officer on the side. Can get lucrative in combo with this job. Anytime have first hand experience or know someone that does?