DOS_patos
Unverified Legion of Trill member
the lower the price the more the profit not the higher.
you want your average to be as low as possible.
i use averages in different ways.....im not a fan of this way.
ABW Stock Exchange: All Things Investing
- Thread starter Inori
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you want your average to be as low as possible.
i use averages in different ways.....im not a fan of this way.
AZTG
OG
Averages only matter when a company you have stock in is down for some reason but you expect it to go up. So if I had swppx at $50, and i see it at $45 and know its gonna go back up, id wanna buy as much as I can to try and get my average price as low as possible.
Ok I get it now
And on the flip side if I buy in at 50 and I see it hit 55 and believe it's gonna go up long term still buy in
AZTG
OG
All average does is make it easier to calculate your gains/losses.
Lets say I bought a stock on 3 different occasions. I buy 10 shares of a stock at $10. Then i buy $10 more shares at $15. Then it goes down and I buy 10 more shares at $12. And today the price is $13.
Calculating my gains/losses just became complicated as fuck. I bought 10 at $10. Since the price is $13 today, im at $30 profit there. But then i bought 10 more at $15. Price being $13 means i lost $20 on that transaction. Then i bought 10 shares at $12. Price is $13 so i made $10 in profit.
So I made $30, lost $20, and made $10 so my total is profit $20.
Now imagine having to do this with big ass numbers. Shit gets mad convaluted. Yea i spelled it wrong.
Instead of having to do all that, brokerage accounts put all your purchases of a stock in one pot, and average out your prices. So basically, with my above example, my average price of all three of those purchases becomes $11, and price today is $13, so im at $20 profit.
With that said, the mind state per purchase though is the same. Im never buying to bring my average down. Im buying because I love the price I see and think im buying low to sell high. And because it was a good purchase, it brings my average down.
Hope all that makes sense.
Plus im bad at math so all my numbers might be wrong. Just trying to talk through the concept.
Lets say I bought a stock on 3 different occasions. I buy 10 shares of a stock at $10. Then i buy $10 more shares at $15. Then it goes down and I buy 10 more shares at $12. And today the price is $13.
Calculating my gains/losses just became complicated as fuck. I bought 10 at $10. Since the price is $13 today, im at $30 profit there. But then i bought 10 more at $15. Price being $13 means i lost $20 on that transaction. Then i bought 10 shares at $12. Price is $13 so i made $10 in profit.
So I made $30, lost $20, and made $10 so my total is profit $20.
Now imagine having to do this with big ass numbers. Shit gets mad convaluted. Yea i spelled it wrong.
Instead of having to do all that, brokerage accounts put all your purchases of a stock in one pot, and average out your prices. So basically, with my above example, my average price of all three of those purchases becomes $11, and price today is $13, so im at $20 profit.
With that said, the mind state per purchase though is the same. Im never buying to bring my average down. Im buying because I love the price I see and think im buying low to sell high. And because it was a good purchase, it brings my average down.
Hope all that makes sense.
Plus im bad at math so all my numbers might be wrong. Just trying to talk through the concept.
Half the battle is even knowing the right questions to ask lol
I rather ask dumb questions to set me right than make a wrong assumption
That's why I appreciate u all sharing knowledge n patience
I rather ask dumb questions to set me right than make a wrong assumption
That's why I appreciate u all sharing knowledge n patience
AZTG
OG
Yessir
Are u guys fucking with USO by any chance?
DOS_patos
Unverified Legion of Trill member
AZTG
OG
Never looked into it. Break it down if you can
The more I read into it the less I'm interested.
It's an oil etf who's goal is to track daily price movements of WTI and trades on futures contracts rather than holding physical oil. Also has been doing a poor job of tracking WTI since before the pandemic.
Their strategy has been to buy futures contracts before expiration and rolling them into new ones. But with future contracts valued higher than current they take losses when rolling them over (I learned a new word today: contango) along with what they charge investors to manage the fund
This eats into their gains so they don't see similar profits/rebound as WTI, who they are tracking. Article I read says WTI rebounded 158% during oil surge while USO rebounded at 40%.
If u believe oil will continue to surge u can still make a profit but it looks too risky and not worth what u can get out of other oil stocks/funds and definitely not a long term investment
I'm gonna watch it though. Since they lag behind WTI there's a possibility to catch a pattern of how long til a gain in WTI is reflected in USO and try to capitalize off that then sell off.
DOS_patos
Unverified Legion of Trill member
AZTG
OG
Much appreciated man.
Isnt this the same shit UCO does?
I didnt research UCO at all before buying. Lmao. Usually I research shit alot. With UCO though, i just saw that it dealt with oil futures, and oil was at historic lows, and UCO was trading at above $500 before oil crashed, and figured it was worth buying at $11 with almost no research.
Yea they pretty much are the same but I guess do things different. Like u and others have stated investing in oil is volatile and risky anyway so if you're gonna do it pick your poison i guess.
Both uso and uco have reverse split during the crash. Both track wti. One difference I've read is while uso seeks to match performance of WTI, UCO seeks to double it (can impact negatively as much as positively)
I'm not advanced enough to say how that difference impacts the two ETFs respectively though or if there are other factors.
Maybe @Sion could weigh in on UCO vs USO if he knows more
Article that included UCO and uso (June 2019):
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Top Oil ETFs for 2023
United States Brent Oil Fund LP and United States Oil Fund LP are top funds in terms of recent performance, expenses, and liquidity.
It's all a gamble regardless lol
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Also read USO recently stated it will expand beyond crude oil and into the whole spectrum of energy commodity sector.
They made these changes due to the crash
They made these changes due to the crash
bootcheese3000
Residential Hero of the Black Weirdos
Even though I STILL haven't invested a dime, I stay abreast of the News. I think I just read about Moderna stock dropping amid Vaccine doubts. As a matter of fact, the Market seems dubious about Vaccines in general.
I managed to transfer my $100 from ETRADE to Fidelity this Weekend. I'm going to check if the transfer finally went through, shit takes at least 3-5 Business Days to complete.
DOS_patos
Unverified Legion of Trill member
the news can tell you alot....its all about how you decipher it
bootcheese3000
Residential Hero of the Black Weirdos
THIS.
Big Lurkin', you have to keep putting $$$$$ in the Honeypot. This isn't a 1-time thing. Plants don't grow if you feed it and water it just 1nce.
AZTG
OG
Yea they pretty much are the same but I guess do things different. Like u and others have stated investing in oil is volatile and risky anyway so if you're gonna do it pick your poison i guess.
Both uso and uco have reverse split during the crash. Both track wti. One difference I've read is while uso seeks to match performance of WTI, UCO seeks to double it (can impact negatively as much as positively)
I'm not advanced enough to say how that difference impacts the two ETFs respectively though or if there are other factors.
Maybe @Sion could weigh in on UCO vs USO if he knows more
Article that included UCO and uso (June 2019):
Top Oil ETFs for 2023
United States Brent Oil Fund LP and United States Oil Fund LP are top funds in terms of recent performance, expenses, and liquidity.www.investopedia.com
View attachment 284342
It's all a gamble regardless lol
This is great info man. Dope shit.
Basically the difference between the two is the risk factor. UCO takes more risks to try and double it, so if shit goes left, you can lose much more with UCO as compared to USO. But if shit goes right, you can gain much more.
Good to know. Preciate the info.