Stocks are falling and bond yields are rising, but markets still don’t seem convinced the Federal Reserve will pursue plans to keep increasing interest rates until inflation is under control. I'm still at a crossroads deciding if to liquidate my $117k stocck portfolio, what’s the best way to take advantage of this bear market?
While there’s more pain to come, investors should look for stocks like Royal Philips NV and Alstom SA that have been beaten down enough that they’re a bargain or get a good portflio manager..
@@Alejandracamacho357 Having an investment adviser is the best way to go about the market right now, I've been in touch with a coach for awhile now mostly cause I lack the depth knowledge and mental fortitude to deal with these recurring market conditions, I nettd over $220K during this dip, that made it clear there's more to the market that we avg joes don't know
@@Patriciacraig599 I need guidance so i can salvage my port-folio due to the massive dips and come up with better strategies. How can i reach this advsor?
I have been reading books on Value Investing and next year on my channel I will be investing using margin. ASPS is a company that handles mortgage foreclosures and the stock is pretty beat down since they aren't allowed to make money right now. But zoom out and see how they did in 2009-2011 and this stock has the potential to 10x in the next 3 years.
Exactly.. investment is the best way to grow your wealth, I held stocks for a long time and invested in bitcoin, I'm 22 and I have about $48,000 investment profit despite the pandemic. It's really life changer
Wow nice vid, randomly played after i watched something about square earnings, and i was washing dishes so couldn't stop it - and I'm glad I didn't! I have already used margin on square and Tesla before and would do it again if they come close to their current support lines again! #leveragepick
Like you Dave, I have been trading since I was a teen. Learned about margin and options the hard way as well at the same young age! Probably the best time to learn that lesson. This is an excellent breakdown and I shared it with a number of folks who just needed a baseline understanding. Thanks!
@Kurt Kardlioglu Can you please explain why you like your leverage stock pick. Do you have a main thisis behind your pic? I think everybody would love to know.
So at the end of this, I have to ask... How do you manage stomaching risk? You trade with bigger portfolios and have more room to stomach risk, but how much is too much and how little risk turns the investment or margin call into something worthless? I have to admit I don't stomach risk too well and this whole endeavor, while excellent in theory, makes my stomach churn with a lot of uneasiness.
Every speculative "risky" investment I make I have to somehow be ok with the idea of losing it all... with the hope that if I did my homework I will be right more often than wrong.
Dave, thanks for the insightful video. Although you threw out the caveat that you don't have a degree in finance, your experience alone is more than a Doctorate in this field IMO. As always, I enjoy watching your videos, and that editing is 🔥.
#leveragepick $fngu i just found this a week ago what do you think? also do a video on dough brokerage i think there new. Supposedly they teach in real time
I do this on M1 I have a 100k portfolio which is all mine M1 allows 30% of portfolio on margin. I am able to take out 35k for margin at a 2% interest the lowest anywhere I took out 20k to try I'm making 14% on my portfolio when I get paid I use it to pay back right now I like it
I just use margin for placing more trades :) and if margin ends up getting used, the risk is truly not much at all because I nibble at stocks, about 100-600$ per dip day per stock. Use equity to your advantage and try to get the lowest buys, why not if you can make other more sure lower buys at the same time? Just try to only make trades equal to 1/10 of total margin
#leveragepick would be Tesla. As boring as that answer is I still think so many people see the stock as a inevitable money maker that buying your own and adding to the self fulfilling prophecy of it will net you high returns. Love the video Dave, you're editing is second to none.
Dear random guy on the internet, could you please make a step by step video where I have to click to buy options for a leveraged nasdaq etf on margin? Thank you.
Timing plays a huge role. Back in March, nearly every stock was at a discount giving the huge potential for gains when market recovered back to normal levels. This made margins a good opportunity to purchase as many stocks as possible at their low prices. Fast forward to now, it may be a lot more risky.
I made it to the end and I would probably buy arkw with margin. Compare it’s performance to any other etf or fund... are there any that consistently do better?
Thanks for the great video. But what about investing in very high Dividend yielding picks vs trading stock prices. What are your thoughts on leveraging at 4% int (td margin acct) and investing in something like Canoe EIT. UN that's yielding 10%+. Or QYLD. Seems like a steady set of holdings and net return of approx 6%. Am I missing something? Thanks for your help
I was lately looking at the monty hall problem and it made me wonder if the concept could be applied to trading in better way. Let's say I want to invest in BTC but I also think there is a real possibility we will see some substantial down. What if I open a 5x long margin BTC-USD and a 5x short margin on BTC-EUR. If it goes up they should cancel out and i let it ride until i feel the risk might be "over". If it goes down I start reducing the short position in several trades over time. Is there a name for this? Is it maybe stupid? Of course in real my long position is larger than my short because i'm betting on a general uptrend.
@@HeythereDavehere 100% definitely can't sleep at night. Them leveraged ETFs move fast. But I average down, ex put in $50k, goes down, then $50k more, etc. Not $200-500k at once.
I'm still blown away how comfortable you are in front of a camera. It's so natural, there's people on youtube who have been doing this for 10+ years and don't have this natural presence on camera.
Maybe not today, but a leveraged position on Applied Materials (AMAT) might work out. The CHIPs for America Act investing in the expansion of American semiconductor manufacturing capability would benefit them. #LeveragePick
From my calculations if you invest a little over 800 on margin with the interest free margin you get one time only, into a dividend paying stock a that will generate even a very conservative percentage per share, you can generate at least $4-7ish in returns paying for your RH gold if you don't want to take any additional margin. BUT I'm not a fan. My risk tolerance is bullshit but it has benefited me. I won't cry because i could've made 1000 instead of "only" 800.
IMO people just starting out should just drop $1000 in a TDAmerischwab cash account and NOT use leverage. That way you can learn and not blow up your account.
#LeveragePick T - Robinhood charges 5%, they are currently paying out at 7% annually with no dividend cut risk in the near future. I also don't believe the price will be cut by 50%.
I m just trying to afford college out here with investing and you're telling me a half million is only 10% of your portfolio, sheesh want to help me pay for college, Ill be your private pilot when im done with WMU college of aviation ;D
NGA bought at about $30 per since then its been down or going sideways are you still bullish on this stock ? i think this was like a high conviction trade for you guys if you bought with margin im assuming that this trade is worse since its not printing and your stuck paying intrest
Margin is stupid totally worthless dont use if you dont understand it . I didn't loose money but it did lock me from buying more stocks I instantly got rid of it plus the gold upgrade is also pointless . Use the normal robinhood and you you're own money do not borrow .
I've used margin to round out a holding to 100 shares to sell a covered call above basis. Just did this with DIS -- had 60 shares at $121 and change, picked up 40 more around the same on margin (average basis $121.208/share) to get to 100 shares even, to start selling calls. Got about $200 in change in premium, and about to get called out at $122 (assuming DIS stays above 122 through close of market tomorrow -- 11/6). And yes, I'll be selling the $120 or $121 put weekly/bi-weekly to wheel this.
Great video Dave. I myself, not being a profitable trader would not dream of margin until I can prove to myself that I could turn a profit. Your favorite ETF is VOO, look forward to the next video.
Made it to the end! I'm not sure I would use leverage at all, but to play the game and answer your question: I would get risky and to in on TSLA, just because they're the most fun to watch when people freak out at their sporadic movements lol
HI DAVE, a dog here. Do you think we should discourage people from using leverage, as to not pour more fuel on the fire? We just saw that an Asian firm has been buying billions worth of SPX 3500 call options.... and they expire November 6. I have a feeling the market is going to give out again, same as it has the last two times the Nasdaq hit 12,000+. Both times were fueled by heavy options buying, followed by dealers unwinding gamma (selling their delta hedges off).
I wouldn't encourage or discourage people using leverage. Everyone needs to decide what is best for their own situation. My goal is to help educate people about the tools that are available but not to tell anyone what they should do.
Dave, love your stuff and appreciated what you guys are trying to do...I’m all in! I want to learn how to analyze company balance sheets and other financial indicators to know if a company has investing merit. Where do you advise I start. For example, I want to find industry sectors that are being decimated by the pandemic, airline/cruise ship companies, etc. and invest in those companies for obvious reasons-good/well run companies should recover, right? Any insight is greatly appreciated!
I have been watching genxdividend investor. He explains it how to look at certain charts and compares it. I don’t understand it all, but there is a cool inspirational story at the end. Still learning.
Hi Dave. Do you think it would be wise for me to do margin on Tesla? I have 146 shares in Webull and I am a long holder. I am retiring in 2025 but I will stay holding till 2030 and just take out as needed to live on every year. I have a very high conviction in Tesla. I am out of money to invest more, so I want to borrow as much as I can to buy in now!!! Especially this year with the 2 factories coming online. What are you thoughts? Thanks and Happy New Year
Do you use margin? What's your strategy?
The Chris Camillo Strategy...jk way too risky haha
Thanks Dave, Great video!!!!!
Not currently - have in the past - not so easy to get in Australia
Yes, using margin and paying 1.5 % for my credit line.
Actually if you have some time it can work to your advantage. It’s just something most people don’t really think about. Great presentation!
Stocks are falling and bond yields are rising, but markets still don’t seem convinced the Federal Reserve will pursue plans to keep increasing interest rates until inflation is under control. I'm still at a crossroads deciding if to liquidate my $117k stocck portfolio, what’s the best way to take advantage of this bear market?
While there’s more pain to come, investors should look for stocks like Royal Philips NV and Alstom SA that have been beaten down enough that they’re a bargain or get a good portflio manager..
@@Alejandracamacho357 Having an investment adviser is the best way to go about the market right now, I've been in touch with a coach for awhile now mostly cause I lack the depth knowledge and mental fortitude to deal with these recurring market conditions, I nettd over $220K during this dip, that made it clear there's more to the market that we avg joes don't know
@@Patriciacraig599 I need guidance so i can salvage my port-folio due to the massive dips and come up with better strategies. How can i reach this advsor?
@@marianparker7502 credits to Susan Agnes Hancock, one of the best portfolio manager;s out there. she;s well known, you should look her up
All time high for year today
Now I remember why Margin sounded scary - the Margin Call in then end of Trading Places is what ended up gutting the Duke Brothers
Nice.
Hi, I'm Dave Hansen,,, Chris Hansen's brother. Have a seat and let's talk about your margin account.
One of the most satisfying YOLO's IMO.
Another great video from Dave. This is tribute to the algorithm.
I appreciate that Will!
Another one 👍
I have been reading books on Value Investing and next year on my channel I will be investing using margin. ASPS is a company that handles mortgage foreclosures and the stock is pretty beat down since they aren't allowed to make money right now. But zoom out and see how they did in 2009-2011 and this stock has the potential to 10x in the next 3 years.
I'll look into $ASPS #leveragepick
Three part series? What happened to part 2 and 3? Where you at, Dave?!? :-)
Patience. Dave wouldn't just leave us hanging.
Allen tutorial make you disappear
🤣
I think he forgot
Dave, it's been 9 months. I'm still waiting for the next video in the series. What happened?
I bought tesla like crazy with my margin, used 25k of margin (that was 90%), sold some profits from tesla and only owe 7k now
Love the content, video quality, edits. Genuinely earned a subscription!
Part two bro 💔
Stuck around till the end! Great content my man! Tesla is my company to leverage in!!
Did you get a margin call this week?
Thanks I like the way you explain it. Impatiently waiting for your next! I am too inexperienced and cautious to buy on margin.
It's good to know what financial mechanisms are available to you even if you don't use them! Glad you liked the video
HEY DAVE!!! We need Part 2 & 3 Buddy!! Please give us the rest of this 3-part series!! I wanna get rich before I die waiting** Lol. Big Fan.
The rich stay rich by investing without stopping then the poor stay poor by spending like the rich yet not investing like the rich
You're right, investing is the key
Exactly.. investment is the best way to grow your wealth, I held stocks for a long time and invested in bitcoin, I'm 22 and I have about $48,000 investment profit despite the pandemic. It's really life changer
@@amynorton2606
Wow that's nice how did you reach that so fast?
It can be said a little simpler, if you want to be rich then focus on saving and investing, if you want to be poor then focus on spending
Already invested in stocks and I can't get a good return from it
Wow nice vid, randomly played after i watched something about square earnings, and i was washing dishes so couldn't stop it - and I'm glad I didn't! I have already used margin on square and Tesla before and would do it again if they come close to their current support lines again! #leveragepick
If I were to leverage an ETF it would be ARKK. I like Wood's philosophy on investing.
Using margin to buy long call options on triple levered TQQQ. It can’t possibly go wrong
Like you Dave, I have been trading since I was a teen. Learned about margin and options the hard way as well at the same young age! Probably the best time to learn that lesson. This is an excellent breakdown and I shared it with a number of folks who just needed a baseline understanding. Thanks!
Dave the king of production quality.
Edit: Just finished the video, my pick is DPST. #LeveragePick
Thanks Kurt. Let me send you some merch... DM me @davehanson on Twitter or let me know your username if your in the Dumb Money discord
@Kurt Kardlioglu
Can you please explain why you like your leverage stock pick. Do you have a main thisis behind your pic? I think everybody would love to know.
So at the end of this, I have to ask... How do you manage stomaching risk? You trade with bigger portfolios and have more room to stomach risk, but how much is too much and how little risk turns the investment or margin call into something worthless?
I have to admit I don't stomach risk too well and this whole endeavor, while excellent in theory, makes my stomach churn with a lot of uneasiness.
Every speculative "risky" investment I make I have to somehow be ok with the idea of losing it all... with the hope that if I did my homework I will be right more often than wrong.
Dave, thanks for the insightful video. Although you threw out the caveat that you don't have a degree in finance, your experience alone is more than a Doctorate in this field IMO. As always, I enjoy watching your videos, and that editing is 🔥.
#leveragepick $fngu i just found this a week ago what do you think? also do a video on dough brokerage i think there new. Supposedly they teach in real time
Excellent content, I wish I saw and understood this before loosing a lot of money.
I do this on M1 I have a 100k portfolio which is all mine M1 allows 30% of portfolio on margin. I am able to take out 35k for margin at a 2% interest the lowest anywhere I took out 20k to try I'm making 14% on my portfolio when I get paid I use it to pay back right now I like it
Commenting before watching because Dave is the shit. Ok, now I'm gonna watch it
I just use margin for placing more trades :) and if margin ends up getting used, the risk is truly not much at all because I nibble at stocks, about 100-600$ per dip day per stock. Use equity to your advantage and try to get the lowest buys, why not if you can make other more sure lower buys at the same time? Just try to only make trades equal to 1/10 of total margin
#leveragepick would be Tesla. As boring as that answer is I still think so many people see the stock as a inevitable money maker that buying your own and adding to the self fulfilling prophecy of it will net you high returns.
Love the video Dave, you're editing is second to none.
Dear random guy on the internet, could you please make a step by step video where I have to click to buy options for a leveraged nasdaq etf on margin? Thank you.
Thanks Dave - good explanation. I haven't used margin....yet!
You are so awesome at this TH-cam thing, lol
I thought the only way to invest in the stock market was to trade options on leveraged ETFs, using margin?!?! Am I doing something wrong? 🤔😯😯
I’m not planning on using margin anytime soon, but if I were, a mid to long term pick would be upwork #leveragepick. Loved the video by the way!
A scammer is replying as you offering to sell they a what app
Thanks... I reported the account to TH-cam. Hopefully they can figure out how to stop all the spam and impersonating account.
Timing plays a huge role. Back in March, nearly every stock was at a discount giving the huge potential for gains when market recovered back to normal levels. This made margins a good opportunity to purchase as many stocks as possible at their low prices. Fast forward to now, it may be a lot more risky.
Great video! But why must we waiiiiiiiiiiiit for 2 more parts?! ugh!
Margin Call with Jeremy Irons is an excellent movie by the way, lol
margin interest can be deductible from taxes was literally a huge gem!!!
I made it to the end and I would probably buy arkw with margin. Compare it’s performance to any other etf or fund... are there any that consistently do better?
Thanks for the great video. But what about investing in very high Dividend yielding picks vs trading stock prices. What are your thoughts on leveraging at 4% int (td margin acct) and investing in something like Canoe EIT. UN that's yielding 10%+. Or QYLD. Seems like a steady set of holdings and net return of approx 6%. Am I missing something? Thanks for your help
Yeah guys you got to hit the like button like Graham says
Top 3 to buy on margin $NIO, $MMEDF, $REMX
Cool thanks #leveragepick
Did when is the next video? I'm looking to margin some leveraged ETF's.
Did you never make the leveraged etf video?
where are part 2 and 3 ??
Waiting for part 2 & 3.
What do you think of buying Yieldmax etf, defiance , FEPi ETFs using leverage.. thank you
I would buy me some AMD. They are on fire right now. #LeveragePick
I was lately looking at the monty hall problem and it made me wonder if the concept could be applied to trading in better way. Let's say I want to invest in BTC but I also think there is a real possibility we will see some substantial down. What if I open a 5x long margin BTC-USD and a 5x short margin on BTC-EUR. If it goes up they should cancel out and i let it ride until i feel the risk might be "over". If it goes down I start reducing the short position in several trades over time. Is there a name for this? Is it maybe stupid? Of course in real my long position is larger than my short because i'm betting on a general uptrend.
Forward to like 6:00 to get to the point.
Did you just say 5% of $1000 is $5 that’s the dumbest thing I heard 30 seconds into a video, five percent of $1000 is 50 dollars
I thought for a moment that the sponsor was going to be dumb money.
Thanks for the video Dave! I use $500k margin. My rate is 6%/year. I tend to use it on buying dips for leveraged tech etfs. Holding for 2-4 weeks
Good strategy... as long as those dips don't keep dipping! 😉
@@HeythereDavehere 100% definitely can't sleep at night. Them leveraged ETFs move fast. But I average down, ex put in $50k, goes down, then $50k more, etc. Not $200-500k at once.
U pay too much interest for 500k, try fidelity only 4% on 500k +
I'm still blown away how comfortable you are in front of a camera. It's so natural, there's people on youtube who have been doing this for 10+ years and don't have this natural presence on camera.
Maybe not today, but a leveraged position on Applied Materials (AMAT) might work out. The CHIPs for America Act investing in the expansion of American semiconductor manufacturing capability would benefit them. #LeveragePick
Loan Dave a like for the algorithm, if it fits your risk tolerance
Haha. You're a genius, evil!
From my calculations if you invest a little over 800 on margin with the interest free margin you get one time only, into a dividend paying stock a that will generate even a very conservative percentage per share, you can generate at least $4-7ish in returns paying for your RH gold if you don't want to take any additional margin. BUT I'm not a fan. My risk tolerance is bullshit but it has benefited me. I won't cry because i could've made 1000 instead of "only" 800.
I’m levered to the tits with $PTON, $TSLA, $NIO, $AMZN. No margin call yet so I think I’m good at this. Might quit my job this week.
IMO people just starting out should just drop $1000 in a TDAmerischwab cash account and NOT use leverage. That way you can learn and not blow up your account.
I would consider using leverage to buy Tesla after a big dip.
#LeveragePick T - Robinhood charges 5%, they are currently paying out at 7% annually with no dividend cut risk in the near future. I also don't believe the price will be cut by 50%.
$BETZ #LeveragePick
I m just trying to afford college out here with investing and you're telling me a half million is only 10% of your portfolio, sheesh want to help me pay for college, Ill be your private pilot when im done with WMU college of aviation ;D
May only use leverage to buy something that will run up quickly like TSLA.
Margin is good for selling “cash secured” puts lol that’s the safest way I have discovered
Bro really wasted the whole first half of the video asking us to subscribe and shill his idiotic sponsor
NGA bought at about $30 per since then its been down or going sideways are you still bullish on this stock ? i think this was like a high conviction trade for you guys if you bought with margin im assuming that this trade is worse since its not printing and your stuck paying intrest
The good thing is that those companies you are buying stock from, are not using leverage...ha!
Margin is stupid totally worthless dont use if you dont understand it . I didn't loose money but it did lock me from buying more stocks I instantly got rid of it plus the gold upgrade is also pointless . Use the normal robinhood and you you're own money do not borrow .
Margin can be a useful way to invest in things outside of the stock market as well without having to sell stocks - with caution of course!
Very true!
look for the "Madman chronicles" 100% margin investing.
Leverage Pick; $BFT. Spac merging with Paysafe
Wow...what a waste of time. This guy really doesn't care about your time.
Dave 5 dollars is .5 percent of 1000
Dave I'm looking forward for part 2 and 3, my favorite ETF is IVV do your DD and see why I think is better than VOO.
Don't have the certainty yet for any stock to use margin but QQQ sounds reasonable #LeveragePick.
Just invested in Vanguard before I watched this video.
You already pay interest for the 1000 so why not only use 999 . Common sense people get greedy on loans and get irresponsible
I would buy Berkshire hathaway on margin.. but i won't
Hey Dave, I was introduced to $SPY by Chris on the DumbMoney channel, and have been riding it up and down through options, both short and long term.
Nice. Glad it's working out for you
@@HeythereDavehere Thanks, from a fellow former Yahoo! employee :)
I use margin out of the brokerage. Debt isnt taxed, so i use it to pay my credit card each month.
I've used margin to round out a holding to 100 shares to sell a covered call above basis. Just did this with DIS -- had 60 shares at $121 and change, picked up 40 more around the same on margin (average basis $121.208/share) to get to 100 shares even, to start selling calls. Got about $200 in change in premium, and about to get called out at $122 (assuming DIS stays above 122 through close of market tomorrow -- 11/6). And yes, I'll be selling the $120 or $121 put weekly/bi-weekly to wheel this.
Nice. You need a more advanced TH-camr 😉 appreciate you watching and commenting Frank!
I wanted to make a million dollars using Margins. Only 2.5 million to go
Love you, Dave!!!
Right back at ya Jessica!
Awesome video Dave.
Thanks 👍
That was a solid vid. Thanks.
Glad you enjoyed it!
Great video Dave. I myself, not being a profitable trader would not dream of margin until I can prove to myself that I could turn a profit. Your favorite ETF is VOO, look forward to the next video.
Love the production quality!
Long Term Mutual Funds >>>
Can you withdraw the borrowed money at Robin Hood?
You can use margin in day trades and you don’t have to pay interest.. overnight you pay
Not really.... Most people are trading crytoCrap not stocks...
Made it to the end! I'm not sure I would use leverage at all, but to play the game and answer your question: I would get risky and to in on TSLA, just because they're the most fun to watch when people freak out at their sporadic movements lol
Max it out and leave the country with all your bitcoin
What's the link for the Facebook group?
HI DAVE, a dog here. Do you think we should discourage people from using leverage, as to not pour more fuel on the fire? We just saw that an Asian firm has been buying billions worth of SPX 3500 call options.... and they expire November 6. I have a feeling the market is going to give out again, same as it has the last two times the Nasdaq hit 12,000+. Both times were fueled by heavy options buying, followed by dealers unwinding gamma (selling their delta hedges off).
I wouldn't encourage or discourage people using leverage. Everyone needs to decide what is best for their own situation. My goal is to help educate people about the tools that are available but not to tell anyone what they should do.
Dave, love your stuff and appreciated what you guys are trying to do...I’m all in! I want to learn how to analyze company balance sheets and other financial indicators to know if a company has investing merit. Where do you advise I start. For example, I want to find industry sectors that are being decimated by the pandemic, airline/cruise ship companies, etc. and invest in those companies for obvious reasons-good/well run companies should recover, right? Any insight is greatly appreciated!
I have been watching genxdividend investor. He explains it how to look at certain charts and compares it. I don’t understand it all, but there is a cool inspirational story at the end. Still learning.
What's in the black box?! Great video Dave
Hi Dave. Do you think it would be wise for me to do margin on Tesla? I have 146 shares in Webull and I am a long holder. I am retiring in 2025 but I will stay holding till 2030 and just take out as needed to live on every year. I have a very high conviction in Tesla. I am out of money to invest more, so I want to borrow as much as I can to buy in now!!! Especially this year with the 2 factories coming online. What are you thoughts? Thanks and Happy New Year
My thought is that is more risky that I’d be comfortable with because Tesla is volatile and a margin call could wipe me out. Not financial advice.