GME Short Squeeze FOMO - I made a huge mistake and need help

I'm going to be sort of "captain hindsight" here. But this is an example of why Roth's are overrated. Especially for this type of trading.

If these trades were outside an IRA you could sell, take the loss, and claim up to a $3000 above the line tax deduction. You can't do that in a Roth unless you sell everything in the Roth and everything in the Roth is a net loss.

Tax considerations aside. An obvious thing you can do is look each individual stock and determine as best you can if they have fundamental value. Based on that sell them or keep them. But maybe I'm just being too crazy with that idea.

investing noob wrote:

seattle prattle wrote:

unsolicited advice: that is a lot non-diversified in tech. I happen to like tech,, but you might also take a look at emerging markets as a way to diversify into something that has been showing strong momentum. Small caps can be rewarding as well if you time it right.

Thanks. My 401k is just in a boring large cap index so that's pretty diversified. Maybe I'll add some small and mid cap indexes.

I was looking at the growth index funds for small, mid and large - they have all outperformed the plain index funds since inception. Is there a reason not to choose large cap growth vs large cap index?

great question and the growth is generally higher risk but greater potential returns. It's just more aggressive.

I would also look carefully of the growth is actively managed. Index funds are passive, meaning they stay invested long term even during a downturn, but an actively managed fund has the option of moving a certain percentage to cash.

THere is a big debate about that and statistics indicate few funds beat the index over the long term, so think about that.

I think for a younger, risk tolerant investor, growth makes sense, though i would probably hold some index funds as well.

Look at their net operating cost fee. You want to stay down as low as you can but really be wary of funds with percentage that gets up to near one percent, and some are even more, Avoid loads, like front end and sales load - no need to pay for that.

Good luck. You are wise to have some more secure funds like this tucked away in your 401K before delving into the riskier stock picks.

Ryan Foreman wrote:

I'm going to be sort of "captain hindsight" here. But this is an example of why Roth's are overrated. Especially for this type of trading.

If these trades were outside an IRA you could sell, take the loss, and claim up to a $3000 above the line tax deduction. You can't do that in a Roth unless you sell everything in the Roth and everything in the Roth is a net loss.

Tax considerations aside. An obvious thing you can do is look each individual stock and determine as best you can if they have fundamental value. Based on that sell them or keep them. But maybe I'm just being too crazy with that idea.

On the flip side, if you have gains in your Roth then you don't have to pay taxes on them which is a huge deal. My index fund in the Roth was up 27% before I stupidly sold it for this YOLO play. At least I don't have to pay taxes on those gains or deal with schedule D at tax time.

Thanks man I'll look into the details of the growth fund. Maybe do 50/50 index and growth to try it out.

GME now under $60. Jesus.

Good on you. Stop in to the thread Dow Goes The Dow here on the messageboard, in that there are some very knowledgeable trades guys there.

investing noob wrote:

I can't tell you how much I love GEVO. I think this will hit $50 this year. I've been buying since it was $2.98 and reloading on all the dips. It's my biggest position in my taxable account and I have 100% returns. All these electric and hydrogen stocks require billions of dollars in new infrastructure to be built. GEVO does not! Their technology uses existing infrastructure! They turn crops into usable electricity, how cool is that?

I’m on the Gevo train as well. Unfortunately, I didn’t find it until $13 a share.

Seems like huge potential. Having to control my urge to go crazy with it.

pepa pig wrote:

investing noob wrote:

I can't tell you how much I love GEVO. I think this will hit $50 this year. I've been buying since it was $2.98 and reloading on all the dips. It's my biggest position in my taxable account and I have 100% returns. All these electric and hydrogen stocks require billions of dollars in new infrastructure to be built. GEVO does not! Their technology uses existing infrastructure! They turn crops into usable electricity, how cool is that?

I’m on the Gevo train as well. Unfortunately, I didn’t find it until $13 a share.

Seems like huge potential. Having to control my urge to go crazy with it.

GEVO seems to have take a sh*t along with everything else green energy or tech. Does it get back to $15 or even $20 this year? Or is it the next Plug Power ($50+)?