if you’re in a bad place right now with your stock/ crypto portfolio, here’s some help surviving [Thread]
1. Protect your mental health
Refreshing the screen every couple of seconds begging the price to go up is the equivalent of staring at engagement pics of your ex - it’s a bad place to be.
You don’t control the market, you only control your position.
Refreshing the screen every couple of seconds begging the price to go up is the equivalent of staring at engagement pics of your ex - it’s a bad place to be.
You don’t control the market, you only control your position.
2. Eliminate your leverage
Doubling down to breakeven ends with you sleeping under a bridge.
Worse, in periods of high volatility you’re more likely to be margin called/ wiped out before you get to recover
As far as possible, aim to own the underlying & not synthetics
Doubling down to breakeven ends with you sleeping under a bridge.
Worse, in periods of high volatility you’re more likely to be margin called/ wiped out before you get to recover
As far as possible, aim to own the underlying & not synthetics
3. Exercise discretion when buying the dip
Stocks part of your long term buy & hold strategy (marriage stocks) might be approaching technical resistance levels
For high quality companies with reduced leverage in an increase rates environment - could be solid buying opps
Stocks part of your long term buy & hold strategy (marriage stocks) might be approaching technical resistance levels
For high quality companies with reduced leverage in an increase rates environment - could be solid buying opps
4. Balance liquidity with capital at risk
Being asset rich & cash poor is bad. Being asset poor AND cash poor is terrible
You also can’t buy any dips without any cash
If you have any juicy positions you can close out to bank some cash - worth looking into it
Being asset rich & cash poor is bad. Being asset poor AND cash poor is terrible
You also can’t buy any dips without any cash
If you have any juicy positions you can close out to bank some cash - worth looking into it
5. Don’t turn into a motivational speaker
Groupthink & echo chambers on online forums, chat channels & social media will have you believe in miracles
You might believe your stock will rally 400% on Monday, these people are strangers on the internet
Take care of yourself first
Groupthink & echo chambers on online forums, chat channels & social media will have you believe in miracles
You might believe your stock will rally 400% on Monday, these people are strangers on the internet
Take care of yourself first
6. Use protection
The stock market isn’t a place you want to go in raw. Buying up puts tends to be expensive in a market getting hammered BUT it can rescue you
Worth looking at longer dated options with deep out the money strikes - cheap insurance
The stock market isn’t a place you want to go in raw. Buying up puts tends to be expensive in a market getting hammered BUT it can rescue you
Worth looking at longer dated options with deep out the money strikes - cheap insurance
7. Risk > Returns
Breaking even is more important than losing money
Resist the urge to swipe your credit card or leverage a loan into a trading account
Using debt to fund equity positions tends to end up being catastrophic
Just don’t
Breaking even is more important than losing money
Resist the urge to swipe your credit card or leverage a loan into a trading account
Using debt to fund equity positions tends to end up being catastrophic
Just don’t
8. Have a clear target price
This applies to both buying & selling
If you don’t have an idea when to sell, you’re basically playing in a casino
Closing out 10% down is a paper cut, closing out 85% down is crippling
This applies to both buying & selling
If you don’t have an idea when to sell, you’re basically playing in a casino
Closing out 10% down is a paper cut, closing out 85% down is crippling
9. Separate quality from junk using a macro filter
Probably the best tip in this thread. Did the company miss earnings, ensure heavy write downs or is engaged in fraud? That’s bad
Is the company being dragged down by macro but still remains strong fundamentally? Not as bad
Probably the best tip in this thread. Did the company miss earnings, ensure heavy write downs or is engaged in fraud? That’s bad
Is the company being dragged down by macro but still remains strong fundamentally? Not as bad
10. Proactively look for opportunities
Where there’s chaos there’s opportunity. Make a list of companies on your wish list & start targeting each one
Without a game plan you’re gambling
I’m hindsight some stocks will be screaming buys, that hindsight is happening right now
Where there’s chaos there’s opportunity. Make a list of companies on your wish list & start targeting each one
Without a game plan you’re gambling
I’m hindsight some stocks will be screaming buys, that hindsight is happening right now
the trading thread
https://twitter.com/iamkoshiek/status/1444259327125200900
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