2 years of investing/trading (paper) profits wiped out in a week....

Main cause.... FOMO....

Elaborate?

@iiii My portfolio was up $10,000 last week. then bought AMZN and TSMC last week.... bad timing maybe.... But huge drops on these... Now only up $2,000.

Yes the market has been shit this week but just those 2 contributed a $4,000 loss...

And well before I sold AMZN at like 1.5k.... missed to pop....

Derpcake.
Vomit out your emotions into a trash bag, tie it up nice and tight so nothing leaks out, find the nearest river, and throw it in.

If you don’t want to ruin all the cute fishies’ days, and you really shouldn’t (you horrible monster), dig a pit, toss the bag in, light it on fire, and cover it up after it’s done retching out its foul black smoke.

After this, you’ll lose considerably less money while trading. 😊

@Root well the rationale sounded good based on "will they be around after ${P/E years}"

Just the timing?

What other questions do you ask?

@vigidis uhm... So your just sitting on cash now? For the last ...?

Of you want to engage in volatile short term trading, you need to be prepared to lose.

@vigidis what's the right ticket for Samsung. Did think about that but not sure how or which to buy.

Main issue was I was sitting on too much cash. But market didn't seem to go according to plan... Small bets paid off but the big ones didn't...

@bahua I don't do short term, I'm actually required to hold anything I buy for 30 days before I can sell.

Reminds me of wallstreetbets. Fomo is a bitch

@vigidis the other thing is it seems more only cash is safe.... Technically I have positions in bonds and gold but they also went down too...

@donuts

That's absolutely short term. I was referring to short term, as compared to years.

@bahua what's short term?

@donuts

I warned against the dangers of short term trading. You responded that you don't do short term, and proceeded to describe a short term strategy, and I identified it as such.

@bahua Hey, scalping is great fun! Especially during that super predictable sideways sine wave 👌🏻

@bahua oh the 30 days I mean is due to trading requirement because of work. But unless something really changes, usually I don't plan on selling just for tax reasons... But still to see it drop this much in a week was sorta like did I buy the wrong thing

@donuts If you think a 30 days hold is long, you are a short term trader. If you have tickers on your phone, you're a short term trader.

Not that that's per definition "wrong", but it's inherently very risky.

A long term trader says "This company got a new CEO, I believe that this person is going to bring them to new heights, I'm going to park my money there for 5-10 years".

Reacting to gamestop hype, or buying TSMC because of Corona & silicon shortages, is opportunistic.

Again, it is not "wrong", but it is risky, and the chance of profit isn't high because the average retail trader gets their news & analysis with such a delay that by the time we buy, the stock is already overvalued again and probably due for a downward correction.

My opinion: For retail traders it's a fun hobby, to see if you can "beat the system" here and there, but not as "investments" to rely on.

Buy a cheap house and renovate it. Invest in your own knowledge and career. Best ROI you can get.

@bittersweet ah ok, 5yrs... Orly should reevaluate the pharma's guess that's definitely short term...

So what do you do when the stock you bought sorta drops by like 5-10%?

@donuts

The positions of individual holdings I have take spills like that all the time, usually in line with daily fluctuations in key indices like the DJIA. But they recover over time. The growth is much slower than a short term gain, but it's still definitely growth.

These blips can and do cause red numbers well into the five figures, but that's meaningless, because other days there'll be green numbers just as big. But none of these fluctuations are reason enough to buy or sell, because the big picture is still growth, year over year.