You better sell before the crash then. Sell at the top and re-buy at the bottom.
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Definitely, it is not good to sell hanera AAPL any time in future based on volatility.
Remember manch was telling that he wants to take profit periodically.
The current situation is like this when market is full swing, better to take profit like what Druid has done. This way, you take profit and have some cash to reinvest later unless we have strong dividend payers.
For example: Yesterday I freed up some money by selling some stocks
Today , I bought OSUR at 13.75 (limit price), it jumped 15%. This is accidental, I did not expect that to go 15% today, but was expecting it to 10% in 3 months.
Same way, last friday I bought SQ, it is 10% up. I was aiming 10% in 3 months.
Not the same. I always sell the losers and keep the winners. Or at least the ones relatively not winning as much. I am surprised to see you guys sell the winners.
SQ has gone up too fast. It’s a great company and should do well long term.
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It is some kind of strategy, mostly copied from buffet.
If I want to hold 100, I will buy 200 first. If it goes up 10% or 20%, then I sell 100 stocks, keep the 100 forever.
If it goes down 5% or 10%, buy again 100, hold until it comes back to original price or above 10%, sell the original 200 take profit
Sample I provide, but may vary different situation, or case to case.
Ultimate Aim is to make profit and see our investment grows bigger. Once the investment reaches 25% or above, I do not prefer to sell. If Stocks fall suddenly, they do not fall more than 25% in single day, still I can come out of market with positive gains.
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But can you actually tell which are winners? I don’t think so. Otherwise you would’ve bought bitcoin back in 2015. Also, today’s winner might not be tomorrow’s winner. So it might be a bad idea to buy bitcoin now.
Just ride the trend and let the trend tell you. I have been cutting Facebook and Apple to make room for Chinese shares like Tencent and Alibaba. Works out OK so far.
No need to cut anything… just buy more with new money…
Sugar daddy, is that you?
If history is right, the bull market will last until rates increase 2.75-3.25%. That means we have a ways to go. I’m debating buying enough Jan, 2020 SPY puts to insure my whole portfolio, then leveraging up. It’d cost 8.6% to buy 2-years of insurance to then be able to leverage huge to the upside. If the market tanks, I’d do no worse than break even. If the bull market continues, I’d have my leveraged gains minus the 8.6% insurance. Puts are crazy cheap right now.
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I held a inverse 2x etf as part of my positions in 2012 for a few months. This was to be insurance against a market drop. Of course, my net gains for that year were lesser as I sold it for a loss. I’ll probably explore put options this time.
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Every rate hike happens for appx 1000-1250 points of DOW. With new FED, if they continue to increase the rate 3 more times in 2018.
I just reviewed the 10 year note, it stays same level (2.45% to 2.37%) during the start of 2017 and now while 3 month bond raised 0.5% level to 1.3%. If this trend continues, in one year 3-month bond exceeds 10 year note, which will lead to recession.
With current rate, bitcoin will cross $15000-$20000 level easily to wreck break the economy as Hedge Funds are getting into this hiking crazily.
We have a fair chance to get down any time in 2019.
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Nightmare senario… The house tax bill passes and tanks real estate. then Trump gets impeached and the stock market tanks… 2019 is going to be a hell of a ride…
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There’s no reason for the whole country RE to tank. It’d only impact high priced areas. The vast majority of people have a mortgage under $500k and pay under $10k in property taxes. I think people would just cut back on vacations and other stuff. You need a place to live.
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I am just saying this is the nightmare worst case. hope It does not happen but there is a 10-20% chance that if the hot blue state real estate markets falter it could cause a national recession… plus a President kicked out of office is recessionary… ala Nixon in 1975.
Where did you read this?
Please let brokerage firms make money.
So we have more than a year of bulls. Let’s dance.
Austin is beckoning.
Zero state income tax.
RE below $500k.
Come baby come.