All I know is complete hold is also not good and complete trade is also not good (as I miss a lot). At some point of time, you need to keep 70% in stock and 30% in cash waiting for opportunity.
Even in my trading, I find the asset allocation issue. Even though I find opportunities, I am unable to make it 100% in cash and 100% in stock. Trying to balance a lot.
Market is always in waves, only those who make money out of this is great. Otherwise, waste of time, simply buy QQQ and hold for long.
I always take margin to almost maximum and never hold any cash. I like this method better than holding cash because that way I’m always invested to the maximum extend possible 100% of the time.
Using margin is ok if you can handle the stress. I notice both you and @Jil turn nasty when price moves in an unfavorable direction
Disclosure or subtle bragging (whatever you want to put the meaning into). I didn’t hedge or use margin for my AAPL and S&P position. Yet achieve over 30%+ CAGR for 25+ years for AAPL.
Apple earning also looks bad. Negative growth in products but services aka “milking existing customers with crappy defaults” is still growing a little bit though.
It is not about Sleep or Stress, With the high stake of your stock position, this is not Greed, but reckless adventure.
Market will suddenly become volatile and Bill Hwang type of margin sale will wipe entire stake and bankrupt suddenly. Margin has the same risk of stoploss.
When money is high, we need to reduce risk (avoid such risk). Lucky, you have not faced any such, but you need to safeguard your investments.
If you don’t want to be ordinary, you need to be reckless. There’s no other way around that. You can’t have the cake and eat it. Sacrifice will need to be made.
Great wealth doesn’t come with dumb luck. You have to be able to tolerate what others can’t. You have to do the unimaginable. Did you see that Jason Debolt guy sold his mansion and now renting an apartment just to grab an extra 4000 shares of Tsla at rock bottom? That’s the kind of dedication it takes.
I think we’re in a new bull. Inflation is basically done. If necessary the fed has some wiggle room to cut rates. The bottom may be a bit rocky but is very likely in.
First test of the bull rally. I am an all-season bull, don’t get me wrong. But I suspect we will see some pullback soonish to shake out some last minute FOMO bulls like Puru.
Clearly, you do not understand the mistakes from Bill Hwang.
He had only 10B invest in VIAC (now PARA), Pledged those stocks, borrowed cash from another bank, invested in VIAC. VIAC went up, he borrowed further in many banks (7 banks) and invested in VIAC.
By doing that VIAC went up from $15B to $100B. Seeing that stock went up, CEO (like EM) sold his just 3B stocks.
Stock value dropped to 90B which triggered one bank margin call (MS or GS or JPM) sold his stock, stock went down to 70B, within a day all 7 banks margin calls wiped his holdings.
Finally, he is net 20B negative, bankrupt.
When such things happen to Billionaire, it can equally happen to anyone with reckless margin.
Now, Warren Buffet holdings 4.5B of that stock (PARA)!
I am aware a few AAPL investors who caught the early bull run (2010s) in AAPL yet their accounts were wiped out. Using margin to buy shares identical to the margined underlying racket up the risk tremendously.
I think you are too obsessed with all these extreme cases of failure which is blocking you from achieving financial independence and great wealth. You need to be a optimist in life and not so pessimistic all the time. That’s why you invested so little into the stock market which will make no difference to your life in the end.
You’re like a spectator commenting on other people’s actions while doing very little yourself. This could be entertaining but does it really change your life in any meaningful way?
