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I traded on the thesis of "I don't care, I'll wait". I mean, either money becomes worthless to have or the stock market goes back up. To me, it seems the upsid
by madamelic 6y ago
I traded on the thesis of "I don't care, I'll wait". I mean, either money becomes worthless to have or the stock market goes back up.
To me, it seems the upside of _not_ trading is much smaller than the upside of betting that the market will go back up eventually like it has every time so far.
I have a very tiny (10 shares) amount in cruise lines. The shares were $150 / share pre-COVID, I bought them for $30 / share. So my downside is $300 (minus tax benefits) but my upside is $1,200 (minus taxes). Nothing changed about those companies except having to weather the pandemic.
I even made $70 on call options in a week for the same company. Definitely not trying my luck again but it was an education.
- vsareto 6y ago>I mean, either money becomes worthless to have or the stock market goes back up. It could have just remained low for a long period, and you may have been forced to cash out to stay off the street depending on how much you put up. No one was able to predict it in March.
- ghiculescu 6y agoGiven he put up $300 I doubt it's a real concern.
- vsareto 6y agoPeople putting up money they can afford to lose just don't care about the risk, but that risk-free attitude is somehow getting into mainstream investing advice.