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Investment Week Learnings - Stick to your strategy

This week has been a good week up to now:  I executed my new strategy:  1) When you see a major spike or dip post earnings AH, go the reverse and sell PH  My argument is that it takes an overnight to subdue to shock so you are in to capture to 1-2%.  This worked for every stock I've tested it on:  1) Shopify  2) Starbucks  3) Apache  4) Microsoft  5) Netflix  - All of which worked excellently. Then I decided to deviate after the strategy failed with AMD. I used the same strategy and it backfired. AMD continued spiking post 10% AH rise. I had to cut loss, so instead of 2% gain that I was going for, I ended up losing 6% the next day.  This threw a curveball at me. I decided I will bet on the market on big tech earnings. I decided since Microsoft and Netflix dropped despite amazing earnings, I will use the same logic.  Of course, it backfired, I am now staring at a 5-7% loss across Microsoft, Amazon and Facebook.  So the ulti...

Generic Investment Post

There are multiple ways of investment and managing your fund. I am no fund expert nor am I trained on any certified level. The levers I know are as following: 1) Real estate - rental income 2) Stocks & ETFs - company, industry dependent 3) Bitcoin - future potential of a decentralized currency To dive deeper - Real estate  You don't have real rental income until you actually own one, and rent one out. Essentially, you need to have 2 properties to start this. Staying in one then selling it for another better place is not passive income. In prime location and prime cities, it is no longer easy to find rents that will match, let alone exceed your mortgage payments. That said, unless you have a high downpayment (20-30%), paying some to top off your rental income is highly possible. Stocks & ETFs Fortunately and unfortunately, this is the most volatile time but also the most exciting time. There is a lot to gain, and also a lot to lose. I've lost the most he...

Market trade 4.1.20

Pointers: Market rallied 3 days last week. Friday down. Monday Up. Tuesday down big. Wednesday pointing down. 1) Bitcoin at to 6.2K again, No position for now 2) S&P: 2.3K, Dow 21K, 3) Monitor XEBEF, tanked to 2.54 again after 2.73 high, tanked to 2.03, tanked to 1.89 then to 1.5. 1.37 was lowest point back to 1.37 now up to 1.93. Back down to 2.06. $3K position at 2.06 (bad move) Down to 3K from 13.5K in January  1) Today will be red day 2) Need to strategize so little money left Actions: No day trades. Webull maybe 1) Calls Apple - sold Microsoft - hold TDOC - barred sold 2) Puts Darden - to sell at open Bought spy put 3) Stocks MSFT - sold - swap to Zoom (sold) and TDOC (held) ALK - hold DAL - hold - dont sell XEBEF - hold - don't sell - sold half Learnings: 1) Timing : Don't buy puts after historic drops. Don't buy call after historic rise. Buy reverse EOD after reverse. Don't buy reverse early of the day. Understand there's ...

Market Trade 3.24.20

Pointers: Market up 900 points and pointing up. Looks like a very green day 1) Bitcoin up to 6.7K again, No position for now 2) S&P: 2.2K, Dow 18K, 3) Monitor XEBEF, tanked to 2.54 again after 2.73 high, tanked to 2.03, tanked to 1.89 then to 1.5. 1.37 was lowest point back to 1.37. No more hold 7 .1K start, expect to go to 5K  Lost 3K yesterday  1) Today will be green up to bill signing 2) Hold your puts until Friday. Today and tomorrow may be green at this point Actions: No more day trades. Chase TDOC, UAL, Chipotle?, AMD? 1) Calls 2) Puts 3) Stocks Bull: TDOC Bear: SPXS, AMAT TTD SPG Volatility: TVIX Hopes: 1) Market turn after bill passed? Learnings: 1) Timing : Don't buy puts after historic drops. Don't buy call after historic rise. Buy reverse EOD after reverse. Don't buy reverse early of the day. Understand there's no more volatility DO NOT BUY before EOD on options Do not cut so soon on spike up. Watch what you buy 

Market trade 3.20.20

Pointers: Market up 300 points and pointing up. Looks like worst weekend 1) Bitcoin up to 7K again, No position for now 2) S&P: 2.3K, Dow 20K, 3) Monitor XEBEF, tanked to 2.54 again after 2.73 high, tanked to 2.03, tanked to 1.89 then to 1.5. 1.37 was lowest point. No more hold 6.8K start Actions: No more day trades. Bear: Play SPXS, SPXU, VXX or TVIX (high leverage) 1) Calls 2) Puts 3) Stocks Bull: Domino and Chipotle Bear: TVIX Hopes: 1) No more day trades. Watch your overnight plays close. Option plays only for high cap. Learnings: 1) Timing : Don't buy puts after historic drops. Don't buy call after historic rise. Buy reverse EOD after reverse. Don't buy reverse early of the day DO NOT BUY before EOD on options Do not cut so soon on spike up. Watch what you buy 

Market Trade 3.18.20

Pointers: Market up 1000 points and now down 1000 points. 1) Bitcoin Down to 5K, No position 2) S&P: 2.6K, Dow 21.5K, 3) Monitor XEBEF, tanked to 2.54 again after 2.73 high, tanked to 2.03, tanked to 1.89 then to 1.5. No more hold 6.8K start Actions: Accidentally bought 2 apple calls instead of one. Cut Fedx losses (too early). Do not follow if you don't know. Will get bared from 90 days day trading. 1) Calls 2) Puts 3) Stocks Bull: S&P, DJIA - to sell by end of day Bear: TVIX and SPXS Hopes: 1) Keep an eye on Tesla, SPCE and Plug power. Perfect for day trades. Plug reporting this week Learnings: 1) Timing : Don't buy puts after historic drops. Don't buy call after historic rise. Buy reverse EOD after reverse. Don't buy reverse early of the day DO NOT BUY before EOD on options  Do not cut so soon on spike up. Watch what you buy 

Market Trade 3.17.2020

Pointers: Market crashed 3000 points yesterday and up 100 points today after the worst day in history 1) Bitcoin Down to 5K, No poistion 2) S&P: 2.6K, Dow 20.5K, 3) Monitor XEBEF, tanked to 2.54 again after 2.73 high, tanked to 2.03, tanked to 1.89 then to 1.5. No more hold 6.8K start Actions: Prepare day trade Thursday. Do not buy calls. Chase stocks on up or down trend through Fidelity but DO not buy calls. Still bear territory 1) Calls 2) Puts 3) Stocks Bull: S&P, DJIA - to sell by end of day Bear: TVIX and SPXS Apple, Clorox and Microsoft Hopes: 1) Keep an eye on Tesla, SPCE and Plug power. Perfect for day trades. Plug reporting this week Learnings: 1) Timing : Don't buy puts after historic drops. Don't buy call after historic rise. Buy reverse EOD after reverse. Don't buy reverse early of the day DO NOT BUY before EOD on options