Down to about $90k, where would you park it if your trading skills were trash?

[SunTrader]

Sure, if you are just going to sit there and wait, then you would have only made $1617 if you bought at the worst time in 2022...however if you used the time to average down...

example.

If you bought spy at the worst time in 2022, and averaged down during the decline:

100 479 47900
100 427 42700
100 411 41100
100 380 38000
100 353 35300

500 410 205000

You would have 500 shares @ 410

Today's price is 495.17

So your profits for just waiting are 42k...and this is worst case scenario. Do you think you could have done better than a 20% roi trading while being a slave to your computer every day instead couch surfing netflix?

So literally you are correct. Time IS money

If you lived through many corrections, some of them very deep, you don't average down.

And if you really trade, not invest, you go short. Rather than sitting around waiting or worse add to a lewzer that may or may not come back ... in time. Shocking I know.

 

[deaddog]

Sure, if you are just going to sit there and wait, then you would have only made $1617 if you bought at the worst time in 2022...however if you used the time to average down...

example.

If you bought spy at the worst time in 2022, and averaged down during the decline:

100 479 47900
100 427 42700
100 411 41100
100 380 38000
100 353 35300

500 410 205000

You would have 500 shares @ 410

Today's price is 495.17

So your profits for just waiting are 42k...and this is worst case scenario. Do you think you could have done better than a 20% roi trading while being a slave to your computer every day instead couch surfing netflix?

So literally you are correct. Time IS money

I've often wondered if you trade for a living where do you get the capital to average down?

 

[wxytrader]

If you lived through many corrections, some of them very deep, you don't average down.

And if you really trade, not invest, you go short. Rather than sitting around waiting or worse add to a lewzer that may or may not come back ... in time. Shocking I know.

I swear shorts have got to be some of the dumbest traders out there. They talk the most even though they don't make any f****** money. Why short it and take unlimited risk? SPY could gap up and NEVER return to your price ..it ALWAYS returns to aths. It's the long bias effect.

 

[wxytrader]

I've often wondered if you trade for a living where do you get the capital to average down?

Well I was giving a worst case scenario buying at aths lol. I am typically a bottom dweller so usually do not need a bunch of averaging down before the bottom is in.

 

[SunTrader]

I swear shorts have got to be some of the dumbest traders out there. They talk the most even though they don't make any f****** money. Why short it and take unlimited risk? It could go up and NEVER return to your price ..it ALWAYS returns aths. It's the long bias effect.

And long only so-called traders are all geniuses ............ until. Like today for instance - ES is down -1.75% Traders trade price movement. Bus riders wait for the bus going uphill.

"Unlimited risk" lol

First of all, risk is of an event happening, not capital deployed.

Second, name me one symbol that has ever gone to infinity.

Third, stops handle long drops and short pops.

Fourth, like I said previously and many others far smarter than me, time is money. Sticking in a trade investment when price is going the other way is a waste of time, when position can be closed and new investment can be made in something else that is heading the right way.

 

[wxytrader]

Third, stops handle long drops and short pops.

Stops? How would your stop loss help you on a day like today if you're long? Or a gap up AH on your short? Stops are a wot.

Fourth, like I said previously and many others far smarter than me, time is money. Sticking in a trade investment when price is going the other way is a waste of time, when position can be closed and new investment can be made in something else that is heading the right way.

Exactly, time is money and in my scenario you get a 20% ROI IN THE WORST CASE SCENARIO for just averaging down and waiting. Why would I want to close that to go chasing profits somewhere else?

 

[deaddog]

Stops? How would your stop loss help you on a day like today if you're long? Or a gap up AH on your short? Stops are a wot.

Stops prevent you from taking large losses. Or from tying up your capital for years as you wait for the price to recover.

 

[wxytrader]

Stops prevent you from taking large losses. Or from tying up your capital for years as you wait for the price to recover.

Ahem...20% ROI. I would rather take a huge paper loss and average down than take numerous small realized losses every time the candle dips and stops me out before a big move up lol. Trading or investing I am not using stops...I have run the numbers and they are deleterious to profits. Stops do nothing more than create liquidity for large orders...that is their true purpose being peddled to retail as a necessary evil to prevent huge losses lol. Bottom line they do nothing AH anyway when everything happens so a moot point. That said, of course I am not going all in with a single company...always etfs or I'd scale down bigly.

 

[SunTrader]

Stops? How would your stop loss help you on a day like today if you're long?.......

Seriously?

 

[deaddog]

Ahem...20% ROI.

Nice, what has been your maximium drawdown?
I have had similar returns with less than 10% drawdown and been in cash for most of the major market drops.(2008 & 2020)

I would rather take a huge paper loss and average down than take numerous small realized losses every time the candle dips and stops me out before a big move up lol. Trading or investing I am not using stops...I have run the numbers and they are deleterious to profits. Stops do nothing more than create liquidity for large orders...that is their true purpose being peddled to retail as a necessary evil to prevent huge losses lol. Bottom line they do nothing AH anyway when everything happens so a moot point. That said, of course I am not going all in with a single company...always etfs or I'd scale down bigly.

I fund my lifestyle with my trading so can't really afford to sit and wait for stocks to recover. I don't want to have to sell near the bottom.
I'm quick to take small losses and I don't hold losers in my portfolio.
I'm not well diversified. To my way of thinking that just leads to average returns.
You have to do what works for you.