Safest way to make 1% per month
- Thread starter tonyf
- Start date
Buy a junk house every two years. Occupy as your primary residence. Fix and flip and you pay no capital gains tax. I've made far more money doing this than I have in appreciation on my financial assets.
Out of curiosity, have you ever calculated what that averages in hourly wages if you count all your and your family's hours put into the project? I found I was at sub $50 the one time I did this, but then it was my first (and only!) time so I'm sure I was pretty inefficient at it.
It's not suppose to be sexy, it's suppose to work. It's not a buy the dip strategy, it's a numbers strategy using other traders to carry the load on the downturns. The leverages ETF's give you enough premium to make it work. Just back test it over any 18 month period of time in the last ten years and don't sell out on downturns. Sell calls when you have buyers above your original profit target and never sell at a loss.
You probably never heard of .com bubble where Nasdaq had a little dip.
In short, no I havent! I do cherrypick tasks that I can handle and that have good bang for the buck. Right now contractors are charging outlandish rates, so your effective hourly wage is pretty good. I got bids on a simple painting job for $4500 and this wouldve been a 15-20 hour job for me...about $225 per hour! (I took the $1500 bid ). As long as I dont get fired from my day job, I am ok with grunt work. On my previous house I contracted the work out back in 2012 when contractors were cheap and eager to work. Same work would cost me 2x or 3x if I started the project now.
Short SQQQ is the most reliable way to make profit. I calculate from 9/4/2019- 9/4/2020,during which a big market crash occur, so it was unfavorable to shorting SQQQ， but still it was winning an average 14% per month, making much more than longing TQQQ, because of decay.(long TQQQ makes about 7% average per month during the same period.)
So according to OP, I will make some rules:
1. shorting SQQQ with 10% account capital. This will be allowed you to make at least 1.4% per month.
2. Rebalance every 10 days if: the current 10 days account balance is a plus compared with last 10 days.
This is because when market goes up, if you don't rebalance, the percentage profit will decrease as SQQQ price goes down.
While if market goes down, and you rebalance, your loss will increase because your short shares will increase as rebalance occur. So when your account balance go down, you don't rebalance.
So according to OP, I will make some rules:
1. shorting SQQQ with 10% account capital. This will be allowed you to make at least 1.4% per month.
2. Rebalance every 10 days if: the current 10 days account balance is a plus compared with last 10 days.
This is because when market goes up, if you don't rebalance, the percentage profit will decrease as SQQQ price goes down.
While if market goes down, and you rebalance, your loss will increase because your short shares will increase as rebalance occur. So when your account balance go down, you don't rebalance.
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Not TQQQ itself, of course not. But the idea of a leverd product amplifying IV is. The problem with levered indices is knowing real leverage, by looking at operational and financial leverage of each of the underlying.
My version of short SQQQ have two improvements over their version:
1. Mine version rebalance every 10 days compared with theirs to rebalance monthly.
With compounding, mine version makes more profit.
2. Mine version avoid rebalancing in a market downturn, therefore reduce drawdown.