Investing Lessons
Just some lessons that I have learned along the way, either mostly from my real experience or from the books that I have read.
I have always thought that taking risks is beneficial. 30 or 50 years from now, I will regret NOT taking risks more than taking risks and fails. AND it has been true: My gains have always outweighed my losses. Even if I lose, the important thing is what I learned from my losses. What is the lesson?
Fool me once, shame on you. Fool me twice, shame on me, right? :P
This note serves as a reminder for me in years to come.
1) Don't listen to hot tips (TWER, 2016, DGLT 2017)
Do your own research please!
2) If you buy at a good low price, keep the stock. (WFC, 2016)
Don't sell for early little gains
3) Wait for the real BIG dip. (PYPL, 2016)
Have some cash ready anytime. It's beneficial to buy on a REAL low.
Just buy the fucking dip and wait. Simple and effective.
Another way to think about this is, never buy the hottest stock in the hottest industry that is bid to the highest price.
Don't go chasing waterfalls.
4) Always use LIMIT BUY or LIMIT sell. (IRBT, IMGN, 2017)
Don't sell at market price, you would be selling cheap.
"When you sell in desperation, you always sell cheap" (IRBT, IMGN, 2017)
5) When in doubt, sell/buy half or part of it first (IRBT, IMGN, 2017)
6) Dividend capture doesn't work. Don't bother (CLM, 2017)
7) When market goes up a lot, prepare for downturn by TVIX, UVXY, SPXU, SQQQ, SDOW.
Load up on XIV for reverse of TVIX too, when market reverses.
ONLY get in TVIX and UVXY when market goes up a couple days in a row. Better yet, don't get into them. You would just lose money because of panic sell. Worse, you would lose a lot of time watching these intraday.
8) No more leveraged. Or only swing leveraged zero-valued fund. (XIV, 2018)
OPTION TRADING
1) Only trade vertical spread based on support and resistance. And preferably on index, or stocks that you have watched for a while. Index is still preferable (TWTR, 2017).
2) If you're not sure, just sell naked put of buy covered call (TWTR 2017)
3) Avoid shorting as much as possible (TWTR, 2017)
AGAIN, STOP shorting the market (SPXW, 2018). Just do covered call when you're not sure.
4) Stricter stop loss (SPXW, 2018)
Maybe 25% stop loss order
5) Wider spreads for vertical bull spread (RUT, SPXW, 2018)
For example, AAPL 165P-160P is better than RUT 1530P-1520P
Use IWM and SPY instead of RUT and SPX
TO BE CONTINUED...
I have always thought that taking risks is beneficial. 30 or 50 years from now, I will regret NOT taking risks more than taking risks and fails. AND it has been true: My gains have always outweighed my losses. Even if I lose, the important thing is what I learned from my losses. What is the lesson?
Fool me once, shame on you. Fool me twice, shame on me, right? :P
This note serves as a reminder for me in years to come.
1) Don't listen to hot tips (TWER, 2016, DGLT 2017)
Do your own research please!
2) If you buy at a good low price, keep the stock. (WFC, 2016)
Don't sell for early little gains
3) Wait for the real BIG dip. (PYPL, 2016)
Have some cash ready anytime. It's beneficial to buy on a REAL low.
Just buy the fucking dip and wait. Simple and effective.
Another way to think about this is, never buy the hottest stock in the hottest industry that is bid to the highest price.
Don't go chasing waterfalls.
4) Always use LIMIT BUY or LIMIT sell. (IRBT, IMGN, 2017)
Don't sell at market price, you would be selling cheap.
"When you sell in desperation, you always sell cheap" (IRBT, IMGN, 2017)
5) When in doubt, sell/buy half or part of it first (IRBT, IMGN, 2017)
6) Dividend capture doesn't work. Don't bother (CLM, 2017)
7) When market goes up a lot, prepare for downturn by TVIX, UVXY, SPXU, SQQQ, SDOW.
Load up on XIV for reverse of TVIX too, when market reverses.
ONLY get in TVIX and UVXY when market goes up a couple days in a row. Better yet, don't get into them. You would just lose money because of panic sell. Worse, you would lose a lot of time watching these intraday.
8) No more leveraged. Or only swing leveraged zero-valued fund. (XIV, 2018)
OPTION TRADING
1) Only trade vertical spread based on support and resistance. And preferably on index, or stocks that you have watched for a while. Index is still preferable (TWTR, 2017).
2) If you're not sure, just sell naked put of buy covered call (TWTR 2017)
3) Avoid shorting as much as possible (TWTR, 2017)
AGAIN, STOP shorting the market (SPXW, 2018). Just do covered call when you're not sure.
4) Stricter stop loss (SPXW, 2018)
Maybe 25% stop loss order
5) Wider spreads for vertical bull spread (RUT, SPXW, 2018)
For example, AAPL 165P-160P is better than RUT 1530P-1520P
Use IWM and SPY instead of RUT and SPX
TO BE CONTINUED...
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