This week I am traveling which makes it a bit harder to stay on schedule. But just like anything, it’s important to try and keep as much of a schedule or routine as normal as possible.
As I said above, I’ve taken two trips between last weekend and this one. (I’m updating this super late: Thursday after the weekend late.) I left town after the stock market closed on Friday and was unable to write up the gruesome details.
4 words can summarize this week: I took a bath! Thursday was my biggest loss ever and Friday was right on its heels. I tried my best to sit tight but there came a point where I had to do something. All my big gains were just flowing down the drain.
I sold all my TQQQ right away. I was a little on margin and I definitely didn’t want to be on that in this market. Then I started selling all my newest purchases. I continued on even into the next week. Today I even sold some NVDA that I bought clear back in May.
I only hold 7 stocks that I bought all last spring or the beginning of the summer. Two thirds of my portfolio is now in cash. And if tomorrow is ugly as well, I’m going to start sloughing off my Microsoft and Apple stock that still have nice gains.
Goodbye Old Friends
The stocks that are long gone that I’ve talked about here are Tesla, Coupa Software, Shopify, Netflix, Square, Spotify, and Cloudflare (NET). I feel like I cut off my right arm. I lovingly chose those stocks and they had performed so well But I didn’t want to lose ALL my profit. So they had to go.
A Way to Hedge
The only stock I bought today was SQQQ. That is like the opposite of QQQ. If the NASDAQ is going down, SQQQ goes up. So I made a nice 6% profit on that trade. I thought about holding it over night, but I ended up selling it with that gain. I’ve tried this (SQQQ) a few times before and sometimes I guess right and sometimes I guess wrong. I decided not to be piggy and take the profit. But then I turned around and bought it again in a different account and am holding it overnight anyways. I’m pretty much taking a risk if the market turns around overnight. But I really feel like the stock market is on shaky ground and could really drop.
The last time the market crashed in March of this year, I did not know about SQQQ. Unless I was in cash, I lost money. So it’s nice to still have a way to make some money. Just remember, if the market goes up, you lose money. You have to babysit it.
So what are the gruesome details from last week until today, Sept. 10? My total loss overall since August 31st is -7%. Ugh. Gross. Doesn’t feel good. On the upside, I’m still way up since my lowest in April.
Monday, August 31, 2020
This morning the two stocks that just split took off like there was no tomorrow. AAPL and TSLA screamed up 3.39% and 12.5% respectively. I did sell 2 stocks because I felt like they weren’t moving and both had broken through the 50 day line. DXCM reversed in the day but I like using the 50 day rule as my exit point. I still did very well for the day, and I’m not too bothered about the reversal. If tomorrow continues higher on volume, I might buy it back. But there are other stocks out there. My only tinge of regret was that it wasn’t a technology stock and one of my few diverse stocks. I’ll find something else though or buy it back. My portfolio went up 2.2%.
Tuesday, September 1, 2020
I didn’t buy or sell anything this day. But again, it was an amazing up day, 2.1%.
Wednesday, September 2, 2020
There were some warnings from the experts that things are getting extended. I decided to sell a portion of my TQQQ just in case. My portfolio had it’s first down day in a little bit, – .9%. But after having such good days, it’s easy to swallow.
Thursday, September 3, 2020
Market is really down today. My portfolio is down over 3%. I sold more of TQQQ although when it is already down at the opening, it’s hard to know what to do. I was about to sell some more but I looked at the 5 minute chart and it was starting to move back up. So I canceled the sale but will continue to watch it. That’s the problem with buying a leveraged ETF. It will have much bigger swings and will need to be babysat more.
COUP (Coupa Software) also got put on the chopping block as well. It dropped a bunch yesterday and gave me a 5% loss today. Earnings are next week and I’m not going into earnings with a loss. So it’s gone.
So now it is late at night and I finally got a chance to see the final outcome. This was definitely my worst day EVER! I had other things to take care of but because the market was just about falling out of the sky, I had to stay on top of it. I even bought and sold SQQQ twice. I only made $250 from it because I really needed to buy a lot more to properly hedge. But I have no crystal ball to tell me which way the market is going to go, so I always buy too little (if it’s going down.)
I also sold some of my AAPL stock and the rest of TQQQ. Glad I did too. I sold anything that didn’t have a cushion, like NET (Cloudflare.) Actually I did have some cushion with that one but it was a small position in my portfolio and it was easy to cut.
My biggest losers at the end of the day was TSLA and AAPL -9% and – 8%. Even though I was back to almost a third in cash, I still had a -6.5% loss. Ugly, ugly, ugly.
What do I do tomorrow? The futures are looking pretty nasty on all the stocks I own. Unless something turns around real fast before the opening, I’ll be ditching more stocks fast.
Roundtripping: No Profit, No Fun
The chance for more opportunity is to have cash to buy stocks back after they have bounced off of the 50 day line. But I have to sell stock to have the cash to do that. And how much do I want to round trip my big profits? On Tuesday I had profit of 41% in TSLA. Today I have a 21% profit. Do I want to give that up? Not really.
Round tripping a stock means you let the profit go back to 0. You never took any profits on the way up or the way down.
Getting chopped up in the market means you buy when the price is too high, and you sell at a loss. And that is my dilemma. Do I sell tomorrow when it goes down more, just in time for it to swing higher or do I just sit tight, and possibly watch it go down even more? I guarantee every trader has been in my position. And it doesn’t feel very good. In fact, gut kicking.
Until next time,
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