Dazed by the downturn

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ccf
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Dazed by the downturn

Post by ccf »

In November 2021 I was within 10% of my retirement number thanks to the pandemic run up and also my "funny money" which had ballooned from 6 or 7% to almost 20% of my portfolio thanks to high flying things that have now completely tanked (very unsurprising in hindsight) and other stuff that we don't talk about here (which had even more absurd valuations)

Now I'm back to where I was in August 2020, basically post COVID crash recovery but pre run-up, and I feel so stupid that I didn't make better decisions somehow. I'm really struggling at work and having enough to retire, or at the very least take a couple years off, was the light at the end of the tunnel. Now the tunnel is suddenly much longer. I'm grateful to even have retirement savings when many people don't, and I feel lucky that the Bogleheads in my mind stopped me from being even more stupid, but this is hard.

This is like the 3rd time I've learned that "funny money" is not for me because is causes stress and wastes my time and, you know, you have to be lucky/right twice. Maybe it will stick this time.
Tooth
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Re: Dazed by the downturn

Post by Tooth »

Are you willing to share your funny money details?
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ccf
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Re: Dazed by the downturn

Post by ccf »

Tooth wrote: Thu May 12, 2022 6:58 am Are you willing to share your funny money details?
i'm embarrassed to say because i don't know why my greedy brain made me hold and hold for so long. it was a handful of things and didn't include Peloton but it may as well have been Peloton because the chart looks the same.
pasadena
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Re: Dazed by the downturn

Post by pasadena »

Yeah... I was nowhere near 90% of my "number" 6 months ago, but I totally get where you're coming from. I also did the math to see the impact on my predicted retirement date, and I didn't like it. Point is, you're not alone - we are all down a lot, and if you hadn't made those moves that you call mistakes (and I agree), the difference would be that you wouldn't have reached 90% in November. The fall would have been less painful, but you'd still be right where you are now.

Now the question is - what can you do?

First, well, nothing. It's hard, but reacting now would probably make it all worse in the long run.

Second, learn the lesson. Fun money is fun, but maybe you should remember not to let it run so much. Shave the profits when they're that high. Or do like me, ignore the account.

But what I'm getting from your post is more that you have a problem with work, than with money. If you're struggling, but cannot retire, what are your options? Can you find another job that would make you feel better?
Ramjet
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Re: Dazed by the downturn

Post by Ramjet »

Are you still buying regularly and maxing out work accounts etc.? Think of all the shares you are buying at a discount. When things recover you will likely blow past your old portfolio highs with ease
Last edited by Ramjet on Thu May 12, 2022 7:16 am, edited 1 time in total.
VT & HFEA
Tooth
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Re: Dazed by the downturn

Post by Tooth »

I believe there's not a human alive that hasn't succumbed to what you ended up putting yourself through; we are kind hardwired for it. Good learning experience for metacognition and may result in better behavior going forward.
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burritoLover
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Re: Dazed by the downturn

Post by burritoLover »

Some here will use 5% of their account for speculation. That lets you exercise that part of your soul without irreparable damage to your retirement. Since you've done this before 3 times, it is likely you'll do it again.
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Re: Dazed by the downturn

Post by Gecko10x »

pasadena wrote: Thu May 12, 2022 7:11 am Second, learn the lesson. Fun money is fun, but maybe you should remember not to let it run so much. Shave the profits when they're that high. Or do like me, ignore the account.
Yep, you have to take your profits and rebalance. I did the same thing... had an account start at 5% position, which grew to 10%, then to 15% (took a little profit, but not much), then almost to 20% before crashing. Now it's down to 4% :annoyed
livesoft
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Re: Dazed by the downturn

Post by livesoft »

Well, have you lost a million dollars yet? That's a pretty nice exclusive Millionaire's Club, so maybe something to look forward to?
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ccf
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Re: Dazed by the downturn

Post by ccf »

I like to think of it as 600k after taxes sob
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ccf
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Re: Dazed by the downturn

Post by ccf »

Gecko10x wrote: Thu May 12, 2022 7:30 am
pasadena wrote: Thu May 12, 2022 7:11 am Second, learn the lesson. Fun money is fun, but maybe you should remember not to let it run so much. Shave the profits when they're that high. Or do like me, ignore the account.
Yep, you have to take your profits and rebalance. I did the same thing... had an account start at 5% position, which grew to 10%, then to 15% (took a little profit, but not much), then almost to 20% before crashing. Now it's down to 4% :annoyed

I was selling as I reached LTCG and I had that all written out with dates but the biggest chunk of that was going to happen in mid June uuuugh. I even had a Boglehead on my shoulder saying "don't let the tax tail wag the dog" and I didn't listen
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galeno
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Re: Dazed by the downturn

Post by galeno »

We old timers watched ARK crash now just like we watched QQQ crash in the early 2000s.
KISS & STC.
tunafish
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Re: Dazed by the downturn

Post by tunafish »

Start "making more money" by being very frugal.
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ccf
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Re: Dazed by the downturn

Post by ccf »

tunafish wrote: Thu May 12, 2022 7:48 am Start "making more money" by being very frugal.
definitely. the household budget became more of a suggestion during the pandemic. I let a lot of financial good habits slide.
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Re: Dazed by the downturn

Post by an_asker »

galeno wrote: Thu May 12, 2022 7:46 am We old timers watched ARK crash now just like we watched QQQ crash in the early 2000s.
I have a feeling that QQQ will crash again like it did in the early 2000s too. But now I am more Bogleheadish. I will hold on and not sell at the lows! :oops:
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Re: Dazed by the downturn

Post by 260chrisb »

ccf wrote: Thu May 12, 2022 6:53 am In November 2021 I was within 10% of my retirement number thanks to the pandemic run up and also my "funny money" which had ballooned from 6 or 7% to almost 20% of my portfolio thanks to high flying things that have now completely tanked (very unsurprising in hindsight) and other stuff that we don't talk about here (which had even more absurd valuations)

Now I'm back to where I was in August 2020, basically post COVID crash recovery but pre run-up, and I feel so stupid that I didn't make better decisions somehow. I'm really struggling at work and having enough to retire, or at the very least take a couple years off, was the light at the end of the tunnel. Now the tunnel is suddenly much longer. I'm grateful to even have retirement savings when many people don't, and I feel lucky that the Bogleheads in my mind stopped me from being even more stupid, but this is hard.

This is like the 3rd time I've learned that "funny money" is not for me because is causes stress and wastes my time and, you know, you have to be lucky/right twice. Maybe it will stick this time.
I'm never clear on the concept of "funny money"! Is it money that may explode and make one very wealthy? Seems to me 6-7% of your portfolio is a bit much but I suspect that having that much in said "funny money" may help you get to your number. Odd that it's taken you three times to learn this isn't for you but my guess is you will continue with this approach which is fine but at 20% it's obviously very impactful on your portfolio and your mindset. How old are you, how far are you from retirement and how important at this point is your "number"? Also, do you want to take a couple years off and then go back to work? I never set a retirement number and always invested for the long term. If your "funny money" has changed your retirement date then plan to work an additional year or two and reduce or eliminate the "funny money" aspect of your portfolio.
dbr
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Re: Dazed by the downturn

Post by dbr »

I think the expression is not "funny" but "fun" money, meaning that one risks a negligible investment for the entertainment value of watching it flail around.
Corvidae
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Re: Dazed by the downturn

Post by Corvidae »

dbr wrote: Thu May 12, 2022 8:03 am I think the expression is not "funny" but "fun" money, meaning that one risks a negligible investment for the entertainment value of watching it flail around.
Yes. "Funny money" is counterfeit. That would be something else to have as 20% of your portfolio.
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Re: Dazed by the downturn

Post by finfire »

Maybe the lesson is that fun money is only considered when you are x% over your retirement/other goals? Within 10% of your goal, is still a goal unattained.

Also, letting it creep up to 20%? I'd put a limit of 5% on it...after I overreached my goals.

Did you really think the market would keep going up in the fashion it did, without turbulence/corrections/crashes?
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Re: Dazed by the downturn

Post by exodusNH »

ccf wrote: Thu May 12, 2022 6:53 am In November 2021 I was within 10% of my retirement number thanks to the pandemic run up and also my "funny money" which had ballooned from 6 or 7% to almost 20% of my portfolio thanks to high flying things that have now completely tanked (very unsurprising in hindsight) and other stuff that we don't talk about here (which had even more absurd valuations)

Now I'm back to where I was in August 2020, basically post COVID crash recovery but pre run-up, and I feel so stupid that I didn't make better decisions somehow. I'm really struggling at work and having enough to retire, or at the very least take a couple years off, was the light at the end of the tunnel. Now the tunnel is suddenly much longer. I'm grateful to even have retirement savings when many people don't, and I feel lucky that the Bogleheads in my mind stopped me from being even more stupid, but this is hard.

This is like the 3rd time I've learned that "funny money" is not for me because is causes stress and wastes my time and, you know, you have to be lucky/right twice. Maybe it will stick this time.
I lost my second comma a couple of weeks ago. I was waiting to hit 1.25 before I considered myself to really be in the two comma club. Got up to about 1.125 before rocketing back to 0.95 before the market opened today.

Who would have thought that my best performing assets would be I Bonds and my whole life policy?! (Not that I recommend the latter, but I bought it a long time ago. The returns have been around 4.2%.)

I'm still accumulating, but the road ahead is shorter than journey already travelled.

I had expected to have had rebalancing opportunities, but my AA is just a little bit off due to buying all of my I Bond allocation by April. The rest of the year's 401k contributions should balance it out.
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Re: Dazed by the downturn

Post by ccf »

finfire wrote: Thu May 12, 2022 8:42 am Did you really think the market would keep going up in the fashion it did, without turbulence/corrections/crashes?
i was really fixated on waiting out a year for long term gains. i think i knew it was a bad idea on some level because I kept rationalizing it to myself but I did it anyway.
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Re: Dazed by the downturn

Post by wolf359 »

ccf wrote: Thu May 12, 2022 6:53 am In November 2021 I was within 10% of my retirement number thanks to the pandemic run up and also my "funny money" which had ballooned from 6 or 7% to almost 20% of my portfolio thanks to high flying things that have now completely tanked (very unsurprising in hindsight) and other stuff that we don't talk about here (which had even more absurd valuations)

Now I'm back to where I was in August 2020, basically post COVID crash recovery but pre run-up, and I feel so stupid that I didn't make better decisions somehow. I'm really struggling at work and having enough to retire, or at the very least take a couple years off, was the light at the end of the tunnel. Now the tunnel is suddenly much longer. I'm grateful to even have retirement savings when many people don't, and I feel lucky that the Bogleheads in my mind stopped me from being even more stupid, but this is hard.

This is like the 3rd time I've learned that "funny money" is not for me because is causes stress and wastes my time and, you know, you have to be lucky/right twice. Maybe it will stick this time.
You need a new perspective. You are probably within 5 years of retirement.

The average bear market lasts 2 years. You are going through it while you are: 1) still employed; and 2) (probably) near your peak career earnings. This is better than it occurring AFTER retirement, such as if you had hit your retirement number in November and retired.

This means that just before retirement, the stock market has gifted you an opportunity to systematically build up your nest egg at lower valuations while you're still working, and while you have the best ability to take advantage of the opportunity (highest income and highest savings rate of your career.)

If in November 2021, you were within 10% of your retirement number, then you were close to retirement. Systematically build up assets while they're on sale, and by the time the market recovers to its previous peak, you should have reached your number.

Where did I get the 5 year number? The worst US bear market historically was during the Great Depression. That took 5 years before the market recovered to the point it was before the crash. If it takes 5 years for the market to recover (and if you're dollar cost averaging during that whole time), then you shouldn't be 10% short at recovery. You should be finished.

And if the bear market is 1-2 months (like the COVID crash) or 2 years (like the average) then you're back to where you were before and will probably need a few more years.

We invest in the stock market because it can give great returns over long time periods. The downside is that it is unpredictable, and subject to volatility. This is a feature, not a bug. If the market was safe and predictable, you would not get the same returns. In other words, volatility is what you signed up for. If the market can rocket up, it can also rocket down.

If you have a bond position, you may still have the option of taking a few years off. Maybe not 25 years, but as long a period that those bonds cover expenses. I wouldn't recommend spending them that way, because of the opportunity cost. But it may help your peace of mind.

If you do not have a bond position (100% stocks), have no emergency fund, and are also trading bitcoin and individual stocks with significant portions of your portfolio, then you're in for a lot of uncertainty, but the previous statements about going through a bear market while employed still hold. The ride has already left the gate. Don't lock in your losses now. If you're in that situation, you should post your portfolio for advice to see if people can help you take the least costly way to get to a safe space where you can ride it out.
Last edited by wolf359 on Thu May 12, 2022 9:46 am, edited 1 time in total.
finfire
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Re: Dazed by the downturn

Post by finfire »

ccf wrote: Thu May 12, 2022 8:54 am
finfire wrote: Thu May 12, 2022 8:42 am Did you really think the market would keep going up in the fashion it did, without turbulence/corrections/crashes?
i was really fixated on waiting out a year for long term gains. i think i knew it was a bad idea on some level because I kept rationalizing it to myself but I did it anyway.
A cautionary tale. Thanks for posting!
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Re: Dazed by the downturn

Post by KlangFool »

OP,

A) I only gamble on individual stock that may go up 20X to 40X.

B) For those stocks, I have a trading rule that when it triples, I would sell 50% of it.

C) I would locked in my gain and then, it won't matter if it goes down to zero. I still make 50%.

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poker27
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Re: Dazed by the downturn

Post by poker27 »

I’m certainly not freaking out, but disappointed with the ‘crash’. I considered a move and beginning to look for a new job, which I will likely put on hold as I feel safer due to my longevity.

Issue for me (probably most of us)…. If the market crashed 3 years ago, I had much less $ invested. So a 20% clip off a bigger # hurts more the. It use to, IMO.

If the market doesn’t eventually recover, we all have bigger problems. Im continuing to put $ into the market, as it becomes available.
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Re: Dazed by the downturn

Post by finfire »

KlangFool wrote: Thu May 12, 2022 8:59 am OP,

A) I only gamble on individual stock that may go up 20X to 40X.

B) For those stocks, I have a trading rule that when it triples, I would sell 50% of it.

C) I would locked in my gain and then, it won't matter if it goes down to zero. I still make 50%.

KlangFool
"A) I only gamble on individual stock that may go up 20X to 40X." - What's the secret for finding these gems?
Mike Scott
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Re: Dazed by the downturn

Post by Mike Scott »

We are all betting that the stock market baseline will continue to increase over time.
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Watty
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Re: Dazed by the downturn

Post by Watty »

ccf wrote: Thu May 12, 2022 6:53 am This is like the 3rd time I've learned that "funny money" is not for me because is causes stress and wastes my time and, you know, you have to be lucky/right twice. Maybe it will stick this time.
So, have you actually sold off the last of those stocks and the other "stuff" and moved that money into stock and bond index funds?

If you you may not have actually learned the lesson.
finfire
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Re: Dazed by the downturn

Post by finfire »

Mike Scott wrote: Thu May 12, 2022 9:05 am We are all betting that the stock market baseline will continue to increase over time.
Some have more time than others. Seems the OP was hoping for sooner than later.
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ccf
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Re: Dazed by the downturn

Post by ccf »

wolf359 wrote: Thu May 12, 2022 8:58 am
You need a new perspective. You are probably within 5 years of retirement.

....snip....
This makes me feel a lot better.

My portfolio is 70/30

I still have 200k in my "fun" (it's not very fun!!) account and I have not decided what to do about that. I feel like the right thing to do for me is sell it all and never have anything other than my 70/30 again but it's psychologically difficult. Maybe I sell a portion each month I'm not sure.
finfire
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Re: Dazed by the downturn

Post by finfire »

ccf wrote: Thu May 12, 2022 9:11 am
wolf359 wrote: Thu May 12, 2022 8:58 am
You need a new perspective. You are probably within 5 years of retirement.

....snip....
This makes me feel a lot better.

My portfolio is 70/30

I still have 200k in my "fun" (it's not very fun!!) account and I have not decided what to do about that. I feel like the right thing to do for me is sell it all and never have anything other than my 70/30 again but it's psychologically difficult. Maybe I sell a portion each month I'm not sure.
Can you post the holdings in fun account and get some feedback from bogleheads?
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ccf
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Re: Dazed by the downturn

Post by ccf »

Watty wrote: Thu May 12, 2022 9:07 am So, have you actually sold off the last of those stocks and the other "stuff" and moved that money into stock and bond index funds?

If you you may not have actually learned the lesson.
I think i need a push. Shopify will be the hardest because I bought it in my HSA so I don't even get to realize losses :oops:
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Watty
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Re: Dazed by the downturn

Post by Watty »

ccf wrote: Thu May 12, 2022 9:14 am
Watty wrote: Thu May 12, 2022 9:07 am So, have you actually sold off the last of those stocks and the other "stuff" and moved that money into stock and bond index funds?

If you you may not have actually learned the lesson.
I think i need a push. Shopify will be the hardest because I bought it in my HSA so I don't even get to realize losses :oops:
Push. :D
delamer
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Re: Dazed by the downturn

Post by delamer »

If this is the 3rd time you been burned by what you call “funny money” then you didn’t learned anything the 1st two times.

Especially if you are still hanging onto investments that you should never have made in the first place.

What’s your goal? Enough to retire on? Or getting some short-term thrill out of holding a high flyer?
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. - Alexandre Dumas, fils
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Re: Dazed by the downturn

Post by rkhusky »

If you had the cash would you buy the investment now? If not, turn the investment into cash by selling. Then buy what you want.
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Re: Dazed by the downturn

Post by dknightd »

I've been dazed and confused my whole life.
Retired 2019. So far, so good. I want to wake up every morning. But I want to die in my sleep. Just another conundrum.
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ccf
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Re: Dazed by the downturn

Post by ccf »

Thanks everyone - I'm working on moving everything into my 70/30 so that i can stop thinking about it. for me, the thinking about it is the worst part of having these non-boglehead things.
wolf359
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Re: Dazed by the downturn

Post by wolf359 »

ccf wrote: Thu May 12, 2022 7:42 am I like to think of it as 600k after taxes sob
Speaking of taxes, do you have any assets in traditional IRAs? Down markets are a good time to convert them to Roth IRAs. Sure, you increase your tax bill, but you'd be paying them on a discounted balance.

When you consider down markets to be an opportunity, you start looking for ways to take advantage of the lower valuations.

Eventually you don't get dazed by the downturn. You look forward to them.

P.S. Don't forget tax loss harvesting opportunities as well.
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Re: Dazed by the downturn

Post by khangaroo »

I feel yah, I really thought my crypto was going to be my hail Mary retirement savior but it's looking more bleak by the day. Luckily my wife talked me out of doubling down on it during the ramp up.

All I know is that if my crypto hits my target number again, I'm selling instantly and getting out of there! Until then, I'm gonna hold onto it because you don't get hurt unless you jump off the roller coaster.
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Re: Dazed by the downturn

Post by KlangFool »

finfire wrote: Thu May 12, 2022 9:01 am
KlangFool wrote: Thu May 12, 2022 8:59 am OP,

A) I only gamble on individual stock that may go up 20X to 40X.

B) For those stocks, I have a trading rule that when it triples, I would sell 50% of it.

C) I would locked in my gain and then, it won't matter if it goes down to zero. I still make 50%.

KlangFool
"A) I only gamble on individual stock that may go up 20X to 40X." - What's the secret for finding these gems?
There is no secret. I had tried and failed many times. Now, it is purely for entertainment purposes.

KlangFool
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Re: Dazed by the downturn

Post by ApeAttack »

KlangFool wrote: Thu May 12, 2022 10:14 am
finfire wrote: Thu May 12, 2022 9:01 am
KlangFool wrote: Thu May 12, 2022 8:59 am OP,

A) I only gamble on individual stock that may go up 20X to 40X.

B) For those stocks, I have a trading rule that when it triples, I would sell 50% of it.

C) I would locked in my gain and then, it won't matter if it goes down to zero. I still make 50%.

KlangFool
"A) I only gamble on individual stock that may go up 20X to 40X." - What's the secret for finding these gems?
There is no secret. I had tried and failed many times. Now, it is purely for entertainment purposes.

KlangFool
Based on your signature and prior posts, I get the impression you don't gamble on individual stocks nowadays. Is that correct? If I'm wrong, what fraction of your portfolio goes to individual stocks?
Just another lazy index investor.
dboeger1
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Re: Dazed by the downturn

Post by dboeger1 »

I get why it feels boring, especially for people early in accumulation, but I've never had a fun money experience, and the more time my portfolio has under its belt, the more I realize just how awesome diversification is. I was 100% stock for quite a while, and fortunately it was a good time to be in stocks, but I recently bought a home that has appreciated substantially, and also a big chunk of I-bonds with good yields. Stocks are now only about half our net worth, so while I'm certainly not enjoying the current market decline, it's not devastating by any means. Being in such a long bull market conditioned a lot of people to really push out on the risk spectrum (not to mention that's kind of what the Fed was pushing everyone to do with low rates). Having somewhat of a real downturn (not that this is some historical outlier by any means) is reminding people why concentrated bets on high-multiple stocks is not always all it's cracked up to be. And the thing is, I'm not even talking about being in really low-yielding Treasuries that are falling, my non-stock assets are all doing really well at the moment. I think ideally, you want to have enough of everything that at least something is really exciting at any given point. Even cash is worth having enough of that you have options in a downturn. I know people frown on having too much dry powder here, but having a decent cash emergency fund while stocks and bonds are both falling is very comforting.
bog007
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Re: Dazed by the downturn

Post by bog007 »

:mrgreen:
If I had a dollar for every time I heard something was on sale I'd be rich.
bog007
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Re: Dazed by the downturn

Post by bog007 »

:mrgreen:
If I had a dollar for every time I heard something was on sale I'd be rich.
frugalecon
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Re: Dazed by the downturn

Post by frugalecon »

One thing to keep in mind is that, when stocks decline, future returns improve. I was mentally applying only a 2.5% withdrawal rate to my portfolio when it was at its peak. I think I would be comfortable going higher than that at these levels.
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Re: Dazed by the downturn

Post by KlangFool »

ApeAttack wrote: Thu May 12, 2022 10:21 am
KlangFool wrote: Thu May 12, 2022 10:14 am
finfire wrote: Thu May 12, 2022 9:01 am
KlangFool wrote: Thu May 12, 2022 8:59 am OP,

A) I only gamble on individual stock that may go up 20X to 40X.

B) For those stocks, I have a trading rule that when it triples, I would sell 50% of it.

C) I would locked in my gain and then, it won't matter if it goes down to zero. I still make 50%.

KlangFool
"A) I only gamble on individual stock that may go up 20X to 40X." - What's the secret for finding these gems?
There is no secret. I had tried and failed many times. Now, it is purely for entertainment purposes.

KlangFool
Based on your signature and prior posts, I get the impression you don't gamble on individual stocks nowadays. Is that correct? If I'm wrong, what fraction of your portfolio goes to individual stocks?
I have 10K set aside for my "play money". So far, I have not seen anything to let me play.

KlangFool
40% VWENX | 12.5% VFWAX/VTIAX | 11.5% VTSAX | 16% VBTLX | 10% VSIAX/VTMSX/VSMAX | 10% VSIGX| 40% Wellington 40% 3-funds 20% Mini-Larry
dboeger1
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Re: Dazed by the downturn

Post by dboeger1 »

khangaroo wrote: Thu May 12, 2022 10:10 am All I know is that if my crypto hits my target number again, I'm selling instantly and getting out of there! Until then, I'm gonna hold onto it because you don't get hurt unless you jump off the roller coaster.
I hate to break it to you, but your second sentence is blatantly untrue for concentrated bets, in part because of your first sentence. Individual assets go to 0 all the time, and if everybody's wanting to jump out of crypto as soon as they recover their money, then it'll never fully recover. This is why bubbles are so dangerous, and why you don't want to be left holding the bag in an asset which was really only ever valued for its ability to to be sold for a higher price later on. I don't know how much you have in crypto, but if you're really not confident enough to hold it for the long term beyond the price you bought it for, and it's a significant portion of your portfolio, you probably should not be betting your future on it now.
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HMSVictory
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Re: Dazed by the downturn

Post by HMSVictory »

Making a mistake is one thing.... doing it 3 times is the definition of insanity!

We have all done stupid things with our investments (I was all in on the Janus Funds in the late 90s). If you learn from it its money well spent.

You need to create a written IPS (no funny money my friend) and execute on it. Your not the first person (or last) to be seduced by the fast easy way to get rich - "but he who hastens to become rich shall not go unpunished". Don't be in a hurry. Make a job change if you hate what you do. Life is too short.
Stay the course!
secondopinion
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Re: Dazed by the downturn

Post by secondopinion »

Tooth wrote: Thu May 12, 2022 7:16 am I believe there's not a human alive that hasn't succumbed to what you ended up putting yourself through; we are kind hardwired for it. Good learning experience for metacognition and may result in better behavior going forward.
I am not sure what is meant by this. If you mean picking stocks and overholding because of greed, that has not happened to me; and I have picked stocks before (losses have been seen as has gains). I have from day one decided to remove emotion from investing; that has served me very well.

I have different wiring I guess.
Passive investing: not about making big bucks but making profits. Active investing: not about beating the market but meeting goals. Speculation: not about timing the market but taking profitable risks.
finfire
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Re: Dazed by the downturn

Post by finfire »

KlangFool wrote: Thu May 12, 2022 10:14 am
finfire wrote: Thu May 12, 2022 9:01 am
KlangFool wrote: Thu May 12, 2022 8:59 am OP,

A) I only gamble on individual stock that may go up 20X to 40X.

B) For those stocks, I have a trading rule that when it triples, I would sell 50% of it.

C) I would locked in my gain and then, it won't matter if it goes down to zero. I still make 50%.

KlangFool
"A) I only gamble on individual stock that may go up 20X to 40X." - What's the secret for finding these gems?
There is no secret. I had tried and failed many times. Now, it is purely for entertainment purposes.

KlangFool
I should rephrase: What are the criteria that you review to decide that a stock has the potential to "go up 20X to 40X"? Can't any stock potentially go up or down?
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