But you haven’t made significant money on the downside….that’s the problem. Others have because they weren’t timing the exact bottom.But it seems like some folks here that tend to think in terms of absolutes do seem to consistently miss great opportunities a few times now, both in the stock and real estate markets.[/quote]
Well I made significant money in 07-08 on the downside. But you have to have balls of steel which I no longer have as a family man. Another obvious “opportunity of a lifetime” was to short the Covid stocks such as Zoom, Peloton, Pfizer/Moderna, Zillow, etc. It was beyond obvious that those would crash and burn when Covid ended, and they have. But you have to time it right. I bought some Puts on Zoom in 2020 betting on Covid being short lived, they expired worthless.[/quote]
um… Shorting a stock is a lot riskier than any sort of long term DRIP investment strategy, and it by definition is speculative short term speculation, not investing.
DRIP is an investment strategy.
Shorting for the short term is not an investment strategy, it’s speculation. Huge difference. I’m surprised we even need to discuss this here.
Unless you in the top 10% day trader, you can’t beat the markets in the long term with that alone. And if you can, you wouldn’t be posting here. You’d be working for Goldman Sachs or the likes using their money and collecting insane bonuses.
This is what I find really interesting. You mention about risk and investment for the long term, but everything you have mentioned about what you do appears to be short term speculation, no different than what most of the people on Instagram boasting about how much money they made on short term trades made…except you are on the opposite side of the trade….And this is the exact opposite of what the OP was seeking…
Also, most of these short term speculators love to talk about the kills they made, but gloss over the 9 other transactions that blew up in their face…That I’m pretty sure about….That or the money into those positions aren’t significant enough if they do blow up, that it would make a material impact in their finances (which the opposite is also true, if the stock fell to $0, it probably wouldn’t make a material impact too). It’s easy to speculate on a small hand because the possible losses are small. But if you’re doing this on a large pot of money, for example in a 401k (which I don’t think you can BTW in a 401k plan), then you’re 100x braver than me because I would never do something like this to my long term accounts. It’s just asking for trouble. and frankly, I don’t need quick speculative wins to get ahead.
So from a risk perspective, actually you’re speculation strategy is far more “risky” than what I am doing, fwiw. You essentially are one unexpected FED fiscal policy can kicking action away from getting house cleaned IF that were to happen and your short positions on individual stocks blow up if you still in them. I would never short a stock. I’ve learned my lessons decades ago. All my growth in my accounts where over 15-20 years+. I do do speculative trades in my schwab account, but to be honest over the same long period of time, I’ve underperformed the indexes… Part of me wonders why I still do speculative trades.. But I guess for me it’s more fun than going to Vegas….I’m serious……. my speculative account makes makes up less than 20% of my total net worth, so it does not make a material impact up or down..neither does my gold and precious metal such as platinum, which has been a dog…
