I'm with you on the never gonna crash again. When you say cash do you mean us dollars or synthetic cash?
Edit: and by the way this coming from someone who thinks technical analysis is bullshyt.
i mean cash in your brokerage account... i used to have alot of money of cash sitting in bank accounts and cds paying nice amounts till 2007/2008 where i didnt want to get .001% of interest.. so i had to force myself to enter the market... thats why they obliterated the savings rate...
when i say cash i mean close out all your positions in the market... raise as much cash as you can in your brokerage... wait for a correction and then get back in
i used to make the mistake of just riding stuff out and letting these big drops come and go... aka riding the waves... but what i shouldve been doing was selling when tops were kinda showing themsveles and then rebuying stocks at lower prices...
that or average down but sometimes all your cash is in your stocks so you have no extra cash... but if you sell that stock and buy it later youve saved and protected your money and reinvested it at a lower price...
at this point you need to be in the market in some way ... divs players are cool too
my brokerage is set up is like this... 10 percent cash,
25 percent in high paying divident stocks.. aka sdrl, agnc, std, jnk, nly..nyb stuff that pays good divs bank of montreal and these stocks i average down and dont sell.,. cause they pay so good.
45 percent in growth stocks... aka cat, joy, slb, mtw, vale, metal miners energy appl.... these are the stocks that i usually sell high and and try to rebuy lower...
20 percent on high 2x and 3x etf... this im just gambling pretty much the waves up and down... now im in heavy spxu and 3x short the russell..
but now with this drop that i think is gonna happen im out of my 45% so i have 55 % "cash" and ready to buy those stocks again hopefully when prices go down...
thing i learned is that its healty for stocks to correct... so if you have good visibility this correction will be seen as an opporutnity to go higher later and others will see this as the beginning of the end aka a crash... i know better jus cause i know money printing and they are purchasing equities with that money and thats really happening.. so im betting on 1700 all day...
now if i didnt sell my 45% and this thing drops down to like s/p 1470 then all the money i have to redeploy for the major run up is my 10% cash and my 20% spec money that i was riding this wave down... THIS WOULD SUCK BECAUSE BY ME GOING TO CASH NOW ILL HAVE 75% OF MY MONEY READY TO REDEPLOY AT the level i hope it gets to 1470ish.... so the ride up to 1700(hopefully) at the end of the year will be way better...
full disclosure i have a grandfathered type deal with a major bank that allows me to have 100 free trades a year as long as you have over 25k in your brokerage account.. so all these trades im doing is tech free... when i first started i used scotttrade or ing or what not where it was like 8 bucks a trade.. you had to be really aware of trading in and out cause sometimes alot of trades were eating up your profits... it was like the freaking vig in gambling...
somebody should do a thread about biggest mistakes in stock market picking that ppl have made.... i sold out of visa in the run up from 60 bucks to 80 bucks.. and look at where its at now...lol.... i also had a couple of stocks go bk.. fukking horrible... lol i gotta lot of classics... most recent is STUPID CELGENE.. i bought all the way down to like mid 60's.. and got scared and jumped out at like 75 THINKING I WAS A WINNER.... thta fuking stock is now at like 120... lol
@ kool g, u taking a hit today breh
