I am truly amazed how many on here are trading. Congrats. Ok how many just started in the last year? Here is my Biggest concern, and part of the reason I wanted to start this thread. 80% of stock traders are out of the market after 5 years, why they lost money and or lost interest. The last couple years have been exciting, most likely made money, unless they sold in the crash. They underestimate the risks of the market. When retail comes in, it is effectively the end of the trade. Retail has been in strong the last year. I don’t want a lot of you holding the bag in the near future. I mentioned it before CAPE PE and the Buffett indicator we are majorly overvalued. Now I am not saying go completely to cash, but start building a pretty good stock pile. Trim your growth stocks, those are most likely to get slaughtered, value should be a decent hideout. Sell calls to reduce basis and increase cash position. If you traded in 08 you had stocks like the casinos that lost 90%. Everything went down, there really wasn’t any safe haven, some held up better than others. Gold went down initially so did silver just like last year, it’s after the crash they begin to spike. The only safe haven is cash and if we have inflation or stagflation that is a losing money staying in cash, and the thing is once the crash occurs that is the best time to make massive returns. option Premiums are coming down, but generally are still high by historically standards don’t be afraid to use them. Generally down trends last 4-6 months, recently they have been occurring faster. 30% in 2 weeks for covid. That’s nuts, but with high frequency trading that’s what we are up against, one day the market is going to wake up and decide it’s time to sell.
here is the thing when the stock market is going down I get excited, because it means we can get some really good stocks cheap. All I’m saying is be prepared.