Mid Year Review of Cow Mooney’s Investment Strategy 2022

Good to see Moomoo having this little contest here. It reminds us to constantly relook, review and reevaluate our investment strategies from time to time. I can’t emphasise any further that staying nimble in the stock market is of paramount importance, and all investors must be prepared to make adjustments to their investment strategies and philosophies when necessary.

So here’s a mid year review of my investment and trading strategies.

Going Long
Investing for the long term is boring, but don’t get me wrong, I don’t mean it in a bad way. Boring is good, simple is good, at least that’s my view of the stock market. You don’t always need to brag about interesting stories.

Despite the bearish market, my long term investment more or less remains the same, by and large is the buy and hold strategy. The only change or tweak I had is that I am more cautious than last year.

In other words, instead of DCA-ing like a robot monthly or periodically, I am holding some cash and dipping my toes into the market bit by bit, carefully and patiently.

“The stock market is a device for transferring money from the impatient to the patient.” - Warren Buffett

Overall, my portfolio is underwater. But am I worried? No. In my view, this is the “period of accumulation” where I accumulate my favourite stocks at discounted prices. And I hope my 2030’s self will thank me.

Recently, I have loaded up on MSFT, NVDA, AAPL, and most importantly TSLA.

In fact, my view is that, if you are in your 20s, 30s, or even 40s, i think this could be a time when wealth could be made if you stay invested. Personally, I believe every crisis comes with an opportunity, that brings me to my next point…

Going Short
Going long doesn’t reap you immediate profits especially in a bear market / market crisis. But going short will.

Anyway I have only started option trading this year, so just in time for a mid year review!

There are various option strategies out there. Once again, simplicity does the trick for me, and works for me.

Buying puts seems to be the way to go in a bearish market to earn short term profit. But note, the way to go doesn’t mean the only way to go. Selling calls (a bearish move) is also another way to reap profits from this market. But option traders should know that the prerequisite for covered calls is that you will need 100 shares, which I don’t have.

So what I have been doing is to sell puts (a slightly bullish move). In case you go: What? Adopting a bullish move in a bear market? Well, hear me out. In every market, there are opportunities for bulls and bears to make money. Yes, selling puts during this period does contain higher risk, but I believe investment and trading are about managing risks and not avoiding them. For instance, one can choose to sell a lower strike price for the puts to lower your risk.

Some may point out that the downside of selling puts is that the profits is capped. On the other hand, when you buy a put option, and when the stock crashes, the profit has technically no limit. Well, I guess it all depends on individual’s investment / trading strategy, financial goals and risk tolerance. For me, I’m contented with small wins, and “coffee money” every month. And I like to make friends with Theta. In case you’re wondering, who’s Theta? Haha. It’s Time. Time is my friend. (Read up on Option Greeks if you don’t get it haha)

Like I always say, all roads lead to Rome, and hence there are many ways to make money in the stock market, so choose one that suits you Most importantly, never be too greedy.

For those who are curious to know, here are some of my option trades:

2 recent Apple trades that expired worthless:

1 Bank of America contract that expired worthless:

1 BAC contract that got assigned last week and I am going to sell covered calls to reap benefit out of this bearish trend:

Sold another 2 more Apple puts recently - pending results. May close one of the positions this week if the profit is good:

TLDR
The long and short of my trading / investment journey so far this year is Long and Short (get the pun? Haha).

Hopefully, Cow Mooney can Count more Money

If you have read till here, I hope the post value adds to some of you investors out there

PS: Moomoo, if I happen to win this contest, can I convert the 20 USD cash coupon to commission card for option trading? Your option fees are high, and I’m trying not to switch to another platform for options trading

$Apple (AAPL.US)$ $Tesla (TSLA.US)$ $NVIDIA (NVDA.US)$ $Bank of America (BAC.US)$ $Microsoft (MSFT.US)$ $SPDR S&P 500 ETF (SPY.US)$

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