The Value Investor
:
do you not understand how margin calls, options, and hedging work? Some people literally have no choice, while others must cut their losses. If you’re a Tesla holder and you’re down 66%, you need to realize that you need to 3x just to break even, Meanwhile the stock is likely to go down further. 75% requires a 4x, 80% a 5x, and 90% a 10x, and thats just to break even. Therefore, the best way to do good in investing is to avoid major catastrophic losses, because they take decades if not a lifetime to recover from. People don’t realize that until it’s too late and they sell hoping to start anew and get their money back elsewhere.
I’m too lazy to preach about valuation and fundamentals today, so I won’t get into that and how that plays a large role in what I’m talking about. you can read my previous posts if you care.
kasette
OP
The Value Investor
:
ive seen and appreciated your posts from before. Yes, i understand options etc. the “big players” make the market. Its just saddening to see us following. From past reports other than the 1970 inflation crisis etc, it usually takes 12 months to break even. So though I am shocked about the decrease, it is, in my opinion l, a good time to DCA tesla to not only minimise losses but also break even at a faster time really do appreciate your posts
不做韭菜 : Everyone sees the market differently
BuyLowSellHighTrader : Flight to safety ? Cash is king now
The Value Investor : do you not understand how margin calls, options, and hedging work? Some people literally have no choice, while others must cut their losses. If you’re a Tesla holder and you’re down 66%, you need to realize that you need to 3x just to break even, Meanwhile the stock is likely to go down further. 75% requires a 4x, 80% a 5x, and 90% a 10x, and thats just to break even. Therefore, the best way to do good in investing is to avoid major catastrophic losses, because they take decades if not a lifetime to recover from. People don’t realize that until it’s too late and they sell hoping to start anew and get their money back elsewhere.
I’m too lazy to preach about valuation and fundamentals today, so I won’t get into that and how that plays a large role in what I’m talking about. you can read my previous posts if you care.
kasette OP The Value Investor : ive seen and appreciated your posts from before. Yes, i understand options etc. the “big players” make the market. Its just saddening to see us following. From past reports other than the 1970 inflation crisis etc, it usually takes 12 months to break even. So though I am shocked about the decrease, it is, in my opinion l, a good time to DCA tesla to not only minimise losses but also break even at a faster time
really do appreciate your posts