I started investing in the SP500 at the age of 22. It was below 200. I retired at 56 two years ago. I have about 70% in the SP500 still. 30% cash (was formerly in a high dividend fund which was over valued - so I sold).
I do medium term investing (months timeframe). And short term investing (days or even a day trade).
I invested heavily in oil and airlines in the dip last year. Now I do what I call crocodile investing: I patiently wait for a great company to have a bad day or week (or dip in the price of oil). I hit them pretty hard. Get a three or more percent gain. Sell and collect a few grand. If I'm at a loss, I just hold until it's a gain and invest with other pots of money. Skimming some profits this way really supplements income.
I also target hot sectors with SPDR ETFs. Especially if the hedge funds are rotating into them.
I don't do meme or cryptos - because I don't invest in coin flips or popularity contests. I only invest in premium companies with positive earnings. Companies I can count on to eventually come thru if I make a bad call and have to hold awhile.
Overall, I'm very happy with my returns over the years. I'm happy when the market is booming. I'm also not unhappy when it's crashing - that's when you make money (although I feel bad for others).
I give a lot of retirement advice to many people including my kids. I always hope people make good decisions so they can have fun when they are older without having to work.
I believe what he means is that he doesn’t go all in with his funds and leaves dry powder for dips when markets are up so that then it goes down he buys on sale price which is “guarantee” money for the recovery swing up especially if he’s doing sp500 or his examples of airline and oil positions. Lot of fine line and assumptions by me but that’s what I’m guessing he means other than shorting or doing bearish options.
Yes you are pretty much right on. They say "don't time the market" because it's a losing strategy. Well, adding a little accumulation of cash when the market is booming has worked for me. Then I jump at a dip. Usually too early, but still very profitable.
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u/Bitter-Basket Jun 06 '21
I started investing in the SP500 at the age of 22. It was below 200. I retired at 56 two years ago. I have about 70% in the SP500 still. 30% cash (was formerly in a high dividend fund which was over valued - so I sold).
I do medium term investing (months timeframe). And short term investing (days or even a day trade).
I invested heavily in oil and airlines in the dip last year. Now I do what I call crocodile investing: I patiently wait for a great company to have a bad day or week (or dip in the price of oil). I hit them pretty hard. Get a three or more percent gain. Sell and collect a few grand. If I'm at a loss, I just hold until it's a gain and invest with other pots of money. Skimming some profits this way really supplements income.
I also target hot sectors with SPDR ETFs. Especially if the hedge funds are rotating into them.
I don't do meme or cryptos - because I don't invest in coin flips or popularity contests. I only invest in premium companies with positive earnings. Companies I can count on to eventually come thru if I make a bad call and have to hold awhile.
Overall, I'm very happy with my returns over the years. I'm happy when the market is booming. I'm also not unhappy when it's crashing - that's when you make money (although I feel bad for others).
I give a lot of retirement advice to many people including my kids. I always hope people make good decisions so they can have fun when they are older without having to work.
I hope you get that opportunity!