Restricting Use of the "BUY" Button for Stocks

March has been a horrendous month for many stocks.   I've been scaling in on some of the stocks on my watch list.  Unfortunately, most of the stocks continue to sink lower.   In March 2020, I reacted by buying more and buying faster.    This time, I am slowing down my buying, hence my restriction for using "BUY" button.

First, I am assuming that stock prices will go lower.    So if  buy executes today, and the stock falls further, I do not buy more.   

Second, I put day buy limit orders below the current price, requiring the stock to fall before it is purchased.

Third, I put GTC buy limit orders significantly below the current price, as much as 10-20%.  That way I make the future purchase at a significant discount to today's price.

With 0% commission trading, I can afford to scale in as little as one share at a time.   That way I can increase exposure at low risk, in case the market continues to fall.

For more on Strategies and Plans, check back Mondays  for a new segment.

This is not financial nor investing  advice. Please consult a professional advisor.

Copyright © 2021 Achievement Catalyst, LLC

Tail Risks Growing

The S&P closed at an all time high on Friday.  

However, there are a growing number of tail risks that could cause the market to decline significantly:

• Suez Canal blockage
• Margin Calls, e.g. Achegos Capital this week
• SPACs
• Interest rate increase
• Higher tax rates
• Increasing Government Deficit
• New COVID risks
• Unknowns

Stock will keep going up, until they don't.   It's time to be caution:  take some profits, raise cash and be ready to buy low.

For more on New Beginnings, check back Sundays for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2021 Achievement Catalyst, LLC

Stop Making Taxes About Vilifying the Wealthy

To me, the most equitable way to increase tax revenue is to phase out tax deductions, tax credits special tax rates at certain income levels.  The tax code already does that for many tax breaks: child tax credit, tuition credit, 0% capital gains and dividend tax rate.   After all, tax breaks are to help lower income taxpayers.    Why should a taxpayer with $1million income get many of the same tax breaks as someone who earns $40,000?

For example, above a certain income the following can be eliminated:

• Special tax rate for long term capital gains and dividends.
• Standard or itemized deductions, including charitable and mortgage deductions.
• All tax credits.

Simply, have the taxpayer pay a tax on their total income, without any deductions, adjustments or credits.

I don't know why progressives have to make a point about "taxing the rich."   Just change the tax code.

For more on Reflections and Musings, check back every Thursday for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2021 Achievement Catalyst, LLC

Wall Street Bets Fun

Since January, 2021, I've been following the Wall Street Bets crowd on Reddit.  Here is a link to the thread: Wall Street Bets.  The group is young,  bold, irreverent, and self deprecating.  They make millions sometimes; they lose hundreds of thousands other times.

I've enjoyed reading their thread on a daily basis and have traded/invested in some of their ideas. Regretting Buying Bubble Stocks.   It's been a roller coaster.  I've had some big wins and a few no go's, but no big losses... yet.   Overall, it's been fun and exciting.

My one "complaint" is I feel the need to watch the Wall Street Bets stocks, since they are very volatile.   Probably not for me in the long term, but great for pandemic entertainment.

Disclosure:  We own the meme stocks GME, AMC, EXPR, BB, KOSS, and NOK.   We owned and sold SKT for a profit.   We traded calls in SKT, EXPR and AMC and traded puts in AMC and EXPR.  Overall, we are probably breakeven to slightly positive on our trades.

For more on Crossing Generations, check back every Thursday for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2021 Achievement Catalyst, LLC