I've enjoyed reading Wall Street Bets and trading some of the meme stocks and meme options. I've learned a lot about trading options. I've learned a lot about trading stocks that spike. I've felt the exhilaration of making a big winning trade. Fortunately, I've made money with about 90% of these trades.
I've been lucky, because I'm not that good of a trader.
The downside is that I feel I need to be ready to make a decision to buy/sell or close out options every moment the market is open. That's because some of the stocks and options will spike, but only momentarily, as short as few hours, but often for a few days. These spikes are often also unexpected. Thus, trading meme stocks and meme options can be stressful.
In addition, I don't have a reliable system to replace positions that I close out. This means that I have to be consistently watching the market for the opportunity to buy. Otherwise, I may miss a good entry prices before the spike.
Finally, as I get older, I realize that my trading ability will diminish as I've seen happen with many elderly people.
I fell I have two choices:
- Put our investments with a financial advisor for a fee of about 1% of assets.
- Put our funds into a total market or S&P 500 index funds for a fee of about .05% of assets.
I'm leaning towards the index funds for the following reasons:
- Very few investment managers consistently beat the total market or S&P500 index over a 5 year period. Almost not beat the indices over a 10 year period.
- With commission free trading, we can dollar cost average in the index funds.
I plan to start scaling into the indices over time as corrections occur, maybe a few percent at a time, just in case there is a unexpected major decline in the market in the future.
This is not financial, investment nor trading advice. Please consult a professional advisor.
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