Remaining Patient

Today may be the start of the correction for which I've been waiting.   I'm not buying yet, since I believe the market will go down further.  Too much uncertainty and not enough fear yet.   When I can no longer bear to look at my investments accounts, I will consider significant buying then. 

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

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

Copyright © 2021 Achievement Catalyst, LLC

Going Almost Full Boomer for Stock Investments

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.

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

This is not financial, investment nor trading advice. Please consult a professional advisor.

Copyright © 2021 Achievement Catalyst, LLC

Still Hate a Daily Commute

I've been retired for over a decade and haven't had a regular daily morning and evening commute during that time.  Until now.   This week, I've been driving my daughter to her volunteer internship all five days.  

Although the traffic is not as bad as as I remember, due to many still working from home, it still was "rush hour" traffic.   It's 15 miles to her location, mostly on highway.   Of course, I head back home after dropping her off, which makes it a 30 mile trip.   So 60 miles a day, about an hour and half on the road.

I don't miss it.  Not one bit.

If I ever go back to work, I think I will only do a work from home job.  

For more on Reaping the Rewards, check back Fridays  for a new segment.

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

Copyright © 2021 Achievement Catalyst, LLC

Profiting from Wall Street Bets Meme Stocks

On February 2, 2021, I posted that I was Regretting Buying Bubble Stocks.  I was already down 25-50% on my purchases.  On March 25, 2021, I posted that I was having Wall Street Bets Fun buying meme stock and trading calls and puts on the same meme stocks.  I was breaking even to slightly positive at the time of that post.

Based on my experience, I decided to focus mainly on options, calls and puts, for some of the meme stocks.  Specifically, AMC, EXPR, BB, BNGO, SNDL and NOK.   I also bought some calls on WKHS, although it wasn't a meme stock at the time.   I watched the main discussion the Wall Street Bets Reddit thread for mentions of the named stocks.   As the mentions increase, I bought and sold calls and sold puts.

To note, I usually did not risk much more that the price of a lottery ticket.   In many cases  $5; sometimes $10 to $25, occasionally about $60; but never, not yet, over $100.   In about 90% of the cases I made a profit, up to 2000% in one case.   Most of the ones that expired worthless were profitable at one point, but I got greedy and didn't close the position, and watched to position go to zero.

Here's my key learning from the January and March meme stock spikes.   Avoid buying when the stocks are rocketing upwards.  Buying during significant up trends tends to cause me to buy high.   In most cases, wait until after a clear peak and significant decline.   Buying at this point, even before the eventual bottom, will lead to profits sooner at the next spike.

Another important learning:  Don't be greedy.   In my first attempt at meme options (SKT), the option went up 1500-2500% in one day.   I decided to wait for more gains, since this was right after the first GME spike.   The gains dropped, I kept waiting, and the gains dropped more.   Eventually, the option went to zero for a loss.

Finally, I only risk a very small part of our portfolio on options, usually no more than $200, or $2000 in the case of short puts, which would cause me to buy 100 shares of the stock if executed.

I've closed out most of my options, including an AMC $20 covered call which was executed last Friday, when the stock was $48.  I have couple long calls and short puts remaining and hope to close out some this week.

Disclosure:  At the time of this post, I own shares of EXPR, BB, BNGO, SNDL, NOK and WKHS.   I am long calls on BNGO and NOK.   I am short puts on BNGO and SNDL.   AMC was called away with a $20 covered call.  This week,  I may buy or sell calls on WKHS or sell WKHS shares.   This week,  I may sell current call positions on BNGO, and NOK.

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

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

Copyright © 2021 Achievement Catalyst, LLC

Getting Vaccinated for COVID

I'm not an anti-vaxxer, but I've been reluctant to schedule a COVID vaccine.  To me, there is not enough long term data on the side effects and efficacy of the vaccine.    Yes, the vaccine is working and safe so far, but it's hard to predict the effects a year or two from now.

However, with two kids, ages 8 and 16, it will be hard to avoid the return to normalcy that the vaccine will bring.   They will be returning to in-person classes next school year.  Parents of their classmates are all getting vaccinated.  There will be less restrictions when in public.  Net, I've decided that getting vaccinated will outweigh the risks of not being vaccinated.

I am scheduled for getting the J&J one shot COVID vaccine on Wednesday.   

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

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

Copyright © 2021 Achievement Catalyst, LLC

Gamestop, Bitcoin, and NFTs, Oh My!

It's the wild west out there.  One of my neighbors is investing in high end graded/autographed sports cards.  Another neighbor is flipping houses.  It's getting crazy.

I'm in Gamestop and Bitcoin miners.   Risky, but probably not as risky, yet :-)

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

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

Copyright © 2021 Achievement Catalyst, LLC

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