A weekly thread to discuss financial matters - from personal all the way up to global.
Ground Rules
- Remember that we're all just Internet randos. Don't bet your life savings on a hot tip from this thread.
- Keep culture war in the culture war thread. Yes, global events may impact our personal finances, but that does not mean we have to incessantly harp on culture war aspects here. If you are going to discuss it, please stick to the practical impacts of it on an individual level.
- Be kind. Remember that everyone here comes from different circumstances. We all have different resources available and different risk tolerances.
- Don't let the perfect be the enemy of the good. Better is better. Celebrate people when they take a step up and work to move their finances in the right direction. Don't flame out because they haven't followed what you consider the optimal path. Everybody has to start somewhere.
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Notes -
When is the correct time to use leverage?
An acquaintance of mine has lost a shitload of money this last week on a 2x leveraged long NVDA ETF that he bought in August. It also seems like leverage is behind a lot of the volatility we're seeing in the KOSPI as well.
On the other hand, it really seems like Iike one of the few ways to beat the marker in the medium term.
Looks like he lost about half of what he put in.
There’s no flaw in your trading strategy that proper sizing can’t fix. If your friend bet the farm on one volatile stock, then yeah…probably not the correct time no matter when. If he had set aside 5% of his account to do that, then I don’t actually think that’s a bad bet.
Nvidia is a separate matter. If you own an index fund, then you have plenty of Nvidia exposure already. Over 6% of your portfolio is Nvidia if all you own is VOO. I’ve never been convinced I should own even more than I do.
This is, in fact, what he did.
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