So if you have any money in the market you are sweating right now. I’ve been through this wild volatility before and you want to sell as soon as shit hits the fan which is definitely happening. The market opened down 1,000 points today and is still down between 300-500 points (which is still a huge drop). Time to sell?
As you can see with this email I sent on Thursday, I sensed this was coming.
I actually did purchased TVIX at 6.86 and sold it Friday a little above 8. Little did I know it would shoot above 15 today. The market is hard.
I should also note that if you are a blog reader and took my advice on buying February Puts on TAXI, you would have made over 100%.
Now on to more important notes because I’m a perenial loser in investing in the market which is why I have only about 10% of my portfolio in it. I own some some stocks that lose money but I don’t expose myself to the shit that we are going through right now. Why?
When losing money starts to affect your emotional well being, you have to say to yourself, “is it really worth it?” For me it’s not. I’ve gone through ups and downs and I prefer being straight. Sure the market will probably swing back from this down run but who knows when that could happen? It could take a year. Then you start saying, well it can’t go down any more and you start purchasing at these lower prices but it still goes down. I’ll be on the sidelines.