Lost $22,000 2 days ago so this is my plan

[Mandala]

Lost 22K two days ago and I am a conservative investor


Got 14 K back yesterday but that was expected as profit seekers jump in

Getting in at the end of a bear day sems like quick money but if it was that easy everyone would do it then the alpha would no longer exist

Therefore, that easy money must be an illusion as predicting the short term market
is a fool's game

My plan is to hold

 

[peeler_feeler]

Lost 22K two days ago and I am a conservative investor


Got 14 K back yesterday

Happens all the time as profit seekers jump in

Getting in at the end of a bear day sems like quick money but if it was that easy everyone would do it then the alpha would no longer exist

Therefore, that easy money must be an illusion as predicting the short term market
is a fool's game

What stocks or other investment instruments were involved? Was the investment leveraged too to increase the loss/gain?

Have you read the book Fooled by Randomness by Nassim Nicholas Taleb? A great intellectual read.

 

[Mandala]

What stocks or other investment instruments were involved? Was the investment leveraged too to increase the loss/gain?

Have you read the book Fooled by Randomness by Nassim Nicholas Taleb? A great intellectual read.

ETFs with no leverage just vanilla ETFs in various markets mostly S&P

'Fooled by Randomness' is about how we rationalize poorly. The market is a place where you can fool yourself easily

My theory is do not chase individual stocks just buy the whole market and hold which is exactly what ETF does

Yes, you will buy losers but you will also buy winners

Mutual funds and brokers will say you are throwing dice when they are throwing the dice as they are guessing at the winners and losers

If you pay someone to actively manage your money 2 things can go wrong instead of one

1 the market which is everyone's risk

2 the stock picker has to guess right which is actively managed risk

 

[Carvher]

Holding is a good strategy

 

[33333]

Just go to the casino, and put $22,000 on Black

 

[Mandala]

ything

Holding is a good strategy

It is the only sound strategy IMHO everything else is for losers

 

[JeanGary Diablo]

The funny thing about money: We lose five figures in investments and our attitude is "meh, shit happens. It'll bounce back. Hopefully."

We lose $2 that falls out of our pocket on the subway and it's a minor meltdown.

 

[superstar_88]

Take everything out and put it under your mattress and you won't lose 22 grand in one day ever again.

 

[Carvher]

Another wierd thing about money is as Canadians we think all health related things should be free because they basically are.

But not so much when we get older. Glasses, physical therapy, eye drops, dental care, prescription drugs, etc. become a larger part of our lives and may involve out of pocket expenses and yet we are hesitant to pay for it.

I've realized that it's an investment in your life. The best investment we can make is for our health. So don't be cheap.

 

[Mandala]

Take everything out and put it under your mattress and you won't lose 22 grand in one day ever again.

I know you are joking, but there is a much better idea if you want total guarantee of your principle.

A High interest savings account (HISA) generally matches inflation which normal savings account will never do

The best HISA long term rate today is while inflation is 2.8%

Both accounts are guaranteed by the government from default if they are a CDIC member

but taxes on interest is high so best put in TFSA

But, a lot of the HISA will default to regular accounts so check the details.


This is common investment approach among smart investors who seek total peace that principal is fully guaranteed while protected from inflation and taxes

 

[jeff2]

I know you are joking, but there is a much better idea if you want total guarantee of your principle.

A High interest savings account (HISA) generally matches inflation which normal savings account will never do

The best HISA long term rate today is while inflation is 2.8%

Both accounts are guaranteed by the government from default if they are a CDIC member

but taxes on interest is high so best put in TFSA

But, a lot of the HISA will default to regular accounts so check the details.


This is common investment approach among smart investors who seek total peace that principal is fully guaranteed while protected from inflation and taxes

ZCS is also pretty safe with a good rate.

https://bmogam.com/ca-en/products/exchange-traded-fund/bmo-short-corporate-bond-index-etf-zcs/

 

[Mandala]

ZCS is also pretty safe with a good rate.

https://bmogam.com/ca-en/products/exchange-traded-fund/bmo-short-corporate-bond-index-etf-zcs/

Short-Term Corporate Bond ETF is another option for ultra conservative investors that should slightly beat HISA but has slightly more risk

 

[superstar_88]

I know you are joking, but there is a much better idea if you want total guarantee of your principle.

A High interest savings account (HISA) generally matches inflation which normal savings account will never do

The best HISA long term rate today is while inflation is 2.8%

Both accounts are guaranteed by the government from default if they are a CDIC member

but taxes on interest is high so best put in TFSA

But, a lot of the HISA will default to regular accounts so check the details.


This is common investment approach among smart investors who seek total peace that principal is fully guaranteed while protected from inflation and taxes

No, I wasn't joking. If a one day dip concerns you so much then don't do it.