Week 49 - Dec 4 Market Summary
Week 49 - Dec 4 Market condition and the impact on my portfolio.
- Today (Dec 4) Markets
- My portfolio on Dec 4 @ 10:52 am (EST).
- Asymmetrical risk using Bitcoin/Ether
- Hedging risk against a "standard" boring portfolio
- Dec 4 Options Trades
- NFT/Web3 gaming - SPS value
Today - Dec 4 Market condition and the impact on my portfolio.
November was an excellent month for long-term holders and those going "long" in the portfolio. It was the best monthly return in 2023 (so far)!
Today is a different story, with markets going down.
My portfolio on Dec 4 @ 10:52 am (EST).
Let's look at my portfolio this morning.
How is my portfolio showing green (up) while the general market is red today? I'm not heavy into NASDAQ-100 (QQQ) since that is down 1.5% today. Is it possible this data is wrong from ETRADE, or if I photoshopped the screen?
Or is it more likely a different reason that you can discover for those who read my previous investment post? I have posted on social media for the last two or three years explaining what trades/moves I'm making when I put on the transactions.
I can give you a hint if you are not quite sure where I'm going with this:
Asymmetrical risk using Bitcoin/Ether
What is asymmetrical risk? A quick Google search shows:
Simply put, it is like buying a lottery ticket for 1 dollar, and you can lose it all ($1) or win 100 million dollars. We understand the risks and rewards. The problem with a lottery is the odds of winning vs. losing; you will likely lose for the next 50 or 60 years of playing. Very few people will have a winning ticket over a lifetime of playing.
When you think about BITCOIN or ETHER, you can view it like a lottery ticket. You don't need to go "all-in." However, I don't think the odds are BITCOIN will be worth zero. While it is possible to lose everything, I believe the odds are higher of winning than losing. This is where my experience as a STOCK MARKET trader comes in.
Considering this, you should never go "ape-in" or "all-in" with Bitcoin. You can go 0.5% or 1% of your asset into BITCOIN. This is true even if you are an unbeliever. The asymmetrical risk using Bitcoin has proven to be a reasonably good method! Why? Bitcoin as an asset has had one of the highest returns in the last ten years, beating the Stock Market, Real Estate, and everything else.
- Hedging risk against a "standard" boring portfolio
Many readers and friends know I have been teaching about hedging risk, even if you are an index fund investor using the S&P500.
I use options (Iron Condors) on SPY to hedge risk. If markets are flat, I can still profit from my options trades. This extra step can offset some of the RED I'm experiencing today.
The next way I hedge is using Asymmetrical risk using Bitcoin/Ether in my portfolio. While it is not known to always move in the opposite direction of the SPY (S&P 500) in the traditional sense of hedging, the effects are real in my portfolio.
I must overcome all the RED today to show GREEN in my portfolio, up 6K. This concept is complex for most people to understand, and I don't need every method to work simultaneously to make money. You need to work together; in the long term, you can make money with LESS risk. This is why hedging and understanding risk can help you design a better method than just using the SP500 only.
The stuff I'm learning while working will help me design a better portfolio leading up to my retirement.
Dec 4 Options Trades
Here are my options trades for today. I am rolling my covered call in RIOT blockchain up and out to adjust my position based on the BITCOIN move today.
NFT/Web3 gaming - SPS value
Now, onto my hobby of playing video games. I love video games, and what is better than #play2earn? But I have been "testing" out NFTs and assets within video games with value, like the STOCKS I buy in the market.
This is not financial advice. You should not play a video game trying to make money. This is my hobby. But it might be possible that in the future, playing video games is no different from playing the stock market. The SPS that I have is up 121% in the last month.
Have a profitable day,
Solving-Chaos
