🎁How much pullback are you willing to tolerate?

Tiger_chat
01-19

What kind of return strategy do you prefer in the stock market? $Tiger Brokers(TIGR)$

Do you agree with the statement:

The higher the tolerance for pullback, the more likely to achieve higher returns?

Which one do you pick?

Enduring a single 50% pullback yields a 100% return; enduring ten 10% pullbacks results in a final gain of 159%.


How Much Pullback Are You Willing to Tolerate?
Do you agree with the statement： The higher the tolerance for pullback, the more likely to achieve higher returns? Which one do you pick? Enduring a single 50% pullback yields a 100% return; enduring ten 10% pullbacks results in a final gain of 159%.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • Shyon
    01-20
    Shyon
    Personally, it depends on the strategy, but usually, I allow 10-15% of pullback for my holdings which is consider safe during a bull market. However, during a bearish sentiment market, I may allow slightly more, like 20-25% as I factor in the panic sell etc... If you are holding growing and earning stocks, the pullback usually won't affect much.
  • icycrystal
    01-20
    icycrystal
    @rL @koolgal @LMSunshine @GoodLife99 @Aqa @Universe宇宙 @Shyon

    comment and win coins

  • Bonta
    01-19
    Bonta
    It boils down to fundamentals. If the stock is trading 50-60% below valuation, it doesnt matter, as in the long run, there will be reversion to the mean. I am already used to holding stocks that trade 50-60% from purchase price. Will usually average down to bring down the cost. Overtime, they usually recover. However, there is a mark difference between 50% drop and 5x drop of 10%. 50% drop has a high probability of structural issues within the stock, as usually stocks with strong fundamentals even if they drop is in series of bad news. Structural issues will be very difficult to recover, as it implies damage to the fundamentals of the company. A review of the position will be urgently required.
  • Aqa
    01-20
    Aqa
    Different pullback i can tolerate for different stocks in different markets. It all depends. Enduring a single 50% pullback yields a 100% return; enduring ten 10% pullbacks results in a final gain of 159%.
  • Alubin
    01-19
    Alubin
    i believe it is debatable. Unless u are investing in broad market index where the general trend is upwards over the past 30 years, else there is a likelihood the pullback will not recover...
  • highhand
    01-19
    highhand
    high risk high returns for 10 yr investment time line. 50% drawback it's fine.
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