Doom vs Opportunity

Institutional leaders seem to be having continued dark predictions and talking about introducing cost cutting measures like lowering or pausing on hiring (Meta,Tesla,Costco, Microsoft,Amazon), even ridding under-performers (Zuckerberg), moving to cheaper tax locations (Tesla), reviewing expenses overall. Woe!

Aggravation of war is not making inflation and supply chain disruptions go away any time soon and there seems no escape of recession reaching the rest of the world.

Despite all these happening the stock market still moves, positively or negatively.

I am still learning how to trade and realised one thing. The stock volatility creates opportunities for short term traders and, for those who kept some ‘cash-in-waiting’, some quick trades can be quite profitable if we are willing to take smaller profits at a time and focus on less than a handful of counters at a time, i.e. to stay liquid. Tiger allows us this with their very low fees.

Having said that, it would be good to keep some cash in between for longs on big and successful players (like Aapl,Msft,Amzn) when there’s a sign of a turning point. We would know when, as all the gurus out there would be making alot of noises about it just like what happened in the early days of declines 😄.

With all that newsfeed on inflation, supply chain disruptions, treasury yields n upcoming interest hikes, I took a bearish view and cleverly put some money into Sqqq last Thursday but alas! It was wrongly timed. Despite all that doom talk, this week started with earnings reporting and many battered stocks started climbing. I was stuck with some paper losses and just sat on them.

Meanwhile, i went with the volatility this week and started trading the Tqqq several rounds to cover my paper loss.

Is today going to be the turning point ? I’m now not sure and wonder perhaps I should be holding my bullets for now.💣🪄💰[Helpless]