Was cheered by sister in 💰💕❤️August frenzy as my sister say dun over stressed over total p& l but be happy to see weekly performance once we turn positive
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When the market is down, it's crucial to stay steady and not get overly concerned with the overall profit and loss (P&L) figures. Short-term fluctuations can be misleading, especially when looking at unrealized P&L, which reflects the current value of your holdings based on market prices rather than actual gains or losses.
For example, during this year, there were months like May where I faced a significant unrealized loss of SGD 160.57, resulting in a P&L ratio of -4.79%. However, in June, I managed to recover and achieve a substantial gain of SGD 222.04, bringing the P&L ratio up to 5.71%. The key is to not react impulsively to these fluctuations.
Instead of fixating on daily ups and downs, it's better to focus on your portfolio's monthly performance. For instance, after a challenging July with a loss of SGD 31.32, I saw a recovery in August, gaining SGD 203.15 with a P&L ratio of 2.05%. This recovery was partially driven by my strategic trades, including selling a Palantir PUT (PLTR US 20260116 22.0) at a premium of 3.01 on August 14, 2024.
Unrealized losses are often the result of unfavorable price movements in the underlying assets. These are paper losses and do not necessarily translate into realized losses unless you decide to sell your positions. Therefore, it’s important to maintain a long-term perspective and not react impulsively to short-term market volatility.
Remember, investing is a long-term game. Market downturns are inevitable, but they are also opportunities to evaluate your strategy, reassess your positions, and possibly buy into strong assets at discounted prices. Stay focused on your investment goals, and don't let temporary market conditions dictate your decisions.
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