21H·

Learning from Mistakes 📖✍️

Hello, everyone.

When the AI hype really took off in May and my portfolio was up by an unbelievable amount, greed set in.

I didn’t even think about selling, because things were going so well. It was kind of a “sky’s the limit” kind of mindset.

Well, I was wrong. By early to mid-June, all those profits (just under €6,000) were suddenly gone, and last week my portfolio was even down a few hundred euros. So, a complete 180-degree turnaround.

I swore to myself that something like that would never happen to me again, so I started using stop-loss orders more aggressively.

No sooner said than done.

When the market bottomed out a good two weeks ago, I bought:

$MU (-9,15%) and $MRVL (-7,47%)

Today I sold:

$MU (-9,15%) with a profit of 34.11%

$MRVL (-7,47%) with a profit of 20.08%

$RKLB (-2,75%) with a loss of 9.21%

I’m not too upset about the loss on RocketLab, since 80% of the capital invested consisted of profits I had previously made on the stock, and secondly, the loss also serves as a good tax offset for the other two stocks.

I think I’ll get back into this at the end of the year in light of the Neutron launch, in the hope that it will be successful.

The positions were reallocated to:

$IUIT (-2,4%) and $IWVL (-2%)

As I said: Complete profit protection.

If the opportunity arises again, I’ll of course reallocate to individual stocks. Until then, $IREN (-4,62%) this is my only stock position in my portfolio.

At the end of the month, my bank membership bonus of €4,800 will be paid out.

€4,000 of that will go into my third ETF $XEMD (-4,5%)

What do you think of all this?

Best regards,

Don

6 Comentários

Solitair@Solitair

21H

Well, it’s actually good when something like this happens at the beginning, so you can learn as much as possible without losing too much. But have you ever asked yourself if you’d actually stick with this trading strategy when dealing with larger sums? And how would you feel if you took a loss? It’s always nice when people post about gains or losses of 300 to 400% and so on, but then you realize it’s just a few hundred euros—nothing life-changing. €6,000 is my normal daily volatility, so I’d have to invest at least a mid-five-figure amount in such stocks to even achieve a significant effect that justifies the effort. And then it’s also annoying when things go wrong. I’d rather stick with ETFs and boring stocks. Just my two cents.

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der_Don@der_Don

20H

@Solitair I totally agree with you. However, it’s always in the eye of the beholder. For you, €6,000 is daily volatility. For me, €6,000 is 15% of my portfolio’s value 😆

But I was thinking:
If a €6,000 position gains 20%, then I’ll make a profit of €1,200.
Sure, a 20% gain on a solid AI stock isn’t all that unlikely and can be achieved quickly, but the risk of major losses is very high.
My €24,000 ETF position, on the other hand, “only” needs to gain 5%.
Sure, the ETF takes longer to reach 5% than the stock does to reach 20%, but I can sleep better and more peacefully with the ETF 😁

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Wealth-Accelerator@Wealth-Accelerator

21H

90% should be allocated to a strong core global ETF, and if you manage to outperform the market with your satellite funds, then the satellite will automatically grow beyond its 10% niche.
Keep at it and learn from the experience 👍🏼

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Alpalaka@Alpalaka

21H

You're selling $MU because of SL; the money is going into $IWVL or $IUIT.
In those two ETFs, Micron has a weighting of 4.5% and 12%, respectively.

I don't really get the point of that. That's not really locking in profits, is it? :)

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edumarbar@emppsb

21H

I think you're selling some winners because of the situation you had with Rocketlab, which in my opinion is different from Micron and Marvell. Anyway, what matters is sleeping well at the end of the day, even if it means "losing" some returns. In my opinion, I think it was a good move, I follow the same strategy. I suggest you to look into $5MVL for the Emergent Markets ETF. Keep going

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bull_investor_1994_@bull_investor_1994_

18H

Greed eats away at 🧠

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