01/31/2021
Hello VOT,
Recently, I received many messages about how I trade and how to win, so I decided to write this to you and hope that you assess your current situation before jumping into this market. Many of you have beautiful families and kids, so I just don't want to see people get hurt because they don't know what they are doing.
TLDR: do your own DD, and if you're not confident about it, don't get into the market.
Disclaimer: I'm not a financial advisor, and everything I say is not investment advice.
Ok, now we get that out of the way.
Please don’t come up with questions like "What's the PT for XYZ?" "When do I sell?" or "When do I buy?" Don't you think if someone knew these answers, they would be somewhere on the beach and not here do homework and DDs for you? If people could look into the future with their crystal ball, then there would be no market at all. The market definition is speculative, especially in this volatile market. The market is a wild wild west, where everyone is for themself. It's a device to transfer wealth from one to another. Do you think the one who told you to hold the stock would actually hold it when its price decreases by another 5%? Everyone has a different emotional limit, and that's that. You make your own decisions, and no financial advisor could make them for you. If you can't make those decisions by yourself, then don't play the game, because you will be panicked and not cold-headed enough to deal with the fluctuation.
You're trading in the US stock market, but many of you don't even read English. The market follows the news so you put yourself into an extreme disadvantage position. It's like bringing your cat fighting technique into a Muay Thai match. Other people will eat you alive for their breakfast. So you hop on here and hope to get some information and trade together. Nope, it doesn't work like that. See the above point. The market is a wild wild west, where everyone is for themself. Let that sink in. There's no "Anh chị em mình cùng chơi cùng thắng nào!" That's just weak hands looking for reassurance. When things go south, you will be disassembled, and everyone will be for themself. You will be left alone. If you can't deal with that, don't get into the game.
I also see many people who get on here because they see a lot of wins, so they think it's easy to win. That's naive thinking. The more people win, the more risk they have to take. High risk high reward, it's basic and you should know that. If you're not prepared to take 20% loss and hold, don't expect to get a 20% gain. A lot of people here can't even deal with 5% loss and when it happens, they panic sell and also tell other people to sell to get out too. They may be right, or not. Everyone has their own strategy and no strategy is like the other. Winning is hard, both mentally and emotionally. I won some because I took a lot of risk, just to win some. That's how hard it is. Many people here don't want to bear the risk and want high reward. If you want zero risk, then stay at your job. Scared money doesn't make money.
The other day I saw someone asking why her put contracts decreased in value when the stock price went up. You must know what you are doing before getting into the game. Please don't ask why you can't cancel the option order you purchased. This is not Amazon, this is dealing with real people and real money. Once the decision is made, you are obligated to fulfill your position. There's no undo button, unless you choose to close the position. So, learn before you do. If you do options, at least learn about the Greeks, the delta, theta, gamma etc...
About WSB: I joined the sub when it was just 600K members. I enjoyed the memes, helped me laugh, but I didn't invest. I love the sub because everyone in it is for the money, at least before this GME crowd. People don't really care to prove their point, if you don't agree with them, feel free to bet against that idea. There’s no drama, no politics. Time will tell. I read a lot of DDs, to get a sense of the market and its mechanics. Some are good, but not all are. I see that in many groups including VOT, people just grab a link from "reddit" and post and tell everyone "reddit says it will pump this stock". With more than 6M new people, do you think every DD in that sub is good? WSB is famous for loss p**ns, just select the Loss tag to see tremendous losses. You will be surprised. It's a casino for most YOLOs. Are you that kind of YOLO person? It is right about GME tho, but in the past, people lost tons of money. Make sure to know that before blindly following anyone's advice on there. Lots of stupid posts on that sub.
About GME: There won't be another GME. Not AMC, not NOK, not BB. As Michael Burry said, GME has a perfect setup for the short squeeze to happen. So when you think you're late to the game, you look for the next heavily shorted stock and hope that it will be the next GME. Do you think those hedge funds are waiting for you to put them in the spot AGAIN like we did with GME and not already cover their short positions in those stocks? Don't be so naive. Those "new" stocks grow and sink because of other catalysts, whether their products, or some other things.
When, or if, GME moons, the price will decrease very fast. If it moons at, say, 1000, it may go down to 20 right after that, and not gradually decrease like we normally see with other stocks. So there will be a lot of people holding the bag in the end. Those are the new, clueless crowd on WSB. So treat it with extreme care if you want to get in. I expect to see a lot of Loss p**n on WSB in the next few weeks.
I'm just a random dude on the internet, and I started to really trade just a few weeks ago, exactly on Jan 12. So I'm not qualified to answer your questions, as there are a lot of smarter people with million-dollar accounts here. So please direct your questions here, I'm sure there are many answers. I was just tired seeing my lazy ass saving account not growing at all. So I decided to do something about it and learned about investment. Truth is, I've never written calls or puts. I've never done spreads, iron condors, all those fancy names about which I thought of the animals when I first heard. I just buy low and sell high because I believe stocks always go up in the long term. And I have big balls. That's all.
I’ve worked in tech for so many years, so I have the market knowledge about tech companies and their products. Before this GME s**t show, I only traded tech stock, like AAPL and FB. So I'd say invest in the industry you work in, as you deal with it on a daily basis and know the mechanic. That's your advantage to other people in the market. So utilize that advantage rather relying on other people's knowledge. They may not know as much as you do.
Ok, long enough, so what can you do to become better?
Read more. Read and do your own research. You can discuss ideas, but you should have your own opinions. In the end, it's your money, so be responsible with it. Lazy money doesn't make money. Don't expect other people to do research for you so you can just take their fruit. Hate to say, but many Vietnamese people are really lazy and just want profits. They just want to know what stock to buy, when to buy it, and when to sell. If there's some way to know that for sure, please let me know so I can quit my job.
Finally, everything I say is not investment advice. Good luck! 🚀🚀🚀
Copy from Viet Option Trader.
