In the world of investment, especially in today’s dynamic markets, staying true to a long-term strategy can sometimes feel like navigating through a storm. One such day recently highlighted the challenges and the importance of staying focused on a larger plan despite short-term setbacks.
Yesterday started with a mix of holdings – 3X stocks, Bitcoin, a flat position in the volatility market, and a slightly bullish stance in the treasury market. However, as the day progressed, signals emerged, prompting a shift in strategy. The algorithm implemented the trades for Best Combo, Patience is a Virtue, and Easiest strategies, selling some Bitcoin, going short in the volatility market, exiting treasuries, and jumping into gold.
Fast forward to today, and unfortunately, it turned out to be mostly bad moves except for jumping into gold. The strategies, which typically combine elements of Best Combo, Patience is a Virtue, and Easiest, faced significant downturns today. The spike in volatility was particularly challenging, leading to losses across our positions.
Despite today’s losses, it’s crucial to note that none of the moves made yesterday were inherently wrong. Statistically, based on trusted indicators, the decisions were sound. However, as any seasoned investor knows, the market doesn’t always follow statistical probabilities in the short term.
The analogy of a casino comes to mind – even when the odds are in the casino’s favor, there are times when big payouts occur, causing temporary pain for the owners. In these moments, it’s essential not to dwell on a single trade, day, or month. Instead, maintaining focus on the broader plan spanning years is key.
Switching back and forth between positions can seem difficult right after some misses. But I believe sticking to a strategy is crucial to long-term success. Today’s losses may be tomorrow’s gains, and knee-jerk reactions can lead to missed opportunities in the long run.
Looking ahead, the plan remains steadfast. Implementing the Best Combo, Patience is a Virtue, and Easiest strategies might seem challenging during volatile times, but what matters is the statistical methodology guiding decisions for the next 5, 10, or 20 years. Short-term fluctuations are part of the journey, and staying disciplined through them is what separates successful long-term investors from the rest.
I say this as someone who is down $30,000 today personally. I know the pain. But I understand the goal and the method.
But I am also someone that has been following these basic investing methods since 2019 and it has paid off for me even with covid and 2022. Below you can see the results of my combined IBKR accounts.
The Eclipse
I did travel last week to see the total eclipse. I saw the total in 2017 and it clicked for me just how lame a partial eclipse is in comparison to a total. My phone didn’t do a great job capturing it. In person I really think a total eclipse is one of the most beautiful things to observe. I had a great time in Russellville, Arkansas with my wife and mom. Finally I think my mom is a total or nothing believer. I was a bit worried about the clouds for a bit but fortunately it was clear enough to see the total solar eclipse and two planets were bright enough to see too!
Disclaimer
This is not investment advice for you. This website is designed to talk about investments but it is not designed to give you personalized investment advice. This site contains generic information that does not have the capability of taking your personal risk tolerance, goals, assets, or other factors into account. Therefore, this site and all of its related content is for entertainment, informational, and educational purposes only.
The owner of PatienceToInvest.com is also a trade leader on Collective2.com. We may receive compensation by promoting some collective2 strategies over others. Should you decide to make or avoid any investments or use any service due to the information on this site or related information you assume full responsibility and risks and will not hold howiinvest.com it’s associated sites or its owners responsible. You also acknowledge investing is risky and can result in the loss of all your capital and even more than your original capital in some cases.
How I Invest 