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Riddle: Are there more climbs or more descents in Italy?

  • francescoturturici
  • 12 gen 2021
  • Tempo di lettura: 6 min

..... they are the same because the climb is also a descent!

What if we asked this question by referring to the stock market, what would be the answer?

Well.. More climbs!

Obviously along the way we will meet descents.. sometimes they can look like cliffs. Don't panic, we're equipped with parachutes!

Ok. Let's get serious again. The theme of this post is aimed at raising awareness by copyers (or investors) to address stock market descents. Some may be longer, some may not.

It will be a bit of a long post, but it will be my "fundamental" on which you will have to rely if you choose to copy me to understand the expectations.

I will update the text with insights, you can find it here:


Let's look together at the " Expectation / Reality " chart of the impulsive investor who wants to reach the top without wanting to face a descent.




"Buy high and sell low" winning strategy you are going SHORT, but many go LONG and lose important sums of money.

It happened several times to receive new copiers at the beginning of the day and to lose them in less than a day, the record was to receive the notification of a new copier, open it and realize that he had already stopped copying me, losing about 3% in a nanosecond because at that time I had two positions in cryptocurrencies and the stock market was closed. It happens that they start copying me at + 3% (generally the market wakes up euphoric and then stabilizes with the passing of the hours, sometimes it goes down, sometimes it goes up, and obviously when the new integrator stops copying it is because my portfolio has gone down maybe -1 / 2%. Result? -5% in less than a day. A disaster! I get sad thinking about the great loss faced by the copier, often blaming myself for the lack of a real guide to start copying. after this post I may no longer feel guilty and hope it can help you make the decision as to when and whether to start copying (these are valid indications for copying any other investor)


So let's start analyzing information. First, you copier must analyze the time span of your copy.


Days, weeks, months or years?


If we talk about days I strongly advise against copying, focus on a few single shares and surely you will be able to earn more.Most of us investors invest and do not speculate.To speculate some penny stocks could be for you, but remember that speculating is a bit like playing roulette, once is good for you and the other is not, but the dealer always wins. The volatility of a portfolio is lower based on the risk score. My current risk score is 5, this means that my portfolio can fluctuate about 3.9% per day (down or up) is a maximum percentage, my portfolio hardly reaches it, few days ago I gained 5.34% but it was due to the high volatility of the market.

If you plan to copy me for 1-2 weeks then you have to pay attention to the entry point which must be ideal. In this case I recommend starting copying:



- A day when the market is red;

- Do not start copying before the opening of the markets, it is more advisable towards the end;

- Check the nasdaq and sp500 chart to understand how the markets have been performing in the last few hours (so a 5-10 min chart is fine). Avoid starting the copy when they are on the rise, wait to enter when the market goes down;

- It is always advisable that you contact me to find out if it is a good entry point or if it is better to wait, informing me of your time frame;

- Consider adding funds if the copy reaches a loss of 5% to lower the average price and recover the loss (you can possibly close the first copy once you reach a small gain if you don't want to over-expose yourself)


If instead you plan to copy me for months or years:


- You can start the copy at any time, but consider the risk of possible market drops, again I highly recommend adding funds if the copy reaches a loss of 5% to lower the average price and recover the loss first.


In all cases, however, I remind you that the red days do not mean that our wallet is destined to lose everything. The market moves back and forth, so corrections are healthy, fair and offer you great opportunities.


Invest everything right away or add funds a little at a time?


Here too we must think about the timing of the investment and how much you want to invest.


How do you plan to invest?


Do you plan to add funds every month / year on etoro or have you put all your savings immediately available?

Copying an investor is a bit like opening a position in an ETF. So you are not investing in a single stock but in a series of shares that have different weights within the portfolio. So it is difficult (impossible based on the investor's risk) for everything to be lost, which instead can happen with an action in the event that it fails. In fact, you can add positions, close others, balance the portfolio, etc., which cannot be done in an action. Within a portfolio it may happen that an action fails for any reason, in this case you would not lose everything, but only the percentage destined for that single action.

This is why good diversification is essential.


Why did I say this? Because generally many of us dedicate a percentage of salary to invest in the stock market, so they will add funds from time to time (Accumulation Plan). When investing in an ETF it is a good idea to think about adding funds at a predetermined time interval, perhaps every month or at each significant decline.

This is a valid speech if we think about an investment of weeks or months. If instead we think of a long-term investment (many years) then you can invest everything immediately because opening a position at $ 100 instead of $ 90 does not make much difference (always based on the availability and strategy adopted).

So another question you need to ask yourself is:


Do I think of the copy as an accumulation plan or not?


Many investors write in their bio that it is best if the copy lasts several years. Precisely in the perspective of a PAC, and not because they want to keep the copiers for an infinite time.


What do I recommend?


- Consider copying as a PAC

- Add funds at regular intervals or even better during portfolio corrections (5% is ideal).

- If you want to invest a total of $ 1000 in copy then it is better to spread them over 4 different operations

- Keep calm and don't panic, in the long run all investor portfolios are proliferating.


What do I NOT recommend?


- Open the copy without seeing the investor's portfolio and not seeing the risk level

- Open the copy hoping for a 100% profit in a few days. It's a marathon, not a race. "If you want to travel a distance of 100km at 240km / h, it will take half the time compared to 120 km / h, but the risk of an accident is just around the corner"

- Open the copy without asking first if it is the right time or check the market trend (nasdaq / sp500 index chart as mentioned above)

- Close a copy at a loss, if you are at a loss it is better to add funds.


What is my investment strategy?


I wrote an article that you can read here:



Also you can read my biography.


Currently, the only long-term positions (I am talking about years) are: $NIU, $CSIQ, $Irobot $NIO, $PLTR, $BYND, $INTEL, $SPCE and $A2A.


I consider the others in the short and medium term because I still can't get a very good entry point and I expect the market to correct (currently I think the majority of stocks are overvalued)

Every week I report on the performance of my portfolio and talk about the actions and decisions taken.

I also often look for stocks to invest in long term and when I find them I share my information with you


Obviously mine are just some advice, if you have any other questions or concerns you would like to raise I'm here to answer!


Goodbye and thanks for your attention!

 
 
 

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© 2020 by Francesco Turturici

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