I hope to share my “come back” story to those who lost hope. It’s still a work in progress but trading has been fun. It tests us to the limit and builds character.

    I entered the stock market in Jan 2021. The first stock I bought was CCIV (now lucid) with options and it was the tail end of the spac-mania. Put in about 20k and life was good. I didn’t know making money was so easy. Waking up and find thousands of dollars in my account. In 1 month, I 4x the money. Surely I can do it again?

    Fast forward, I lost it all. All 80k. No risk management, nothing.

    Took a 6 months break. But I came back, 100% on options.

    This is not addiction. This is dedication.

    Honestly, I can’t remember what I bought when I returned. I only remember buying Chinese options when HSI (hong Kong index) went back to 1997 level. Gained lots but lost more and I swore to never touch Chinese stock again. But they become relevant again because of the stimulus. (More on that later)

    My low point was 7k at the start of 2024 and I managed to 5x it with the AI boom. I’m fucking sure no one expected the market to recover late last year. AI carried the entire stock market.

    I’m lucky I was out before the implosion happened on late July – August. I was still down 20% but remember, it’s 100% options. It could be much worse.

    Right now I’m 60% in US stocks (30% in Tesla for the robo taxi) and 40% in Chinese stocks.

    What I’ve learnt so far:
    -slow money is faster. Fast money is death.
    -price to dream ratio is the best when things are hyped and uncertain. (Hence Tesla and Chinese stock)
    – don’t earn the last dollar. Run when everyone is onboard. (Totally out of AI)
    -never concentrate more than 30% in 1 holding.
    -when you are not certain, Buy/Sell half of the intended position.
    – you only buy more/leverage more if you are in the green. Never the other way around.

    Looking ahead, I positioned more Chinese options. I think this is the moment I’ve been waiting for. I can read Chinese and I find that English DD doesn’t go into the details of the stimulus. Particularly, 800b yuan swap facilities for collaterals (including stocks which makes even less supply) can ONLY be used to buy stocks. This is their equivalent of QE and their timing is impeccable. (They were waiting for fed to cut rates.) they probably also need the stock market to replace their currently dead real estate market.

    3 Reasons to buy
    1. Stocks can be used as collateral and be locked up (supply drops) and the money must go into the stock market. (Demand increase)
    2. It’s mentioned that there could be more rounds of the same size.
    3. They are cheap. Many stocks’s Forward PE is single digit. Vs high 20s in US.

    3 Reasons not to buy.
    1. It’s Chinese.
    2. It’s Chinese.
    3. It’s Chinese.

    TLDR. Got greedy + cocky and lost it all. But I’m glad I lost it all early rather than later. I made a comeback over the past 10 months. Betting on Chinese stocks now. Still 100% on options.

    https://i.redd.it/rcv570x137sd1.jpeg

    Posted by hotbun321

    17 Comments

    1. Congrats! Very good advice regarding slow money rather than trying to YOLO for big gains.

    2. Another post from an unused account pushing foreigners to invest in the chinese pyramid scheme, er…a, I mean stock market.

    3. Illustrious-Fox-7082 on

      So in 3 years of an insane bull run you’re down ~30k and are doing a victory lap on Chinese tickers.

      Can’t wait to see how fast you blow this account again now that you’re dedicated and not just addicted.

    4. optimaleverage on

      Seriously though, NEVER average down? I see this sentiment a lot and in general it’s probably good advice. However I’ve been working out a strat where averaging down is a feature… ie use 1/3 of the outlay to start at major resistance or support with the rest going on if the level breaks kind of banking on mean reversion following some give. I keep my final stop relatively tight from there and it seems promising in paper anyway… But it is apparently unorthodoxy with options and I just wonder if it’s actually such a bad idea all the time.🤔

    5. GRIFF_______________ on

      im currently t like the 3/4 mark of your journey after turning it back around

      ​

      its funny your graph looks just like me

    6. I stopped reading at “This is not addiction. This is dedication” ![img](emote|t5_2th52|4271)

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