TLDR;
The speaker discusses their recent sale of TQQQ shares, driven by the index approaching its all-time high. They outline a strategy of selling shares in increments as the price rises, specifically planning to sell whenever the price increases by 20%. The speaker details their approach to reinvesting, planning to buy again when the price drops 30% from its high since the last sale. The speaker emphasizes the importance of psychological stability and risk management, preferring a strategy that avoids significant losses, even if it means sacrificing potential gains.
- Selling TQQQ shares at $45, resulting in a profit of 3.84 million won.
- Implementing a strategy to sell shares incrementally as the price rises by 20%.
- Planning to reinvest when the price drops 30% from the high since the last sale.
- Prioritizing psychological comfort and risk management over maximizing potential profits.
TQQQ Sale and Profit [0:02]
The speaker starts by mentioning that it has been nine months since their last purchase. They sold 178 shares of TQQQ at $45, resulting in a profit of 3.84 million won. Despite this sale, they still hold 36.58 million won worth of TQQQ. The decision to sell was influenced by the index it tracks approaching its all-time high from two years prior.
Selling Strategy [0:25]
The speaker outlines a strategy to sell shares incrementally as the price rises. They plan to sell 30 shares each time the price increases by 20%. The speaker provides a table illustrating how the profit and remaining amount would change with each sale. The speaker aims to sell in 12 rounds, with the 12th sell price set at $334, which is approximately four times the all-time high of $89 from two years ago.
Reinvestment Strategy [0:49]
The speaker plans to start buying again when the price drops 30% from the high since the last sale. They describe their buying method over the past year, which involves setting a range and increasing the amount purchased whenever there is a significant decline. The speaker also shares a link to another video detailing their buying method.
Reasons for the Strategy [0:01]
The speaker explains two primary reasons for using this particular strategy. First, they want to invest in TQQQ, a volatile product, more safely, even if it means lower returns. Second, they express a strong aversion to seeing profits disappear and assets significantly reduced from their peak value. Selling in installments during the upward process helps them avoid the psychological pain of seeing their investments shrink.
Portfolio Diversification and Risk Management [0:03]
The speaker notes that TQQQ is just one part of their overall portfolio. They don't believe it's necessary to take excessive risks with TQQQ, as they can generate profits from other assets. They mention buying individual stocks and promise to explain their choices in the next video. The speaker acknowledges that selling early might mean missing out on further gains if the stock price continues to rise without correction.
Personal Investment Philosophy [0:03]
The speaker emphasizes that there is no universally "good" or "bad" investment strategy. The most important factor is whether a strategy suits the individual investor. They acknowledge that their approach involves giving up potential gains from an uncorrected upward market in exchange for smooth cash flow. Ultimately, they prioritize avoiding worst-case scenarios, even if it means not achieving the best possible returns, aligning with their preference for psychological comfort and risk management.