Own 'em both

I’ve been every type of investor in the past 10 years. I bought Apple and Tesla in 2013 and sold them soon after because I couldn’t take the stress of the changes. I switched to low-cost index funds for a few years, then Schwab’s Intelligent Advisory for a few more years.
During quarantine, I started dabbling in options trading. After enough articles from TheVerge about self-proclaimed idiots who eat crayons making millions, I put $5,000 into a Robinhood account. Then the worst thing that could happen happened - I made money on my first 8 options trades. A lot. Which I thought meant I was a genius with previously untapped instincts. Then I bought 8 more options that all ended valueless. I’m not a genius.

I decided it’d be smart to read about smart options traders. I switched from naked calls to call spreads, long puts to put spreads, and even dabbled in synthetic longs and diagonals. I still don’t know what an Iron Condor is.

In January I made a bunch of money on GameStop and then I subsequently lost almost all that money on GameStop. I decided to read more content from smart people. I read GauchoRico and Saul’s Investing Discussions on TheMotleyFool and it clicked. This is the thesis I wanted - buy good companies who are increasing their profits each year and hold them for the medium to long term. I looked at their research, then did my own. These companies were extremely legit.

This takes us to mid-February, I take a (fundamentally no-risk loan) from my 401k which was getting meh returns over the past 8 years. I get out of everything I bought in March 2020 (United Airlines, Marriott, Moderna, Six Flags). I pivot my entire portfolio. Tech stocks start going down a little bit, I start buying these dips, increasing my positions. Here’s where I am now:

TTD - 9.68% of account: -30.72%
SHOP - 5.62% of account: -27.27%
CRWD - 5.6% of account: -24.42%
FVRR - 4.62% of account: -12.34%
SQ - 4.49% of account: -17.89%
TWLO - 4.33% of account: -28.23%
UPST - 4.17% of account: -49.57%

Overall, my portfolio is down 28% on the year, and really in the last 3 weeks. It’s amazing to watch an entire portfolio collapse immediately after it was opened. But the market isn’t, and hasn’t ever been, rational. The thesis is still sound, these companies are still incredibly strong. We’ll see how it stands a few months from now.

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