November was a decent month of options trading. The biggest lesson I learned was to keep my position sizing small so there would be less risk of a major loss. In the previous month I made a big bet with Meta stock which went against me. It costed me over $2,000 and wiped out a lot of my… Read More »
Liquid net worth – July through September It seems things have gotten worse in the third quarter of 2022. Stocks continue to fall in general and because I am leveraged my investments are down more than the broad-based market. My liquid net worth dropped by $64,000 and is now back to where it was after Q1 of 2021.… Read More »
Signs of financial stress. The effects of higher interest rates have a 6 to 12 month lag period before showing up in the general economy. It appears we’re seeing those related issues now. A Canadian real estate lender has recently halted redemptions on its fund. This means investors can’t get their money out which is a pretty big… Read More »
It wasn’t a good month for options trading. 😅 I’m basically flat for the entire month. I was doing okay for the most part. But then I shorted a put spread on Meta stock before earnings and unfortunately they disappointed investors so much the stock fell 24% the next day which really hurt my P&L. 🙁 The… Read More »
Yes, it still makes sense to use leverage today. Let me explain… 🙂 Leverage in a higher interest rate environment My margin interest rate used to be just 1.8% last year. Borrowing money at this low rate to buy stocks was a no brainer since the stock market returns on average way more than that. However, today my… Read More »
Same pay for less work Over the last couple of years an interesting trend has emerged in the job market. Instead of working the typical 40 hours a week, some jobs have switched to a 32 hour work week. Employees only come to work 4 days a week, so it’s pretty much a long weekend, every weekend. The… Read More »