Preparing for the Crash

MDMD

Thrugelmir said:

Stargunner said:

MDMD said:

SMT down another 6% today. Annoying as I bought in yesterday in my SIPP as a long term holding and Trading account as it was at a discount.

Trying to decide if I should double down on
it while there’s a “sale” on.......

That may pay off for you, but the markets are so volatile at the moment, how would you feel if it went down another 6% on Monday. 

The issue for SMT is it's stock concentration. Volatility is going to be far greater than the broader market indices. Tesla in particular has had a bad run of news stories in the past few weeks. 

And the Tesla stock price is always susceptible to idiotic Tweets by a particular person. 

Thrugelmir

MDMD said:

Thrugelmir said:

Stargunner said:

MDMD said:

SMT down another 6% today. Annoying as I bought in yesterday in my SIPP as a long term holding and Trading account as it was at a discount.

Trying to decide if I should double down on
it while there’s a “sale” on.......

That may pay off for you, but the markets are so volatile at the moment, how would you feel if it went down another 6% on Monday. 

The issue for SMT is it's stock concentration. Volatility is going to be far greater than the broader market indices. Tesla in particular has had a bad run of news stories in the past few weeks. 

And the Tesla stock price is always susceptible to idiotic Tweets by a particular person. 

Or a social media frenzy. 

Steve182

Thrugelmir said:

MDMD said:

Thrugelmir said:

Stargunner said:

MDMD said:

SMT down another 6% today. Annoying as I bought in yesterday in my SIPP as a long term holding and Trading account as it was at a discount.

Trying to decide if I should double down on
it while there’s a “sale” on.......

That may pay off for you, but the markets are so volatile at the moment, how would you feel if it went down another 6% on Monday. 

The issue for SMT is it's stock concentration. Volatility is going to be far greater than the broader market indices. Tesla in particular has had a bad run of news stories in the past few weeks. 

And the Tesla stock price is always susceptible to idiotic Tweets by a particular person. 

Or a social media frenzy. 

Musk's personality is one of the main reasons why I have never invested in Tesla directly. I have no personal dislike for him, but the "loose cannon" concern has always been there for me. That decision has been to my determent past 12 months or so I know...... 

valiant24

maxsteam said:

I've covered any fall in my portfolio between now and Monday's close with put options. 

Please may you outline the mechanics of doing this?  Spread betting?

valiant24

valiant24 said:

maxsteam said:

I've covered any fall in my portfolio between now and Monday's close with put options. 

Please may you outline the mechanics of doing this?  Spread betting?

Nobody found it in their heart to reply to this question, but I have seen "put options" mentioned in several posts since, and remain interested in what mechanics for this are open to the ordinary private investor.
Thanks
V

Alexland

valiant24 said:

Nobody found it in their heart to reply to this question, but I have seen "put options" mentioned in several posts since, and remain interested in what mechanics for this are open to the ordinary private investor.

Some providers give access to financial instruments that enable their users to place bets on market movements but most people don't seem to get these right so on average trade away their money to the benefit of others. If you consider yourself a 'private investor' then stick to owning assets that are over the long term more likely to give you a positive return. It's too easy to get drawn into gambling.