How to avoid my whole portfolio going down 40% in one night when

It's quite an interesting question.

The way I'm learning to manage my own money is by actively managing it myself trading options. I'll be using a margin account where I'll never have more than half of it being used as buying power. So even if there are catastrophic events I'll still be protected and never have all of my capital at risk.

Larger gains, using less capital and with less risk.

>>1806479
Wont you just habe to owe it back eventually if its on margin?

>>1806446
by only trading bluechips

>>1806486

As far as I'm aware margin is just the brokerages way of measuring realistic risk. So you get buying power reduction rather than having to put up the entire amount of capital. Because with some option trades the actual risk is unlimited. But the actual probability of catastrophic risk is pretty low.

So long as you stay small, the chances of blowing out your account are virtually non existent.

>>1806479
basically a martingale model, congratz

>>1806539

No, nothing like that at all.

>>1806446
Don't put your whole account into 3x-etfs. Really of you don't need the money it doesn't matter

>>1806547
no? tell me where i am wrong in my thinking
1. trading high risky securities for because of higher returns
2. keep half of your capital out of these trades because they can go sour,
3. if, theoretically u lose 20% of your total money you will move your capital you are not trading into trading capital

>>1806446
Kill yourself and stop pretending to be a trader

>>1806564

You were talking about some martingale gambling strategy. What has nothing to do with investing/trading.

If you do defined risk option trades you're taking less risk than just buying long stock.

>>1806631
>you're taking less risk than just buying long stock
Except with long stock you don't run the risk of time decay fucking you, a constant risk with options.
And if you're holding dividend stocks long, time decay works in your favor.

>>1806660
that's why you look for sweet prices on strikes you bimbo

>not using outsized gainz on options to reinvest in dividend stocks

Plebbiest tier

>>1806660

With long stock, you run the risk of bag holding, for years.

With option strategies, credit spreads especially you have positive theta, time decay working in your favor.

Dividend stocks have nothing to do with time decay. They can give you income but can still depreciate your capital if they lose value

>>1806688
>bag holding, for years
Even in this case, your capital is somewhat preserved.
With a poor options trade, your initial outlay vanishes completely.

>Dividend stocks have nothing to do with time decay.
They are the opposite, in the sense they generate income over time, rather than eat away at it.
The price behavior of the underlying is secondary, and can affect both stocks and options in a negative fashion.

>>1806710

You seem to be only able to think statically in terms of stock. Credit spreads give you immediate cash. If the underlying goes against you you can defend the position by rolling the strike in or to the next expiration gaining a credit and widening your break even. Credit spreads also have a high probability of success. The vast amount of options expire out of the money.

There is nothing wrong with dividends. I'm certainly not going to play them down but if you invest heavily into them and the stock loses value you will see your capital reduce. And I will also agree with the fact that there is positive drift in the marketplace. If you hold stock for long enough you will see a gain. But you could well be waiting for year and years.

If all you want to do is speculate in the marketplace then options provide you a much better vehicle to do so than stock.

But to add to that I would also say that I wouldn't use one product alone. Stock. options, futures, currencies, bonds, ETFs. I'll use them all if they can make me money.

>>1806741
>You seem to be only able to think statically in terms of stock
And you seem to be very biased in favor of options.
That's fine, it's not like they don't have value, or a place in the investing spectrum.
But to treat them as somehow "better" than other vehicles is to ignore their flaws, something common to every alternative investors have.

>>1806758

You're right. options are the core of what I do. And that is because they offer a high probability of success. You can be long, short or neutral. You can be wrong and still be right and you can have time on your side. But I'm not limited to them. I'll use all the tools available to me to speculate in the market.

Nothing else in the marketplace offers the flexibility that options do. Everything else is directional. A 50:50 shot. With options you can increase that probability.

I'll take that side of the market all day long.

>>1806446
anime?

>>1806771
Maybe I'll start playing them this year.
I'm seven years in, and they're one of the few tools I don't use yet.
I do, however, have a friend who never shuts up about how great they are.

>>1806805
Gosick.

>>1806771
Do you pay stock or index-based options? I mainly sell TNA options. 2016 was rough but I've been profitable

>>1806812
can you explain your journey briefly ? i started selling options within 1yr of really entering the market, i cant imagine how you can sit around for 7 years and not read about other strategies and venture deeper

>>1807220
>not read about other strategies and venture deeper
Who said I didn't?
I just said options weren't one of the ones I used.
Also, I'm retired, so it's not like I'm in a sweat to find the holy grail. I've got plenty of time, and no stress.

>>1806631
>You were talking about some martingale gambling strategy. What has nothing to do with investing/trading.

All trading involves gambling. It's worth familiarizing yourself with betting strategies; you're going to end up using them implicitly.

>>1807000
Yeah just regular options on stock, indexes, etfs etc.

>>1807328
That kind of doubling down after a loss is a strategy that will leave you bankrupt.

how to survive the stockmarket crash?
watch from outside

end every day 100% cash

>>1807531
>hundreds of pages of nothing but Schedule D every single year

>>1807582
You are allowed to consolidate now. Been that way for years

>>1806446
VIX options.

>portfolio sprouts wheels and rolling away
>giant dip that is 40% lower than previous
>p-portfolio
>nooooooo
>"only one night"
>log into remote website
>"Site is closed.... FOREVER!!!!!!!!"
>noooooooo
>perform a bank run
>Sell banks
>banks form wheels and fuck off at the speed of light
>rest of the buildings all do the same shit

>>1806446
Buy govt bonds?