Portfolio Management is key to your success; Greed pays Poorly

[SOL]

As illustrated by this story even the so-called big fish (but not the big shadowy players) are no different than the average joe when it comes to trading. They still share the mass mindset mentality. the only difference is that they have bigger accounts and thus can destroy themselves even faster. This is one of the major reasons for Friday's sell-off

Wall Street’s premier investment bank, lured by the tens of millions of dollars a year in commissions that a whale like Hwang paid to rival dealers, removed his name from its blacklist and allowed him to become a major client. Just as Morgan Stanley, Credit Suisse Group AG and others did, Goldman fueled a pipeline of billions of dollars in credit for Hwang to make highly leveraged bets on stocks such as Chinese tech giant Baidu Inc. and media conglomerate ViacomCBS Inc.

Now Hwang is at the center of one of the greatest margin calls of all time, his giant portfolio in a messy and painful liquidation, and Goldman’s reversal has thrust it right into the mayhem.

According to two people with direct knowledge of the matter, Hwang’s Archegos Capital Management was forced by its lenders to dump more than $20 billion of stocks on Friday in a series of market-roiling trades so large and hurried that investors described them as unprecedented.

Goldman even emailed clients late Friday to inform them that it had in fact been one of the banks selling. The email, a copy of which was seen by Bloomberg, detailed a total of $10.5 billion in trades. The message didn’t name Hwang or Archegos.

https://finance.yahoo.com/news/goldman- ... 46671.html

Greed combined with stupidity is the ultimate equalizer in terms of reducing a rich to rags


Goldman has since told shareholders and clients that any losses it faces from the unwinding of Archegos trades are likely to be immaterial, a person familiar with the matter said.

Representatives for Goldman, Morgan Stanley and Credit Suisse declined to comment. Efforts to reach Hwang and his associates at Archegos were unsuccessful.

[Eric]

So how does VIAC look in your crystal ball? They're down 50% in just several days... I love a hard bounce.

[Eric]

I think I already know... I just looked at a 5-year chart. No thank you.

[SOL]

On the weekly charts it still extrmely overbought but on the monthly charts it has room to run. So if one is willing to take a risk it might (keyword being might) be worth taking a bit of risk. There are so many better plays out there that I would only allocate money I am willing to lose to this trade if were to get into it

[Triplethought]

I think I already know... I just looked at a 5-year chart. No thank you.

Yeesh. And I thought me buying Zillow at $150 was the stupid move of the month.

[SOL]

I think I already know... I just looked at a 5-year chart. No thank you.

Yeesh. And I thought me buying Zillow at $150 was the stupid move of the month.

Unfortunately Zillow is trading in the extremely overbought ranges on the monthly charts. It has pulled back quite a bit but, if we were to get into it, we would not start looking at until it traded below 100, preferably in the 85 to 90 ranges.

[langdj]

I think I already know... I just looked at a 5-year chart. No thank you.

Yeesh. And I thought me buying Zillow at $150 was the stupid move of the month.

Funny I bought Zillow at 155. Obviously I am down but I do like doing momentum trading on tech stocks disruptors. Swing trading the ups and dow. If I get caught on a down I will just keep it for a while This is the second purchase (made money on the previous).

[SOL]

I think I already know... I just looked at a 5-year chart. No thank you.

Yeesh. And I thought me buying Zillow at $150 was the stupid move of the month.

Funny I bought Zillow at 155. Obviously I am down but I do like doing momentum trading on tech stocks disruptors. Swing trading the ups and dow. If I get caught on a down I will just keep it for a while This is the second purchase (made money on the previous).

As long as your time frame is long term and you can deal with extreme volatility then you are probably okay. I prefer to look at everything in and out of the markets in terms of risk to reward ratio. The principles of mass psychology are now wired in my DNA

[seasjay]

From the sell off on Friday, I feel that Discovery (DISCA) was a much better buy then ViacomCBS. I bought some at $39.80.

CJ

[SOL]

From the sell off on Friday, I feel that Discovery (DISCA) was a much better buy then ViacomCBS. I bought some at $39.80.

CJ

The monthly chart of DISCA



I would have to concur on this one as on the monthly charts it is trading in the extremely oversold ranges so from a risk to reward perspective, the odds of success are at least 3X better

[SOL]

This story illustrates why those that allow emotions to enter into the equation are doomed to fail, regardless of their title or their expertise

Last year's winning trades are this year's losing trades
Fortunes are won and lost quickly in the financial markets.

If you are lucky enough to be sitting on a stock portfolio that's generating market beating returns, how long can that last?

On Tuesday, Compound Capital Advisors' Charlie Bilello shared some relevant stats.

"The 25 stocks in the S&P 500 with the lowest returns last year are all positive to start the year, with a median return of +32%," he observed. "On the flip side, the best performing stocks from last year are underperforming with a median return of -3% to start the year."

Indeed, the S&P 500's (^GSPC) 6% year-to-date gain belies rotation trades that are rocking the market. And so, depending on if, when and how you rebalanced your stock portfolio, you may have gone from outperforming to underperforming.

And to be clear, it's not easy to get this right. As we've written before, most pros can't even beat the market. According to S&P Dow Jones data, more than half of active large-cap equity fund managers have underperformed the S&P 500 in each of the last 11 years.

Furthermore, fund managers in the top 50th percentile in performance in their categories in a given year rarely stay on top in the years that follow.

"In fact, it was more likely for a top-half fund to close its doors or change its style (41.5% combined) than repeat its performance in the top half," S&P Dow Jones' Berlinda Liu and Gaurav Sinha observed base on the five-year period from June 2015 to June 2020.

'Time is money'
https://finance.yahoo.com/news/stock-ma ... 19708.html

Now your task is to figure out why these so-called star performers are faring so badly now lol

[Eric]

From the sell off on Friday, I feel that Discovery (DISCA) was a much better buy then ViacomCBS. I bought some at $39.80.

Thanks CJ & Sol! Just sold an April 16th $42.50 put for $1.80. If I get put I'm getting something with a lot of potential and if it expires I make 96.6% annualized returns over the 16-day holding period.

[Yodean]