MemberJune 2, 2021 at 2:14 pm
I am a dedicated 💎🦍! I have been playing with investments for about 4 years now and have been making good picks. However, I am a scientist and have no knack for the technical side of trading. I have read a lot and watched a lot of videos and this is like a foreign language to me. Can some kind 🦍 please walk me though a good strategy in Schwab to make sure my 🚀makes it to the 🌚? For example I see that a good strategy may be to sell in chunks on the way down from peak. How do I do that? I am sorry for my smooth brain! I need very basic directions. Do I use Sell or Sell Short? Then in combo do I use Market Order, Limit, Stop, Stop Limit, or Trailing Stop? And how many chunks do I do? I am forever grateful for anyone who can simply spell this out to me. I am try to learn the basics. Thank you my 🦍 friends!
MemberJune 2, 2021 at 2:55 pm
I’ll let you know some of my thoughts here but I’ll warn you…I have issues. Take what I say with a grain of salt and shot of tequila.
Regarding the “sell on the way down” vs “sell on the way up”…I say do both.
* On the way down could be really bad if it’s your only strategy. You never know when you may peak so you may wait longer than is optimal to start sell off. And if things are dropping fast you may see your profits dwindle just as fast.
* On the way up can be equally bad or even worse. You may run out of shares before we get close to peak. And selling on the way up will actually lower the potential peak.
I’ve made some really rough plans on a spreadsheet to help make my decisions (told you I have issues). I chunked my shares into 10%, 40%, 40%, 10%. I then have some tables that pull these in and let me run some simple numbers at each tier to see what things may look like.
My thought is the first 10% early in the real squeeze. Maybe around $500 – $750 depending on the speed of the climb. This will not be life changing but will give me enough to make a difference in mine and my kids life. This will also serve as an emotional release because I’ve made some good money and can relax and enjoy the ride from there.
I believe sometime after this point we will see what’s being called a pseudo squeeze. Basically one final desperate push to kill the squeeze. They will dump all remaining reserves to make it look like a mass sale is going on, and the media will be full of messages about the squeeze being over. They will try to scare people into selling at this point and hope to kill the real squeeze before it gets out of hand. I expect they will try this when things are near $1k since it will be attractive enough for a lot of the softer holders. No proof of this but it follows their pattern so far.
The climb before and after this pseudo WILL be violent. Expect to see major drops and major spikes. If they are all short lived either way and the general trend is still going up we’re probably good. All historical and math estimates put the real squeeze at a multi-day event.
There are some discussions going on regarding how to recognize when we may be at or near peak. Basically regarding some rough percentages of pull back and duration. And I imagine there will be a lot of discussion. Only listen to sources you’ve come to trust has HODLers and make your own decision.
So that first 40% will be for when it seems the pull back may be happening. This will probably be my largest profit chunk.
The next 40% is to catch the next spike. Almost all sells have a buy-back spike. This may actually push up higher than where I did my first 40% sell, but even if it doesn’t I want to have enough ready in case there is a strong unexpected spike.
Similarly with that last 10%. I’m holding that as a reserve for the way down.
So by throwing some numbers into the chart, like $500, $7000, $5000, $1200, I can see what I may be expecting.
And DON’T FORGET to account for taxes. Knock 40% off your total as a safe start but get with a tax advisor when you’re all done and see what you can do to help here.
MemberJune 2, 2021 at 3:25 pm
Oh Wow Curnir! Thank you so much for your analysis. This makes a lot of sense and seems like a good safety plan! I really appreciate you taking all of this time to share your strategy! Your time is much appreciated here!! Hopefully others like me will benefit too!
MemberJune 2, 2021 at 3:41 pm
This is my first time, so I could really be screwing up.
So I’m always looking for how other people are planning out too.
MemberJune 2, 2021 at 5:56 pm
I’m going to do a slight variation where I lock in a decent amount of profits (but not more than 10% of my total shares). From that, I’m going use some to buy the dips. Wash, rinse, repeat for as long as I can.
Trying to make some extra profits based on the taken profits so that I don’t have to touch my stash. Over the years I’ve played a lot of blackjack and craps and apply the same system and it’s served me well.
Since this ride is going to be super volatile, be sure to NOT set a stop loss. I saw 2 or 3 times where they were stop loss hunting in the AH.
MemberJune 2, 2021 at 6:22 pm
Thank you CrayonMuncher! I love to learn about the different strategies! Do I use Limit to Sell when I want to sell some shares?
MemberJune 2, 2021 at 6:58 pm
I’m not an advisor, so this is just a friendly suggestion.
When you sell, you can chose Market or Limit.
Think of market as you getting out of the market ASAP at whatever the current market rate is (less concerned about price, more concerned about speed).
The good…. it closes out your position quickly
The bad….. in a volatile stock, you don’t pick the price. Whatever the current price is at the exact moment it is processing your sell order…. that’s what gets used. With the movement we’ve been seeing, it could sell higher than you want, but could also sell lower than you want.
Think of Limit as setting a price limit you want to sell at (less concerned about speed, more concerned about price)
The good…. you pick the price. It only triggers when the current market price hits/matches your sell order, so you can have more faith that the dollar amount you want to sell at will be what you get.
The bad…. it isn’t immediate. The price has to hit your target. I’ve had some sell limits that didn’t get triggered in the past because they were off by a few cents. But with this volatility though, I wouldn’t even worry about that. It should hit your price quickly and sell off.
Personally I sell with limit orders because I’m more concerned about the dollar amount I get filled at (sell for) rather than the execution speed. How you do it is up to you, but those are the basics. Good luck!
MemberJune 11, 2021 at 1:19 pm
Thanks again CrayonMuncher! These are the very basics I need. I am trying to educate myself amongst working full-time, still have a kid at home in school 3 days a week, and other life stuff going on. I want to be sure to catch the rocket to the moon. I appreciate your thoughts and strategies. Have a great weekend!
Log in to reply.