Novice's US Stock Learning Notes 83

Position management, it's still about position management.

The stock market over the past two weeks can really be described by Lu Xun's famous quote: one is green, and the other is also green. Losing money in funds during the day, losing money in US stocks at night... Fortunately, the principal hasn't been touched yet, but most of the profits made since the start of the year are gone. I hope I can have a good Lunar New Year...

The importance of position management becomes even more evident during high volatility.

1. Position management is a multiple-choice question. If you don't have much capital, you must limit the number of stocks you pick. Don't open a supermarket. Actually, I bought too many, which led to adding to this one and that one during the big drop, quickly running out of position capacity. Moreover, I couldn't concentrate my limited funds on the best stocks.

2. Position management is a math problem. For novices, compared to support levels and long-term valuations, calculating position sizing is the simplest and most practical calculation. Plan the total capital you intend to invest in each stock upfront, plan the quantity and amount for initial positions and adding, and strictly follow the plan. Things shouldn't go too wrong.

Made adjustments to the Longbridge account, cleared positions in Apple and TSMC. It's not that I'm bearish, mainly because I sold too quickly before. Holding too few shares won't make you rich, and since they've risen nicely recently, I decided to take the profit.

Cleared PG in the IB account, finally turned a loss into a profit, cleared at a 5% gain, mainly to free up capital. Newly bought MU and PLTR, have been watching them for a long time. Mainly because of the recent big drop, I thought it was a good entry opportunity.

Adjusted the stock picks and proportions for the two accounts, for reference only. Friendly discussions are welcome～

Early to bed, early to rise keeps you healthy. Good night～