Introduction
It is important for me to learn how to manage my emotion when market swings, I was so happy to share good news when the market went up, I felt so good to share news with runners on burnaby central middle school running court. But the market went down, I felt so depressed and worried about my emotions, mental health. Why should I experience the stress of bear market? The most important is to learn how to build muscle memory, analytical skills, I have to learn how to be a passive long term investor.
My showcase
Here is my Key largo IRA USA portfolio. I had panic sell in January 2009 market bottom - 15 years low, and then I put it back on June 2019. In less than 12 months, I experienced bear market since I did not have experience like experienced hedge fund manager. I felt panic and buy and sell stock went into my dream, from March 10 to March 16 I had to handle full time work, coronavirus concern and investment market swings.
But good news is that I survived and learn to be a passive investor. Meanwhile I also learned to invest individual stocks.
Here is my github folder containing my analysis from Ameritrade.com.
I designed my portfolio using this balance portfolio idea. Here is the blog.
Actionable Items
When market swings like March 12, down 7.99%, March 16 6%, I should take two days off and then stay at home, figure out what to do.
Three days from March 24 to March 26 has market change of 8.4% in total, 4.69% on March 24, 2020, 1.85% on March 25, 3.07% on March 26.
I have four accounts to purchase SPX ETF, I should sell and realize profit instead of choosing all of accounts going through bear market in the same time.
2/19/2020 21,371.48
3/20/2020 17,234.00 -> market change from highest point 2/19/2020 $4132.00 US dollars
How to read the data?
I need to think about those people rush to sell, hedge fund manager, institution investors, those people with million dollars 401 K or IRA, like FANG senior engineers, and those panic sellers buy high and sell low.
Hedge fund managers - Feb. 24, Feb. 25, Feb. 27
Self-managed huge amount investors (401K, IRA account holders), ETF algorithm trigged, like 100% on equity fund, March 9, 2020
March 16 - panic sell, take loss <- I was depressed and worried, I planned to take one day off, sell 50% of equity I had whatever account I had.
I did not listen to my emotions, and stay on the course, rebalance, purchase some equities instead.
Thank you Ameritrade make investors easy to manage history
It is such a better product feature called balance history, I just used it first time to track last two month market swings and show friends on wechat group.
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