InvestingWithBrandon

Retail investor: If we get another 2022 I'm out. That year broke me.
Me: Walk me through what you did that year.
Retail investor: Watched Q drop over 35%, held as long as I could, sold near the bottom. Got back in way higher. Never again.
Me: So the market fell 35% & your reaction was to sell when it got cheaper & safer?
Retail investor: I know. That's what stings. I did...
Me: Here's my 2022. Same drop. I kept ratios in check. Only bought elite companies at good prices. Sold 1+ year portfolio secured puts. Took cash flow about bought more shares/some calls. Made 7 figures off that "panic"
Ret

Retail investor: I could never hold through a real crash. I'd fold.
Me: You know $META fell from $382 to $89, right? Late 2021 to November 2022.
Retail investor: I remember. Everyone said the company was finished.
Me: 77% down. "Zuckerberg burned it all on the metaverse." Headlines were brutal. & at $89... would YOU have bought?
Retail investor: Honestly? No shot. It felt like it was going to zero.
Me: That's the thing. It was still printing billions in profit at $89. The fundamental BUSINESS value wasn't down 77%... the share price was. Very different... Price fell way below fair value.
Retai

Retail investor: My friend lost everything in the dot com crash. Options, stocks, all of it. I promised myself I'd never touch any of this.
Me: What he was actually holding?
Retail investor: From the stories... a bunch of internet companies with no profits, & some options plays on top. Leveraged up too.
Me: So no profit companies, bought at insane prices, with leverage & short dated bets stacked on. I'm sorry... that's brutal. But notice what the actual killers were.
Retail investor: ...the companies & the leverage, not the market itself?
Me: The market fell hard on EVERYONE. But people holdin

There is so much more to life than this...

Retail investor: I'm up 300% this year on 0DTE. Why would I ever switch to your boring stuff?
Me: You shouldn't. Not today anyway.
Retail investor: ...wait, really?
Me: Nobody quits the casino mid heater. Just do one thing for me. Write down your account number today. Actual dollars, not percent.
Retail investor: Okay... why?
Me: Because I've had this exact conversation maybe 400 times in 10 years. Up 300%, untouchable, boring is for boomers. Then I check in a year later.
Retail investor: & what do they say a year later?
Me: Most of them don't answer. The ones who do usually tell a horrifying

Most retail investors doing monthly puts think they are going to win...
Here is the math that ends that argument.
Market gets cheap.
I sell one 2 year put.
Collect $20,000 ish.
You sell monthly puts on the same company.
$1,000 per month average.
You make money in the up months.
You lose in the volatile months.
You have to sell at the top when it is not compelling.
After 8 months you made $8,000.
I made $20,000 in one trade when the market was cheap.
Took the premium.
Bought shares.
Bought calls.
Sat back.
4 months later the market rebounded.
I closed the 2 year puts at 75% profit.
I held them