Given this is a very strange year, extending into the markets, it is a very legit question to ask about sustainability. As I think about converting to full time trading in 2021, I ask myself this same question.
Let me clarify my situation first. I didn't have a bunch of cash to buy stocks in March. I worked at Google for 4 years and had all my cash sitting in GOOG stock via RSU vests. I didn't hold any other positions. Over the course of weeks I watched all the gains that had accumulated over those 4 years evaporate to nothing. There were a few days where these savings actually went red. By the time the bottom hit I didn't have a bunch of cash sitting around. I had a bunch of stock that had lost substantial value. I remember thinking "I am now officially losing money I had previously earned from hard work". I got really scared. I thought I was going to _continue_ losing money. The bottom never really looks like a bottom when you are in the thick of it.
This is the _starting point_ for when I began to actively trade around my equities. I thought, the markets are wild right now and here is my chance to come out ahead. I can sell all this GOOG stock tax free since there was no capital gains any more (consolation prize for me). Let's get going. It was difficult because I was so used to the comfort of just holding the same thing and watching it grow. It was like the autonomous car just handed over the steering wheel as it was going off course and I needed to get back on the track and learn to race at the same time. I now have a balanced portfolio, with tons of extra cash with a lot less exposure to GOOG. I also quit working for them.
I do think what I've proven to myself is that I can read environments, react accordingly and have the conviction to make good moves at the right time. The world will be different going forward and the same opportunities might not exist. I built confidence but most importantly I learned that I absolutely love waking up in the morning each day and getting into it. This is something I didn't have working at Google, and whether I can sustain this or not, I know I am moving in the right direction (away from there!).
Thanks for sharing that. Please don't get me wrong by the way, I do wish you luck and success in your new endeavor. I posed my question above, because a lot of people lose their hats by making some gains buying low during market crashes and then thinking they've got this thing figured out.
Sure! Yes, the one thing I am trying not to do is fall into this trap. Constantly telling myself I have nothing figured out and I need to figure it out the right way. Attributing everything to luck.
Let me clarify my situation first. I didn't have a bunch of cash to buy stocks in March. I worked at Google for 4 years and had all my cash sitting in GOOG stock via RSU vests. I didn't hold any other positions. Over the course of weeks I watched all the gains that had accumulated over those 4 years evaporate to nothing. There were a few days where these savings actually went red. By the time the bottom hit I didn't have a bunch of cash sitting around. I had a bunch of stock that had lost substantial value. I remember thinking "I am now officially losing money I had previously earned from hard work". I got really scared. I thought I was going to _continue_ losing money. The bottom never really looks like a bottom when you are in the thick of it.
This is the _starting point_ for when I began to actively trade around my equities. I thought, the markets are wild right now and here is my chance to come out ahead. I can sell all this GOOG stock tax free since there was no capital gains any more (consolation prize for me). Let's get going. It was difficult because I was so used to the comfort of just holding the same thing and watching it grow. It was like the autonomous car just handed over the steering wheel as it was going off course and I needed to get back on the track and learn to race at the same time. I now have a balanced portfolio, with tons of extra cash with a lot less exposure to GOOG. I also quit working for them.
I do think what I've proven to myself is that I can read environments, react accordingly and have the conviction to make good moves at the right time. The world will be different going forward and the same opportunities might not exist. I built confidence but most importantly I learned that I absolutely love waking up in the morning each day and getting into it. This is something I didn't have working at Google, and whether I can sustain this or not, I know I am moving in the right direction (away from there!).