I’ve a separate retirement account and a fun Robinhood account. The former contains boring ETFs and bonds. As for the latter, I’m mentally prepared for the worst scenario of going to zero.
These days I’m hand off with my accounts, all transactions are for rebalancing portfolio.
Lessons
- Follow The wheel strategy loosely. Roll for credit (never debit) or let the shares be called. If opportunity cost is great, let shares be called and use the funds for other plays. Rolling means closing a position and opening a new one; they are independent plays.
- There’ll also be ups and downs. As long as I manage my risks properly, I hopefully can live to fight another day.
- It isn’t worth it to do this full time; the profit is below minimum wage.
Plays
UPRO/TMF 55/45
I came across this while browsing reddit; it was originally posted at bogleheads.
I invested all of my fun account into this play at the beginning of 2020. In March 2020, it was down by 30%. Luckily I didn’t abandon the strategy, I rebalanced during that time, sold TMF and bought UPRO. It recovered in 2021, but went down heavily again in 2022. As of today, March 2024, it’s down by 8%.
Retirement
My ideal allocation is 95% VT, 5% BND, plus cash from uninvested dividends.
I’m in the process of simplifying my allocation to only VT and BND. At the moment I still have SPY which will trigger tax events if I sell them; so I will ignore them.