Hot off the press in the Wall Street Journal this morning…
We have this absolute doozy of a headline
“Stocks’ Sharp Rebound Is Only Making Investors More Nervous”
Huh?
No I don’t know about you… but let’s approach this using WSJ logic…
So if stocks had continued to go down on Friday, that’s supposed to make me… less nervous???
I guess if we use that train of thought… then 100 red days in a row would put us all in a state of investment nirvana?!
Make it make sense.
If you read the article, it’s your bog standard reporting of well-if-stocks-go-up-then-they-can-also-go-down
Well yes, that’s kind of the whole point. Anyone who has been investing for more than 3 days knows this…
But to slap this article on the front page of what is supposed to be the number 1 news source for serious investors…
I can find better reporting from a 17 year on TikTok.
It’s frankly ridiculous.
The good news is, that there’s a very simple way to combat this.
Zoom out.
Like really, there’s no need to be checking the price of your stocks every day.
Even with a shorter term strategy like The Wheel, I rarely check trades within 1 week of placing them (I have an entire system that runs automatically, so if anything does happen - I’ll know about it)
Because staring at a screen all day does absolute nothing to improve your returns.
You’re better off getting a decent understanding of the companies you do already own.
Read an earnings report… listen to an interview with the CEO… or even just learn how to value the thing properly…
Because contrary to what the WSJ and the rest of the legacy media would have you believe… this stuff actually isn’t rocket science
But it can sure be overwhelming when you start out.
So one of the things you can do in times like this… is sell put options on stock you want to own.
You get to buy them at a discount… and get paid to be patient.
That’s what makes it such a powerful strategy
Oliver