Transcript
0:00 Most people panic when they're down 40K. I'm packing my bags for a 5-weeks holiday to Thailand. My portfolio is so red right now, yet I'm confident it will be green soon. So, today I'm going to show you my three-step strategy for making money when your portfolio is crashing down. Step number one, do not listen to anybody, anybody but yourself. After I share my recent losses in my last video, the comments were laughing at me. "Oh man, you should be giving a shorting advice. All the worst idea in one place. I love your videos, but it's a terrible portfolio." Listen, it's simple. If you want to win in the stock market, you cannot listen to anyone.
0:49 You need to have your own convictions. If I would listen to the comments right now, I would immediately panic sell and lock in a massive loss. Then, I would actually be a loser. Instead, I really don't care. I follow my path and I'm happy for the comment engagement. Do the same. Trust only your research and conviction. Step number two, review your holdings. So, you are losing money, but are you still confident in your investments?
1:24 Even if you ignore the opinion and the noise of the crowd, you still need to be able to explain exactly why you own these companies and why they will go up. Do you really believe in this valuation? Could you go offline for a whole year without worrying too much? Let me give you my practical example. I realized I was not totally confident in Oscar Health. I do not understand the US political game on that sector well enough to sleep peacefully and relax.
1:57 So, I sold with a tiny 4% profit. On the other hand, even if I'm down 9K on Duolingo, my conviction is incredibly high. I believed it was a good buy 3 months ago and now it's much, much cheaper. So, I want more. I bought 100 shares 2 weeks ago and another 100 shares this week. Now, it's my main holding at 17% of my portfolio and I still want to buy more. So, concentrate your cash where you have the highest confidence.
2:32 Step number three, the best one. Go on holiday. If you're confident in your ideas, you just need to wait for the market to understand you are right. This takes time and unfortunately, we cannot accelerate the process. The absolute best thing you can do right now is to be patient and enjoy your life. Stay with your family, your kids, travel, go on holiday. So, today I'm flying to Thailand for 5 weeks.
3:03 The stock market is not everything. Life is beautiful, but it could be over in any moment. So, enjoy the present moment, be aware, do nothing, nothing at all and you will see your portfolio recover while you smile and enjoy life. Thank you for watching. Please comment. Enjoy your trip, Audrey. See you from Thailand. Peace out.