Looks like it’s poised to fall a little more today. Roughly a chill 50 billion or so, just about the market cap of a Honda or so.
I’m still not a buyer, though as there was maybe a little too much panic FOMO on the way up as well?
Yes. It seems like NVDA price has no real bounds. It can swing fast either ways because there is a lot of uncertainty
The key question some banks are asking is -: if the demand for AI chips already peaked because most people who wanted to buy without having proven monetisation plan have already bought. But of course tough to know.
I just hope it falls slowly and not like a rock. 
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Stock market makes me wish I’d just YOLO’d everything on BTI.
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Can you imagine what would happen if they changed their ticker to BTAI?*
* Unfortunately, it seems already taken by Bioxcel Therapeutics. Though ... if you squint a little, consuming nicotin is a form of bio, ahem, therapeutics ... and BTAI's market cap is just USD 25M ... so they could just buy the company with pocket change and use its ticker going forward and ride the AI wave (though admittedly it seems to already fizzle out a bit).
No but itching to…
On my list today to by: RPI.L and BTC
With all these buy the dips comments, I am starting to think your cash allocation is too high
Otherwise where is all this cash coming from
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My little pile of cash is from
- selling a bunch of overvalued Broadcom, General Dynamics, Iron Mountain and Lockheed Martin in July and August
- getting rid of a couple of companies that I’ve lost faith in or that pay too little dividends given the allocated capital (LAND, PETS, CMP, INTC, HBI, VFC, MMM)
- a steady stream of dividends generated from the portfolio
- Edit: forgot the cash garnered from selling Puts (small amount, though)
Some of that cash since July went into ARE, BMY, BTI, CI, CMCSA, CME, CSCO, CVS, CVX, ES, GPC, GPN, INGR, MAIN, MO, OXSQ, OZK, PAX, SFL, SJM, T, TD, TSE:BNS, TSE:MG, TSE:POW, UGI, UNM, VICI, VZ and XOM.
Still some cash left on the sidelines, though, patiently waiting for further dips. 
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Well that’s highly subjective! I’m pooling cash to get to ~3 months’ expenses irrespective of RAV, also pooling cash to fill the 3A on the 2nd of Jan, anticipate it’ll take me about 4 more months of not investing. Dividends are reinvested.
So there’s a bit of liquidity but it’s just sitting on 1%/year - peanuts, just for the feeling that it’s doing something.
I imagine more people here may be like that, I can’t understand members here who run with just 2-3k cash, even in Greece I was running more cash than that.
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I think I would differentiate between cash as part of strategic allocation & cash sitting on sidelines (aka for the purpose of timing the market).
Strategic allocation cash can be whatever , some might be happy with 5% and some might like 40%. Very low strategic cash is mainly accepted by investors who come from background where nothing bad ever happens and life is great and all dips eventually recover and jobs are enough even if you lose one. I don’t think you or I belong to that category to start with.
I am mainly talking about cash sitting on the sidelines. If that’s too high , it might not be a good idea in long term.
But I hear you. You are mainly talking about buying the dip for entertainment purposes
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I think you are more or less an active fund in itself. So perhaps active investing tend to have higher cash waiting to be invested.
Hopefully you will grab some good deals
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Thanks!
My cash position is currenty 1% of all funds which is unusually high given the recent sells in overvalued or no longer loved positions.
Absent those recent sells the cash position size typically hovers around 0.1%.
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When markets go down like this do ppl always hold?
We don’t hold, we buy more.
That being said, if you are uncomfortable because of the current volatility and trend you should review your asset allocation and maybe reduce your risk exposure. This is nothing in the grand scheme of things.
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I think when someone is new, this can feel quite bad. Because until few days back you had X CHF and now it’s less than that.
But when investing in equities , one need to be mentally prepared for a long game. Let’s say at least 5 years but in general 10 years.
Over a 10 year period, gains of annual 4-5% on average are expected. But you never know when the bad time starts or the good time starts.
The common wisdom is -: not doing anything specific is often a good strategy. But it might not feel like that at that moment
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If this is a market downturn that‘s making you worry, you are invested beyond your risk capacity. Or you need to get way more knowledge before continuing.
This is not even a blip in the grand scheme of things.
The asbolute WORST thing you can do is selling at any point during a downturn.
You keep buying more ideally, as now it‘s cheaper.
NEVER sell EVER, except you actually need the money to fund your life.
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Dear trading journal & market today:
I know we’ve been on a love-hate relationship recently.
However, today’s action is really not acceptable:
- First you open in the green, ridiculing all the homework I’ve spent hours on earlier today, updating my watch- and buylists, only to accept that at market open today is apperently not the day … to buy the dip.
Pull out the garden chairs, grab a book … eventually scroll through Twitter … see doomtweets … return to the computer. - Mr. Market decides to slide into the red. Where the bloody hell are my updated buy lists? Damn it, I thought this could wait till next week?!
Ok, here’s some cash to deploy into the dip … but it keeps dipping?
Ok then, let’s deploy a couple k of USD to scratch than itch* and then let’s move on to greener pastures, like recently downloaded borrowed from the internet movies via BitTorrent.
Yours Truly,
The Degenerate Trader
* +10 STT @ $83.32, +20 UNM @ 54.24, +20 BK @ 66.69.
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INTC almost reached my target price of $15 so I sold half my INTC puts today.
I am a relatively young investor and I have „investing FOMO“: In these moments I try to scrape together more money and „buy the dip“. It‘s not much in the end.
But I am nowhere on my journey in relation to the people here.
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