November 15, 2022

 

Tuesday morning

November 15, 2022

 

Hello everyone,

I trust you are all in good form.

You’ve learned (or are learning how to make money) with John’s help.  Now you must learn how to keep it.

It’s no good making a great trade, taking the money off the table, and then ego getting in the way and ploughing it all back in the next trade and possibly losing it all. Nobody gets it right 100% of the time.  John is right 80%-90% of the time.  But he does have losing trades and you don’t want to be wiped out during one of those trades.

What to do:

Trade the number of contracts you’re comfortable with (and allow you to sleep at night).

Never bet the ranch.

Set a stop loss. 

Don’t overtrade.

If you are learning, start with paper trading.

Household debt jumps

Debt has surged over the past year due to inflation running near its highest pace in more than 40 years and amid rising interest rates and strong consumer demand.

The biggest contributors to that debt load came from mortgage balances, which rose $1 trillion from over a year ago to $11.7 trillion, and credit card debt, which climbed to $930 billion.

Credit card balances collectively rose more than 15% from the same period in 2021, the largest annual jump in more than 20 years, according to the New York Fed.

What to do:

Do I really need to tell you?  Pay off your credit card.  Do you want to make the banks wealthier by virtue of your money?

What is Cathie Wood up to?

The Ark Next Generation ETF bought 315,259 shares of the Grayscale Bitcoin Trust on Monday.  The trust now accounts for 4.6% of the Ark fund’s holdings.

The price of the trust has dropped more than 80% over the past year, and the fund trades well below the value of the bitcoin it holds.

The collapse of FTX has bruised the crypto industry and many of its participants.  Bitcoin has dropped more than 18% since the end of October.

But after the washout, there are often silver linings.  ARK believes in the long-term viability of public blockchains across money, finance, and the internet.  There may be short-term pain, but in the long-term, ARK believes that this “crisis is purging bad actors and will enhance the health of the crypto ecosystem with more transparency and decentralization in the longer term.”

Wishing you all a wonderful day.

All the best.

Cheers,

Jacque

Life is either a daring adventure or nothing at all.  - Helen Keller