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$ZIM Integrated Shipping (ZIM.US)$ When playing stocks, don't just think that you can only make a profit when the stock price rises. In fact, you can also make a profit in a falling market. There are two ways to make a profit: number of shares and time value. Here, I will share how I successfully resolved being trapped in my stocks and how I earned these two profits.
First, let's talk about how to make profits from the number of stocks: If my stocks are trapped, I will first reduce half of my holdings at a high level. Pay attention to my wording, it is 'reduce holdings', not 'cut loss'. Half of the holdings are used to short sell at high prices and buy back at low prices. By doing this repeatedly, not only can you earn more stocks, but it also lowers the cost of holding positions. The cost of holding positions = total stock price / total number of stocks. With an increase in the number of stocks, the denominator becomes larger and the cost of holding positions becomes lower. The additional stocks you gain are the profits you make in a declining market. You can choose to cash out the extra stocks for profit or continue to hold them. Block orders also resolve their trapped stocks by using the same strategy.
Now let's talk about how to earn time value. After selling half of my position at a high price, I won't leave the other half idle. I will pledge the other half of my position to the brokerage and use the Covered Call option strategy to short sell call options and earn the premium. I will set the strike price higher than the purchase price and sell options with a later expiration date. This way, when the expiration date arrives, either the stock price has risen above the purchase price and I earn a profit, or the stock price remains the same and I earn 100% of the premium. The premium is my time value. Either way, I'm making a profit! It's better than doing nothing and waiting for the price to go back up! Currently, the weekly K-line indicator has formed a death cross ❌. How to trade is for you to decide. I won't reply to private messages...
First, let's talk about how to make profits from the number of stocks: If my stocks are trapped, I will first reduce half of my holdings at a high level. Pay attention to my wording, it is 'reduce holdings', not 'cut loss'. Half of the holdings are used to short sell at high prices and buy back at low prices. By doing this repeatedly, not only can you earn more stocks, but it also lowers the cost of holding positions. The cost of holding positions = total stock price / total number of stocks. With an increase in the number of stocks, the denominator becomes larger and the cost of holding positions becomes lower. The additional stocks you gain are the profits you make in a declining market. You can choose to cash out the extra stocks for profit or continue to hold them. Block orders also resolve their trapped stocks by using the same strategy.
Now let's talk about how to earn time value. After selling half of my position at a high price, I won't leave the other half idle. I will pledge the other half of my position to the brokerage and use the Covered Call option strategy to short sell call options and earn the premium. I will set the strike price higher than the purchase price and sell options with a later expiration date. This way, when the expiration date arrives, either the stock price has risen above the purchase price and I earn a profit, or the stock price remains the same and I earn 100% of the premium. The premium is my time value. Either way, I'm making a profit! It's better than doing nothing and waiting for the price to go back up! Currently, the weekly K-line indicator has formed a death cross ❌. How to trade is for you to decide. I won't reply to private messages...
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$ProShares UltraPro QQQ ETF (TQQQ.US)$Don't wait for 40. 42.35 rush in after-hours today, brothers. who is the same?
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