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HesitantInvestor0 t1_j9vd9qf wrote

I'll give you some advice, but I think there are a few details that are relevant here.

  1. What degrees/education do you have?

  2. What is your current job?

  3. What is your risk tolerance? Could you deal with massive swings in asset value?

I feel like proper advice can't be given without knowing at the very least this information.

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Downtown-Fig602 OP t1_j9vfgvi wrote

IT, half of a degree and multiple certifications

IT

Risk tolerance is extreme. It could go from 100k to 10k back to 100k and I wouldn’t care

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HesitantInvestor0 t1_j9w3aw2 wrote

Okay, so it sounds like your risk tolerance and job security are both high.

This thread is full of people making insanely risky bets that go to zero, and somehow lots of conservative people who think anyone doing anything is a fool.

I consider myself somewhere in between risky and conservative, which over the long run gives you a great opportunity for huge rewards as well as protecting your capital. The last thing someone can afford is to evaporate their wealth with idiotic options trading. I like to think of investing as "baskets" of risk. Take your shots as broadly as possible while still favoring high risk/reward. Therefore, here is what I would recommend and what I do myself.

  1. QQQ/VOO - You said you don't want ETF's but this is your low-risk basket. It's necessary IMO, though you can keep it around 50-60% of your portfolio and still counter with 40-50% in risk. It's mainly there to keep you from blowing everything up, and it will still net you gains over time.

  2. BTC - It's on the conservative side as far as crypto goes, but make no mistake about the risk/reward it offers. I think for someone who can tolerate volatility, 10-20% of your account can be with BTC, particularly when buying at these levels.

  3. TQQQ - Yeah, everyone says you can't hold leveraged funds over the long haul without the world imploding. It's not true, but it is true that this is high risk. It is a fund I like to layer in and out of and treat it with an open mind. Don't go long with this if the trend is giving you no reason to be long.

Here is what I like to do with TQQQ.

Firstly, unlike SQQQ, it trends up over time. That includes massive volatility that cannot be understated. But whereas anyone who bought SQQQ 5 years ago is unlikely to ever see their money again, someone buying TQQQ today is very likely to experience a gain over time. You have to be prepared for volatility, and it is certainly smart to layer in.

What I like to do is layer in slowly, maybe $1,000 or so to begin a position, and double down on any 5-10% share decline. For example sake, I buy 100 shares, then 200, then 400, then 800. I will begin with a small enough position that I can comfortably do this. If at any point my trade comes to fruition, I will sell. So if I start a $1,000 position and that same day TQQQ goes up 13%, I'll take my easy money and bolt. If on the other hand I accumulate a $10,000 or $20,000 position and am at a loss, I will double down and wait for the bounce. Bounces are usually in the area of 20-40% if you are beginning positions at already oversold levels for QQQ. As an example, I would not start a position in TQQQ today as QQQ is overbought. Wait and be patient. Lastly, if you happen to catch a hard bottom, TQQQ over time is likely to do wonders for your portfolio. I've gone long before (2009 and 2020). But it's a lot of volatility to experience.

A portfolio of QQQ/VOO, BTC, and TQQQ as both a swing or long option is going to outperform most everything over time IMO. It's literally how I run 95% of my portfolio, the remaining 5% being individual companies. I've made almost all my gains through what I've laid out above.

Good luck.

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