How to break even after a 55% loss

All thanks to luck

I have repeatedly reminded myself that my recovery of capital and profit of over 100,000 was not because I was particularly skilled, but because I happened to catch the good times of the continuous rise in U.S. stocks and followed the big shots to buy the right stocks. It also included very significant risks, and looking back now, there was a possibility of the account being wiped out. This is the sixth mistake of retail investors.

6. Full position options. I made 100,000 on Rocket Lab using options. But looking back now, the volatility of Rocket Lab's calls far exceeded my risk tolerance. It often went up and down in a straight line. I was just lucky enough to have bought during the upward trend. I had no positions during the drop from 70 to 40, avoiding a major drawdown. But this kind of full-position options is gambling, and now options do not exceed 1/10 of my positions.

Following @Value & Investment Value Brother, I bought calls on Berkshire Hathaway and made a small profit of nearly 100,000. Following @Yi Ge's Little Fan, I entered Google and also made a lot. Following @Miracle Trader cola, I bought CLF and made a profit of 2,000 dollars. The road to recovery is long and hard. Around September, when the principal was recovered, there was a small profit. In early October, the account peaked with a profit of about 130,000.

Then I continued to add positions in Berkshire Hathaway options. At most, I added up to 14 contracts and almost liquidated at the lowest point. Many people didn’t understand at the time why I didn’t wait longer. In fact, these calls did recover later. But at that moment, I had only one thought.

"I can’t lose my principal again."

So no matter how painful it was to cut losses, I still chose to give up. The profit of over 100,000 was almost wiped out.

Currently, I hold Amazon, Google, TSMC, UnitedHealth, CLF, NVIDIA, and Rocket Lab stocks, occasionally selling a put, also preparing to take delivery. There were also many times when I sold too early. I try to control myself, and if I’m really optimistic, I’ll sell a put first and wait to take delivery. Now I sleep very soundly every day. Usually, I play sports, work out, swim, and travel. The most important thing is to read more books, and I’m still learning now.

I hope everyone recovers their capital and makes profits soon. Remember not to be impatient for quick success, not to go all-in, and not to leave no way out. Also, remember to be grateful to those who helped us, and remember to take responsibility for your own decisions, profits and losses are your own.$Apple(AAPL.US) $Tesla(TSLA.US) $Alibaba(BABA.US) $XIAOMI-W(01810.HK) $Alphabet - C(GOOG.US) $Unitedhealth(UNH.US) $Rocket Lab(RKLB.US) $Taiwan Semiconductor(TSM.US) $NVIDIA(NVDA.US) $Cleveland Cliffs(CLF.US) $Amazon(AMZN.US)