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sure way to increase your returns during this pandemic

603 194 March 25, 2020 at 08:36 PM
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so i looked at my retirement account 2 to 3 weeks ago and after the first big drop i the dow jones i saw my account get hit hard.

for my tax free retirement account there are a list of funds that i can park my cash in, and only the funds listed

i was in an aggressive portfolio

as soon as i saw the decrease in my balance i found a fund that gives u 1% return because i believe it's like a money market fund or something of that sort

at the time my returns went from positive to negative 25%

so on the days the dow jones would dip i would move all money into the aggressive fund because i noticed the next day the market would go up.

on the days the market would go up i would move the funds into the money market wannabe fund

rinse and repeat

i went from negative 25% to negative 4%

if this pattern keeps up i will have a nice percentage return better than when the market was going

depending on what the market is doing i would rinse and repeat this process 1 to 2 times a week

i've only done it 3 times and went from negative 25% to negative 4%

eventually i will be positive

now if i get caught in the dow jones going down twice ins row the i will leave the money in the aggressive fund as the market will likely rebound the 3rd day

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Joined Jan 2012
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#2
Good luck with that plan! It's a risky business...and most would advise against that route, but to each their own.
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Joined Nov 2005
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#3
so you're basically day trading, trying to time the market. Good luck with that!

The real question is - when do you need these funds? If it's not for decades, continue your plan, leave money parked and forget about it. If it's soon, you shouldn't have been "aggressive" to begin with.
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#4
Forget the market, your biggest problem is not using capital letters or periods.

It sounds like you figured out what managers in charge of hundred billion dollar hedge funds couldn't. Your skills are worth millions. Why are you wasting your time on SD?
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#5
I agree with all the comments so far, you might be in over your head. You shouldn't be trading out of immediate fear. Good job ameliorating some of your losses during this, and locking in 1% returns in the future. On the other hand, if/when your formerly aggressive portfolio rebounds you'll have missed those gains.

Have a long term plan that addresses your risk tolerance, and follow through with. What you are doing is akin to living in San Diego and changing your entire wardrobe to winter clothes because it was cold one morning.

Good luck.
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#6
understood i got lucky
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#7
My account is up 33% from a month ago doing only day trading. I can only say it's been a heaven for day traders. There has never been a market this easy to trade as far as I can remember, in my 13 years of experience.
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#8
Thats a gamble I will not even deal with...

Everyone's accounts are considerably lower due to the market drop... but its too dangerous to be swapping to other funds when all these investments are hopefully for long term for many..

Best thing to do is increase your contributions now and when the market recovers you will be happier your investments increased even more.
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