100-Day Reading Sharing Plan - Day 5

Brief rebound yesterday.. recovered 1/3 of this week's losses. Hesitated for a long time whether to reduce positions, ultimately decided to hold steady and wait. $Amazon(AMZN.US) currently at 80, 3 call contracts still underwater by 10%, sold puts underwater by 1.5%$Alphabet - C(GOOG.US)$NVIDIA(NVDA.US)$Taiwan Semiconductor(TSM.US)$Unitedhealth(UNH.US)$Cleveland Cliffs(CLF.US) no action taken. All above water. $Rocket Lab(RKLB.US) sold 1 put expiring tonight and 1 next week, should purely take profits without taking shares. $Coca Cola(KO.US) sold 2 puts expiring tonight, $14k ready. Will take shares if drops to 70.

Now book talk📖

"Long-Term Investment" — Parames
1.Don't assume costs are constant. (Common mistake for commodity companies, cyclical companies, or those with new products)
2.To some extent, we often listen to hearsay rather than professional advice, without truly researching or thinking through major investment decisions (often see "Can I buy?" "Can I still follow?" in communities - we should do some research and take responsibility for our money)
3.Any investor's primary goal should be preserving purchasing power of capital - this is priority #1. Growing purchasing power comes after maintaining value. (Always protect principal first - find stocks with sufficient margin of safety. Not making money isn't a loss, but losing money impacts life)
4.Volatility is long-term investors' best friend, creating opportunities that wouldn't exist. More short-term volatility means more opportunities, higher long-term returns with lower risk. Price drops without fundamental reasons will mean-revert due to irrational behavior. (Profit from volatility - e.g. Rocket Lab could make big money buying low/selling high this year)
5.Your greatest asset is yourself - the highest ROI investment is always investing fully in yourself. (Enough said - read the book friends. Or read me.)
6.Beating the market is extremely hard because the market represents average performance - not everyone can be above average. (Top 50% returns ≠ profitable)
7.Buying stocks that have already risen lowers opportunity cost, reducing wait time for others to recognize the opportunity. (Position early, don't blindly chase highs)