Judge my strategy.
I love the gambling aspect of investing, but I also appreciate the power of compounding over time in the market.
A few things I believe;
The market goes up in the long run.
Time in the market bears timing the market.
The best returns come after the crash, stay invested.
Options are the same as gambling.
Now on to my strategy. I made my seed money on GME when I had no idea what I was doing. I chased after that and lost on every idea I tried to chase looking for the same returns. I LEARNED so much from these losses, I have become a student and keep myself informed on current events as well as follow any single stocks I invest in, listen to earnings calls, read analyst reports etc.
While I understand options are gambling, I love trading options. I have 35k in SGOV that I use as collateral for options while earning interest on the 35k. I also have a core of 8 tickers I plan to hold until I no longer believe in the company so any dip is a buying opportunity for me, MSFT is my current target for accumulation at these prices.
I mostly sell puts, put credit spreads, iron condors or PMCCs. Any time I realize profit, I funnel it into one of my core tickers. It's small amounts over time. If I lose on an option I can cover from cash or, if needed but hopefully not, cash out SGOV to cover the loss. With 35k in SGOV, I never have more than 20k in collateral so even though I'm using margin I'm never in fear of owing money.
This let's me keep gambling but also compound my portfolio over the long term. The catch is that if I took my 35k and invested into my cores from the start I'd be much higher than I am now but I'd have nothing to gamble with and I'm worried I'd get reckless and lose money.
What do you think? Enable my gambling while still compounding the stocks i think matter in the long run.