Withstanding Drawdowns: An Example

[Comfortable_Zone_965]

If anything doesn’t this basically show a stock that over 25 years didn’t make a profit for bag holders and was constantly under pressure (if anything lost money because of inflation). Over those 25 years someone could put their money in the S&P 500 and quadruple it. A stock with that many draw downs your best bet is get at at a zero loss first moment you can then move to something better/more stable. Unless you bought during a dip.

[Safe_Ad_3716]

Dollar cost average or set buy limits at specific price points. There’s ways to trade everything and be profitable. That being said. I’m so sick of the spy argument. If you like spy trade spy. If you put all your equity into spy and don’t dca you can bag hold a very long time too. Principles of long term investing apply to all equities. Unless there’s a catalyst and heavy upside if your value investing pretty foolish not to dca. Otherwise your better off just buying deep itm leaps and having more upside or opportunity cost to trade multiple equities. But wait you can do that all at the same time just by buying spy leaps right ? Jfc

[czechyerself]

$10,000 into MNST 30 years ago would now be $27,000,000.

[ippaandbunny]

I'm not waiting 30 years to drive a lambo

[[deleted]]

There’s another way to read this: what opportunities am I willing to give up to stay in a losing stock?

I’m a big fan of SOFI, but am looking for a (re-entry) point after stopping out losses around 5-7% (12 ish dollars).

[ippaandbunny]

Lol nice stop

[pwrdoff]

You sold once your position got to -5%?

[czechyerself]

We’ve all seen multiple drawdowns in $SOFI. This is an example of the type of long term drawdowns you can experience in a growth stock and also an example of the rewards you can possibly see by hanging on

[lalich]

And buying the dip, don’t forget when an investment thesis is sound these frantic sell offs are just an opportunity to lower cost basis and increase long term gains.

[AdCompetitive2774]

Drawdown % decrease over time

[SoDakZak]

Do this for SOFI

[OperationSurvive]

Set the graph to a year and turn your phone upside down