05-29-2022, 01:31 AM
Risky Returns Required for large market outperformance?
<!-- SC_OFF --><div class="md"><p>Has anyone felt like they <em>needed</em> to be risky in order to beat the market? YTD I’m up 132.8% compared to SPY, but I did it taking lots of risk. Risks have included;</p> <ul> <li><p>Overallocating to particular stocks and particular sectors. Some positions in particular companies have been greater than 80% of my portfolio at times. </p></li> <li><p>Using margin for brief periods, from a few hours to a few weeks. Usually I’ve done this only when the market undervalued changes (WTI up ~20%, oil stocks down 3% for instance).</p></li> <li><p>Using options. I’ve sold various covered calls and puts, and bought puts on the SPY when ita spiked to mid-400’s. Usually only holding for a day or two..</p></li> </ul> <p>Has anyone gained greater than 132% in ~5 months without taking those risks? If so, were you able to do it consistantly?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/ORCoast19"> /u/ORCoast19 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/uznbc5/risky_returns_required_for_large_market/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/uznbc5/risky_returns_required_for_large_market/">[comments]</a></span>
<!-- SC_OFF --><div class="md"><p>Has anyone felt like they <em>needed</em> to be risky in order to beat the market? YTD I’m up 132.8% compared to SPY, but I did it taking lots of risk. Risks have included;</p> <ul> <li><p>Overallocating to particular stocks and particular sectors. Some positions in particular companies have been greater than 80% of my portfolio at times. </p></li> <li><p>Using margin for brief periods, from a few hours to a few weeks. Usually I’ve done this only when the market undervalued changes (WTI up ~20%, oil stocks down 3% for instance).</p></li> <li><p>Using options. I’ve sold various covered calls and puts, and bought puts on the SPY when ita spiked to mid-400’s. Usually only holding for a day or two..</p></li> </ul> <p>Has anyone gained greater than 132% in ~5 months without taking those risks? If so, were you able to do it consistantly?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/ORCoast19"> /u/ORCoast19 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/uznbc5/risky_returns_required_for_large_market/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/uznbc5/risky_returns_required_for_large_market/">[comments]</a></span>