Federico Sellitti @federicosellitti: "Yesterday was the worst single..."

United Kingdom

Yesterday was the worst single day in performance since I joined eToro. We closed the day at -5.25%. It's easy to understand why by looking at yesterday's performance for our top 5 holdings: $MSFT (Microsoft) -4.95% $BTC -13.98% $NOW (ServiceNow Inc) -7.60% $ADBE (Adobe Systems Inc) -3.69% $ORCL (Oracle Corporation) -6.95% Our plan in these months has always been accumulation at better prices. That's the reason why we started the year with 54% in cash reserve, and the reason why we sometimes close small trades to regenerate liquidity to be added at lower prices. Let me give you extra context. $MSFT went down 29.19% from its top of 555.45. Our average entry price is 417. We currently need a +4.51% to break even on this stock. Anything above that is profit. $BTC went down 52.49% from its top of 126,296. Our average entry price is 72,272. We currently need a +5.51% to break even on this cryptocurrency. Anything above that is profit. $NOW went down 58.08% from its top of 239.62. Our average entry price is 120.22. We currently need a +20.82% to break even on this stock. Anything above that is profit. $ADBE went down 62.25% from its top of 699.50. Our average entry price is 309.64. We currently need a +17.27% to break even on this stock. Anything above that is profit. $ORCL went down 60.88% from its top of 345.72. Our average entry price is 150.42. We currently need a +6.36% to break even on this stock. Anything above that is profit. $ETH went down 64.83% from its top of 4,955.90. Our average entry price is 2,094.28. We currently need a +6.18% to break even on this cryptocurrency. Anything above that is profit. $NFLX (Netflix, Inc.) went down 40.93% from its top of 134.12. Our average entry price is 88.87. We currently need a +9.93% to break even on this stock. Anything above that is profit. Yes, a -5.25% in one day hurts. -11.52% YTD looks like we are doomed to a bad year. But without this sell-off, we would still be sitting on a large amount of unused cash, and we would not have been able to position the portfolio at these prices. And even now, we still hold about 11% in cash to stay flexible if markets remain volatile. This is a difficult phase emotionally, but I believe it is also the phase where future returns are built. Thanks for reading and good luck!