Made 750k In The Market - What Now?

Made a few highly speculative investments since the crash, the latest which basically involved me YOLO'ing my life savings from banking into a hyped up SPAC which proceeded to go ballistic. Conservatively I estimate I'll be able to double up the 750k, I'm still invested in the SPAC, and pull out $1.5mm in ~one month if the floor doesn't fall out from beneath the market. If I get lucky I'll pull out $2mm.

My biggest question is what next? Believe it or not I'm not a huge risk taker but I decided to speculate due to educated extrapolation and pretty much my intuition / gut feeling. If I get to around $2mm, should I keep going to see how far I can take it? There are so many generational companies going public in Q3 - Q4 and the market is on literal fire, it's like shooting ducks in a barrel. Insane IPOs coming to market include Robinhood, Doordash, Snowflake, Airbnb, Unity - and these are just a few off the top of my head. I think if I keep opportunistically trading in and out of the market on very strong momentum stocks, I don't see why I can't double up a few more times and potentially see if I can get my net worth into the low 8 figures.

I've been in banking for 4+ years and am basically completely bored / coasting through at this point and probably not masochistic enough to gun for making MD. I'm a highly respected top bucket associate in my group but not sure if people know how bored I am with banking in general. I'd probably quit if I was able to get to get to mid-to-high 7 figures.


What would you do if you were me?




 

Not sure what the percent gain is on that, but assuming its extremely high given its a "highly speculative investment", I'd definitely just pull out now. Seems like you want to keep going as you mention 1.5m and then 2m, but what are the odds that it completely crashes? If it ran up that high that quick, then I doubt its stable enough right now to not have a decent chance of crashing hard.

 
Funniest

Yeah man you're right. Keep going, but why stop at double? You should be taking out leverage/trading on margin to really maximize those returns!

 

Im just saying if you burn once, you can lose a significant amount of your gains if you keep going as aggressively as you are. Even your initial post its obvious you keep reaching more for each step whether its 1.5m, 2.0m, etc. If you keep playing like this it will eventually crash. At the very least, take out some of your gains so you don't lose out on everything. This is pure wallstreetbets energy, please look at some of the climb ups and then crashes that have happened on that site.

 

Honestly this is reading like something out of a movie. Also seems like the pride before the fall kind of thing. You should sell out and bet the market goes down over the next few months at least til February if any thing. Maybe go long the vix that's what Id do if I didn't wanna just cash out.

 

This

OP, if I were you and had 500k after cap gains tax, I'd put 400k in an index fund somewhere I couldn't touch it. 100k in the yolo fund and continue your fun strategy but never let myself pull from the other account if that gets down to 0. Keep playing around and try to get that up to 500k. If you're as successful and bulletproof as you say you could build a nice fortune this way.

Trying to "double up" is a quick path to eventually losing every last dollar. There's a reason no HF is out there returning 50%, speculation will blow up on you, especially if you think you're smarter than every other trader.

 

Is it really speculation if the goal is to swing trade the hottest tech IPOs of the decade in Q4? Maybe I’m just delusional, I can’t see Snowflake, Palantir, Unity, Doordash, Robinhood, Airbnb not experience massive pops first few weeks. When else in your life will you get a chance to swing trade that kind of lineup in a quarter?? It will be retail FOMO^2. A lot for people are going to become insanely rich.  I’ll try to get Fidelity to give me some allocations and if no supply I’ll just get in when it opens. 

 

This entire post is nonsense. Banks have very strict rules about trading, and investing in a specific issuer is probably against the bank's rules.

Nice troll though.

 

This is interesting. Nice outcome.

I was curious about if there is any regulatory/compliance risk. Understand logging/recording trades and not buying anything in your industry’s universe.

Here’s a hypothetical -

I’m an Associate in TMT covering several well known co.’s. What if I buy into a SPAC and the target happens to be a TMT name (perhaps a company that I’ve worked on). Any regulatory risk to me there? Thought about emailing compliance at my bank, but didn’t want to go there yet.

Thanks!

 

I think at minimum you won’t be able to work on projects with those names and compliance potentially may ask you to get rid of the positions. Just my thoughts though

 

Hey. Thanks for the note. There isn't any regulatory / compliance risk that I'm aware of, outside of diligently logging your trades and the mandatory holding period (varies by firm). Compliance may throw a hissy fit if you enter and exit a position without holding for X days, so probably want to tread lightly and follow the rules. As far as SPACs go, I can buy them if they're not listed on our watchlist. Probably the same for you, but might want to double check. If you're buying a pre LOI SPAC and it happens to announce a target in your coverage universe, you should flag to compliance and they'll tell you what to do. 

 
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