Dr. Philip Zhou Stock Investing

  BABA has been unfairly beaten down with one bad news after another related to regulatory actions from the Chinese government. Most of these have nothing to do with BABA, but investors are mentally grouping all Chinese companies together. At the time of the writing, $BABA is trading at only $160. Meanwhile, the fundamentals of the company only get stronger and stronger as it takes over every aspect of life for over 1 billion people. As a Chinese American I have a special perspective about what is going on. BABA is a great buying opportunity for reasons I will write below. The actual actions of the Chinese government are similar to what the US and Europe are already doing Today’s regulation law is about stopping theft and fraud. BABA stock got hammered. How is promoting fair business practices, regulating fake product reviews, and promoting consumer data privacy a bad thing? What’s the difference between this and what our American government is doing? Soon American Big Tech c...

  We’ve just been hit with a deep stock market correction, lasting all of 2 hours. Just kidding, but we did get a healthy sell off before the next rally to S&P 500 4500-4600. A sell-off is usually around 3 days, so there could be some more pain ahead tomorrow. My growth stocks got hit harder than the broader indexes, and along with the leverage, portfolio dropped 10%. Small cap stocks also got hit hard. Thankfully my margin requirement went down along with the stocks, so no margin call. A margin call usually happens when the margin requirements go up. My game plan I usually have plenty of TMF (treasury bonds) to sell to prevent a margin call. TMF has been going up during this sell off. It allows you to take greater risk and this has proven itself time and time again. Thus far the sell off is minor. Have been getting one every month. Not making any changes yet. My gameplan if it is a larger 10%+ correction is to sell my TMF. Once 10 year treasury yields rise back to 1.7%, ...

  Karen the Supertrader turned $100k into $41 million during the 2007-2011 stock market while overall market declined quite a bit. How did she do it? She traded very safe options (deep out of the money) using portfolio margin. Each bet had 95% chance of winning. She used math in her favor by placing high probability bets but making a very small amount with each bet. She was able to use 50% of her capital for options trading.   Why can’t regular investors do what she did? In a cash only account, to make $500 you sell a put on SPY with 95% win probability. Not bad, right? You make that $500 fee regardless plus if you lose the bet you would simply buy 100 shares of SPY at a price you like anyway. HOWEVER you’ll need to lock up $45000 in case the trade doesn’t go in your favor and you are forced to buy the shares. It would be locked up for 2 months. Depending on how much money you have, you wouldn’t be able to do too much of this. The returns, while reliable, are not better ...

MVST has been touted on r/wallstreetbets as a meme stock, which are seen as jokes by serious investors. However, when I read up on this company, I found it to be legit. It’s a cutting edge lithium battery company with both a U.S. and Chinese counterpart. The batteries are for electric cars and charge up extremely fast, last longer, more durable, safer. With its Chinese counterpart, it is easier for this company to source the raw lithium, which is mined in China. And now, this company has a high short interest, so now is a perfect time to get in before the short squeeze (potentially gamma squeeze). With so much new hype, this could be the next GME or AMC except the fundamentals are far better, making it a potential long term investment. Amazing Growth Potential ·    MVST expects to post revenue of $230 million in 2021 and $2.3 billion in 2025. That's 10x revenue growth ·   Their star product are their lithium titanate (LTO batteries) which can charge from 0 to 100% in...

  OK, these are not the exact same stocks that got me to being up 120% so far in 2021, but this is my portfolio going forward. These are my top holdings and not included in this screenshot is ASTS, AMD, MVST , FVRR, MYMD, and some SPY put options. Also a large position in TMF (3x long term treasury bonds) as a hedge that goes up during stock market crashes. The percentages add up to over 100% due to use of margin. How did I do it? Check out my article Three Methods to take advantage of a portfolio margin account . If you're interested, check out my article on SAVA and ASTS .

If you invested in Bitcoin in 2015 at $300 and sold at the peak in 2021 at $64000 in April 2021, you would have made 200x your initial investment! Which is amazing. And it was only 8 cents in 2010 had you got in even earlier. That means had you just invested $10, you could have had $8 million dollars! I was thinking of buying some at this price back then, but passed on it, not knowing what bitcoin would eventually be worth. I regret it in hindsight, but nobody knew it would be worth so much. It was also a pain to buy them back then, and the process seemed very shady. The market where you could use bitcoins to buy things was associated with the black market and eventually got taken down by authorities, rendering bitcoins useless. People just threw away their bitcoins. We’ve got to keep in mind that it was never easy money for early bitcoin owners. Many of the people who got into bitcoin early lost all their money from hacker attacks. Others sold it early, or spent it to buy cheap it...

So what’s safer in terms of financial security, having $20 million at retirement or just $100k? Does it matter that you have to weather more ups and downs to get to the $20 million? Does it matter that in a market crash, that $20 million could go down to $10 million? Some people would rather have the $100k instead, for the smoother ride, even though you can’t live on $100k in retirement and that means you must continue to work in old age. I argue that it is more risky to invest too conservatively, especially as inflation eats away at the buying power of one’s savings. Many people confuse low volatility with safety and high volatility with risk, but long time horizons cancel out the volatility. What is risk anyway? The Risk in having Low Returns is Poverty   [investing vs savings chart] Notice that even with big stock market crashes, the lowest bottom on the dips are still much higher than just saving in a bank. Bonds would fit somewhere in the middle of these two lines. Wi...

  This article is written for friends and family new to investing. All of whom have sadly told me they have been losing money. I wondered how this is possible in the greatest bull market in stock market history, and then I realize they don’t have access to good information. I hope this article will change that. Here I teach you how to get started in stock investing, based on how I got started myself in 2017. It’s called index fund investing, and can be done in a regular taxable account, a 529, a 401k, or a Roth IRA. The way I do stocks, there’s zero taxes in a regular taxable account and you have more advanced options to make money faster. In the long run, a regular taxable account is the best for all situations where you never sell the stock (and therefore avoid taxes entirely). The end game will be based on borrowing money against the stocks you own, so instead of paying taxes, you get tax deductions on any interest that you pay (reverse taxes). After a certain point you’ll never...