Blog: A message from our CEO

A message
from our
CEO.

COVID-19

Uploaded ImageUploaded Image
March 9th, 2020

Fear moves the market. And, right now, it occupies the entire market’s imagination. Franklin D. Roosevelt once said, “Let me assert my firm belief that the only thing we have to fear is fear itself.” 

Fear drives change in behavior as well as consumption. Consumption, lest we not forget, drives two-thirds of our economy. That’s why the global coronavirus outbreak, election year unknowns, geopolitical tensions, and volatility in the energy markets are creating large swings in equity prices. 

Managing risk in the coming days and months is going to be an essential skill and that, my friends, is why we founded dough. We know the cyclical nature of markets and our greatest desire is to help you navigate all market conditions. 

So, what exactly can you do to mitigate risk? Consider these guides for the days and weeks ahead: 

  • Cash.  A higher percentage of an account held in cash can enable purchases of stocks at more attractive prices should they present themselves.
  • Bonds. Bonds and bond ETFs can help offset risk in stocks. That’s because they tend to move in the opposite direction of stock prices. This is an upcoming topic of The 3Cap with Ryan Grace.
  • Defense. Consider the defensive sectors of the market.
  • Trade small. Keep your position sizes small to ensure you’re comfortable with the risk.
  • Diversify. Consider using diversified ETFs which helps spread your dollars across multiple underlying stocks and areas of the market.
  • Beta. Familiarize yourself with the concept of beta. This is a great tool for understanding the risk of your investments.
  • Long term. Consider dollar cost averaging as a method of building a position and thinking long term. Make sure to subscribe to our YouTube channel to receive a notification of the video on this topic coming this week.

As a trader in my early 30’s, I’m gifted with time, and therefore, the ability to weigh these market events differently than those nearing retirement. As informed market participants, we at dough do not easily fold and certainly never panic. It might be a bit early now, but I lie in wait to sell the hysteria and buy the panic.  

Yes, it may get worse before it gets better, but I’m thinking long term. When the unknown becomes known it could remind us that reality isn’t always as bad, nor as good, as the forecast. 

History has greatly rewarded this type of thinking. Life is good when you’ve got a plan. That said, it’s fist bumps instead of handshakes, at least for now. 

Let’s be careful and take reasonable precautions to protect ourselves and our loved ones. Stay safe, stay healthy, and remember that fortune favors the bold while scared money doesn't make any. 

Thanks, 
 
Victor 
CEO, dough 
@victorJ0NES

Download dough.

back to the blog

Additional Links

© 2021 dough. All Rights Reserved | dough LLC member FINRA / SIPC/NFA

*Commission-Free means $0 commissions, other fees may apply. See fee schedule here.

Last sale, bid and ask size: all quantities are quoted in 100 lot increments.

Securities products and services are offered by dough LLC, member FINRA / SIPC. Investing in securities involves risk, including loss of principal. Past performance of a security does not guarantee future results or success. dough does not provide investment, tax, or legal advice. Information presented on dough.com, through the dough mobile application or any dough sponsored podcasts or videos should not be relied upon for tax, legal or accounting advice; you should consult your own tax, legal and accounting advisors before engaging in any financial or investment related transaction and before you make any decision concerning your investments. 

Additionally, the material presented is for informational purposes only. While certain information contained herein has been obtained from sources believed to be reliable, dough LLC has not independently verified this information. Accordingly, no representation or warranty, express or implied is made as to their accuracy, completeness or correctness, and no reliance should be placed on this information. dough LLC assumes no liability for this information.

When investing in ETFs or ETNs, investors should consider the investment objectives, risks, selling and transfer restrictions, charges and expenses before investing. A prospectus contains this and other important information about an investment company. To obtain a prospectus, contact the fund’s call center or visit the fund company’s website. Read the prospectus carefully before investing.

Options trading involves risks and are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially significant loss. Options trading privileges subject to dough review and approval. Please read Characteristics and Risks of Standardized Options and other disclosures found at dough.com and in the documents section of the app before investing in options.

Margin trading involves interest charges and risks, including the potential to lose more funds than deposited or the need to deposit additional funds. Margin trading increases your buying power but also increases your level of market risk. Before using margin, customers must determine whether this type of trading strategy is right for them given their specific investment objectives, risk tolerance, experience, and financial situation. Short selling is available to eligible margin account customers based on their risk tolerance, experience, and financial situation. For more information, please see dough’s Margin Disclosure Statement and Margin Agreement in your app documents.

Futures accounts are not protected by the Securities Investor Protection Corporation (SIPC). All customer futures accounts' positions and cash balances are segregated by Apex Clearing Corporation. Futures and futures options trading is speculative and is not suitable for all investors. Please read the Futures & Exchange-Traded Options Risk Disclosure Statement prior to trading futures products.

By using the dough mobile application, you consent to our Terms and Conditions and Privacy Policy. Dough’s mobile application and brokerage services are not intended for persons of any jurisdiction where Dough is not authorized to do business or where such products and other services offered by Dough would be contrary to the securities regulations or other local laws and regulations of that jurisdiction. 

Check Dough’s background and see a list of approved jurisdictions through FINRA’s BrokerCheck. Member of SIPC, which protects dough’s securities account balances up to $500,000 (including up to  $250,000 for claims of cash and a total of securities positions including cash up to $500,000). Explanatory brochure available upon request or at www.sipc.org.