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comment by ahosai
ahosai  ·  570 days ago  ·  link  ·    ·  parent  ·  post: I Became a Disciplined Investor Over 40 Years. The Virus Broke Me In 40 Days.

Looks like this guys "investment strategy" was to buy the dip, which is just another form of being implicitly short volatility. This is definitely not investing but a bet on a reversion to the mean of low volatility. "BTFD" and other short vol trades have worked fabulously in the suppressed volatility environment of the last 10 years, but they have the potential to blow up rather spectacularly during large sigma events (the unwinding of the VXX being a great example.)

There's a whole generation of "investors", like this guy, who are just short volatility traders and they don't even know it.