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An HSX COVID-19 Diary

Posted by: cmbastos on Apr 12, 12:14

1. April 12^th, 2020

The COVID-19 crisis hit me on March 9, 2020.

Before that day, the news and impact of the Coronavirus were alarming but still distant.

On March 4, my portfolio had reached its apex: H$ 3.531.721.135,03 (ranked #610).

Between March 5 and 6 the net worth was a million a half down, but this happens.

I didn’t check it on March 7 an 8 (Saturday and Sunday), which also happens frequently.

The on March 9, I was down H$ 8 million, then another H$ 11 million on the 13^th, H$ 9 million on the 14^th…

The crisis hit hard on the work front… stores began to close (I work for a major Brazilian clothing brand as Head of Finances) and there were serious concerns about the future of the business… schools were closed and the kids sent home, without a clue about how (or when) their side of things would resume… my wife started working from home.

I had little time to work on the HSX portfolio, but knew it was melting.

On March 14, I took my first action: I sold every (138) MovieStock I had that did not have a release date by then. I realized a loss of H$ 432.770.107,50 on long gestating movies. Stocks I hoped someday would see the light of day.

On March 19, I started working from home at a crazy rhythm, 10-hour days were common, video calls were one after the other.

But I was one of the lucky ones. Rio de Janeiro went on lockdown on that same day (maybe the day after). I had a fine home, working computer and Internet connection, space to work from home and absolutely everyone in my family was heathy.

I had a sinking feeling that I did not want to cash on the crisis over at HSX. It seemed wrong, but I knew I had to do something.

I’ve been playing consistently since March 1999. I couldn’t let my portfolio turn to dust.

First, I thought I would cash all MovieStocks out. Put it in the bank and let it pass.

But that would sever my ties to the market. How would I know when to get back in? How would I keep the interest on it?

After a lot of thought, I decided to just break the fall. I’d “box” every MovieStock (I stopped trading on StarBonds a long ago, had no Derivatives and felt it would be wrong to short the MovieFunds) by keeping the long positions I held and, at the same, shorting everything.

I finally did it on March 21, after losing H$ 170 million (I was down to R$ 3.359.915.836,42, ranked #637). I shorted 135 MovieStocks, paying H$ 11.4 million on commission. About every stock I held long had had now a short counterpart. My hope was to break the fall. My portfolio was valued at H$ 3.3 billion (ranked #642).

It is now April 12, 22 days later, and the portfolio is holding at H$ 3.3 billion (ranked #640). I’ve lost just an additional H$ 670k (the short side has gained H$ 16 million during that time).

My hope is that this crisis goes away soon… how life (and movie going) will be transformed, I don’t know.

Let’s see how things pan out.

An HSX COVID-19 Diary cmbastos Apr 12, 12:14

No disrespect, but, you do realize this is just a game? You write as though this is real money you've lost. {More-->} NeilSite_VanThomas Apr 13, 08:53

If this isn't the pot calling the kettle black... ndmaster Apr 13, 10:01

Yep! {nm} Grunt Apr 14, 09:59

A journal is a fine idea, however, I sold off most of my holdings over a month ago. Also, don't listen to ndmaster {More-->} NeilSite_VanThomas Apr 13, 14:18

Oh my goodness, this is just silly. ndmaster Apr 14, 17:56

Yes, I do realize all you said, and pretty much do it... it's just for the "fun" of it. {nm} cmbastos Apr 13, 16:34

I enjoyed the diary entries, the game is for fun and is a great distraction from today's real world.. {nm} tallbridge Apr 13, 19:50

Thank you! More to come... {nm} cmbastos Apr 14, 13:21

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