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My philosophy/strategy ...
I get daily questions:
What's a good investment?
When should I buy?
Is now a good time to buy X?
What should I invest in today?
I hope this thread on my current strategies helps
1/
I get daily questions:
What's a good investment?
When should I buy?
Is now a good time to buy X?
What should I invest in today?
I hope this thread on my current strategies helps
1/
1st, my goal is to build LT wealth
Taking advantage of current trends & growth stocks
While managing risk to preserve Capital
As trends change, so will my investment style
I started 2020 in ETF, Index funds, & Div stocks
Now, predominately growth
2/
Taking advantage of current trends & growth stocks
While managing risk to preserve Capital
As trends change, so will my investment style
I started 2020 in ETF, Index funds, & Div stocks
Now, predominately growth
2/
2nd I dont like to pigeon hole myself into one style
So if I find an opportunity I like, I go for it
That might be a penny stock, a value swing, or any other that interests me
Everyone has their own style, and they can all win
Remember I invest my money, do your own DD
3/
So if I find an opportunity I like, I go for it
That might be a penny stock, a value swing, or any other that interests me
Everyone has their own style, and they can all win
Remember I invest my money, do your own DD
3/
I've developed my own style like many others on FinTwit
And it evolves as I learn from both wins & losses
I want to point out that allocation is the best form of risk management
The type of account (tax/retire) and purpose (income/retire) plays a major role in risk
4/
And it evolves as I learn from both wins & losses
I want to point out that allocation is the best form of risk management
The type of account (tax/retire) and purpose (income/retire) plays a major role in risk
4/
My basic account allocation
65% of account is dedicated to conviction positions
These are LT holds that I add to on major dips, with no intention of selling
20% are LT holds w/less conviction that may get sold if conditions change
10-15% is Cash & ST or Spec positions
5/
65% of account is dedicated to conviction positions
These are LT holds that I add to on major dips, with no intention of selling
20% are LT holds w/less conviction that may get sold if conditions change
10-15% is Cash & ST or Spec positions
5/
Most of my new buys are small spec and/or swing trades <1%, w/minimum conviction
They are based on some basic research & a hunch
Once I own them, I start building a relationship w/the company
I see every news alert & tweet etc.
This is where I build conviction
6/
They are based on some basic research & a hunch
Once I own them, I start building a relationship w/the company
I see every news alert & tweet etc.
This is where I build conviction
6/
Those that don't appeal to me get cut quickly
Some run up like crazy & get sold for quick gains before I understand them completely
Some hit a preconceived target (swing) and get sold for profit
Some hang around long enough to build conviction, then start massive runs
7/
Some run up like crazy & get sold for quick gains before I understand them completely
Some hit a preconceived target (swing) and get sold for profit
Some hang around long enough to build conviction, then start massive runs
7/
Case Study $PLTR
Bot @ $9.50 as a spec play
hung around long enough to grow on me
Then ran 200% in a month
Can it 2x from here? Sure
Can it halve and languish for months? Also yes
I sold 1/2 for 200%, and invested elsewhere
The other half was left to run
8/
Bot @ $9.50 as a spec play
hung around long enough to grow on me
Then ran 200% in a month
Can it 2x from here? Sure
Can it halve and languish for months? Also yes
I sold 1/2 for 200%, and invested elsewhere
The other half was left to run
8/
Case study $MGNI
Bot @ 6.75 for spec play
Moved slower, and gave me time to build conviction
@ 200% gains, I'm not even considering selling
This may be my biggest position one day (sorry $SE)
I have no intention of adding or selling
Or maybe the thesis changes
9/
Bot @ 6.75 for spec play
Moved slower, and gave me time to build conviction
@ 200% gains, I'm not even considering selling
This may be my biggest position one day (sorry $SE)
I have no intention of adding or selling
Or maybe the thesis changes
9/
The point
If I waited a couple months to build conviction
I would have felt like I missed the boat and not own either today ($TSLA
)
If I only bot buy & hold, I wouldn't own
$MGNI +200%
$UPWK +150%
$PLTR +150%
$NNOX +100%
$U +90%
etc. etc.
10/
If I waited a couple months to build conviction
I would have felt like I missed the boat and not own either today ($TSLA
)If I only bot buy & hold, I wouldn't own
$MGNI +200%
$UPWK +150%
$PLTR +150%
$NNOX +100%
$U +90%
etc. etc.
10/
Where do I get these great picks?
This community!
I follow MANY with great ideas, a few that put out quantity & quality research
@7investing
@JonahLupton
@PatternProfits
@dhaval_kotecha
@PoundingDaTable
@TheMarkCooke
@StockMarketNerd
and many others ...
11/
This community!
I follow MANY with great ideas, a few that put out quantity & quality research
@7investing
@JonahLupton
@PatternProfits
@dhaval_kotecha
@PoundingDaTable
@TheMarkCooke
@StockMarketNerd
and many others ...
11/
I look up almost EVERY ticker I see from the accounts I follow & DMs
I read what they do, and look at their charts
If they interest me, they go on the watchlist
If they are really intriguing, I may buy a starter position right away
W/skin in the game, it narrows my focus
12/
I read what they do, and look at their charts
If they interest me, they go on the watchlist
If they are really intriguing, I may buy a starter position right away
W/skin in the game, it narrows my focus
12/
I constantly evaluate the bottom 10% of my port
Looking for reasons to add into full positions 1-2%
Cut them completely, or hit my price target & sell
40-50% get cut w/in 15% of purchase price, 10% maybe a bigger loss
But 30-40% profit nicely, and some
13/
Looking for reasons to add into full positions 1-2%
Cut them completely, or hit my price target & sell
40-50% get cut w/in 15% of purchase price, 10% maybe a bigger loss
But 30-40% profit nicely, and some
13/
Will some baby's get thrown out with the bathwater?
Yep.
I bot $PINS @ $49 & sold 2 days later in $60's +25%
Similar with $GRVY & $NIO, all profitable, but a lot left on the table
Some I've gotten back in ($AMD now conviction)
And some I've accepted that I missed
14/
Yep.
I bot $PINS @ $49 & sold 2 days later in $60's +25%
Similar with $GRVY & $NIO, all profitable, but a lot left on the table
Some I've gotten back in ($AMD now conviction)
And some I've accepted that I missed
14/
FinTwit tells us to buy & hold forever, never sell
Thats the best, and only strategy to make BIG money
I disagree ...
Buying & holding the RIGHT companies, is the best way to make BIG returns
The Problem?
How do you know which companies are the right ones to hold LT?
15/
Thats the best, and only strategy to make BIG money
I disagree ...
Buying & holding the RIGHT companies, is the best way to make BIG returns
The Problem?
How do you know which companies are the right ones to hold LT?
15/
IMO
The Key IS NOT waiting to find a stock to buy and hold forever
The Key IS buying early, learning rapidly, cutting quickly, and taking profits when they come
AND building conviction in a few positions to hold a very very long time
16/
The Key IS NOT waiting to find a stock to buy and hold forever
The Key IS buying early, learning rapidly, cutting quickly, and taking profits when they come
AND building conviction in a few positions to hold a very very long time
16/
I love that there are so many successful investing strategies
I hope you find something in this thread that helps you on your journey with yours
You can read about my journey in my pinned tweet
And check out my bio for @7investing discounts and other offers
/end
I hope you find something in this thread that helps you on your journey with yours
You can read about my journey in my pinned tweet
And check out my bio for @7investing discounts and other offers
/end
