Well it is like that. I have separated the Key Elements out into ‘Golden Keys‘, ‘Silver Keys’ and ‘Bronze Keys‘, as follows. I was hoping to do the Top 10, then the Next 10 and then The Rest, but when I actually started prioritising, I found that 15, 15 and The Rest made more sense.
It is vital to appreciate that ALL the Key Elements are necessary for the ‘System’. In truth, you could probably drop a few out (maybe 5 or so) but if you drop too many, it will not work in the way that I use it (of course, it may work better !! Let me know if that is the case please !!).
These Priority lists are just to help Readers to focus their efforts on the bits that have most impact - you may decide that your Priorities are different but that is your decision - this is just my view of them. The Golden Keys for example are the things that will have most impact on your Returns in my view - after all, that is what the game is all about. The Key Elements within each list are not prioritised - I have tried to do them in the order they appear down the original M3 Manifesto list.
My aim will be to write Blogs to cover the Key Elements using this Prioritisation myself - this makes sense as it will help Readers best that way I think.
Some of the Key Elements I have relegated down to the Bronze List as they are implicit from the previous ones - for example, I have kicked ‘Get your Tools organised’ into Bronze because it is implicit in many of the Key Elements which sit in the Golden and Silver Lists.
The 15 Golden Keys
These are the Top 15 and Most Important to get a grip of:
- Diversify - this is vital because it is a prerequisite for using Hedging and Leverage. Both these have massive impact on Returns so focus here is effort well spent. I will blog on Hedging and Leverage soon - although there is quite a bit on Hedging scattered within many previous Blogs.
- Think and Hold Long Term
- Scale Positions to Risk - again vital when using Leverage.
- Have a Yearly Target, Plan and Rules
- Buy Dips, Sell Rallies - sounds obvious but it is amazing how many people get this wrong - that is why it is on the Golden Keys list.
- Minimise Tax
- Use Controlled Leverage - this can be VERY DANGEROUS - I will blog soon on the ways I use it to gain the considerable benefits in a safe and controlled manner.
- Buy Quality - this is a Golden Key because I see it as the most important Stock attribute - I will blog on this in the near future.
- Use Simples Technical Analysis - those pesky meerkats….
- Follow Seasonal Investing Patterns
- Don’t be Fearful
- Understand your ‘Edge’
- Control what you can control
- Make your own Decisions.
The 15 Silver Keys
These are the Next 15 Most Important Elements:
- Think ‘Portfolio’ not individual stocks
- Write a Trading Diary
- Scale in, Scale out
- Lighten up in Bear Markets - this one is obviously vital - but seeing as Bear Markets are pretty rare, thankfully, I felt it could slip to the Silver list rather than the Gold list. With luck we won’t need to worry about this one for a little while.
- Use Funds for specialist Sectors / Geographies
- Monitor % Performance Regularly
- Save money into your Investments when you can and as much as you can - ok, this one is a bit ‘noddy’ - of course you have to save money - I just want to stress this and make sure you avoid bad habits like wasting money on silly expensive junk you don’t really need.
- Buy Value
- Buy Defensives
- Buy Dividends and Reinvest them - fair enough, this could have been in the Golden Keys list - however, I guess I cover this under ‘Buy Quality’.
- Use Candlestick Charting Patterns - in some ways I am surprised this is not in the Golden Keys list, however, my view is that an understanding of Candles is really a bit of finesse - you can do very well without them but it just gives you a little more - probably worth 2% to 3% a year.
- Be Calm, Unemotional
- Boring is best, avoid Excitement
- Follow Income Portfolio or Funds approach if you lack time - this one could be viewed as ‘optional’ and maybe shouldn’t be in the Silver Keys list. However, it is a vital thing and if you are working and/or very busy it might have a bit impact on your returns. If you don’t work, then you ought perhaps to be doing it all yourself, although that depends on what your wishes and personal attributes mean is appropriate.
- Successful Investing requires Knowledge and Life Long Learning - this one is a bit flaming obvious and maybe it shouldn’t be in either of the Golden Keys or Silver Keys lists - it sort of goes without saying and the simple fact you are reading this demonstrates you are at least trying !!
The Bronze Keys
All the rest of them that remain.
That’s the Prioritisation.
Now go out to the World and Spread the Gospel according to David Icke…..
Time for tea, wd