I am aware that I have picked up a lot of new Twitter Followers and Website Readers and Podcast Listeners of late, and it struck me that if you haven’t been reading my spiel and all that for some time, then you might be a bit confused as to exactly how I go about things.
Anyway, first off “Hi” to all these new Peeps and of course “Yo Dudes and Dudessess !!” to all you lot who have been unable to shake yourselves free of the self-induced pain of submitting to my gibberish. My thinking is that in this probably not overly lengthy blog, I will outline at a high level what my Approach is and point you in various directions if you want to get a deeper understanding.
It must be very confusing if you are new to all this. As much as I try to keep things simple and in understandable language, it probably looks like I jump around between different methods/techniques/tools and probably it doesn’t make a lot of sense. In fact, my motivation for writing this Blog is partly because I think many people see me as some sort of crazy Chartist, which really isn’t the case, but Technical Analysis (TA) is an integral and important aspect of how I go about my business.
Another reason for writing this is inspired by a significant breakthrough that I think I have made with how I do things. You should find several old Blogs in the ‘Related Blogs’ section at the bottom of this piece of scribbling, which highlight how I have been highly focused on ways to lower and almost eliminate Downside Risk; and on one level I have achieved that with Diversification to address Stock-specific Downside Risk, and more importantly, I have been obsessed by Hedging to deal with Market-specific Downside Risk.
My recent exploits during the Virus Panic Sell-off have demonstrated very well that my Hedging technique is effective and proven in battle. This makes me extremely happy and means that my efforts of recent years have been time (and money !!) well spent.
First up I will go through my various ‘Pots’ in my overall Portfolio of Investments and probably once I have done that, I will try to write more about the techniques and more specific aspects of how I run these various Pots (Hmmm, maybe I should have done a Blog Plan for this one before I started smacking the keyboard……)
Portfolio ‘Pots’ at a High Level
You can find lots more detail about this on my ‘Portfolios’ page which I think is on the Main Website (WD1) and if not it is on WD2 !!
In essence, my Pots are as follows:
Key Techniques that I deploy in managing my Portfolios
Well, that’s about it although I might have forgotten something !! Anyway, on my Websites there are loads of blogs and stuff to pad out what I have written here and my ‘M3 Manifesto’ page should be particularly useful. On top of these sources, the Tweets I bang out at a ridiculous rate and the Twin Petes Investing Podcasts that we release every few weeks contain lots more on these kinds of subjects.
When it comes to figuring out what Approach to take, you need to think about putting considerable importance on the kind of Risk you are happy to take (it is always lower than you think once the sh*t hits the fan), the amount of time you have available for your Investing Activities and your Lifestyle, and of course it is essential you have an Approach that fits with your temperament and personality. You must be comfortable with your Approach at all times and especially when it all goes very wrong (which can be extremely unpleasant if you are not prepared in advance by having a Portfolio that is robust and can take a few knocks. Sunny weather Portfolios are not a good idea.)
Anyway, I hope it helps Readers figure out what they are up to with their own Market attacking methods.
These 2 blogs cover how I do Position Sizing:
This one covers Averaging Down:
Next is an epic series of blogs that I wrote about how I use Leverage – there are links at the bottom of this one to the earlier bits:
This is a very short blog which talks about how Candlesticks can help spot Turning Points:
A rather infamous Bear Markets blog:
Another old classic which highlights the importance of those Compounded Yearly Returns:
An oldie on how many Stocks to hold – so very much about Diversification:
These next two blogs are on the Investor or Trader issue. A key factor to figure out pretty much before you do anything else:
Below we have a 3 blog series on Diversification:
This one looks at Downside Risk and no doubt talks about Hedging:
Another 2-parter from years back:
TopChopping – there are links to the earlier parts at the bottom of this one:
This one talks about how I cope with so many Stocks:
‘Cut out the Noise’ – such an important subject and again there are links at the bottom to the earlier parts:
This one includes details on the ADVFN App I use – it is Free and excellent:
Income Portfolios – there are links at the start of this one to the others:
Some words about Technical Analysis:
Blogs on Index Trading (I can’t recall what happened here but the blog numbering is a bit screwed up – however, the links at the bottom here will get you to all 4 parts eventually !!):
Finally, I remember this series being very popular – there are links at the bottom and it looks at Dealing Costs and over-trading:
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