Tag: t_roti@lqdAsset

##%%stocks: a few that need baby-sitting

Posted on by tiger40490

I feel most stock-picking investors  (excluding ETF) are forced to monitor their individual stocks. The tcost includes sleep, work distraction. See buy-n-forget→ sleep]peace, focus@work: avoid 0-div

Q: which specific stocks in my portfolio suffer the same?
A: Rather few of my bigger Robinhood positions are non-dividend stocks, and they tend to be known brand names

  • mrna
  • GE
  • GM
  • — these holdings are too small to generate any obligation:
  • China stocks
  • Twitter
  • beyond meat

Take mrna for example, do I lose sleep? No. Do I lose focus at work? No.

— targeting capital gain? See div^capital_gain: which do you bet on@@
Indeed when buying these stocks, I was motivated by capital gain. Regrettable? Not yet, thanks to the small amount.

— recreational? See recreational investing
when buying these stocks, I was also motivated by fun and learning. Obviously, need to

##Rbh process=efficient: imt SG platforms

Posted on by tiger40490

— This blogpost started as a comparison with safe bond mufu (as another platform to highlight the differences)
Even safe bond funds on FSM involve much higher effort than my Robinhood process.

  • 👎 my recent amounts are too large, typically 10k. Sugg: reduce to 1k
  • 👎 risk/diligence: when I sell, I have to stay alert and ensure I don’t sell the wrong lot i.e. from the wrong account
  • 👎 the profit has to be recorded in my exp recon s/s
  • 👎 I check the PnL for each position too often.
  • 👎 my tolerance is too low for large cash balance. sugg: accept 30k cash balance in cash account

— other efficiency advantages (+disadvantages) of Rbh, half-ranked by unfamiliarity (sunshine needed)

  • 👍 $0 commission, small trades .. 3-min due diligence buying compared to bonds or Sreit
  • 🙁 .. pre-clear when buying/selling
  • 👍 sustainable and long-term trend .. only in U.S. market .. less babysitting about exit timing
  • 👍 $0 exp ratio .. can hold. less babysitting about exit timing
  • 👍 small commitments to each stock .. less babysitting
  • 👍 multiple quality web sites summarizing forecasts + stock analysis .. efficient xx if you want to spend the time
  • 👍 funding .. as simple as a few clicks
  • 👍 😉 div and realized gains too numerous to be recorded in exp recon s/s. Double-edged sword.
  • 👍 GTC limit order .. more efficient than watching and sending market orders during night sessions
  • 🙁 U.S. tax
  • 🙁 monthly reporting

U.S.stock trading: define acceptable ROTI

Posted on by tiger40490

limit order (rather than fractional) are key to tCost mgmt.

I frequently felt self-hate because the time cost is too high for the small trades. Then I found the concept of recreational stock-picking as the self-defense.

Q: what dollar amount of invested (each week) would relieve the self-hate? $1k/week is too big.
A: $100/week

I think this question is slightly similar to the yoga roti issue in Bayonne. Basically, I felt very good about my yoga lessons, but I also felt self-hate about the 3H total tcost including a leisurely shopping down-time after the yoga, almost as a reward.

— cf: property investment. I tend to spend a few days and commit 5-figure sums (around $100k). Then I execute the deal and put it aside. Therefore, ROTI is very high, but not recreational.

 

stock-trading: G3 concerns

Posted on by tiger40490

stock-trading: G4 concerns

  • — the high-level concerns
  • #22 distraction/firewall .. when I want to focus on localSys, coding drill etc
    • babysitt .. some stock positions have become crying babies
    • Robinhood proved very distractive. It once became substance addiction similar to the wrong-time temptation
    • Sugg — Avoid distraction due to frequent trading. Favor buy-n-hold.
    • buy_n_forget is more in-depth
  • #33 aggregate DYOC ..  3% would be unimpressive. However, it’s irrational/unfair to look at aggregate — better to look at the income ptf
  • #44 ROTI .. (see section below) too much time spent but total dollar amount is not worthwhile. Need to invest more to justify the effort
  • #11 paper loss .. when I need to access the cash. I think this is #1 concern for other investors but not me.
    • Diversification — R.Xia pointed out that if you buy many dividend stocks and some fail, then one of them might soar high enough to compensate for the other unrealized losses.
  • #1 compliance .. No one has 100% job security. (No driver has 0% fatality risk.). Compliance breaches (esp. repeated) would aggravate my job insecurity.
    • Not catastrophizing. Risk is real.
    • #11 concern: bonus cut .. $10k cut would not be a surprise. The dollar amount is likely bigger than the “paper loss” item below.
  • #8 Rbh: investor safety

— ROTI:
For a few years I spent tons of hours on FSM cherry-picking, but underwhelming ROTI, perhaps due to annual fees eroding the return.

== compliance
Q1: what’s my chance of surviving 2021? 90%
Q2: what’s my chance of surviving 2022? 70%
But the above answers are too rosy and short-sighted. A black swan event like compliance breach could cut the Q2 answer to 50%

I told a counsellor that job security depends on 1) company/industry profitability 2) Larry’s perception of me[5]. In a perfect storm of cost-cutting + my poor performance, then repeated compliance breaches would aggravate my job insecurity.

[5] With other managers (trigger-happy, like deMunk), firm performance would be a secondary factor.

— bird crashing a Boeing747″..  There are countless small hazards (bird) or small errors like 3dangerous habits #cross`street@bike or disobeying a PATH police, but why do they have such severe consequences? No idea. Anyway, below are some protective shields for the compliance risk. (Note there are several similar lists like ##[19]random ffree-derailers #resilience and random list@protections):

  • better performance, improved reputation with manager
  • #9 government-provided social safety net.. some people really lean on it and bet on it. I would say someday I may, too. No shame.
  • #7 brbr, Fuller wealth
  • #5 resilient family
  • #3/6 career longevity .. I rank this shield very high at this age, but what about age 52?
  • #1 wellness

100% upswing after buying #carefree dreamland

Posted on by tiger40490

Here’s every investor’s dreamland — you cash out your initial capital (in a combination of dividend + sales), and keep a residual position in the market. Any dividend income, any capital appreciation is now a bonus. In the dreamland, you would not lose sleep, lose focus at work, even for a non-dividend stock. … See buy-n-forget

Note The dividend would provide additional reward for holding, but is not a “concern”.

GM is one example. Capital appreciation is about 80%. DYOC = 0% so far.

liquidity .. is a key advantage of stocks (and mufu) vs rEstate, gold, HY/PE etc. Without liquidity, dreamland is hard to reach. For a property, you can’t sell half a unit to cash out your initial capital!

  • — here are some stocks to consider for dreamland but note that if you spend time (pre-clear) selling but then buy again, you would drop out of dreamland.
  • plug?
  • apha?
  • BIP?
  • BEP ?
  • IVZ?
  • LADR?
  • MLPX?
  • Macy?
  • MIC?
  • Trox?

 

FSM(+Trading): y ROTI so low@@

Posted on by tiger40490

 

In terms of personal ROTI efficiency, AA) trading (+FSM) is inferior to BB) property (+HY/PE) investment process. BB is more suitable for me:

  • I only need one big due diligence. Then buy-n-forget.
  • No monitoring required. No distraction to work. Often no price updates available anyway. Unable to transact on-my-own
  • Profit/Effort ratio is 10 times higher

Let’s compare Chip’s no-load fund to trading+FSM. The latter’s ROTI is lower because

  1. daily distraction
  2. too many research sessions compared to just once for the no-load

— guideline with FSM periodic checks,

  • reduce holdings to reduce the need for periodic checks
  • aim at one check per 48 hours