@ohiain Hi Iain. In your process how do you handle open heat? How many new positions will you carry with full risk at one time? Obviously, this is an art not a science as restricting your open heat can reduce drawdown during bad times but reduce growth during market turns or good times.
Again the scans continue to get better quality coming into the EOW. Yields and dollar continue to push higher but growth stocks are better today than a month ago. News of Iran deal more important to investors? No idea but if you aren’t dipping your toes here it could a mistake.
Coming in this week it was noticeable the watchlist was getting filled with better quality names. It has only gotten filled with more as the week has gone on. My scans tonight are filled with high quality tech names. $PANW $HPE $ARW $MU $SNDK $COHU $P
Those who think AI is going to magically do the work, pick stocks and manage their portfolios at a high level are in for a big disappointment. Just like throwing darts, there will be periods when it will land on the correct boxes. But ultimately it will be a victim of it's own efficiency, and the work and strategies that AI users are running from will work better than ever. Money is made in pockets of inefficiencies, not where everyone congregate.
6 money lessons I’m learning at 22 that I hope I’m still following at 42:
I’m becoming increasingly convinced that looking rich and becoming rich require almost opposite behaviors.
I’m only 6 years into this investing/trading journey, so I’m VERY aware that I still have a ridiculous amount to learn. But the longer I do this, the more convinced I become that the hardest part about money is getting really, really good at boring sh*t.
Everyone wants to talk about the monster trade, the 10xbagger, the huge year, or the business that exploded overnight because that’s what makes a cool screenshot. Nobody gets excited talking about managing cash properly for the 47th month in a row...and I've been slowly shifting toward the latter.
Quick money goes quick for a reason!!
But that’s increasingly where I think the real game is won:
> continue to grow my income.
> keep my expenses reasonable.
> live below my means.
> invest consistently.
> protect my capital.
> avoid catastrophic mistakes, but fail a lot.
...and then repeat.
None of those things make me feel like Warren Buffett when I wake up tomorrow morning, but do them for 10-20 years, and suddenly the boring decisions start looking pretty dang exciting. Compounding is almost invisible in the beginning...that’s why most people don’t have the patience to let it work.
Trading has probably reinforced this lesson more than anything else for me because I’ve learned that making money and keeping money are 2 VERY different skills.
I can have an incredible month, but if that immediately gives me permission to double my lifestyle, oversize trades, or start treating money differently, what exactly did I accomplish? The same applies when income increases. I don’t want every raise in earning power to automatically become a raise in spending power just because I can suddenly afford another toy.
I think short-term gratification quietly wrecks a lot of people (especially youthful men).
Everyone wants to "look" wealthy before they’ve given themselves enough time to actually become wealthy.
I’d rather build quietly unseen, increase my earning power, keep investing, live below what I could afford, and let time do its job while everyone else argues about the next shortcut.
Ask me again in 20 years and I’m sure I’ll laugh at 1/2 the stuff I thought I understood at 22. But right now, 1 principle keeps getting clearer: get exceptionally good at doing boring financial things for an unreasonable amount of time.
The home runs get the screenshots...however, consistency + capital preservation are what actually build the scoreboard.
It's always good to know the difference.
$NSDQ $QQQ leading the way. Expectation would be higher from here. Good looking base. I think this week is an important week. No need to be a Monday morning quarterback.
As Bill told me once… (say it out loud with your best Bill voice😉)
“Mike, you always have to stay flexible & bend like a tree in the wind”
My version…don’t get set in your mind that it’s a bull, bear, chop… markets can change character QUICKLY
Keep an OPEN mind to change
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