My Strategies

I use many strategies when it comes to investing. It really depends on your goals and the market conditions. I am currently 48 years old, so I still have some time to invest in riskier assets. Here are some outlined points of my strategies with more in depth information soon to come. I will be creating links to sections on this page, but not sure exactly how yet.

Outlined Strategies

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  • Debt Free
  • Emergency Fund
  • A Cash Position (Currently 25%+), CDs, and/or Bonds
  • Auto Investing
  • Retirement Investing
  • Proper Research
  • Dividend Investing
  • Different Ways of Averaging Down
  • Rebalancing
  • Different Ways of Averaging Up
  • When to Buy, Sell or Hold
  • Taxed Efficiently
  • Risk Management
  • Rules Based Investing 

1% to 2% Allocation Changes - My Strategies

This picture shows a segment of my 52 holding ROTH account starting with my lowest value 1% allocation holdings with unrealized gains above 5%. All of these holdings have an actual value above a 1% allocation. I overweight three holdings per day, which are the lowest value holdings with unrealized gains above 5%, to a 2% allocation and those holdings will most likely be the holdings that auto invest will buy. This is how I scale a position from a 1% holding to a 2, 3, 4, or 5% holding. I am currently buying holdings that are technically a buy and a buy according to analysts' one year average price targets.

Gnosis Picture Archive Bull and Bear

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100% Buy Opinions - My Strategies

I average down in my taxable account. The broker that I use is M1 Finance for free. The ROTH account is different. I am averaging up, but holdings have to meet certain criteria before I buy. I have arranged my holdings, using barchart for free. I do not receive any compensation for promoting barchart. I have arranged my custom columns according to lowest value first and then by 100% buy opinions. I do not average up holdings that pay a high dividend (2%+?), and I do not buy holdings with unrealized gains below 5%. My buys for tomorrow will be AMD, DHI, and AVGO. I sold some AVGO in the taxable account today.

Bull Vs. Bear Candlesticks Reversal Indicators

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25% Cash and/or Bonds/CDs - My Strategies

This is a simple strategy, but it is one that I did not really think about in the first 5 years or so of my investing experience. I currently earn 5% interest on cash in my M1 Finance high yield savings account. I do not invest unless my cash position is overweight, so above 25% of the total amount I have invested. I calculate how much cash I should have by multiplying the total amount that I have invested by .25, and I add my monthly liabilities to this number. A percentage can change, and it is different for every investor. It really depends on how much cash a person thinks they need to have piece of mind. It is also my emergency fund. When the portfolios go up, the cash position becomes less overweight. When the portfolios go down, the cash position becomes more overweight.

Poor Charlie’s Almanack:

The Essential Wit and Wisdom of Charles T. Munger Hardcover – December 5, 2023 by Charles T. Munger (Author), Peter D. Kaufman (Editor), Warren Buffett (Foreword)

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ROTH Investing - My Strategies

In a ROTH account, the rule of first in, first out (FIFO) still applies unless you have the option to sell in another way, but you can not do wash sells in a ROTH. My strategy is different in my ROTH acccount. I care more about the cost basis average price. The picture shows my 1% allocation holdings arranged by market value, lowest to highest, and then I sort according to 100% buy opinions. I am using barchart for free with the ability to customize columns. I am buying my lowest value 1% allocation holdings by overweighting them to 2%. 

Average UP!!! - My Strategies

My strategies have changed a lot through the years. For at least the last two years, I have been averaging down in my taxable account. I do not regret doing this, but now I am averaging up in my ROTH account. The picture shows the unrealized gains of my lowest value 1% allocation holdings in the ROTH account. I am going to overweight three of these holdings tomorrow from 1% allocations to 2%, so UNH, AAPL, and LMT will be my buys. I am not buying any holdings with negative unrealized gains for a while. I will most likely rebalance the entire portfolio with one click of a button, which is available with M1 Finance.
Updated 12/03/203

Taxed Efficiently #1

 I will be consolidating articles into bullet points that explain my strategy more concisely. I am going to be removing a holding from my 72 holding taxable account. This holding, AMT, pays an unqualified dividend. I have been slowly removing unqualified dividend payers from the taxable account when they have positive unrealized gains. The holding also has a high stock price, so long term capital gains take longer to acquire, which are taxed at a lower rate. I may or may not add AMT to my ROTH portfolio. I average down on holdings, so the way I do this using the M1 Finance broker is by doubling the allocation percentage, so from a 1% allocation to a 2% allocation or a 2% allocation to a 4% allocation. I averaged down on AMT. I am adding a qualified dividend with a low stock price, FAST. I am also overweighting my worst 4 unrealized gain holdings, which include: MPW, PFE, TROW, and PML. Auto invest will be buying these holdings and holdings with a low value or holdings below their target allocations, which include: SCHD, DGRO, RICK, and CMCSA. 

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