"SHARE TRADING" strategies ,thoughts , ideas- why I love to pay TAX

Ever since I doubled the value of my portfolio in the 04-05 fy (my third year of buying and selling my own shares online ,,,no more expensive stuffy old broker for me) I knew it was time to make a change


I decided with the advice from my accountant to form a company and become a TAX paying Trader ....I had the Trading bug and finally with the new structure I could break loose and BUY and SELL whenever I wanted ....no more stress ....(well not really ended up way more stressful LOL)

After simply thousands and thousands of hours of study and market watching have passed to date ...and I think it's about time I pass on some of my strategies thoughts ideas I have found have helped me get some brilliant returns and also what has cost me HUGE in wasted funds

Any Questions..... personal viewpoints ....Good/bad outcomes from others efforts doesn't matter how stupid put it up>>>

I'm certainly not the best technically trader but like the motto K.I.S.S .....

Now and again I'll throw up a post on another aspect to my own trading style I've mashed together over the years ....

First up-- my structure

Formed company in 2006--- now I can hold shares or property for months years or days doesn't matter away's pay tax on the profits to claim tax credits on losses

Now as it's a company my expenses are claimed pa -internet,cellphone,Skytv,laptop,loan interest,travel,end of fin year party etc ......

Now I do borrow 150k funds for my company using equity from personal property(which is now debt free thanks to trading)

so currently my interest costs our set for the next year 4.49% ...my goal of course is to make much much higher returns than costs ...my target has always been 100% growth pa so aggressive trading ...to date I have done it twice.. (looking good for third time 17/18)

Now of course I still have a day job which I use to pay the ongoing expenses of the company ...running around 10-12k pa (which basically means I'm introducing more capital into the company's balance sheet ) this saves the hassle of bringing funds back from my AUD account
even though I am buying a small vending business which should cover all costs going forward 17/18+

My long term goal of course is to grow my company to a size where I can give up my hard labour seasonal job (fishing) to a lower paid lifestyle job while putting most of my time and efforts into the trading company to continue it's growth and income p.a past 100k pa on average :)

thanks to the PM's from novice traders out there ....honestly post on here!! and let's get the thread moving and hopefully drag in few legends of the trading game into the thread ...

right to work (second day after minor surgery)am on drugs so hopefully don't stuff it up too much.....love the edit

#1 -how I find shares to trade------anywhere and everywhere but mainly>>>>

Most of the time I original come across the shares on Sharetrader or Hotcopper(ASX share forum)
On HC the "ASX - Short Term Trading" thread is really good to bring to light some very good short term options at times ..

then as the years past your find your watchlists get full and you have a great memory of ticker codes to refer back to going forward,,,

Now with "Sharetrading" you don't have the time to sit back and do days of study before finally deciding on price your'd like to enter as your planning on holding for longer term much more factors come into play like divi yields ,longer term outlooks etc

More so I want to look at the basics of MICRO and MACRO factors of the company in question ...basically what the mgmt of the company has direct control over and what they don't >>>

MICRO- cash backing -shares on issue - admin costs- assets -market cap - top20 holders -forward plan(qtr outlook)- mgmt experience-chart trends,depth volume-

MACRO- market sentiment towards the sector you're trading in ...prices of the resources - products what's the trend,, what time of year
MAY JUNE great time to buy tax-loss selling pressure on the ASX ...

Now as a trader you usually stick to sectors you have a interest and history in as it cuts down on time studying the MARCO's

i.e-- you're looking over ASX Aus Gold producers .... you already know the higher than average AUD gold price and cheaper energy (low diesel costs) over the last many year ... and value given on peers in the sector so it's much easier to see a good value...

So you're general confident on the Macro ....the first two micro's I'll look at is --- DEPTH and 1yr-6 month Chart

example T/A on MCR (nickel, Gold explorer soon to be producer)

as we know tax loss selling mainly in june MCR volume picking up till cut-off date in late JUNE
nearly always see a bounce once that pressure releases

the chart green line 30day and redline 60 day moving average always bullish when the SP crosses these points

the depth chart as we can see a wall of Buyers keen to get on board ,,,holders less keen to put up there shares for sale (if you find many gaps in the offer is also a great sign)

....If you are thinking about getting into trading IMHO you really need to control your emotion around FEAR & GREED >>

--11yrs on I'm finally after so many stupid mistakes getting a pretty solid BACKBONE to my trading style ....(but just like eating bad food etc it never goes away)

#1-"never fall in love with a COMPANY".

...Can be hard at time when you have put many hours of study ..really respect what a company is doing or what they predict in forward plans etc .. maybe it's macro factors around the sector and you think you have found the next sector daring>>>>For a 'SHAREtrader" it's usually very easy to find the companies you have gone soft on as they are usually the one's gathering dust in the portfolio...
I've found the biggest losses to date have many times come from companies where I have talked with mgmt sometimes many times in turn
sometimes making you soft on Neg news or not meeting targets etc .....


#2-"Let the numbers to the talking"

Many times it best to let the numbers do the talking ...like the number of days overdue for a expected ann!!.... or cash balance ....forward cash burn .... your up 30% in under 30 days ...


#3- "Have a basic outlook(SELL PRICE TARGET) for every company before you BUY it".....

some can get riskier longer you hold it (cap raising needed.. value around only one project/drill/result etc).....others much safer if first targets aren't reached (many different outcomes could drive SP) ...so risk wise I would put a tight profit target and stop-loss on the former ....

#4- "TRADE when you're in the Right frame of mind"

When I'm tired ..maybe I didn't sleep well or just having rubbish day,,,, Sick etc,, sometimes it's best just to put some sell orders/ stop losses in place and go do something else>>>>


#5- Accept TRADING mistakes.......

Doesn't matter how brilliant you think you are at some point your make a trading error ..it's just human nature ...accept it move on ....don't get depressed or angry it'll just make it worse...At present I still have the likes of KBLO on my portfolio 100% loss(broke many basic rules buying those opts arrrghhh)

I have found I have had to post less on ShareTrader,and not be the unpaid PR machine for a company or companies.You must not paint yourself into a corner.
Listening to management is interesting.I find I must always compare results to what they have told me.
So getting close to management only works if you can be objective.If management do not do what they say they will do,I sell.If they excede my expectations I buy more shares.
Mistakes .Part of investing.Sell and move on.If you are making mistakes do not trade.If everyone is making big gains,and your shares are going no-where,re visit the reasons you brought those shares.If the reasons remain,sit tight,and your day will quickly come around again.
Delays.All businesses will have delays and setbacks,but some companies have them all the time.Avoid them.Gunnas,gunna do this,gunna do that.Never happens.
Add to winners.I love adding to shares I already own,rather than buying something else.Means I am getting it right.
Enjoy the market.If you are not enjoying it,have a rest from it.
Use Sharetrader for new ideas,but only buy when you have done your own research.
You don't have to invest in every sector.Be happy investing in sectors you understand.
I hate giving companies more cash.So if they have a rights issue,take extra time rereading your research.Any doubts,be gone.

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Originally Posted by percy

I have found I have had to post less on ShareTrader,and not be the unpaid PR machine for a company or companies.You must not paint yourself into a corner.
Listening to management is interesting.I find I must aways compare results to what they have told me.
So getting close to management only works if you can be objective.If management to do not do what they say they will do,I sell.If they excede my expectations I buy more shares.

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Interesting angle Percy ...many thanks for joining the thread...

I personal don't see myself as a free PR machine for listed companies(even though I guess at times it really seems that way) many a
time I have posted against a company's values or mgmt direction ...at one point I had a CEO wanting to get my personal info from Hotcopper to press charges against me for so called defamation that he believed affected the SP (utter rubbish but I was banned for many months and had to change my Username)


.I see Forums as an "online location" where I can throw down honest trading/investment... reference , plans , info , viewpoints , alignments ,results on many shares/opts/products etc.... with others in our small "Sharetrading" (investor) community ..may or may not have a viewpoint ...something it's just good to vent ....my wife/kids certainly don't want a bar of it LOL

I know for a fact if it wasn't for ST or HC then I wouldn't be a Sharetrader ...the skills I've learnt online has been huge so many times it's self taught..... I'm strong believer in helping others in turn helps oneself >>>

As to talking with management generally I find it pretty good ..usually to fill gaps on operations forward plans..issues I might have etc like you say keep it objective....

Just a few times in the past I took on some pretty positive talk around operations etc to find out later it was pure BS ...now had I just gone off the market released news I don't think I would have committed as much funds ....certainly a learning experience..

I think we have all suffered big doses of BS from management/directors.
I was once a shareholder in Postie Plus.New MD was full of it.Then I compared results with his projections, and was gone.
Heartland Bank I followed very closely right from word go.All the time they did what they said they would do.If I did not understand some thing, I would phone the CFO and find out.I kept increasing my holding.I then came under attack on sharetrader.People thought I was in love with the company.Yet, I was being objective all the time.I knew the right questions to ask,and compared results with the answers I got.

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Originally Posted by percy

I think we have all suffered big doses of BS from management/directors.
I was once a shareholder in Postie Plus.New MD was full of it.Then I compared results with his projections, and was gone.
Heartland Bank I followed very closely right from word go.All the time they did what they said they would do.If I did not understand some thing, I would phone the CFO and find out.I kept increasing my holding.I then came under attack on sharetrader.People thought I was in love with the company.Yet, I was being objective all the time.I knew the right questions to ask,and compared results with the answers I got.

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And you would have been richly rewarded ...my father always goes on about how great Heartland bank is >>>
nothing better than effort being rewarded

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Originally Posted by JBmurc

And you would have been richly rewarded ...my father always goes on about how great Heartland bank is >>>
nothing better than effort being rewarded

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Always listen to your dad...lol.
I guess really JB it comes down to us doing our research.The better our research is, the better the results we get.Then comparing company results with our research.If the company does not come up with the goods we sell,yet if they do what we expect,or better, we buy more and let our profits run,all the time making sure "the story" stays intact.
The problem I then have, is deciding whether companies such as ,AIA,EBO, FPH,MFT and POT should be held, when their PE is two to three times their growth rate,and their dividend yield is very low.In the case of these companies I sold them all except EBO, where I sold 60% of my holding.

Yes but not only research but believing in yourself ... and that may seem really simple ..but for me success breeds successive trades ..

So say out of the blue one of my investments I thought was brilliant comes out with a horror announcement VIL.asx a perfect case in point discovered OIL but then the OIL has disappeared months later >> SP tanked 90% nothing I could do about it ....really smashed me for 6
.
... Confidence goes you trade bigger risks to make up the losses...you hold losing trades longer and cut winning trades earlier ...and for me just stop trading like I did pretty much for the bulk of 16/17 fin yr

what I now implement in my trading style to hopefully fix issues of the past learnings is .....

-Diverse my funds pretty evenly over 8-12 companies across many areas of the sectors I am focused on (in a Macro sense)
-Cut the losses ride the gains let the numbers & T/A talk rather than mgmt hopes (do trades in thirds or half at a time)
-Set Targets before you HOLD
-Trade the same company ...farm the market etc if it has the volume to suit

Thanks for this thread JBMurc really interesting stuff

Yeah no stress lawson ..

....As a Trader one always loves a good trade that goes to plan... MCR is one that has played out perfectly for me in recent days....

12-13th june - I come across MCR again on HC-Forum is a share I have traded before for great success(great mgmt in the past) so is one I check every so often but as it was in a strong downtrend with Nickel operation put on C&M and the Nickel price at record lows .wasn't to interested >> but I read a few posts on HC about a planned Gold toll treatment project for 2nd/Qtr 2018 ongoing exploration results and started my quick study>>(marco wise I was bullish on the GOLD sector esp in AUD)

T/A first up>>

the Depth table looked strong large Bids in place ....gappy small orders in the offers ----Tick

then onto Chart looked at the 3yr for a start and seen once before MCR had found strong support at the 12-14c range (FEB16) and had bounced hard before trending back to present levels ...putting the two together I was keen to look further>>

Onto more in depth upto date F/A

I went straight to the recent presentation MAY17 --

and seen they had 13mill+ cash march17 (no need for more cap to production)

The near term Gold project scoping study stacked up good cashflows/AISC/grades/payback

And a drill program in some very untouched Gold hotspots....

and even some Lithium leads

....that was me I in BUY,BUY BUY... MCR in @ 14c and back again doubling my holding days later 16c when the trend line when through the Moving averages (T/A)


-----------------then onwards to 3rd july ---- SP was driving much higher 20c then even touched 24c briefly

ann.. for the day JV drilling starting on one of MCR non-core assets(copper etc) ...but Gold was crushed down $15oz

was really watching impressed with the strong bidding to offers in the DEPTH ....then watched some profit taking coming in and without
any new info decided to take half of the table 21.5c gone ...happy with that see what the next day brings ....

4th July more shares trading not much direction ...wall of selling building in the DEPTH ....starting to look like it had run out of steam ..no new updates .... Gold NIckel ...doing nothing ... sold my other half 21c ....

today I seen the selling pressure has pushed MCR back towards 18.5c

will be watching tomorrow ....but most likely I will be Buying back in again soon 14c-15c I certainly will be

One thing I do is to dip a toe in the water of a company that looks interesting but on the risky side. So buy a couple of thou shares and keep watching. Of course could watch without buying any shares but for me does make it more real.

Also I make a bit of an effort to go to ASMs if they are local (Welly). And if the speakers don't mention risks (a few do, most don't) I will ask during the meeting or afterwards - what keeps them up at night. I find I get OK answers to that question most of the time.

In my view, identifying and managing risk is the #1 job of management and boards. Pity some prefer the rose tinted specs.

Yes artemis ....I also like to dip my toe into the higher risk BUYs I'm still not 100% on ..many times volumes can be very low so you have to buy in muti parcels

so explain how your whole setup is tax efficient?

Because if you don't do it through a company - ie don't say you are a professional trader you don't get cap gain taxed anyway... You also don't get to claim all those expenses... but you could just push those through an investment property anyway.

So you pay tax on your cap gains, but because you can also claim a tax break on your losing trades + some expenses... its better overall?

Doesn't make sense to me.... Unless you where never making that much profitable trades anyway (thats what it implies.. no offence intended) its like negative gearing

As I was investing in shares and buying and selling before my accountant talked me into the structure ..I'm not expert but it seemed a smart move .... the bases of my company is as a trading entity ... anything the company buys it plans to sell in the short-mid term for a profit
recently I purchased two sections of land claimed the GST then sold them 1yr later for a tidy profit ....will pay the GST on the total sale in october ....but in the meantime those funds are invested in the S/M ...

I'm also buying a small vending business which will be added into the structure >>buys products to sell

I don't think it gives me a much lower Tax saving compared to being a sole trader paying tax at my personal rates....(which over the years would have worked out much the same if not higher)

For me it's also the redirection of the risk from you as an individual (when operating as a sole trader) to the company. A limited liability company is a legal entity in its own right. It can hold property in its own name, can sue and be sued and has an indefinite existence (unless forcefully brought to an end). A Company allows shareholders to limit their maximum possible liability for the debts of that company to the amount of the paid capital in the company...

And I guess on ones Ego driven side as a company you own the name of your company ..so if you're a brilliant trading and continuing make profits over the years then the banks will respect the company and lead you funds on the back of the company's record and capital ....you of course could sell shares in the company to other investors etc

My goal of course was to take "My company" to that stage .. where I could give up the day job and continue as the sole director (with wife as company sec of course with her 10%)

-business structure-
https://www.myob.com/nz/blog/which-b...ould-i-choose/

Not so sure where to post this but this is really good news..........
https://australianfintech.com.au/loc...share-trading/

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Originally Posted by RGR367

Not so sure where to post this but this is really good news..........
https://australianfintech.com.au/loc...share-trading/

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Do you know if we can tap into this from NZ?

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Originally Posted by Mickey

Do you know if we can tap into this from NZ?

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Sorry Mickey, I don't. It would be nice if it will be made available to us here soon too. We can start asking them once it's available to those in Oz.

does sound to good to be true ...I spend hundreds in commissions each year with ANZ(Etrade)

Using a company setup takes you away from using a more simple cash basis and having to account for unrealised gains/losses on shares and FX.

Good in that it can avoid tainting on longer term investments, or those you wish to hold in a different name.

Interesting how different people think with there trading strategies, i'm not too far from you JBMURC, over the years we seem to end up in the same companies.

One old rule i had was holding 5 companies max, research the fundamentals, look for undervalued assets, negative EV, mgmt with skin in the game, well funded, no debt etc

Now i see various non resource companies and buy in if the fundamentals stack up, and end up selling soon as anything changes, or buying more on weakness.

Disc; holding 6 stocks at mo and a small holding in TRT via in specie distribution from TNG.

Yes shasta great minds think alike >>

Another lesson >>On Trading strategies >>FARMING a Trade

.1#..Farming a trade(scalping) = intraday/swing trading .....

Now farming a trade is where I like the company but I believe I can take the profit during the day usually around open and buy back in lower again later in the day or maybe the next >>

-Doesn't always work >> but end of the day if your target is say $700-$1000 profit for only days holding it's not the end of the world if you miss out on another couple of %.... >>>

This week alone I've missed out on two great intraday trades .

.... RLE going from mid 8's to over 10c to then back to 9c
....RSG from the 1.04 to 1.09 today ....

Both times be away having lunch with family >> always the F'n way!!

Now the above trades may not seem that exciting ...But had I been in front of my screen instead of away
I would have made $4500 from the 50k invested and best of all I would have been back into the same companies to do it all again fornot much more than I originally paid>>>>

This is why I love trading over investing >>

and yes I'm pissed about missing the trades

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Originally Posted by shasta

Using a company setup takes you away from using a more simple cash basis and having to account for unrealised gains/losses on shares and FX.

Good in that it can avoid tainting on longer term investments, or those you wish to hold in a different name.

Interesting how different people think with there trading strategies, i'm not too far from you JBMURC, over the years we seem to end up in the same companies.

One old rule i had was holding 5 companies max, research the fundamentals, look for undervalued assets, negative EV, mgmt with skin in the game, well funded, no debt etc

Now i see various non resource companies and buy in if the fundamentals stack up, and end up selling soon as anything changes, or buying more on weakness.

Disc; holding 6 stocks at mo and a small holding in TRT via in specie distribution from TNG.

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I use to only hold x4-x6 shares and for a good amount of time sometimes only x3.(Main because my trading went stale couldn't be stuffed etc)..... but very recently I was finding with the huge amount of study I was coming across so many great companies with my targeted short term 100%++pa upside that I decided why not spread the risk ...

So my new set range is min 8 to 12 max ...(will see how this plays out for me.. so far so good)

.In the past I had been hurt by one or two high risk high growth specs being crushed by insider trading or announcment >>
----- I just wasn't keep a close enough eye on because of my work >>>even though at times I was only invested in 3-4 companies
when you're away from the net at SEA for several days at a time with maybe couple tired hrs free before heading away again..

Yes I have tried stop-losses to find I was stopped out for an intra-week lows when I got back days later ggrrr ..(IMHO stop-losses aren't really suitable to the micro-cap sectors but are fine for the bigger end of town with higher volume trading >>)

If you don't have the time to put solid 20hrs+ per week every week don't become a ShareTrading ...(Well in my experience of keeping your trading mojo flowing>>In a busy week I'll spend 50hrs+

Thanks for the thread....I have got a wee bit bored so have broken my rules. My rule break has been inspired by the CEO of the Qatar Investment Authority (I attended a talk by the man), who said that you have to reassess your strategy on a regular basis. As a result, I have decided to try (on the Nz market because it is so slow and pays dividends if I get it wrong) a small 10K trade to see if I can generate a $100 profit. Of course I am not affected by tax but I will clearly be hit by the trade fees. I have selected SPK based on TA and FA, loaded the trade at 3.30am my time, it went through so I am hoping that over a short hold I may be able to hit my target profit (needs around an 8 cent rise though). If it doesn't work, then it pays a handsome dividend! Note: my attempts at trades in the past have been abysmal!

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Originally Posted by BeeBop

Thanks for the thread....I have got a wee bit bored so have broken my rules. My rule break has been inspired by the CEO of the Qatar Investment Authority (I attended a talk by the man), who said that you have to reassess your strategy on a regular basis. As a result, I have decided to try (on the Nz market because it is so slow and pays dividends if I get it wrong) a small 10K trade to see if I can generate a $100 profit. Of course I am not affected by tax but I will clearly be hit by the trade fees. I have selected SPK based on TA and FA, loaded the trade at 3.30am my time, it went through so I am hoping that over a short hold I may be able to hit my target profit (needs around an 8 cent rise though). If it doesn't work, then it pays a handsome dividend! Note: my attempts at trades in the past have been abysmal!

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Personal with 10k I'd be hoping for a tad more for the efforts(If say for a day-swing trade) ....as I find if your putting the hours in you should be making the most for it ..

.and if I was just happy with $100 profit that would also mean I'd be selling out if I was under water $100(If not you will be trading style will led to abysmal outcomes from taking profits too soon and hanging onto losses too long)

#-Reassess your strategy on a regular basis....

My primary micro strategy doesn't change only modify(better I hope to my goals of reaching 100%+ p.a) ....but i do change my strategy fundamentally around market senitment towards what my companies I have invested are directly affected by ...Gold dropping $40oz etc

I find it hard to see where you guys are coming from as far as trading profits are concerned. I have my 18,000 block of spark that I trade. Sold it on Thursday @369cps and could have bought it back yesterday for 358 and gained a cash payment of 18000x11cps but I did not sell as I believe there is more room to drop. If WP goes with Labour there will be quite a crash. I spend time watching the numbers but it does not amount to any significant part of my day and the odd grand here and there keeps me happy. I usually have a buy or sell number in place just in case something big happens when I'm elsewhere.

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Originally Posted by craic

I find it hard to see where you guys are coming from as far as trading profits are concerned. I have my 18,000 block of spark that I trade. Sold it on Thursday @369cps and could have bought it back yesterday for 358 and gained a cash payment of 18000x11cps but I did not sell as I believe there is more room to drop. If WP goes with Labour there will be quite a crash. I spend time watching the numbers but it does not amount to any significant part of my day and the odd grand here and there keeps me happy. I usually have a buy or sell number in place just in case something big happens when I'm elsewhere.

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Right I think you meant to post "BUY" more SPK ....and thats fair enough ....I guess the first question I would ask is how long ago and at what price did you BUY the 18,000 block you just SOLD...

You're having trouble understanding my strategy for "Trading for profit" ?? Buy low sell High ...

As much as I like to trade LONG ...sometimes I like to keep my options open in case of a major BEAR market attacks ...just like the GFC did one minute Fine next DOOM ...

I like to keep in context the global MACRO sentiments of the International Shares markets as we know if the US markets crash so does the ASX ... Even safer plays like Gold producers?Cash cows companies can still be forced downwards(abit on much lower levels) on margin calls on other investments forcing holders to sell them to survive deflaut..etc etc

there is many ways a trader can make a profit these day in SHORTING the market or even Companies ...Futures, CFD's, Warrants, options all offering different styles of leverage ..

. market goes down 10% you can make 100% return on some of these products if not more afters costs ....but what I've found is unless your've perfectly timed your position you can get badly burnt (I certainly have at times esp in shorting shares) as the spread/commission straight away putting you on the back foot ..aka you might need the market to drop .5% can to break even on costs...and if your timing is not 100% perfect you can without even being completely of the mark in a position where your down 20-30%

now depending on margin your provider will be asking for more funds to cover your negative position or else they will dump your position ...One of my first plays in the FOREX market ended only seconds after I took my position with a forced cose of order for a $300 loss(my provider at the time uses a stop-loss provision)

Lets just say after having a play around Futures,CFDs,warrants I've decided unless your got a million+ book and serious high risk trading skills I'll leave it too the BIG BOYs and players

...recently I came across BETA ETF's which you can buy just like shares on the ASX

BEAR 1:1 short to ASX20
BBOZ 2-3:1 short to ASX20

BBUS 2-3:1 S&P500 (hedged currency)

Still not perfect but a safer option for me IMHO

I see recently had you took a position in BBUS at recent lows -S&P500 market peaks end of JAN18 or MAR12th you could exit for around a 15%-20% profit

CASH in the CALL account of course one of the best insurances if the market is looking toppy >> then if "TRADING EMOTIONS" are good you will let the crash play out and look for a double bottom etc to buy your favourite companies

BlackRock
Looking for income return,not price return. Yield investments
Lower interest rates for longer
A lot of liquidity being removed from the market.What does this mean for shares?
https://finance.yahoo.com/news/black...185619512.html

What type of investor are you?
https://www.marketwatch.com/story/he...of2&yptr=yahoo

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Originally Posted by kiora

What type of investor are you?
https://www.marketwatch.com/story/he...of2&yptr=yahoo

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Pretty boring really.Trading more of adrenal rush egh!
https://www.marketwatch.com/story/ho...of2&yptr=yahoo

Or go on an investing holiday
https://finance.yahoo.com/news/warre...204800450.html

Buying the good oil
https://www.dmxam.com.au/files/When%...compressed.pdf

Some good reading there kiora --- I like this part

CONCLUSION: Holding the right stocks for the long term is the key to outsized returns in our
experience. Once we have identified a stock to buy with a long-term perspective in mind, we will hold
onto the stock as long as the investment case is working as expected

"The more assured the profits in the future, the higher the price you could pay today."
" characterized by a “winner take all” or “winner take most” dynamic. Combine this with the fact that they require little to no capital to grow, and you have Value 3.0—business models that are both radically new and enormously valuable"
"Try to find companies with a small market share, a huge addressable market, and a large competitive advantage"
https://finance.yahoo.com/news/warre...110041827.html

A lot of these strategies don't hold well to your broker (especially NZ brokers where they are incentivized to make investors 'hyperactive'). Buffet has been very clear for decades that the small investor who doesn't have the time to learn about finance, should simply buy the index ETF.

The view of NZ investors is contrary to what Buffet's belief. For eg. it's best not to issue dividends because it's simply not tax efficient. Especially in NZ where there are no capital gains (YET?), why do you want to emphasis on dividend payout when it simply affects the book value of the company and thus, the share price erodes or stays flat.

So far been going through a pretty good patch of trading this year certainly looks like it will be my best Return yet ...

I think my changing of strategy has certainly paid dividends... I really donÂ’t know why I didnÂ’t make the adjustments early ... what I personally think has really kicked my gains this year ...

Holding 9-12 companies across my focus sectors which at present is ASX Resources - commodities- energy etc

IÂ’m dealing with a high risk high reward sectors historically and the lower end Nano micro caps Etc so I like the fact IÂ’m spreading some of risk via more holdings

yes IÂ’m having to spend many more hours in keeping up to date study etc .. but much less chance of falling in love with a company like I did back when I use to hold 4-5 and get angry when other shares I liked would move while mine would not !!

Sub AUD 100mill cap Focus with a few over that value but certainly not over 500m at this stage (I wonÂ’t complain if some of my holdings go higher but I donÂ’t focus on buying billion caps etc )

Bring in more research via - twitter - IÂ’m at present following 170 other investors that like me are constantly hunting for or holding the next great buy .. I really like looking at what other guys are seeing value ...

HotCopper short term thread ... another great places to see what others think are great short term trades and why ...

Simply the smarter you work the better your luck will be ... Finding time with the above has been positive

But also take time out ... for me IÂ’m trying really hard to not pour too many hours into the market ...esp weekends ... at present IÂ’m prob running around 30hrs per week when IÂ’m not at sea out of cell range ..

Back when I drove my portfolio to record lows 2013-16 I was probably putting in twice that at times thinking the harder I worked it was magical going turn around some woeful investments/trades ... but all I was doing was digging a bigger hole taken more risks focusing on just few companies CFD futures day trading etc ...

Golf ... has certainly helped i gave up the game for few years as friends having families etc stopped playing ... but so glad IÂ’m back to golf nut .. 100% believe it helps my sharetrading the results pa certainly show it has ...

Such a mental game
risk vs reward
club selection per shot ....
competition —.
Fresh air - fitness - Sun!!
-community —- communications

-and just a break from the screen

Definitely a mental game. All about not getting rattled and learn to stay away from the screen
For me the less time & the less trading the better, just need to pick the long term trends and go with them.
Adding to the winners, cull the loosers
Way way away from a "balanced" portfolio and now have plenty of any downside to give back if needed
2018 +27
2019 +27
2020 +22

Hi JB ,
My year is FY , as you do I trade out of a company . So far 2nd best year ever . ASX small caps are up 50% , I’m up 70 as of close Friday .Decided to put 10% of the portfolio in spec Gold , followed your picks .Have made some significant money on CNB & WWI- Thanks .
Very good win on AVA , thanks Percy .
DUB & MSV been very good to me as well .
All the best S/L

Quote:

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Originally Posted by stoploss

Hi JB ,
My year is FY , as you do I trade out of a company . So far 2nd best year ever . ASX small caps are up 50% , I’m up 70 as of close Friday .Decided to put 10% of the portfolio in spec Gold , followed your picks .Have made some significant money on CNB & WWI- Thanks .
Very good win on AVA , thanks Percy .
DUB & MSV been very good to me as well .
All the best S/L

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Yeah great to hear others kicking goals ... always good to have plan with profits years ago I took 200k out of the market from a profitable FY .. helped pay for new house .. mid 2021 plan pay off couple of loans total $360k .. from profits trading

JB, if you were to start out again, how large a portfolio would you get to before deciding to turn it into a trading company? Is there some cost efficient point where say 100k or 200k for arguments sake, becomes worth setting up a company for?

Forgive my ignorance here, I have been investing for a while, but only "trading" so to speak for a short time.

"Stockpicking legend Warren Buffett and index champion John Bogle both knew the other was right about investing"
"https://www.marketwatch.com/story/stockpicking-legend-warren-buffett-and-index-champion-john-bogle-both-knew-the-other-was-right-about-investing-2020-12-10?siteid=yhoof2"

Quote:

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Originally Posted by arekaywhy

JB, if you were to start out again, how large a portfolio would you get to before deciding to turn it into a trading company? Is there some cost efficient point where say 100k or 200k for arguments sake, becomes worth setting up a company for?

Forgive my ignorance here, I have been investing for a while, but only "trading" so to speak for a short time.

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Guess it comes down to personal preference.. and trading styles I follow a trader on twitter than has 100k he leverage trades and makes silly money with it and just removes his gains each month sometimes he’s pulling out 100k+ for the month ...now if course it would make sense to trade within company structure..

At present it costs me $1750pa in accounting costs and from memory $500 to setup my company “JBM Trading ltd”

Expenses run 15-20k pa (so basically my company pays for much of my fuel & travel , skytv , cell , internet , tv payments... interest on loans basically anything I use within my company I claim ...so no tax till my profit is higher ..

I like the fact I can do want I like when I like within the company buy sell hold buy another trading investment (I have small 18k pa profitable vending business the same company owns)

As to the amount one should think about setting up company structure? All personal preference.. I trade Shares on average 50-100 times a year ... if your less than 10 I would think staying as tax free investor a better fit

Quote:

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Originally Posted by JBmurc

Guess it comes down to personal preference.. and trading styles I follow a trader on twitter than has 100k he leverage trades

...

As to the amount one should think about setting up company structure? All personal preference.. I trade Shares on average 50-100 times a year ... if your less than 10 I would think staying as tax free investor a better fit

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Thanks for that. It certainly helps with perspective and I am only just starting out really, so in the small number of trades camp.

Change of US of A govt likely a good time to review those company investments again

"Created in MarketSmith, the screen below emphasizes metrics when looking for companies with long-term past and potential future growth. To make the list, each stock must meet a wide range of criteria, including:

Top 25% of all stocks in terms of five-year annual EPS growth rate.
Top 15% of all stocks in terms of sustainable growth.
20% or greater sustainable growth.
12% or better return on equity.
15% or greater sustainable EPS growth rate."
Do your shares make the list?

https://www.investors.com/research/w...gy/?src=A00220

The fox in the hen house again "BlackRock Chief Executive Larry Fink on Tuesday said a leading investor flagged to him concerns about stock market valuations and the possibility of inflation breaking out"
https://www.marketwatch.com/story/bl...siteid=yhoof2#

Been a while since I posted .. funny as since MAR22 I've been full-time focused on Share trading 40hrs+ per week ..prior 18yrs+ was just part-time working in with a seasonal fishing job (not ideal away from internet etc)

Have booked a family holiday to celebrate in April marking 2yrs running the trading company and only surviving on its balance (pretty scary in the early days thinking I might well be looking for another form of employment tail between my legs!!!!!)

Thought I'll drop this post here from HOTCOPPER .. Shows why I love being a trader and not just a BUY and HOLD investor ... (another poster was calling me out saying my MAY av was out 10c bah bah)..

__________________________________________________ __________________________________________________ ______________________________

I decided to go through every trade I've ever done with MAY + MAYO since I first invested in the company OCT 21 in its new name ticker (I did once hold MEO a longtime ago)

And I was greatly rewarded for my efforts 40mins+ ...

so because of all the trades I ended up with a present free carry position of just over 2mill shares + Profit of $68k for some 50+ trades ...and this even includes that 16c purchase you go on about ...

I did very well in my earlier trades purchasing 2.76mill shares from 2.1c to 2.8c then selling 766k shares for 7.6c

I then added back to 2.518mill from 5.6c - 7.4c

then selling mid 7's etc etc

then buying back in never selling all but just portions ... so 2.5mill to 2 and then back then sell down to 1.5mill and back to 2mill etc


lowest my free carry holding got to 1.04mill shares with a 130k realised profit from the trading of MAY-MAYO

MAYO was just a small amount of trading in for 1.4mill 1c out from 3.6c to .7c ( I recall I sold the opts and put those funds into MAY shares)

buying late 2021 and have NEVER not held MAY shares since OCT21 ..so just under 3yrs

Hoping to exit for a great total profit later this year to next .. my target is 25c min .. which would be a nice total $568k profit for the 3yrs+ of trading/holding MAY will certainly be one of my better trading results from one company..

Had I not traded the initial late 2021 investment at present I'd have seen my $68k move to the present 5.5c value $151,800

Trading has seen me free up $68k+ free carry 2mill+ shares worth $113,800 =$181.8k ... so $30k extra from the trading Vs holding ..

And many of my 50x trades weren't great some costing me 10's thousands ...but that's trading always learning the craft..