Broke Ass Capital

[traider]

How about 33% BTC, 33% shit coins, 33% meme stocks

 

[themickey]

on a public platform for now. Used startengine and withvincent to scour opportunities.
Although I am open to local/face to face when the time comes

You have $1000 currently allocated to: 6. Venturestartup-5%.
Do you think anyone will entertain you?

 

[hilmy83]

I don't know which country you are in and your standard of living. So no offense, but 20K (USD?) is not generally quite a large sum in the big picture.

Consider not diversifying and making more gains. Maybe at 100K USD you can start diversifying, you currently need to get up the growth curve more.

workin on that, so hence the "broke ass" title. when i get to 100k, we'll rename it to something more appropriate,

How about 33% BTC, 33% shit coins, 33% meme stocks

broke ass, not crazy ass...

 

[hilmy83]

You have $1000 currently allocated to: 6. Venturestartup-5%.
Do you think anyone will entertain you?

maybe the crack head enterprises? but seriously, it's already invested. You'd be surprised at the non accredited opportunities you can find online

 

[themickey]

How about 33% BTC, 33% shit coins, 33% meme stocks

You need the patience of Job.
Volatilty will test your sanity, large drawdowns, stuck in mud for months or years at a time....
Not easy playing the 'penny' game, trust me.
With large capital it can be bearable as one can spread risk over a wide area.

 

[hilmy83]

Starting a new journal to document my performance across different investment categories that I have money in against the s&p. I figure that's the best benchmark for the regular working Joe like myself.

Early on, I had 100% of my "investment" in the futures account. Later on I thought I needed to diversify into other investment types. This is a rehash of that goal.

These are the current target allocation for each investment type.

1. futures (MES daytrading) -15%
2. growth stocks -40%
3. options/dividend-20%
4. Crypto- 5%
5. REIT (non public)-15%
6. Venture startup-5%

Right now I just have a bit over 20k invested across all of them and they are quite heavy on the futures side. Over time I hope to rebalance to get to the target allocation. Will go into details of each category and the overall justification of this approach.


View attachment 258067

Here's where I'm currently at:

Futures: 45%
Growth stock: 13%
Option/Dividend: 21%
Crypto: 6%
REIT:9%
Venture capital:5%

Rebalancing will hopefully happen every quarter as I get more funds and/or transfer profits out of futures.

Soo lets talk about each

1. Futures
This falls under active management. I trade this 5 days a week averaging 2-3 hours a day. Nothing new from what I used to do except that now I am trading MES exclusively. Trading strategy is basically establishing positions around a pre determined momentum for the day (still using VWAP) and get flat before the day is over. Will this work going into the future? time will tell. Hopefully I can get to a point where this represents just 15% of the portfolio if a blow up occur.

2. Growth stocks
This is the most under represented part of my holdings. Only because I started this very late. Never been a stock investor guy when I started the market journey funnily enough. But now, I feel like I need to be like the cool kids and say I own some growth stocks even though everything seems so overvalued.

The way I approach this is to screen the top 20 stocks every quarter by revenue growth (qtr over qtr, year over year) and sort by cash at hand. My justification is revenue growth is plain and simple unlike earnings or some bullshit ratios. If the company isn't growing revenue, it's not a growth stock to me. The cash at hand just feels like a necessary thing to fund the growth/acquisitions and weather the business challenges along the way.

I don't have any selling criteria. This is buy and hold forever. The first 20 stocks that make the list every quarter gets funded. In theory, I should get a few runners over time and whatever shitty stocks that get in the mix usually just get outshined by the winners anyway.

Current holdings:

3. Option/dividend
The equity holdings also include one unique position. It is an option ETF NUSI (nationwide risk-managed income ETF). For a long while I have been struggling to find something that I can put money in that can earn passive income along the way. I've looked at dividend stocks, wheel option approach, stock reits, etc. But when I found out about the option ETF, i thought this meets my interest in dividend and option at the same time.

NUSI implements a collar option strategy on the Nasdaq 100 index stocks. Based on the prospectus, they try to earn more on the OTM selling calls and use the net premium to buy OTM puts to have some downside protection. It's unique than the other option based ETFS I looked at like QYLD. Other ETFs have a covered call approach only . I feel like that just caps your upside and every time there's a decent correction, your have further downside hole that will take you longer to get out of.

Some other ETFs have the approach of just writing calls on half of their portfolio to get more upside for lesser yield. NUSI has higher yield than those types of ETFS, but definitely lower price appreciation. NUSI is a monthly payer at a about 7.5% annualy. My goal for this allocation is pure income generation, the small growth is just added bonus.

 

[hilmy83]

4. Crypto

I only have 3 holdings, Bitcoin, chainlink (LINK) and graph (GRT). I actually got into BTC after reconsidering that the sentiment behind this is historical unlike anything you really see in the past . NO IT'S NOT LIKE THE TULIP BUBBLE YOU IGNORANT FOOLS! Unless you have kids that play roblocks, or play MMOs (second life, decentraland), you would not understand digital trinkets. That' how i see BTC, just a a useless, limited supply, value hold trinket.

But LINK and GRT are actual projects that make the most sense to me. GRT indexes the blockchain for efficient queries, and LINK connects the smart contract data to external apps. Both seems to be the the play on the actual blockchain/smart contract technology. I also have small amount of other crap that coinbase gave out for free when i signed up

 

[hilmy83]

5. Real estate investment trust (non public)
I invested in this cause I want to get into the property game, but is too poor to buy anything besides a 2 bedroom crack house somewhere in the south. It used to be that these non public REITs are only available to accredited investors, but i found few that allow broke asses like me to invest in. The only problem with this type of investment is the illiquidity. 3-5 years or longer that your money is locked away. In the meantime, they'll pay you quarterly or monthly distributions and you get to see paper gains as properties appreciate or from sold off deals.

The reason I didn't just get into the regular stock REITS is because these are not open to market fluctuations. it make sense to me to have some non correlated investments in your portfolio. Starting small with just one company and expend later on to other types of properties and demographics.

 

[hilmy83]

6. Venture capital
Broke ass shark thank in the making lol. I'm a big fan of the show and started looking online for anything that is open to regular joe in the venture capital world. Turns out, there are a few good options. I mentioned earlier, you can browse these investments at withvincent or startengine. I'm sure there are more out there.

My current investment

Please just keep your smart ass comments to yourself. I've been to this place before and they make good food! Wife and I split the investment. In the future, will definitely look more into the next "Uber" or "coinbase"..."you just got to get one right" - Mark Cuban

 

[hilmy83]

Will update the journal about on monthly basis or as I make new investments.