wsDKII's Money Management Journey... Help?

wsDKII said:

See, I understand this from your later post where you talk about eating well, running a business etc....I think I just need to get over my physiological barrier to thinking that all this investment stuff is the land of those who have studied, trained and proven themselves multiple times.

In any case, ill be giving this a go over the following year -once I have a handle on Fundamental and Technical analysis

Thank you for your succinct explanations - It helps to ground the conversation.

Click to expand...

TA and Fundamental are quite different approaches. Mixing the two might not end well.

Well... it might be OK if you stick to one but only glance at the other approach as a general guide - not taking it too seriously as a basis for your decision.

E.g. Fundamental means you study the business, know it very well, have a good idea of the prices you're comfortable with. Then you see it drop below your estimated values... It might do some good to not jump in right away the moment it go below your value range, might use that glance that the market have its momentum and wait a little longer than the fundamentals suggests.

But if you're serious about both approaches... When do you use what?

So say we're in another boom and the prices go above any reasonable fundamentals... are you going to then adopt the TA approach then or still stick to the preferred approach?

It's good to read far and wide, but at the end of it I think you ought to come to one approach that you understand and find you could use. Chances are it'll have some influence of both approaches, but I don't think it ought to be 50/50, maybe 95/5.

tech/a said:

Totally understandable.

Human nature is that the more complex it is the more
beneficial it must be.

Take Weight Control.
Eat less
Exercise more.

Yet Books are written on it.

Business.
Satisfy demand
Keep expenses lower than income.

Marriage/Kids
Respect and love each other and enjoy the time you have.

Friendship.
Be a friend.

Life---Enjoy it---it is a gift

Gotta go that's Deepak Chopra on the phone and I have to return the Delia Lama's Call.

Click to expand...

True.

But we only get to that enlightened stage after going through all the trails and complexities.

luutzu said:

... complexities.

Click to expand...

There are 26 letters in the alphabet and only 10 digits in the number system.

It doesn't get complex until you add humans!! :

burglar said:

There are 26 letters in the alphabet and only 10 digits in the number system.

It doesn't get complex until you add humans!! :

Click to expand...

Yea, humans and their imaginations.


In yr12 I did study "imaginary numbers". It's an actual topic. Didn't do well at that though.

luutzu said:

Yea, humans and their imaginations.


In yr12 I did study "imaginary numbers". It's an actual topic. Didn't do well at that though.

Click to expand...

And the Chinese Professor is still asking you, "How can you use this information?"

burglar said:

And the Chinese Professor is still asking you, "How can you use this information?"

Click to expand...

Basic algebra is good enough for me.

The teachers never ask if any of it is ever useful; us nerds ask but never serious about the asking; those who are serious were too smart and so did the useful maths instead.

wsDKII said:

Hi all..........

Click to expand...

So i have been taking what people have said on board, and have re-done the management aspect slightly.

*for some reason i cant upload the new image....

Basically I'm not doing stop loss for the Core and Non-Core investing component because i now realise it doesn't make sense. These companies will be purchased because they are good companies and i should only be selling them if they stop being good companies.

With the trading component, i have actually made my first buy, where i got LSR at $0.009. The price actually closed at $0.011 over the last few days although i didnt sell at this point....maybe i should have as the price is now back at $0.009 haha.

Anyway, I'm happy with the management system i have in place and will continue trading for a while.

Thanks all

OK, I have updated it again, and I have actually entered the market with some buys using this model. Namely I own AVQ, MBN and LSR.

I also have put a substantial amount into the Managed Investment Fund.



This seems to be working for me now, and I can manipulate the numbers if my situation changes. Note I have removed the actuals from this.

I'm happy with my position sizing and the allocations. Now to figure out what else to buy (more on that in my other thread).

wsDKII said:

OK, I have updated it again, and I have actually entered the market with some buys using this model. Namely I own AVQ, MBN and LSR.

I also have put a substantial amount into the Managed Investment Fund.

View attachment 62639

This seems to be working for me now, and I can manipulate the numbers if my situation changes. Note I have removed the actuals from this.

I'm happy with my position sizing and the allocations. Now to figure out what else to buy (more on that in my other thread).

Click to expand...

Just something I can add, the decision what to buy and sell is your but generally commodity mining is not a good long term investment, it has bust and boom and hype so you got to be ready to cash out ...

the reason it is not a good long term investments lies in its business model ... it is a high cost, price taker business
you only make serious money when there is a boom, outside that there are far and few period in between that you can make good money.

if you want business that can last through many cycles and deliver you decent dividend and income stream
you buy business that people use every day that takes a dollar here and there and boom bust or recession people
still spend a dollar here and there.

Good luck