David Loses Money Tracking my adventures in making money without earning it

CategoryInvesting

Performance for 4Q21

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Wow, December was pretty horrible for me. I lost most of my gains for this FY and it was just a mess. It felt like every decision I made was the wrong one, no matter how much research I did or how long I spent thinking about it. Fingers crossed for a better quarter now.

Something I wanted to do in 2022 was…. well, get better at this. I’ve bought a bunch of books to study and we’ll see how we go.

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Recent Trades [December 2021]

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Ugh, I have so many half-written posts saved in my drafts. Really need to finish some. But in the meantime here’s what I’ve been up to lately: not much.

My shares and crypto portfolios have absolutely tanked over the past few weeks, leaving me with a bit of a mess and I’m unsure what to do. Markets seem to be operating in a way that whatever choice I make, it’s the wrong one, so I’ve held off from buying. Plus flying lessons – far out they are not cheap. Every time a lesson gets cancelled due to bad weather (of which there’s been a lot recently) I’m like YES! MONEY!

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Recent Trades [November 2021]

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I haven’t done much trading recently: NSW coming out of lockdown + taking up flying lessons + booking holidays has drained me of my spare cash, so it’s been mostly HODL each day. All my stuff has gone up a bunch over the past two weeks, but I feel like it’ll be hit with a crash by the end of the month. The whole Evergrande problem hasn’t been resolved – really wondering when that’ll come to a head.

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Performance for 3Q21

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Wow! This past week has been horrible for shares. It wiped out about the past 6 weeks of gains for me, and as for Hedgefundies… oof. Seems the big dramas affecting everything are:

  • Evergrande and the hot mess that will result in. It’s weird because everyone knows it’ll be a big drama when it inevitably falls apart, but there’s no real agreement on what that drama will actually be and what it will affect.
  • Attempting to taper off quantitative easing. Did you know something like 25% of all the money in America came into existence in the past year or so, as part of attempts to stop the economy from imploding due to COVID? There’s no way that won’t eventually have consequences.
  • US debt ceiling drama. It feels like once a year or so this is a thing and it always ends the same way, and everyone seems to forget and freak out? Yeah I’m sure the Republicans will let the US default, just like every other time they’ve threatened to and then backed down.

Did you know that historically, September is the worst month for the sharemarket? Let’s blame it all on that and be blindly optimistic for the future.

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Recent Trades [September 2021]

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I’m not sure how frequently I should do these posts. At the moment I’m going with my gut, just writing when I feel like I’ve done a few – but whatever a “few” is is some arbitrary number that depends on the alignment of the stars or whatever. But here’s what I’ve been up to recently. I’m due for a quarterly rebalance on Hedgefundies on Friday so I’ll do a separate post about that then. But anyway, here’s my activity since the last post about this 2 months ago…

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Overdiversification

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Warren Buffet once said “diversification is a protection against ignorance – it makes very little sense for those who know what they’re doing.” This is perfect for me, because I have no clue what I’m doing and have little interest in becoming an expert in whatever I’m buying into.

I’m assuming we all know about risk and everything. But I want to pad the word count on this a bit so:

  • Unsystematic risk: the risk you take when you punt on a stock – it’s lower when you’re buying well-established gigantic companies with huge market caps and way higher when buying speculative pennies, however your rewards are usually reflected in that.
  • Systematic risk: the risk of owning shares. You can’t do anything about this, you just have to accept that occasionally the entire market can and will shit its pants.

So you can’t do anything about systematic risk (other than be like hurr durr I’ll put my money in savings and lose it to inflation) but you can deal with unsystematic risk by diversifying your holdings. But at what point does diversifying become pointless?

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Barry

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It’s 4PM on the ASX and your stocks are up. You’re comfortably in the green, you’re beating the index, and life is good. 4:10PM comes around and suddenly your whole portfolio violently shits itself and half your gains for the day vanish. It’s like when you’re at trivia and the host decides to make the final question worth 50,000 points. What’s the deal?

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Getting Started

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The first thing I ever bought was Virgin Blue in 2008. I used to get paid every fortnight, and had to pay rent every month – which meant that one or two times a year there’d be a pay cycle that didn’t involve rent or other monthly expenses. Normally I ended up living pay to pay, but somehow I’d ended up with some cash left over for a change.

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Recent Trades [August 2021]

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I’ve done an abnormally large amount of trades in the past few weeks – mainly as a result of:

  1. Lockdown hitting Sydney so there’s nothing else to spend money on for the next few months.
  2. A lot of holiday refund money coming into my bank account.

I think I’m about tapped out for the rest of the month, but we’ll see – I’m still trying to chase down about $1,000 in ski season pass refunds, and if that ever comes through I’ll probably dump it on Boeing.

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The Story So Far

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Okay, so some backstory. But not like, heaps, that can go in another post. This is just the past few years so you know where I’m currently at. I’ve been trading on and off since 2009, but never really started investing seriously until 2018. In those 9 years I managed to get my head a bit more above water financially, so these days I usually have money left over each pay, which I then throw into investments and see what happens. You can find out more about me on this About Me page.

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David Loses Money Tracking my adventures in making money without earning it

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