There are bunch of ways to create and manage stock portfolios but the one which is guaranteed to make money in the long run is a simple advice of "Buy and Hold it" for long term. Long term could be 10, 20, 30 years or more. One of the example that has been given multiple times are about AAPL (Apple) stock. If you bought Apple shares in 1982 and kept it for 20 years and wanted to sell them in 2002 - you would have lost more than 10% money in it. However, same apple stocks if you bought in 2002 and hold it for 2022 (next twenty years), you would have had millions of dollars in profit. (10,000$ worth of Apple stocks bought in 2002 now worth more than 5 million in 2022). So, it is difficult to determine which 20 years belong to that stock, but there is no denying the fact that Stock Market will give you the greatest return of all time - provided you are disciplined enough to hold those stocks forever.
Please read through: https://en.wikipedia.org/wiki/Ronald_Read_(philanthropist) about Ronald Read and how he created mind blowing amount of wealth for himself by investing in good company stocks. I am building one of my Robinhood stock portfolio with the similar intent. "Buy and Hold" it forever.
I buy stocks in that portfolio on daily and weekly basis. First method in this madness is following my own advice on buying 25$ worth of stocks on daily basis in five major ETF's as described in this blog: https://viralpatel15.blogspot.com/2021/03/stock-market-beginner-advice.html
Apart from that there there are recurring buy set up in some of my favorite stocks. Some of them are listed in this blog: https://viralpatel15.blogspot.com/2022/04/my-favorites-stock-compilation-list.html ; There are more than that - but majority of stocks listed in that blog, I buy 2$ worth of each stock on daily basis. Some of them not listed - there is a recurring buy of 3$ per week and so on.
Apart from that, I buy 5$ worth of each stock that I pick on weekly basis. I pick 20 stocks each week and I buy 5$ worth of each stock listed plus I pick 5 stocks out of that for long term and I buy 10$ extra in it. For eg: This week's picks are: https://twitter.com/viralpatel15/status/1523393048604209152
Apart from that, I also buy some stocks on the weekly basis based on their weekly performance. Theory behind this is that "Winners will keep on winning" - So, I buy 2$ worth of top 3 stocks from Mega Cap, 4$ worth of each top 3 stock from Large Cap, 6$ worth of each stock in Mid Cap, 8$ worth of each stock from small cap and 10$ worth of each stock in Micro Cap. For eg: last week's picks are: https://twitter.com/viralpatel15/status/1523003771030499329
Last but not the least, similar way, I buy small portion on daily basis. That is: 1$ in top 3 mega cap stocks, 2$ in each top 3 large cap stocks and so on. For Eg: https://twitter.com/viralpatel15/status/1522670928915836929
Besides all this, while scanning through some of the stocks during trading hours, if I do find a stock at a good correction level, I buy them randomly for 5$.
Although - it may seem like a lot - it is within the boundary mentioned in my overall financial blog - which means, at any given point of time, I make sure that my total exposure to stock market does not exceed more than 20% of total value. Details are here: https://viralpatel15.blogspot.com/2022/01/ideal-allocation-of-money.html
P.S: These are details of my just one portfolio. I manage other portfolio's in M1 Finance for different reasons (majority of them are for trading purposes and I change those portfolio's on monthly basis) and there is another one in e-Trade -which I also use for trading purposes. There are other small portfolio's for growth stocks allocation, trading options etc.
No comments:
Post a Comment