38% of my overall net worth is in stocks/401K/IRA:
Following are my percentage allocation and theory behind each portfolio’s. Total of all the combined will be 100%.
1. 401K is 23.73% (This is investment, I do not change the settings - may be once a 2 year or so) :
I have 70-30 Portfolio in 401K. 70% in stocks, 30% in Bonds.
2. IRA is 2.96% (I use this as trading. I keep 20-25 companies stocks in it. Most of them pay high dividend. Most of them are large cap companies. Some of the examples are: IBM, Verizon, Prudential Financial, Intel, Amgen, Starbucks, LMT, NEM, BHP etc. I have list of 30-40 solid companies - which gives more than 3% dividend, and I chop and change based on when they are at their appropriate level to buy and sell)
3. My Main Portfolio/Largest Portfolio is worth 43.51%
I intend to “Not Sell” anything in this portfolio for at least next 10 years. I am in accumulation phase, and I will keep buying stocks on daily basis until accumulation phase finishes (March 2031). I have list of top 20 stocks that I buy $5 Daily, another list of 30 stocks to buy #3 Daily, another list of 40 stocks to buy $2 Daily, another list of 50 stocks which I buy $1 Daily. All the set up is done. I spend maximum of 30 minutes each weekend - to see if any changes are required. Criteria that I use is 20% down from my buying price. Once the stock is down 20%, I move that stock down (for eg: From $5 to $3 Daily) and move another one which is performing nicely move it up from $3 to $5 Daily bucket and so on. 10 Largest Position in this portfolio as of May 3, 2024 are: SMCI, NVDA, CVNA, QQQ, DKNG, UBER, SPY, INDA, CRWD, NFLX.
4. My second investment portfolio is worth 9%.
This one has mostly “Risky” stocks. I have list of 150 stocks, where I buy $3 worth in each of those 150 stocks on weekly basis. I spend 15 minutes or so each week - to adjust this portfolio - if there is a stock which needs to come out from recurring buying. However - I do not sell anything from this portfolio and plan to do that till March 2031. This portfolio also has Bitcoin and Ethereum. I buy $2 worth of Bitcoin and Ether on daily basis from last couple of years. My overall contribution to crypto so far has not went pass 1% of my net worth and I intend to keep them below 3% at all times to manage the risk. Crypto is worth close to 15% of this particular portfolio though.
Top 10 Largest Stocks in this portfolio as of May 3, 2024 are: CVNA, MSTR, APP, COIN, MNMD, PLTR, SHAK, HOOD, FROG, OSCR.
5. My Main Trading Portfolio is worth 13.73%
I trade regularly in this portfolio - on a daily basis. It is mix of stocks and options. Holding period in this portfolio could be as little as 5 minutes (for 0 Dated Options) to 3 to 6 months. Once the stock is out of the “Trend” - I do not keep it in this portfolio. I have a strict rule of 8% Stop loss (if it is a stock). So, When I tweet that I bought (this stock or option), I mean it in this portfolio. I rarely post my exit - because it depends upon individual people’s risk tolerance. I get out of the position much quickly. Unlike my “Investment” philosophy and technique - trading is an art that I have not yet mastered. This is work in progress and I keep learning new methods daily basis. Mantra of this portfolio is - Whatever works - and whatever that gives profit.
6. Small Options portfolio is worth 2.61%
Usually, I buy only LEAPS in this portfolio. For options which are expiring on 0 Days, 5 Days or monthly gets traded in main trading portfolio, However, longer dated options which are 3, 6, 12 and sometimes 24 months away, I keep them in this portfolio. I do not check this portfolio on daily basis - may be once a week - when I need to buy or take profit or loss.
7. Small Stock Portfolio for “Weekly Picks” is worth 2.79%
In this portfolio, I select 20 stocks that I buy on Monday Morning and sell them on Friday close. M1 Finance (Trading App) does this automatically, I just need to select which 20 stocks. I spend roughly 2-4 hours each week to scan through 200+ charts manually - to see which stocks are looking attractive enough to keep them in this portfolio. This preparation also helps to trade actively - as I would be monitoring those stocks - their levels - call flows - news surrounding them very actively for that particular week. I measure my performance against “SPY” each week - and I have been on losing side in both 2022 (bear market) and 2023 (bull market), but so far for first 4 months of choppy 2024 market - I am able to beat SPY regularly (and overall). Also I feel I am getting better at trading/investing.
8. Last but not the least - my company stock (where I do my day job) is worth 1.65%
