Purpose of this blog
This is not a blog, this is a personal diary to document my investment journey and hopefully a record where my wife/kids can learn from with their investment journeys. This website is strictly not recommending or validating any stock and only open to the public for commentary & correction. It is mainly meant for my own personal benefit and designed to revolve around my own personal risk tolerance, which is very very high.
My Profession & why I invest
I am a Qualified Multimedia Designer who can program & design websites and even produce top quality video. I personally enjoy the creative design process, I am often described as a person with good taste by my clients, a lot of them depend on me for critical branding decisions for their company.
I run a small multimedia design business, a one-man show and often integrating with larger teams both locally and internationally. I’ve done this for over 12 years and I can say I’ve done really really well for a one-man operation. Over the last few years, I’ve however grown tired of the multimedia design industry I’ve found that my design skills were limited by the vision of my clients. I also grew tired of constant cash flow problems which only seem to get worse with time in Australia.
I decided to dive into Investments and Stock Market trading as I’ve always been interested in this ever since economics in high school. I, however, did not have a clue what I was getting into, the goal was to start slow and learn, with very unrealistic expectations that included 1000% returns on every investment. My wife one day spoke to me about getting into the Nursing profession, and my response to her was: It sounds good, but now after being in the design industry, being in business for nearly 15 years I see things so very clearly. No matter how good you are at your job, or profession, even passionate about it, your life & value is controlled by one single thing “money”. If industries, professionals, businesses or people are the boats, fish or other sea life, money is the water that all these things have to touch. Money can flow as currents, can flow fast, can flow slow, can lay still and can build huge destructive waves. Understand how to control money and you will understand everything. We are blessed to be living in a time where the stock market can be considered one of the oceans of money, that allow us to swim, play and prosper. Dynamics of the stock market can be learnt through study and experience, it requires the most basic of maths and the most advanced control of emotions. Never disrespect money for it will drown you quick.
How I Started:
I got started in November 2017, the start of a major bear market. At this point of time, I had no idea what an MC or an EV was let alone what a Bear Market could do to a portfolio. I decided I had some money in the bank and I needed to roll with it. The very first stock I invested in was SYA and in a few months, the stock was up 120%. At the time I thought this is easy, pick the most popular social media stock and it’s bound to win every single time. Over the course of the next few months, all the paper profits evaporated over the next month, painfully evaporating an entire 60K in profits. I managed to sell off for a total cash profit of 16%. I put this down to a learning experience and something I needed to be aware off, but in my mind, I knew I was on the right track, social media trading was the way to go. After this I spent the entire time following popular social media individuals into stocks, slowly losing 15 – 20% at a time on an array of different plays. A single win a tip won me an 80% profit.
It was at this point that I possibly made the biggest mistake of my financial life. I decided that this is the thing for me, and if I am going to make it with the big boys I’ve got to go in hard. So I took a 100% of my 15-year-old savings, money my family use to live day to day, took every single dollar … and I slammed it into the most popular stocks people were talking about, tips I would get from people I considered PRO level investors. This was a risky move because as a sole earner in a young family with two kids and a wife, I had absolutely nothing my family could live on. My mentality has always been that fortune favoured the brave, but what I did at this point was completely stupid. By the time the end of the financial year came around, I was 58% down on my entire portfolio and hardly a few thousand dollars in the bank. I barely had enough money to pay the rent, every time I shop at Aldis I would try to buy less. As bad as it seemed at the time, the storm clouds were just brewing. At the hight of it, I could not pay a tax bill due to large earnings I had during the last financial year. I did not have the foresight at the time to sell off some of my losses to offset some of my income from the year. Everything I had was tied up was in the stock market. I got bitter and bitched, especially to the people who put me onto the stocks that mostly seem to lose. I never blamed them, as it was purely my fault for following these people into the stocks with such blind faith with all of my family’s capital. Things seemed extremely bleak and I was terribly depressed…I ended up crystalising 30K of losses in July, still holding onto plays that I thought had the most potential to win. I then locked down my portfolio, not adding or selling anything.
I now decided to spend all my time trying to study market theories, Fundamental analysis, Technical analysis. I spent entire nights watching YouTube videos over and over again, drilling in market concepts, and ideas. Trying to analyse where I went wrong. All the while neglecting my bread and butter the customers from my Multimedia Design business the only thing that was keeping me alive. Through it all, I had 1 silver bullet I knew I can count on: My education and the fact that I was one of the best Multimedia experts on the market. Almost like magic, I hustled my way into a few critical projects, that brought in some money to pay off immediate bills and keep my family alive. I was also able to slowly save a little, all the while paying off a very large tax bill.
Where I am now
My portfolio was closed, but my mind was not. I decided that Investing was the thing for me, and I loved having a birds-eye view of several companies all swimming in the same great big ocean. I truly believe even now that it’s just a matter of time before I can see through the water and be able to pick champions.
I slowly starting putting $1000 into companies I thought that would be winners, winning 10% – 50% at times. Selling out quicker, being very cautious of losses, really learning the dynamics of picking winners. Profits were really small from these wins, they mainly helped boost my confidence again. My investments had an 80% win rate. In the meantime, a few of the stocks I had locked away slowly started to turn around. The people who referred me to these stocks, most of them have sold out … call me the fool for holding, but that seemed to go in my favour.
I can now say that my portfolio is at a point where I am no longer in negative territory. My journey continues for now….and I have no intention of giving up.
Based on my journey I’ve put together a document that outlines everything I think is important when indesign or trading on the stock market. Please see this article.