Table of contents

Key Rlues

  • Keep the Cash - earn interest
  • NEVER LOSE PRINCIPAL AMOUNT
  • Always wait for dip to buy the shares
    • DIP = 15% from ATH
    • 1st £100
    • 2nd £250
    • 3rd £500
  • If you have cash £3,000
    • £1,000 : Keep Invested
    • £1,000 : Rotation (Profit Taking, sell 50% -> buy 50%)
    • £1,000 : market on Fire, News say Blood on wall street

24% Rule

Buy and leave forever

When you Do Price Qty Amount Realized
Lump Sum 100 100 10,000  
Sell 50% 124 50 6,200 6,200
Sell 50% 154 25 3,850 3,850

Realized amount is already equal to invested amount and still you have 1/4 invested (only profit at risk)

Rotation keeping same number of shares

When you Do Price Avg Qty Net Profil Taking
Lump Sum 100 100 100 10,000 0
Lump Sum 124 112 100 12,400 1,200
Lump Sum 154 133 100 15,400 2,100

profit taken = £3,300 unrealized = £2,100

Double the Money

  • 12.5% increase, 6 times a year
  • (1.123)^6 = 2x
  • 12.7% : Realise gains
    • sell half and re-buy same number of shares (-0.4% in fees)
  • ATH - 30% is a Good buy price

Buckets for Investing

  • No single stock > 10% of portfolio
    • Why ? - Don’t recove by Hoping, Recover by surviving the volatility
  • BUCKET 1 (CORE ETF) = 60%
    • Wealth Engine
    • VUSA/VWRL - expected 8-10% return
  • BUCKET 2 (GROWTH) = 30%
    • 5-8 stocks, no single stock more than 7-8%
    • Ideal to keep 6 stock 5% each
    • NVDA
    • AMZN
    • MSFT/GOOGL
    • AI/TEch leaders
  • BUCKET 3 (MOONSHOTS) = 10%
    • Violent Swings
    • Cap the damage
    • Add from profits, not hopes
    • big wins itch scratched