Ep 117: Building a Portfolio Through Accumulation w/ $20,000 Account
★ SUMMARY ★
In this episode you will learn how to build a portfolio with a $20,000 account through the accumulation.
We will look at your investment timeline and time horizon and how to spread the risk across multiple weeks, months and years. when it comes to trading there are multiple risks that you always have on the table in one of those is the price risk. If you can spread out your price risk across multiple weeks or months it can reduce your positions risk over that time period.
This is known as the accumulation stage. Some investors are traders may call this buying on dips or buying on pullbacks.
In this episode we will do some calculations and share with you some insights on gaining shares at a cheaper price so that you can average in at lower prices and reduce your risk. This in the end will allow you to save some money on purchasing shares, get them in a good value, and allows you to make more for when the bounces come.
However all this comes with creating a plan around your big picture investment strategy.
Posted at: http://tradersfly.com/2017/01/ep-117-portfolio-20k-account/
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Awsome video ?
You are a great teacher❤️❤️❤️❤️❤️
I think this video is terrible. When you place your initial purchase you say nothing about where to put your initial stop, then when it does go higher you buy again but again you don't say anything about adjusting your initial stop and finally you tell people to buy for the third time when the stock is so low that you have actually lost money on the 1st purchase and even more on the second purchase and you still are telling people to buy more. Just a bad video with terrible advice. An intelligent investor would have adjusted there stop on the second purchase to have some profit and the third trade would have never happened because the buyer would have been stopped out at a profit.
Sasha, what is the best way to diversify your investments? I mean asset allocation. I would like to take X amount of money. Take 40% for ETFs/mutual funds/index funds, 40% in 3-4 really safe but strong stocks, and 20% to do crazy speculating (more excitement and adrenaline). Is that recommended?
Paying taxes everytime you take profits …
Always enlightening. Thank you Sasha
This was brilliant, thanks a lot! Very informative!
I made the mistake of not calculating the commission when trying to take profits and making my stop loss too close. I have a small starting account and getting in and out diminished my gains. What do you recommend? Leaving the stop loss more loose?
Hi, Sasha! I just started trading last month! I've thought about the stuff you said in this video before, but I always feed bad not investing 100% because I feel like I could be missing out on the extra profit that could be made from that money that's just sitting there doing nothing otherwise :< But after you explained it, it does make more sense to spread out purchases like that.
Thanks!
Please make another video on options on buying calls selling calls and same with puts. Or if you already have one please point me to it
Thank you so much for this video. It was eye opening.
Hi Sasha! Happy New Year.
I was searching for "block trades" in your videos trove but did not find one. Would it be okay for me to ask if you would consider educating us on institutional trading and block/bulk trades and how a small trader/investor can find daily reports of most actively trades stocks in a given day? I am interested mainly on generating this report so I can analyze best stocks to buy the next day. There are many videos on how to generate this report for stocks traded on the Indian BSE and NSE but none on Nasdaq, NYSE and Dow.
Thanks!
Hi I was wondering how I'm able to sell stock faster. I have put some sales up with a stop limit and was wondering if its possible to make a sale of a certain stock within a few seconds or minutes.
Definitely a bad way to build portfolio in this way.
Phew. That's a scary strategy. Imagine something like the 2008 crash coming into play during this type of strategy. I guess you could continue averaging upwards from that low crash point, but it would be a steep, long haul, never really knowing if it will turn into profits. Let's take Facebook for example. Who's to say it will ever create a new high? If you do this, with 20,000 like this example, that 20,000 – even though it's spread out – should only be a fraction of your portfolio. I really appreciate the video though. It's always useful with new ideas to broaden my perspective, and you present your ideas so well.
Sasha thanks for the video.But i think this a cherry picked stock .After the fact is very easy to illustrate.how about if FB crashed over the yrs?Basically u r recommending dollar cost averaging
You learn many things when you go along in your years of trading., this is a must to explain or teach a new trader IMO. I wish I would have seen this video or something like it in my first year of trading. excellent video Sasha 2 thumbs up..
Happy New Year Mr. Evdakov
When you wanted to illustrate your point with multiple stocks maybe you could of used multi window in Windows. I don't use TC2000, but in my charts I can open two windows and put them side by side just like any windows programs or I can just split one chart into multiple time frames on the same instance of the charting program.
Great video. Very informative, it will definitely help me think differently in my future investments.
Sasha…I hate to a say it, but, this video is probably your worst yet. 🙁 How would this accumulation work on something like NKE or GPRO over the last year. You would have lost a bunch of that $20000. It's easy to use a cherry picked example from the past, but, since it is impossible to know for sure what the price of a stock is going to do in the future you should never average down!! Also you might want to emphasis only risking 1 or 2% of your $20000 per trade and getting out if you go down 7 or 8%. With your process you could easily be out of your $20000 in a couple years.
Great video, but I have a question. when you put in the third trade between Aug-Sep, didn't you loose money on the overall position from the initial two trades? Or is it fine since your time frame is 12 months? Thanks
Yes. amazing. we want like this video. very useful. it's show how can we act in bad and good times.
Thanks a lot.
What an informative video, thanks Sasha.
Is eTrade a good place to invest if your are going to only invest in only penny stocks.