Innoware’s Weekly Millionaire Blog – Edition 4 – January 28, 2018
It is another Sunday today and you are receiving my Blog # 4 of 520 on the topic of “Investing Longterm in Stock Market Index based ETFs”.
First, a reminder. You can follow me on Twitter at @TradeUVXY
Last week, I covered the topic of Opening a low fee brokerage account (TastyWorks.com) or a no fee account (Robinhood).
This week, I will share how my portfolio has performed till now. I started my Index Investing Portfolio some time in December 2017. I use Robinhood to buy as little or as much I need, and whenever I need.
My strategy is like this. I use my other brokerage accounts to extensively engage in swing trades to generate daily profits. Then, I move some of these profits to my Robinhood long term Index investing account where I propose to leave the amount invest in Stock Market based Index Funds for 10 long years.
Buying 1 share here or 2 shares there, I collected a total of 48 shares of TQQQ prior to Jan 25, 2018. My average price was $156.10 costing me $7,492.
On Friday, Jan 26, 2018, indexes ripped higher. When TQQQ reached a price of $178.5, I took an impulsive decision of selling all the 48 shares of TQQQ at this price and realized a cool profit of $1,076 in less than a month, on an investment of $7,492.
I plan to get back into TQQQ when it dips in price in future I think I can buy it at a price cheaper than $178.5 which I sold for.
Did I make a mistake when I sold these TQQQ? Was I not supposed to hold on to these TQQQ for 10 long years?
Yes. As a normal human being, I was tempted to take profits. But I decided to book profits, because I am a firm believer that it never hurts to be less greedy and realize profits. Second, my main reason was SVXY was available at a discount on Friday, Jan 26, 2018.
As you would know, I have written a book on “Trading volatility” and I am aware of how SVXY gets priced. Last week was a challenge for all Volatility Tickers, but I am convinced that SVXY will rise in price substantially over the next 10 years. So, when I sold 48 shares of TQQQ, I used all that proceeds to immediately buy 64 more shares of SVXY at a price of $128.39 last Friday.
This leaves me with a total of 333 SVXY shares at an average cost price of $134.29. Note that Friday closing price of SVXY was $128.87. So, you can appreciate the fact that for the additional 64 shares of SVXY which I purchased at $128.39 last Friday, I am already up since the closing price was $128.87.
For this index investing portfolio, I am not worried at all on how performs on a day to day basis, as I am confident (after writing my book on Index Investing with Brennan), that indexes are designed to go up long term!!
Again, buying in ones and twos, I have added 41 shares of SPXL at an average price of $47.54. Last Friday’s close price for SPXL was $54.48, and this ticker is performing well.
Buying in small lots, I have 20 shares of UPRO at an average price of $150.40 and this closed Friday at a price of $172.44
I own 10 shares of DM at an average price of $137.67 and last Friday’s close was $152.75
I own 70 shares of VMIN at an average price of $36.83. On Friday, VMIN closed at $33.22. Again, this is a part of the Volatility Family, which goes up (as well as down) big. So, I am not worried at all!!
Does it make sense to do what I am doing in this Robinhood account as far as long-term index investing s concerned? Yes.
SPX is projected to close the year at 3,000 or 3,100. January 2018 is not over yet and SPX has already touched 2872.87. My feeling is by the time this year ends, we will see SPX may be at 3,400 or even 3,500.
Again, this Index Investing strategy that I am adopting does not even focus what levels SPX closes by December 2018. The idea is to stay the course for the next 10 years. I have completed only 58 days of this 3,650 day journey, which I will share with you every Sunday, covering one aspect or another, with an aim to engage with you and share my learnings.
Change of website
As you would know, we have 2 books and therefore 2 websites
Last week, I received a communication from a business that the name – TradingVolatility.info – is infringing on their trade mark with a similar name. We have matured enough now so as to not pick up fights with anyone for any reason. So, we have amicably settled the matter by agreeing to retire our TradingVolatility.info website.
We will be operating from the IndexInvesting.xyz site, but this site will offer free download of all our current and future books as well as be the site from where our free daily Volatility daily tip emails will be sent out.
The changes of integrating the two sites and retiring TradingVolatility.info is currently on and we expect it to be completed soon.
Note: Nothing would make us more happy than to see 10,000 more new millionaires in the year 2028!!
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The material contained in this blog is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment or strategy is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. As an investor, you are fully responsible for any investment decision that you make.