Review my Portfolio

[siloah04]

Please evaluate my portfolio and provide feedback on its strengths and weaknesses.

Personal Information:

• Age: 32
• Annual Income: $100,000
  

https://preview.redd.it/q83paoh2hvz...bp&s=835fbe8dd46ff3c8aef8d5ba744cfcb68c0f4ff4

ETFs are SPUS, HLAL, UMMA, and some non compliant

Additional Information:

• My current life situation does not necessitate the purchase of a house, but I am open to it if it proves to be a worthwhile investment.
• I am concerned about having an excessive reliance on USD-based products in my portfolio. Would it be advisable to diversify into alternative asset classes such as Real Estate or Gold?

I would greatly appreciate your advice on these matters.

 

[swill]

@siloah04 My only question would be why so much cash? 3 months worth of expenses should be all that sits in cash unless there is a major purchase coming in the next 12-18 months

 

[siloah04]

@swill Because in current market I feel like cash is a better position then invested.

I want to buy a house if property prices come down and hence preparing for that. Do you think I should invest that money as well when I wait, even though recession fair is looming.

 

[swill]

@siloah04 If your looking to buy a property in the short-term I'd say that's reasonable. But if you're keeping cash to try and time a good "entry" for the market, thats probably a mistake.

A portfolio that misses the best trading days is severely hamstrung in the long run

 

[princesst1]

@siloah04 Home sales are down over 20%, now is the perfect time to buy for investment. Are you waiting for 30%?

 

[siloah04]

@princesst1 Sales might be down, the prices aren't by much. Are they?

 

[princesst1]

@siloah04 Depends on the area. Either way prices will NOT go down. There is a huge housing shortage in the US.

https://www.cnn.com/2023/03/08/homes/housing-shortage/index.html

Also you fail to notice within the last few years huge corporations have been buying more and more houses and the effect has been high home prices.

https://www.cnn.com/2021/08/02/business/family-homes-wall-street/index.html

The situation will only get worse in the future.

 

[princesst1]

@swill You're not paying attention to the news. If the budget negotiations continue to fail the stock market will go in a downtrend. Staying out of themarket is a solid strategy for those who are risk adverse.

Me,in otherhand am hoping it does fail,all sticks will be then on sale and when abudget is finally drafted the market will rise. Its a perfect arbitrage.

 

[ayogoal]

@princesst1 /@princesst1, I have found an error in your comment:

“Its [It's] a perfect”

I comment that you, TheDynamicHamza21, could have typed “Its [It's] a perfect” instead. ‘Its’ is possessive; ‘it's’ means ‘it is’ or ‘it has’.

[sup]This is an automated bot. I do not intend to shame your mistakes. If you think the errors which I found are incorrect, please contact me through DMs![/sup]

 

[swill]

@princesst1 This is an unwise long term strategy. If you miss the best trading days in the market your average annual return drops by about 3% per year over a 10 year period.

 

[princesst1]

@swill "best trading days" are only determined by the past not real time. Why do you assume I don't trade every week? I'm a trader not an investor. Why wait to earn an average 8% per year when i can earn 1- 2% per month?

A part time job will earn $1200- $1300 per month working 120 hours. With trading you can earn half that amount in 16 to 32 hours a month without going to a job , surrounded by people you do not like, doing stuff you hate, just to earn money.

 

[swill]

@princesst1 My point is the data would suggest. You, me, everyone, is unlikely to hit those trading days if we aren't invested.

So you're telling me your returns are consistently 12-24% per year? Again the data makes me skeptical.

 

[princesst1]

@swill 1% of $100 is $1 you can't earn that in month?

1% of $1000 is $10 you can't earn that in a month?

1% of $10,000 is $100 you can earn that in a month?

You cant consistently earn 1% of whatever money you invested in the market every month?

The problem with your type is you are too focused on numbers and not money. I trade to make money. Not to "beat the market". Not to become a millionaire. Not to brag to other people.

Its simple here's the money i have to trade with, did i make profit? Yes or no.

I don't use margin, i dont trade options, i don't short (though I wish I could), im not a news chaser, i dont follow stock picking gurus, I only use cash and with that T+3 so my trades have to be low risk. I want money now not 5 years from now. I'm a trader not an investor.

The past is not indication of the future returns, true. However it is an indication more often than not.

Its simple:

Dont be greedy

Dont invest more than you can handle losing

Expect to lose

Cut your losses
Make a decision to when to exit and when a stock drops below stop loss. Dont second guess.

Woulda,coulda,shoulda

The world doesn't revolve around me. If take profit and the stock continues to rise after I exited, so what? I don't assume if i stayed in the same thing would have occurred. I assume the opposite.

If i cut my losses and then the stock reverses and goes up. I dont assume if i stayed in i wouldn't have lost money. I assume the opposite.

In the end it doesn't matter,i still made money.

It doesn't matter what the other guy made. His money isn't paying your bills.

Lastly, it's all about making money. It not d--k measuring contest with anonymous people on the internet hiding behind an internet name.

I can tell you spend too much time on trading forums and are infected with their bulls--t. My advice stay away from those people. Real people making real money do not spend their time on trading/investing forums d--k riding others and promoting "gurus".