Julia investment rules

April 18, 2020

Introduction

It is important for me to make rules and also keep learning, and build wealth and also learn how to manage the risk. I started from May 2019 how to invest long term, using balanced asset allocation, modern portfolio. I like to write down some rules I like to follow, make sure that I can make money in the long term, and also reduce risk to speculate, invest not speculate.

Julia investment rules

I put my 1999 to 2009 10 years USA retirement fund around $25,000 US dollars into stock market, and also my 10 years saving in Canada into TFSA account around $65,000 Canada dollars. I am a single Chinese, 53 years old. I only spent over 1000 hours last 12 months, first time in my life, catch up all basics of investment, learn personal finance.

How to make my rules working for myself? I like to write down a few rules.

1. Always keep 50% on fixed asset, like bond or cash; so that I will keep stability of my portfolio, hedge against the swing of equity asset;
2. If the profit of bond or equity is bigger than normal, I should think about taking unrealized gain first, and then time the market. Case study like VAB $3000 swing;
3. I need to learn day trading basic strategies, learn how to read patterns; time the hours spent on learning;
4. I should invest on SPX 500, and try to read more about SPX and finance engineering related to SPX 500; 
5. It is ok to try some ideas to purchase stocks; I should design diversification when to purchase stocks, in case some of them go bankrupt; always have more than five stocks same time; write a business plan; 
6. Take care my emotions. It is important to take time to make decisions. There is a lot of opportunities to invest, take time to learn and play; 
7. Be careful not to gamble! Do not bet on 50% probability on big money. Treat those money with respect; 
8. It takes time for me to understand how challenge it is to play with market. Invest on US business, invest on those biggest companies;
9. Think about some market ideas for me to relax, and keep learning. 
10. Knowledge is power. I have to learn how to share, and how to learn more about business. Read more articles, and understand economy. Be a super good self-learner;
11. Recognize good teaching role models, follow them; Prepare to share my own experience as well. 
12. Good luck! Keep my software engineer job and career growing. Do not ignore my daily work and long term need to grow my career. 
13. Take care my rental property in USA. Focus on long term investment like a condo. Think about how to live a small town in Canada and own a condo in the future. 

Follow up

June 4, 2020

I like to revisit and then get some feedback from friends. Life is tough, and I like to learn more in theory first about investment, personal finance, business analysis.