Stock research: Work with professional - SJTU math Ph.D.

June 12, 2020

Introduction

I honestly evaluate how good I am as an independent investor, and then I find out that I do not have enough skills so that I reached out Dr. Tang and we had one hour 50 minutes Zoom meeting. I like to take some notes after our first meeting.

First Zoom meeting

First 10 meetings, we took turn to introduce ourselves.

Dr. Tang got SJTU math education, Ph.D., he also works on professional trading experience.

I also introduced myself as an investor. I talked about a few things:
1984 - 1988 math bachelor degree
My job experience and how I saved those 401 K and IRA money.
2009 - market crash, and then I quit from stock market.
2019 - I went back to stock market after five month personal finance research

He asked me a few questions:
1. Do you have those funds? Do you own all those investment by yourself?
2. Why do you like to invest in stock market?
3. Why do you need help?

I explained to him my stock investment and my gains. Dr. Tang told me that my biggest problem is that I build my positions at too high positions. I should try to invest on lowest positions. 

Long term risk, US stocks are high positions compared to other time. 

Make strategies plan - how to build positions through low positions.

For example, if I put $13,000 dollars on equity fund on SPX 3300, then to hedge the mistake, I should put $13,000 dollars on SPX 2500. Why not? Why should I worry if SPX will go down 1200. 

How to meet together? Once two weeks. In-between, I can send him an email. I can set up my portfolio using free software Sharesight.com to share with him. So he can follow my positions, and give me advice. 

I will prepare a guideline for expense report. I do think that one dollar for one minute is too much, and also China and USA and Canada all are in recession. I may lose the job any time soon. 

There is risk for any one of us. I should also evaluate how good the cooperation is, and then continue to think about making this business relationship work.

Actionable items:

1. Work on Yahoo personal finance - set up portfolios by SPX index value; 
2. Try to put positions along the way - if the stock market crashes, then I will put $3000 - $6000 for each down position; 

SPX - 2500  - $10,000

SPX - 2600  -  $9000

SPX - 2700  -  $8000

SPX - 2800  -  $7000

SPX - 2900 -   $6000

SPX - 3000 -   $5000

SPX - 3100 -   $4000

SPX - 3200 -   $3000

SPX - 3300 -   $2000

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