investing - Dollar cost average

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401k/403b Strategy

Usually, 401k does not offer stock buying. it only offers Target funds or Mutual Funds.  Company only allows to offer employee Mutual Funds to pick for the 401k or 403b program.

 

2023/08/08

401k/403b Investments Choices

1. DIGITAL ADVISOR - Go through QA, answer a few questions regarding the goals and risk tolerance. Computer will recommend the funds for you.   I personally do not like this, but this is the right way to do as well.  I think most of the friends and family members do that method.  Most of us are not experts in pick mutual funds or which funds to buy.
2. BUY TARGET FUNDS   -- Buy fund based on your retirement years. For example, if the investor turns 60-65 in year 2040-2045, then the fund to consider buying is Target fun 2040 or 2045.  For example in Vanguard Brokerage, it would be Vanguard Target Retirement 2045 Fund;Investor Fund: VTIVX.
3. Buy Individual INDEX Mutual Fund. (For Intermediate to Advance Investor) Investor can pick thier own INDEX fund and the percentages of each fund based on the Investor's retirement years.  INDEX fund usually has lower fee than the return Mutual Funds.
4. Buy Individual Managed Mutual Fund. (For Intermediate to Advance Investor) Investor can pick their own fund and the percentages of each fund based on the Investor's retirement years.  INDEX fund usually has lower fee than the return Mutual Funds.  A few Managed Mutual fund, however, perform better than INDEX funds.  Mostly Index funds in longer terms outperform managed Mutual Funds due to the higher fee reduced the fund performance.
5. Using Financial Wisdom Strategy. which is using Choice #3, or Choice #4, but not buy and hold.  we sell mutual funds or Index funds when MACD Weekly Crosses below.
6. Using 200 day moving average, to enter and exit to get better return.
7. Any other, please suggest.

I think the next question I have is how you know which index mutual fund to pick. They have large cap , mid cap,  small cap, and international fund. Do you apply the same strategy? How do we do the back test for different funds? 

For example, one investor have have this.

40% international fund

40% large cap fund

20% small cap fund

If one fund is below 200 day SMA, we exit and keep cash. The other is not below 200 day SMA, we keep.  The portfolio is not diversified or balanced anymore.  Is that going to effect the performance of the returns?

Please comment below.

Swing Trading - Check List

Before Execute a SWING trade, please go through this check list.

1. Stock has no gaps
2. Earning upcoming > 7-10 days
3. Move the Stop Loss to break even when the stock moved 1R positive.
4. Bolinger Band Strategy 1.5 R only.
5. Check Divergence MACD, RSI, CCI.
6. 
   

Investing GOALS 2020/05/03

2020/05/03

Investing GOALS

Buy a 2nd house with some land

so that we can plant some Fruits and Vegetables.

Swing Trading Plans

Try to do bollinger band trading 2 trades per week, make 1% per week.

Buy a Tesla - the next car.

Create a few more Income Streams,

Portfolio GOALS SHOULD BE similar to TARGET FUND 2045 

1 Vanguard Total Stock Market Index Fund Investor Shares 54.00%

2 Vanguard Total International Stock Index Fund Investor Shares 36.10%

3 Vanguard Total Bond Market II Index Fund Investor Shares† 7.00%

4 Vanguard Total International Bond Index Fund Investor Shares 2.90%

TOTAL 100.00%

Current Portfolio Allocation.

Cash             50.00%

Intl Stocks 17.38%

U.S. Stocks 17.67%

Gold/silver            3%

Crypto (gbtc,litecoin, ethereum)         10%

Total 100%

Want Portfolio

Individual Stock Pick - 10%, speculative investing.

Target Fund 2045-  50%  -401k,

Gold/silver   Physical         20%

Crypto (gbtc,litecoin, ethereum)         10%

Swing Trading   10% --learn and play

Strategy one - anticipate market crash

1. Put 100% in cash 
2. Wait for market crash
3. Buy the good company such as aapl, goog, ...
4. Profit and sell when it goes up 200%