Here I discuss how I navigate to keep up with the inflation or outperform it if I can. This text is a reminder to myself, so obviously it doesn’t fit everyone’s macro view. It’s not investment advice by any means.
I’m a software developer with a couple of failed attempts to start a business, and with business ownership off the table, I went back to investment to achieve the mentioned goal.
Why
It may seem obvious why I do this: to beat the inflation. But I think I need to dig a bit deeper here and ask why I need to beat inflation, couldn’t I just earn my salary and live my poor life? Probably, but that’s not what I’m seeking, at least for now. Although I’ve enjoyed it a lot to build things, I got tired of failures for now, and then beating the market became my complex. And that’s why I do this. You can say it’s the most meaningless thing in the world “beating the market for the sake of beating the market”, and I can question all of the “meaningful” things in your life. Not proud of it, not ashamed of it, it is just what it is.
How
These are some general guidelines I follow, and these are the reasons that I wanted to write in the first place to clear my mind:
- Survive
- Don’t use leverage, and if you do, understand (control) what you’re doing
- Don’t compete with others, that’s not the game, it’s just noise
- If you rush to open a position just because of reading something, let it rest till tomorrow
- Everyone on social media tries to sell. Some sell their knowledge and insight, some sell their shits. Find the best in the first category and pay for it (many also share for free), ignore the second category.
- Do not gamble with your money
- Do not give direct advice to anyone, if you’ve been asked, just give your opinion
- If confused, try to hedge
- If for any reason you didn’t/can’t hedge, stay flat
- Maximize the long-term winners in your portfolio, short term lookout leads to the dopamine game and losses eventually
- Use a maximum 15% of your capital for higher risk investments
- Use a maximum 10% to explore new opportunities
- Keep learning
- Being persistent and disciplined wins in the long run
- Don’t make an investment personal (like a fanboy), it’s just business
- Survive
What
Anything that I “understand”. From the stock market, and futures markets, to Bitcoin or other cryptocurrencies, and as previously said a narrow path to “wet my beak”.
