The major misconception is that having different tech stocks is the same as having a diverse portfolio.
So below is a summary from all the various resources I found either in books or online for different financial tools that I should know, or at least understand when to buy or sell:
Each element in the list has either a 🐻 (bear) or a 🐂 (bull), which represents:
- 🐻: Usually used when market is going through a recession or crisis.
- 🐂: When market is “going up” and economy is prospering.
⚠️ Keep in mind that this is simply for my understanding and shouldn’t be used as any financial advice.
💵 Cash (10-30%) (🐻)
- Emergency Reserve of 6~12 months on saving account
- One or two months at home, for any eventuality (“dry powder”)
- On a broker waiting to be used on market opportunities
🥇 Precious Metals (10-30%) (🐻)
🏡 Real Estate (30-60%) (🐻)
- Personal home, vacation home, family farm.
🖥 Stocks (10-30%) (🐂)
- Max 5-10% of complete equity portfolio onto new position
- Use trailing stop which is
HIGH - (HIGH * 0.25)as stop if value hit that
- Blue Chip Stock (big old companies (eg: Coca-Cola))
- Growth (new fast growing companies (eg: Amazon))
- Passive Income (companies that pay dividends (eg: Nintendo))
- Divided into different sectors (eg: Retail, Energy, Health Care/Pharmacy)
🔖 Bonds (0-10%) (🐻)
- Periodic payments (interests over fixed period of time)
- Can be payed fully back (no loss, guaranteed from the government)
⌘ Crypto-currencies (0-5%) (🐂)
- Very High volatility/high risk