how I beat 99.5% of day traders and the market (my stock portfolio + strategy)

Summary

In this video, the creator, known as 'Coding Jesus,' discusses his investment portfolio, sharing insights on his risk profile, time horizon, and stock picks. He highlights his approach to long-term investing, focusing on ETFs with high beta and emphasizes the importance of time in the market over timing the market. With a strategy of consistent investing, he shares his successes with stocks like Meta and Nvidia, as well as some of his losses. He also reveals his performance, boasting a 47% return compared to the market’s 26%. The video offers practical investment tips for those with a similar risk appetite.

Takeaways

• 😀 The video discusses the creator's investment portfolio and strategy, focusing on equity investments.
• 😀 The creator emphasizes the importance of two main investment objectives: risk profile and time horizon.
• 😀 The creator has a high-risk appetite, with a time horizon of 20-30 years, which influences their investment decisions.
• 😀 They are unconcerned with market fluctuations, such as crashes or surges, due to their long-term perspective.
• 😀 The creator has significantly outperformed the market, returning 47% over the past year compared to the market's 26%.
• 😀 Profitability is different from alpha, as the creator points out that many profitable traders underperform the market.
• 😀 The creator uses Robinhood for convenience, valuing accessibility over advanced trading features like L4 data or complex order types.
• 😀 The current strategy involves a buy-and-hold approach, particularly investing in ETFs that align with their risk profile.
• 😀 The creator focuses on ETFs with high beta (volatility relative to the market), aiming for higher returns over time.
• 😀 They have successfully picked individual stocks in the past, with notable gains from Meta Platforms and Nvidia, but now prioritize ETFs.
• 😀 The creator shares that despite some losses, such as in Unity, they have achieved a good return overall with minimal losses on their portfolio.
• 😀 The creator allocates 15% of their paycheck into investments and remains committed to consistent, long-term investing, regardless of market conditions.

Q & A

What is the main focus of the video?

The video focuses on the creator's investment portfolio in the equity space, detailing how they make investment decisions, their performance, strategy, and the platforms they use.

What are the two main factors that guide the creator's investment objectives?

The two main factors are the creator's risk profile and time horizon. They consider their ability to take on risk and their long-term investment goals.

Why is the creator unconcerned about short-term market fluctuations?

The creator is unconcerned because they have a long-term investment strategy (20-30 years), and they are comfortable with risk. Their perspective is that short-term fluctuations don't impact their long-term objectives.

What is the creator's time horizon for their investments?

The creator's time horizon is approximately 20 to 30 years, with the goal of not needing to work by the time they are around 40 years old.

How has the creator performed relative to the market in the past year?

The creator has outperformed the market in the past year, achieving a 47% return compared to the market's 26% return.

What is the creator's approach to evaluating profitability versus Alpha?

The creator emphasizes the importance of Alpha, which is the measure of outperformance relative to the market. Being profitable is not enough if the returns are below market performance, as that would indicate underperformance.

Why does the creator use Robinhood for trading?

The creator uses Robinhood for its convenience, accessibility, and ease of use. They prefer a simple platform that allows them to quickly execute trades without needing complex order types or advanced data.

How does the creator select ETFs for their portfolio?

The creator selects ETFs based on their risk profile, focusing on those with high beta. High beta ETFs are expected to have higher volatility, aligning with the creator's appetite for risk.

What are some of the creator's successful stock picks, and how have they performed?

The creator successfully picked Meta Platforms at around $100 per share, now averaging $130 per share with a price of $470, and Nvidia at $160 per share, which is now near $1,000 per share.

What is the creator's current investment strategy?

The creator follows a buy-and-hold strategy, investing regularly in ETFs based on their risk profile. They no longer focus on picking individual stocks as they did in the past.

How much of their paycheck does the creator typically invest?

The creator typically invests around 15% of their paycheck into their Robinhood account, where they purchase ETFs.