Feedback on a 10 year plan im thinking

I have a question or maybe i want some feedback on my plan as i have invested the past 3 months, i am getting more comfortable and even made some gains with day trading but this was a small pot of 500 to 1000

I am planning to start a 10 year plan investment with 10k to lead to my retirement.

My plan has 3 steps:

1st step:
5k into about 10 Shares which i would not touch, these are the apples, googles, amazon, facebook etc. Companies I love, the best in their field and will be most likely around the next 10 years and have shown consistent growth in the past. This pot will also be deposited roughly 150 a month and eventually more.

2nd Step.
3k into corona hit stocks. Stocks that took a hit because of corona, are massively undervalued for example airlines, retail and etc and sell these off between 3 to 12 months once their stock has hit pre corona levels or close it.
Then put the money elsewhere.

3rd step which is the risk one, 2k into day trade into stocks like BYFC, UONE, CARV just as an example of stocks that jumped this week. As i said i am getting more comfortable started with paper trading and into small amounts but these would be stocks i would buy and sell within mins or days. But I wouldn’t put 2k into one stock and but rather take reasonable risks.

And the gains would go back into main pot 1 and that risk of 2k would slowly become bigger.

Now down the line let’s say 5-6 years, i would slowly move my main 10 list of companies into dividends paying company pot with hope of reaching 5% yield.

If this works I aim to earn 65k a year in 10 years time from passive income.

I just wanted to get some feedback and maybe what would you do?

Personally I don’t like any of it. I just buy a few large ETFs and then use that free time not spent on day trading to make more reliable income to then add more money to the ETFs

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I’m ok with this overall. This is far riskier than you make out, but it’s not crazy by any means.

The second part of your plan requires you to be dead right about what’s going on with these companies though. If you’re making a play on COVID hit stocks, you better be damn sure that they’re getting back up off the canvas and soon. I don’t see it with airlines personally – I think they’re burning too much cash too fast and the nature of their business models means that they are out of control.

Other than that, I think your plan has merit. If I were in your shoes, I would maybe go 70% blue chip, 20% value, 10% day trade and I agree that there is a question of why you wouldn’t just buy the NASDAQ with 70%. But I disagree with the above sentiment and think there is merit to what you propose.

First of all, you have a plan, plans are great.

I’m no expert since I recently started my self, but for step 1 I would consider Etf’s like vwrl. This is a world wide etf I have on an other platform in euro’s since its world wide I like it better than the nasdaq or other single markets.

I think you could combine step 2 with dividend paying stocks. As I’ve seen, many of these classical dividend payers have not came back fully like RDSA still sticking around €15 can be worth ~20 or take RDSB that came from about the same price but is a bit lower than the A stock. And there are others that still are down to fair value. Mabey take a look at simplywall.st I like there search options for fair value and dividend.

For day trading I would sooner look at stock that dropped then what has spiked but I have yet to look more seriously into this.

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Personally feel you can grow your capital alot faster in companies like tesla, apple, facebook, google, amazon and etc which year in and out are always in the green.

Then putting my money which currenty not enough paying dividend company which ends yearly red single digits, i see hardly any growth in this.

I agree with 70, 20 and 10 and will probably do this instead.

With the 20% stake I will put alot of time into research but i feel there is money to be made on alot of undervalued stocks currently and i dont want to miss out

I just dont think that the capital I have is enough to invest in ETFs in comparison to gains i can get on blue chips.

This is my reason. However the plan is to switch to this when I so have enough capital

I would say it is very bold/risky to say the least if we are talking about 100% of your life/future saving being put into this 3 pots/paths.

Having 50% of future to go into 10 companies, personally I would feel very discomforting, not sleep well at night… Especially when you name FB/Googl/AMZN/AAPL etc.

Then 2nd pot is also bet which in itself is risk to say the least, none can guarantee this stocks will ever come back to their highs, nor how long it will take…

So now we have 80% funds in risky, to now get into pure speculative/trading with remaining 20%…

I think I would need to drink some pills to keep calm during next downturn…

Personally I would never go stock picking without at least 30-40 stocks in porfolio with max allotment of 5%, per position for top conviction. However would prefer to keep 2-2.5% per position on average and speculative play at 1% max.

Those stocks would all be blue chip companies with respectable balance sheets and dividend growing history, there are exemptions like AMZN, possibly BABA as “speculative” play…

60% will go into this cherry picked pie, 38% will go to well rounded ETF portfolio with +20 years in mind and 2% to my toddlers speculative growth porfolio, which has 17years period, likes of BABA/AMZN/FB/TSLA/GOOGL etc…

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Can you explain why you’re uncomfortable with the 50% allocation into large companies such as FB, Google, Amazon and Apple? Is this percentage too low or do you think it’s a risky strategy having 10? I ask as one of my pies is almost exactly the same, consisting of 10 companies I’d imagine I’m not going to sell for 20+ years

Well firstly each has its own risk tolerance. :slight_smile:
What ia risky to me may be safe to you or vice versa.

I just dont feel betting on such small number of companies even tho they were major driver for US indexes growth in last few years…

However past doesnt necessarily replicate into future. Who isn’t to say that they will be laggards next 10 years…

But also my goal is to have 2nd stream of income at some point so 95% of picked companies will be DGI or similar.

Anyway non is to say that by putting 50% into those tech giants you wont beat the market and make fortune in next 10+ years. I personally am not up for the risk. :beers:

In addition those other 50% are even heavier risk. So it is portfolio made for sleepless nights and future anxiety, something I am not willing to do for the money. I rather have slower compounding and steady growth.

Likewise this is not guaranteed as well, but anyway one can hope he will have growth and sleep well at night…

Maybe I didnt go into detail enough.

The actual 1sf pot has 25 in total and probably around 20 considered blue chip companies with high growth in the past 5 years and according to Auto Invest 87% annual return which i personally dont beleive… (depositing 13.9k and returning 15m??)

Some of these even offer a dividend, i also plan to be proactive in terms of reading stock market news pretty much daily and i plan to keep track of this and potentially edit it but rarely and not play a blind eye to it. Also you only loose if you sell and out of these 25 stocks I’m pretty imsure they will be around in the next 10 years or atleast min of 20-23 of them and even then if one of them was to flop or something of the sorts i will be aware of it as i follow these stocks very closely.

In terms of risks, I supoose I am okay with loosing 3k that is money im willing to loose but that is not the aim.

Is this the only future plan i have ? no its one of many and i dont have all my eggs in one basket, but this essentially will cost me ~150 a month which is a value i would probably waste else but atleast its going somewhere good.

Some people like a slow safe steady growth. Id like to think ive balanced with safe and risks.

Another thing you should consider in your plan is if Trading212 will still be around in 10 years

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it’s a complicated plan, lots of effort. might pay off but a strategy like buying EQQQ or IITU and dollar cost averaging into them will probably give just as good returns without the effort.

maybe look at your returns last 3 months, how have they compared with EQQQ for instance?

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Ok 20% is more reasonable :slight_smile:

I was using logic of 50% because you said 5k would be pot 1, from 10k that is 50%.

Well even 150 a month compounding over years can produce wonderful stream of income, even if you dont focus on major growers like mentioned.

Anyway it is important for you to have plan and stick to it , just mute the noise and you should have some result. Ofcourse biggest enemy is yourself during those big red days not give in to temptation to sell.

Anyway good luck :beers:

I would just like to mention one thing, your main allocation to large bluechip companies should probably include at least some traditional industries to diversify somewhat. Otherwise if the USA Tech rally turns out to be a bubble and it explodes like 20 years ago (.com dip) you could lose alot of money.

Within the traditional industries feel free to go for potentially more innovative ones, eg. Siemens I think has renewables (a controlling stake in Gamesa?), Iberdrola also has renewables and Hyundai has hybrid cars, etc. But at least some investment in traditional companies (eg. Manufacturing, Utilities, etc) would be good to reduce risk.

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I think there is no way that tech sector this time is a bubble. Amazon, Microsoft , Apple, Google, Fb are all immensely profitable companies with different business model one from the other . It might happen that one or two of them will decrease it’s grow if something happen (for istance monopolistic lawsuits…) but not all together at the same time

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Some of them are overvalued, but Tech as setor is here to stay, there is no other stronger sector for long term in the current world that we live in.

Retirement plan with no Dividend Kings and/or Aristocrats included ? Wow.

Maybe read what was actually written?

the whole point of this is to lead all of into only to dividends companies…

I read. What I find crazy is that he sees capital appreciation from tech sector, as well as profits from trading as guaranteed… Why not to start with some serious dividends players from the beggining and some tech stocks included for capital appreciation ?