Author: Joseph M. Brennan Jr.

HOW TO LOSE YOUR SHIRT IN THE STOCK MARKET WITHOUT LOSING YOUR SHORTS TOO (PART THREE)!

Posted on by Joseph M. Brennan Jr.

It’s always a good idea to adjust your investment strategies over time. Those of you who have been following me closely know that I’ve had a real “knack” over the past 9 months or so for picking losing stocks. However, I have generally refused to let them go and have continued buying into them as the buy signals get stronger with every drop, and they became more and more attractive, with respect to all of the indicators I use to make investment decisions. And, as usual, I generally refuse to sell on “buy” signals and frequently do the opposite. I wrote about this back in March and April and didn’t realize at the time that this would become a multi-part series but I suppose that is how things are playing out for this year. Because, here it is months later and I am still fighting the downs and ups and downs of what has been a highly volatile stock market this year (most of which have been downs).

The fight continues but it appears some of the strategies I’m using are actually helping. The new strategy I am employing involves rotating out of the stocks which appear to be less favorable in nature and buying into new stocks which appear to be highly favorable in nature – even when the stocks I’m selling are carrying heavy losses. Now, many people might question such a move and be inclined to just hold the stocks long enough for a gain to be realized. However, the tax loss harvesting strategy I wrote about previously and the fact that I would stand to have an effective “gain” of about 24% based on my current tax bracket by selling these more unfavorable stocks (even if no further gains were realized in my portfolio) combined with the potential for much stronger gains by switching to much more favorable stocks, then the potential gains from here might be pretty substantial.

Is there any guarantee that the above strategy will work? Of course not. Investing is primarily about making decisions based on various indicators, the associated likelihoods, and employing effective strategies accordingly. So, at best you can position yourself for a potential favorable return, but there is never a guarantee.

I’m presently still a high risk investor (much to my dismay), but not nearly as extreme as I was back in March and April. As a result of all the buying I have done, I have moved from being a low risk investor (back in 2021) to a high risk investor. The low point for me so far this year was when I was 142% invested (yes – I was using margin) and down 41.19% for 2022 (and down 44% since September/October 2021). Presently, I am 97% invested and down 30.62% for 2022 (and down 33% since September/October 2021).

I haven’t been overly concerned with having a negative return for 2022 because all of the major stock market indexes are getting hammered this year so far (the recent lows being a 24% loss for the S&P 500 Index, a 34% loss for the NASDAQ, and a 28% loss for the Russell 2000) and even the ultimate, safe haven, low risk investment (the bond market) has gotten hammered with a highly unusual 11% loss. Eventually, the market indexes will recover and so will most of the stocks I’m holding. I would be more concerned if I was experiencing substantial losses while the major market indexes were showing significant gains.

You can read about the buy and sell strategies I’ve been using in Part One and Part Two of this series. I am mostly using the same strategies throughout the rises and falls in stock prices no matter what the cycles might turn out to be. If the stocks are dropping, I’m tending to buy more. And if they are rising, I’m tending to sell more. The only exception is the new strategy I’m currently employing where I am taking realized losses and rotating out of less favorable stocks and buying into more favorable ones.

I’m happy I’ve been modifying my investment strategies. It seems to be paying off. This is something you always want to get into the practice of doing. Observe what happens and make adjustments to your investment strategies so that you can work towards improving your investment performance over time in accordance with your risk profile. I happen to presently be a low risk investor (although right now I am temporarily high risk) but many of you will probably be higher risk investors. So, your investment strategies will probably be a bit more aggressive than mine.

You can be a very successful investor if you effectively use all of the tools and techniques available to maximize your investment returns. It’s been an interesting investing experiment I’ve been running so far for 2022. We’ll see how things go.

You can learn about all of my investing techniques via my “Invest Like a Pro in 10 Minutes a Day!” series of 4 books where you can learn the “end to end” process to investing and gain key investing insights and skills (https://brighterdayslifecoaching.com/published-books…/)

Also, you can read all about my stock market activities here: https://brighterdayslifecoaching.com/stock-market-activities/

I wish you much success in creating a brighter financial future for yourself, your loved ones, and those who follow.

Happy investing everyone!

#finance #stocks #investing #stockmarket #success

☆°▪︎ THE CANDLELIGHT CAFE ▪︎°☆

Posted on by Joseph M. Brennan Jr.

I

love

.

t

h

e

.

rain

–

–

upon

.

t

h

e

.

window

panes

.

o

f

.

that

cozy,

–

–

candlelight

cafe . . .

–

–

–

.

.

.

 ~ that

cozy,

–

–

candlelight

cafe

–

–

where

we

–

–

could

stay

.

a

n

d

.

get

away . . .

–

–

–

.

.

.

We

–

–

could

stay

.

a

n

d

.

get

away

.

i

n

.

that

cozy,

–

–

candlelight

cafe . . .

–

–

–

.

.

.

 ~ get

away

.

f

r

o

m

.

the

pain . . .

–

–

–

.

.

.

 ~ get

away

.

f

r

o

m

.

the

blame . . .

–

–

–

.

.

.

 ~ get

away

.

f

r

o

m

.

the

same,

–

o

l

d

–

same . . .

–

–

–

.

.

.

We

could

stay

.

a

n

d

.

embrace

.

i

n

.

a

place

–

–

far

away . . .

–

–

–

.

.

.

 ~ far

away

.

f

r

o

m

.

the

plans,

.

a

n

d

.

hopes,

.

a

n

d

.

dreams

–

–

that

would

–

–

flame,

.

a

n

d

.

flicker,

.

a

n

d

.

fade . . .

–

–

–

.

.

.

 ~ far

away

.

f

r

o

m

.

the

debts

–

–

we

would

–

–

accumulate

.

a

n

d

.

pay . . .

–

–

–

.

.

.

a

n

d

–

–

–

pay

.

a

n

d

.

accumulate . . .

–

–

–

.

.

.

again,

.

a

n

d

.

again,

.

a

n

d

.

again . . .

–

–

–

.

.

.

 ~ far

away

.

f

r

o

m

.

all

.

t

h

e

.

reasons

.

a

n

d

.

ways

–

–

we

felt

.

s

o

.

ashamed

.

a

n

d

.

thought

.

w

e

.

had

.

t

o

.

find

.

a

.

place

.

t

o

.

pray . . .

–

–

–

.

.

.

 ~ far

away

.

f

r

o

m

.

the

things

–

–

they

–

–

might

do

.

o

r

.

say . . .

–

–

–

.

.

.

i

f

–

–

–

they

knew

–

–

we

felt

–

–

this

way . . .

–

–

–

.

.

.

 ~ if

–

–

they

knew

–

–

we

felt

–

–

this

way . . .

–

–

–

.

.

.

I

love

.

t

h

e

.

rain

–

–

upon

.

t

h

e

.

window

panes . . .

–

–

–

.

.

.

I

love

.

t

h

e

.

rain

–

–

upon

.

t

h

e

.

window

panes . . .

–

–

–

.

.

.

I

love

.

t

h

e

.

rain

–

–

upon

.

t

h

e

.

window

panes . . .

–

–

–

.

.

.

o

f

–

–

–

that

cozy,

–

–

candlelight

cafe . . .

–

–

–

.

.

.

 ~ that

cozy,

–

–

candlelight

cafe . . .

–

–

–

.

.

.

where

we

–

–

could

embrace,

.

a

n

d

.

stay,

.

a

n

d

.

get

away.

Reflection: This poem is written as a reflection on a forbidden romance. I wrote this poem using a much-loved 70s song (“Me and Mrs. Jones” by Billy Paul). So, if you listen to the song at low volume while reading this poem, you might better get the “feel” of it. It only took me a couple of hours to write it which is unusually fast when I write poetry.

☆°▪︎ ALMOST MINE (WHEN EVERYTHING RHYMED) ▪︎°☆

Posted on by Joseph M. Brennan Jr.

There

once

.

w

a

s

.

a

place . . .

–

–

–

.

.

.

a

n

d

–

–

–

there

once

.

w

a

s

.

a

time . . .

–

–

–

.

.

.

when

it

.

w

a

s

.

almost

mine . . .

–

–

–

.

.

.

 ~ it

.

w

a

s

.

almost

mine . . .

–

–

–

.

.

.

It

.

w

a

s

.

almost

mine . . .

–

–

–

.

.

.

i

n

–

–

–

the

days

.

o

f

.

grand

design . . .

–

–

–

.

.

.

 ~ it

.

w

a

s

.

almost

mine . . .

–

–

–

.

.

.

It

.

w

a

s

.

almost

mine . . .

–

–

–

.

.

.

w

h

e

n

–

–

–

everything

smiled

.

a

n

d

.

rhymed . . .

–

–

–

.

.

.

Everything

smiled

.

a

n

d

.

everything

rhymed . . .

–

–

–

.

.

.

Everything

smiled

.

a

n

d

.

everything

rhymed . . .

–

–

–

.

.

.

Everything

smiled

.

a

n

d

.

everything

rhymed . . .

–

–

–

.

.

.

a

n

d

–

–

–

it

.

w

a

s

.

easy

.

t

o

.

decide . . .

–

–

–

.

.

.

s

o

–

–

–

yes,

–

–

there

once

.

w

a

s

.

a

place . . .

–

–

–

.

.

.

a

n

d

–

–

–

there

once

.

w

a

s

.

a

time . . .

–

–

–

.

.

.

when

it

.

w

a

s

.

almost

mine.

Reflection: This was a melancholy-themed poem that I wrote back in June of 2022 where the contemplator looks back on a once-in-a-lifetime experience, romance, success, or opportunity where he could have gotten exactly what he or she wanted at the time but didn’t for whatever reason and is now taunted and haunted by the memory.

I played the wonderful song “Could It Be Magic” by Barry Manilow, and the poem pretty much wrote itself from that (playing the song repeatedly on low volume to create the “moodset” for the poem). It was written fairly quickly – like a half an hour or so. I didn’t feel the need to continue reflecting on it and tweaking the words like I usually do. It just felt complete, so I immediately published it. If you listen to the song at low volume while reading this poem, you might better get the “feel” of it.

☆°▪︎ THE CROWN (COUNTING DOWN) ▪︎°☆

Posted on by Joseph M. Brennan Jr.

The

crowd

.

w

a

s

.

all

around . . .

–

–

–

.

.

.

a

s

–

–

–

you

wore

.

t

h

a

t

.

crown . . .

–

–

–

.

.

.

The

crowd

.

w

a

s

.

all

around . . .

–

–

–

.

.

.

w

h

e

n

–

–

–

I 

hit

.

t

h

e

.

ground . . .

–

–

–

.

.

.

I 

hit

.

t

h

e

.

ground . . .

–

–

–

.

.

.

i

n

–

–

–

the

middle

.

o

f

.

that

round . . .

–

–

–

.

.

.

I 

hit

.

t

h

e

.

ground . . .

–

–

–

.

.

.

i

n

–

–

–

the

middle

.

o

f

.

that

round . . .

–

–

–

.

.

.

I 

hit

.

t

h

e

.

ground . . .

–

–

–

.

.

.

i

n

–

–

–

the

middle

.

o

f

.

that

round . . .

–

–

–

.

.

.

w

i

t

h

–

–

–

the

memories

–

–

counting

down.

Reflection: This was a melancholy-themed poem that I wrote back in June of 2022 where the contemplator comes to the realization that when his or her romantic relationship is put to the test, it turns out to not be nearly as strong or solid as previously thought. This poem came to me at a party where I observed couples being surrounded by the temptations of the moment. I pondered how many relationships ended as a result of such parties and events.

☆°▪︎ APPEAR (OR DISAPPEAR) ▪︎°☆

Posted on by Joseph M. Brennan Jr.

If 

you

.

d

o

. 

nothing

.

t

o

.

appear . . .

–

–

–

.

.

.

o

r

–

–

–

make

.

i

t

.

seem

–

–

you

.

w

e

r

e

.

here . . .

–

–

–

.

.

.

t

h

e

n

–

–

–

you’ll

.

o

n

l

y

.

disappear.

Reflection:  This tiny poem was inspired by Kevin Morby’s song: “Disappearing.” I played this song in the background to create the “moodset” and inspire the writing of the poem. If you listen to the song at low volume while reading this poem, you might better get the “feel” of it.

☆°▪︎ PAGES ON THE RUN (IT MUST HAVE BEEN FUN) ▪︎°☆

Posted on by Joseph M. Brennan Jr.

It

must

.

h

a

v

e

.

been

fun,

.

w

i

t

h

.

all

.

o

f

.

the

drink,

.

a

n

d

.

drugs . . .

–

–

–

.

.

.

It

must

.

h

a

v

e

.

been

fun,

.

w

i

t

h

.

all

.

o

f

.

those

pages

.

o

n

.

the

run . . .

–

–

–

.

.

.

It

must

.

h

a

v

e

.

been

fun,

–

–

hearing

.

t

h

e

.

starting

gun

–

–

without

.

t

h

e

.

sun . . .

–

–

–

.

.

.

l

o

n

g

–

–

–

after

.

t

h

e

.

day

.

w

a

s

.

done . . .

–

–

–

.

.

.

It

must

.

h

a

v

e

.

been

fun

.

f

o

r

.

those,

–

–

once

younger

.

t

o

.

be

perceived

–

–

much

older . . .

–

–

–

.

.

.

a

n

d

–

–

–

for

those

–

–

once

cooler

.

t

o

.

be

perceived

–

–

much

colder . . .

–

–

–

.

.

.

They

became

–

–

much

older . . .

–

–

–

.

.

.

a

n

d

–

–

–

they

became

–

–

much

colder . . .

–

–

–

.

.

.

They

became

–

–

much

older . . .

–

–

–

.

.

.

a

n

d

–

–

–

they

became

–

–

much

colder . . .

–

–

–

.

.

.

They

became

–

–

much

older . . .

–

–

–

.

.

.

a

n

d

–

–

–

they

became

–

–

much

colder

–

–

t

h

a

n

–

–

the

rest . . .

–

–

–

.

.

.

w

i

t

h

–

–

–

all

.

o

f

.

that

fuss,

.

a

n

d

.

fun,

.

a

n

d

.

pages

.

o

n

.

the

run . . .

–

–

–

.

.

.

 ~ with

all

.

o

f

.

that

buzz,

.

a

n

d

.

rush,

.

a

n

d

.

lust

–

–

without

.

t

h

e

.

sun.

Reflection: This was a personal struggle-themed poem that I wrote back in June of 2022 where the contemplator looks back on some of the observed whirlwind experiences of the past – and the resulting impacts and consequences. I wrote most of the poem while out one night. It was written fairly quickly – like an hour or so. I didn’t feel the need to continue reflecting on it and tweaking the words like I usually do. It just felt complete, so I immediately published it.

☆°▪︎ BURNING FOR THE LEAD ▪︎°☆

Posted on by Joseph M. Brennan Jr.

Didn’t

.

w

e

.

live

.

a

.

life

.

full

.

o

f

.

cheer . . .

–

–

–

.

.

.

Didn’t

.

w

e

.

live

.

a

.

life

.

s

o

.

dear . . .

–

–

–

.

.

.

racing

ahead

–

–

when

nothing

.

w

a

s

.

clear . . .

–

–

–

.

.

.

pulling

away

.

f

r

o

m

.

a

past

.

s

t

i

l

l

.

drawing

near . . .

–

–

–

.

.

.

burning

.

f

o

r

.

the

.

lead . . .

–

–

–

.

.

.

burning

.

f

o

r

.

the

.

lead . . .

–

–

–

.

.

.

burning

.

f

o

r

.

the

.

lead . . .

–

–

–

.

.

.

b

u

t

–

–

–

still

arriving

.

a

t

.

the

rear . . .

–

–

–

.

.

.

s

o

–

–

–

we

speed,

.

a

n

d

.

steer,

.

a

n

d

.

veer . . .

–

–

–

.

.

.

We

speed,

.

a

n

d

.

steer,

.

a

n

d

.

veer . . .

–

–

–

.

.

.

We

speed,

.

a

n

d

.

steer,

.

a

n

d

.

veer . . .

–

–

–

.

.

.

again,

.

a

n

d

.

again,

.

a

n

d

.

again . . .

–

–

–

.

.

.

burning

.

f

o

r

.

the

.

lead . . .

–

–

–

.

.

.

burning

.

f

o

r

.

the

.

lead . . .

–

–

–

.

.

.

burning

.

f

o

r

.

the

.

lead . . .

–

–

–

.

.

.

outrunning

.

t

h

e

.

fears . . .

–

–

–

.

.

.

outrunning

.

t

h

e

.

tears . . .

–

–

–

.

.

.

a

n

d

–

–

–

outrunning

.

t

h

e

.

mirrors . . .

–

–

–

.

.

.

Always

leaving

.

b

u

t

.

never

here . . .

–

–

–

.

.

.

Always

leaving

.

b

u

t

.

never

here . . .

–

–

–

.

.

.

Always

leaving

.

b

u

t

.

never

here . . .

–

–

–

.

.

.

outrunning

.

t

h

e

.

fears . . .

–

–

–

.

.

.

outrunning

.

t

h

e

.

tears . . .

–

–

–

.

.

.

outrunning

.

t

h

e

.

mirrors . . .

–

–

–

.

.

.

a

n

d

–

–

–

outrunning

.

t

h

e

.

years . . .

–

–

–

.

.

.

We

outrun

.

t

h

e

.

years . . .

–

–

–

.

.

.

We

outrun

.

t

h

e

.

years . . .

–

–

–

.

.

.

We

outrun

.

t

h

e

.

years . . .

–

–

–

.

.

.

burning

.

f

o

r

.

the

.

lead . . .

–

–

–

.

.

.

burning

.

f

o

r

.

the

.

lead . . .

–

–

–

.

.

.

burning

.

f

o

r

.

the

.

lead . . .

–

–

–

.

.

.

b

u

t

–

–

–

still

arriving

.

a

t

.

the

rear . . .

–

–

–

.

.

.

 ~ we

arrive

.

a

t

.

the

rear . . .

–

–

–

.

.

.

a

n

d

–

–

–

then . . .

      –

      –

      –

      .

      .

      .

(again)

      –

      –

      –

      .

      .

      .

    we

    end

      .

      u

      p

      .

  here.

Reflection: This was an energetic, personal struggle-themed poem that I wrote back in May of 2022 where the affected party eagerly strives to get ahead in a life that consumes – ending up in a place where his/her entire life experience has been the pursuit but not much more resulting in a lifelong journey filled with the blur of vacant spaces all along the way.  I was playing the song “London Thunder” by The Foals when the following lines came to mind: “Always leaving but never here.” (the actual lyrics were: “Always leaving, never you.”) – so I modified it slightly. The poem pretty much wrote itself from there. So, if you listen to the song at low volume while reading this poem, you might better get the “feel” of it. It only took me an hour or so to write it which is unusually fast when I write poetry.


HOW TO LOSE YOUR SHIRT IN THE STOCK MARKET WITHOUT LOSING YOUR SHORTS TOO (PART TWO)!

Posted on by Joseph M. Brennan Jr.

It’s always a good idea to adjust your investment strategies over time. Those of you who have been following me closely know that I’ve had a real “knack” over the past 7 months or so for picking losing stocks. However, I refuse to let them go. And I continue buying into them because the buy signals keep getting stronger and stronger with every drop, and they became more and more attractive, with respect to all of the indicators I use to make investment decisions. And, as usual, I refuse to sell on “buy” signals and frequently do the opposite. I wrote about this back in March and didn’t realize at the time that this would become a multi-part series but I suppose that is how things are playing out. Because, here it is a month and a half later and I am still fighting the downs and ups and downs of what has been a highly volatile stock market this year (most of which have been downs).

The fight continues but it appears some of the strategies I’m using are actually helping. I’m still presently a high risk investor (much to my dismay), but not nearly as extreme as I was back in March. As a result of all the buying I have done, I moved from being a low risk investor to a high risk investor. The low point for me so far this year was 14 March when I was 140% invested (yes – I was using margin) and down 30.34% for 2022 (and down 34% since September/October 2021). Presently, I am 92% invested and down 20.65% for 2022 (and down 24% since September/October 2021). Although, the present 21% loss I am experiencing is substantial, it comes as each of the major indexes have either retested (in the case of the S&P 500 and the NASDAQ) or closed below their March lows (in the case of the Russell 2000 index). The last time the major indexes experienced these lows (back in March) my losses were far greater than they are right now. So, things are improving and moving in a positive direction.

I haven’t been overly concerned with having a negative return for 2022 because all of the major stock market indexes are getting hammered this year so far (the recent lows being a 13% loss for the S&P 500 Index, a 20% loss for the NASDAQ, and a 16% loss for the Russell 2000) and even the ultimate, safe haven, low risk investment (the bond market) has gotten hammered with a highly unusual 8% loss. Eventually, the market indexes will recover and so will most of the stocks I’m holding. I would be more concerned if I was experiencing substantial losses while the major market indexes were showing significant gains.

You can read about the buy and sell strategies I’ve been using in Part One of this series. I am using the same strategies throughout the rises and falls in stock prices no matter what the cycles might turn out to be. If the stocks are dropping, I’m buying more. And if they are rising, I’m selling more. I continue the process until I get to the point where I am either “all in” (including margin – at least for now) or exit the positions completely.

I’m happy I’ve been modifying my investment strategies. It really seems to be paying off. This is something you always want to get into the practice of doing. Observe what happens and make adjustments to your investment strategies so that you can work towards improving your investment performance over time in accordance with your risk profile. I happen to presently be a low risk investor (although right now I am temporarily high risk) but many of you will probably be higher risk investors. So, your investment strategies will probably be a bit more aggressive than mine.

You can be a very successful investor if you effectively use all of the tools and techniques available to maximize your investment returns. It’s been an interesting investing experiment I’ve been running so far for 2022. We’ll see how things go.

You can learn about all of my investing techniques via my “Invest Like a Pro in 10 Minutes a Day!” series of 4 books where you can learn the “end to end” process to investing and gain key investing insights and skills (https://brighterdayslifecoaching.com/published-books…/)

Also, you can read all about my stock market activities here: https://brighterdayslifecoaching.com/stock-market-activities/

I wish you much success in creating a brighter financial future for yourself, your loved ones, and those who follow.

Happy investing everyone!

#finance #stocks #investing #stockmarket #success

☆°▪︎ THE GOLDEN LIES (OF GOLDEN TIMES) ▪︎°☆

Posted on by Joseph M. Brennan Jr.

I

.

g

r

e

w

.

up

.

i

n

.

a

.

time,

–

–

where

.

fast

.

f

o

o

d

.

bags

.

a

n

d

.

glass

.

bottles

.

w

o

u

l

d

.

carelessly

.

fly

.

f

r

o

m

.

cars

.

driving

.

by . . .

–

–

–

.

.

.

 ~ I

.

g

r

e

w

.

up

.

i

n

.

a

.

time . . .

–

–

–

.

.

.

I

.

g

r

e

w

.

up

.

i

n

.

a

.

time,

–

–

where

.

t

h

e

.

truth

.

t

o

l

d

.

lies,

.

a

n

d

.

even

.

goodness

–

–

sometimes

.

denied

.

a

n

d

.

closed

.

i

t

s

.

eyes

.

t

o

.

the

.

uglier

.

sides . . .

–

–

–

.

.

.

 ~ I

.

g

r

e

w

.

up

.

i

n

.

a

.

time . . .

–

–

–

.

.

.

So,

.

when

.

y

o

u

.

reflect

.

o

n

.

the

.

past,

.

.

a

n

d

.

.

tell

.

me

.

o

f

.

all

.

t

h

e

.

golden

.

times

.

i

t

.

had,

–

–

which

.

did

.

n

o

t

.

last . . .

–

–

–

.

.

.

I

.

can

.

o

n

l

y

.

ponder

.

why,

.

.

y

o

u

.

.

would

.

want

.

t

o

.

believe

.

t

h

o

s

e

.

lies . . .

–

–

–

.

.

.

 ~ I

can

.

o

n

l

y

.

ponder

.

why,

.

.

y

o

u

.

.

would

.

decide

.

t

o

.

die

.

b

y

.

living

.

a

.

p

a

s

t

.

life,

–

–

instead

.

o

f

.

living

.

i

n

.

the

.

light

.

o

f

.

the

.

present,

.

.

a

n

d

.

.

a

.

future

.

that

.

i

s

.

wide

.

a

n

d

.

high,

.

.

a

n

d

.

.

brighter

.

t

h

a

n

.

bright . . .

–

–

–

.

.

.

I

.

can

.

o

n

l

y

.

ponder

.

why . . .

–

–

–

.

.

.

I

.

can

.

o

n

l

y

.

ponder

.

why . . .

–

–

–

.

.

.

I

.

can

.

o

n

l

y

.

ponder

.

why . . .

–

–

–

.

.

.

f

o

r

.

.

.

I

.

g

r

e

w

.

up

.

i

n

.

a

.

time,

–

–

which

.

w

a

s

.

far

.

l

e

s

s

.

kind . . .

–

–

–

.

.

.

a

n

d

.

.

.

I

.

g

r

e

w

.

up

.

i

n

.

a

.

time,

–

–

which

.

paid

.

t

o

o

.

little

.

mind.

Reflection: This was a reflective-themed poem that I wrote back in April of 2022 where the contemplator questions and is conflicted by the mindless commonplace reflections on the “good ole days.” I was playing the song “Give Me Love (Give Me Peace on Earth)” by George Harrison and other 70s songs on my 1973-1975 playlist when the opening lines came to me. The poem pretty much wrote itself from there. So, if you listen to the song at low volume while reading this poem, you might better get the “feel” of it. It only took me an hour or so to write it which is unusually fast when I write poetry.

HOW TO LOSE YOUR SHIRT IN THE STOCK MARKET WITHOUT LOSING YOUR SHORTS TOO (PART ONE)!

Posted on by Joseph M. Brennan Jr.

It’s always a good idea to adjust your investment strategies over time. Those of you who have been following me closely know that I’ve had a real “knack” over the past 6 months for picking losing stocks. However, I refuse to let them go. And I continue buying into them because the buy signals keep getting stronger and stronger with every drop, and they became more and more attractive, with respect to all of the indicators I use to make investment decisions. And, as is usual, I refuse to sell on “buy” signals and frequently do the opposite.

As a result of all the buying I have done, I moved from being a low risk investor to an extremely high risk investor. This can happen from time-to-time and as long as I don’t remain a high risk investor for a long period of time, then that’s probably okay. I haven’t been too concerned because I’ve liked the patient approach I’d been using. And, frequently, losing stocks become leading stocks over time and stocks that continually get clobbered usually experience very strong reversals. So, I keep buying into them.

The low point for me so far this year was Monday (4 days ago – 14 March). I was 140% invested (yes – I was using margin) and down 30.34% for 2022 (and down 34% since September/October 2021). Ordinarily, as a low-risk investor I would rarely be anywhere close to 100% invested in the stock market (much less over-invested). But I was not willing to go down without a fight. And so far it has paid off handsomely. As of today, I am down 9.31% for the year and am 106% invested. So, that’s a huge, 21 percentage point gain in only 4 days. So, I’m very happy about this relatively speaking. It feels like victory even if it’s truly not in terms of me not earning any positive returns so far in 2022.

I haven’t been overly concerned with having a negative return for 2022 because all of the major stock market indexes are getting hammered this year so far (the recent lows being a 13% loss for the S&P 500 Index, a 20% loss for the NASDAQ, and a 14% loss for the Russell 2000). And eventually the market indexes will recover and so will most of the stocks I’m holding. I would be more concerned if I was experiencing substantial losses while the major market indexes were showing significant gains.

Now, a couple of years ago, I would have been “all in” several months ago and have been two or three times more negative using the strategies I had detailed in my “Invest Like a Pro in 10 Minutes a Day!” series of 4 books (https://brighterdayslifecoaching.com/published-books…/). And these might still be very good strategies to use for higher risk investors. But for low risk investors, they may not be. So, I’m very thankful that I modified my approaches quite a bit since then so that I have a chance to experience shallower losses (relatively speaking) and recover from these.

The approach I’m presently using to buy into falling stocks is the following:

  1. If the initial position of a stock I bought drops 10%, and the stock still looks attractive based on the indicators I use to make investment decisions, then I buy 10% more shares than I did the first time (e.g., if I bought 100 shares the first time, then the second time I buy 110 shares: 1.10 x 100 = 110).
  2. If the stock drops another 10%, and the stock still looks attractive based on the indicators I use to make investment decisions, then I buy 10% more shares than I did the second time (e.g., 121 shares: 1.10 x 110 = 121).
  3. I continue this process with every drop.

The approach I am presently using to sell the gains is the following:

  1. I determine what a reasonable gain might be for the stock from the current depressed levels it is trading at (20%? 25%?). If the stock gains that amount from the lowest price I paid, then I sell that set of shares (e.g., if the stock rebounds strongly after the second buy of 121 shares in the above example, then I will go ahead and sell the 121 shares if the gain is substantial enough).
  2. I determine what a reasonable gain might be for the stock from the current level it is trading at after selling the first lot of shares (10%? 15%?). If the stock gains that amount from the most recent sell price, then I sell that next set of shares (e.g., if the stock gains the amount I’m targeting beyond the price I sold the 121 shares for in the above example, then I will go ahead and sell the 100 shares I bought the first time).

So, I am currently using the above process throughout the rises and falls in the stock price no matter what the cycles might turn out to be. If the stock is dropping, I’m buying more. And if it is rising, I’m selling more. I continue the process until I get to the point where I am either “all in” (including margin – at least for now) or exit the position completely.

The above strategy has really worked out well so far. Using my previous strategy, I would have been a much more aggressive buyer on the drops which would have led to much deeper losses and a much longer recovery time.

I’m happy that I modified my investment strategy back in September/October 2021. And this something you always want to get into the practice of doing. Observe what happens and make adjustments to your investment strategies so that you can work towards improving your investment performance over time in accordance with your risk profile. I happen to presently be a low risk investor (although right now I am temporarily high risk) but many of you will probably be higher risk investors. So, your investment strategies will probably be a bit more aggressive than mine.

Another thing I am doing in 2022 to maximize my investment returns is performing tax loss harvesting strategies to offset my realized gains and minimize my tax burden. This essentially, involves selling some of your losses to offset your gains. You can read all about my tax loss harvesting strategies here: https://brighterdayslifecoaching.com/maximize-stock-market-returns-by-performing-tax-loss-harvesting-to-minimize-tax-burden/

To the extent possible, what I plan to do in 2022 to maximize my investment returns will be to hold off on selling until the individual lots of the stocks I purchased passes the one year mark. I rarely do this because I tend to take substantial gains as they happen (and I might continue this practice if the gains are compelling enough). However, if I am successful in waiting a year before selling gains, then I’ll only have to pay 15% taxes on those gains instead of my typical 24% tax bracket. So, the tax incentive is huge for waiting on selling your gains if you have that kind of patience. Often, I don’t. But we’ll see what happens. I know I’ll have to do some additional selling soon since I’m presently 106% invested which is much too high for a low risk investor. But I’ll probably get there eventually.

You can be a very successful investor if you effectively use all of the tools and techniques available to maximize your investment returns. It’s been an interesting investing experiment I’ve been running so far for 2022. We’ll see how things go.

You can learn about all of my investing techniques via my “Invest Like a Pro in 10 Minutes a Day!” series of 4 books where you can learn the “end to end” process to investing and gain key investing insights and skills (https://brighterdayslifecoaching.com/published-books…/)

Also, you can read all about my stock market activities here: https://brighterdayslifecoaching.com/stock-market-activities/

I wish you much success in creating a brighter financial future for yourself, your loved ones, and those who follow.

Happy investing everyone!

#finance #stocks #investing #stockmarket #success #taxes