Margin of Safety Leads to Big Time Gains - Micron | Snap | Dave Busters | Roblox | Zoom Media

 Hello and a very happy Friday to all. It has been a busy, very busy and blessed year so far. As I mentioned in my last post, I welcome my first son and our last child to this world. So many prayers and blessings for him as he enters this amazing world. I'm watching my kids, my businesses, my friendships, and my mind grow --- and it makes me smile. My goal is to stay positive and push positivity out into the world but being that I specialize in 'risk management' I still find myself constantly trying to create moats to protect that things that are most important to me. We'll delve more into this topic into the future, but I'm curious how do you think about creating moats and protecting things you value? 

I'll take this topic of protection and spin it back to my investments. I will not lie to you 2022 -- has been a year of minimal investments on my part. The first reason is my technology business has been growing leaps and bounds so I've focused my energy here. Secondly, you'll recall that I began to get very cautious on the markets last year and into early this year. I was a bit slow but look back and read, I moved my entire retirement funds out of stocks. I'm not trying to time the market per se, but I am trying to create a moat. Game of Thrones analogy --- If you see a dragon coming, I think you should get out of the way. As some of the investors in my Mansa Musa network have mentioned and I have tried to share -- when the Federal Reserve is raising rates, you better get out of the way. Now to be transparent, my personal stock account is still active and for the most part I am completely exposed to stocks. So I've taken the SAME losses as you -- and anyone who tells you they haven't lost money is basically lying, I call CAP, as they say nowadays.

So how do I change my strategy:

1) I slow down my investing and research more (Example: If you can't pass the test of if I can $10K would I put it all in one stock -- then don't buy the stock)

2) I create a bigger moat, or cushion for loss. (Example: If I like Snap at $8 - I think $7 in this environment is better cushion

3) Don't rush to trade quickly -- Like love, there is no need to be in a hurry.

Here are my trades for October. Many of these were made months ago. The important thing to notice is I got the amount of cushion right. I'll leave you with SNAP. I bought SNAP when the stock plummeted, then is moved up nicely and now they just recently reported earning and plummeted again. The good thing was I bought in with margin of safety (i.e., moat or cushion) that allowed me to withstand all that volatility).

Finally - Don't gawk at the wins, because every trade and every month does NOT turn out like this. But the goal is to try and achieve consistency like this.

Peace and love to and more lessons to come.

#Urbanomics #getthebag #Micron #Snap #DaveandBusters #ZoomMedia #Moat #marginosaftey

I'm Not a Player, I just Trade Alot | Side Hustle 101 | Prism: Appraisal While Black

  

Investing In Yourself – Using Pillars to Build Your Core	https://urbanomics.blogspot.com/2015/04/urbanomics-pillars-path-set-for.html
Setting Budgets + Saving for Black Swans	https://urbanomics.blogspot.com/2013/02/personal-finance-budget-101-free-credit.html
	https://urbanomics.blogspot.com/2019/11/hey-henry-high-earner-not-yet-rich.html
How to Open My First Brokerage Account	https://urbanomics.blogspot.com/2015/04/personal-finance-101-starting.html
Diversify your Life (Mind, Body, Soul, + Investments) HOW TO SEARCH MY BLOG:	Get Updates to Your Email When I Create A New Post:

Also Coming Soon - a series on #HowtoInvest. People have been reaching especially after the spikes in Gamestop, AMC, and other stock to learn the basics. I self taught myself how to invest beginning at the age of roughly 18 and have never stopped. To be a good investor and ensure you are not gambling (speculating), I'll cover (hardest parts of investing in RED):

Budgeting 101 - How to Fund Ur Investments?

Why Stocks as an Investment?

What is Ur Investment Profile + Personality?

How to Pick Stocks?

When to Buy Stocks?

How to Enter My Trade?

How Many Stocks Should I Own?

When to Sell Stocks?

Am I Speculating (Gambling)?

Investing in Your Health

More to come on Investing in Your Health in Pt 2. 

How to Trade Stocks

So knowing when to sell stocks OR anything in life is arguably the hardest thing to do. When should you sell your house, stocks, car?? The second hardest question to answer is how should I find stocks to buy. A closure to some recent trades and why I bought and sold these positions today:

Cost Conscious 

VIACOMCBS - Stock price dropped because cable is steadily declining. I'm not trying to teach an old dog new tricks, I just like buying things on a discount. Won't hold forever because streaming is the future but they also have a streaming option and people that make content still get paid well. This is just an income producing trade as I own the stock as well.

TAPESTRY - Retail was crushed by COVID-19. I've owned the maker of  "COACH" bags and purses and finally being rewarded. I own the stock and this is just for income. 

DAVE & BUSTERS (PLAY) - This stock was so beaten down last year and I've been holding strong. It's an investment on re-opening that's paying off handsomely. I own the stock and this is just for income.

High Risk/Reward 

MICROVISION - For my Reddit WallStreetBets Crowd! I jumped on this stock, don't know anything about it. It's my gamble trade...and this time it paid off. But I didn't invest alot...only what I can afford to lose. After this tiny win, not sure if I'll be back in MVIS. But this is throw away $$ if I had lost.

KRATOS - Of my 8 trades, Kratos is the only one position currently trading at a loss. I heard a tip and took a gamble on a stock I know nothing about. I thought about holding but...I don't want to own something I don't really believe in. Throw away $$

Techy 

ROKU - What can I say, ROKU is so nice, I traded it trice. It's the gift that keeps giving. I own a nice position in ROKU and these are pruning trades. In addition to my main position, not pictured here I try to trade ROKU as frequently as possible to earn income. I own a ROKU streaming bar, cut the cord a year ago...and not going back.

Here are my trades closing today:

Side Hustle 101 - 

1) PPP: 

Why I'm Reading: 

I qualified for PPP and I'd like to think that I'm putting that money to good use. I focus on hiring and employing people in underrepresented groups for the Cybersecurity industry. For a small but growing side hustle 4 persons of color have been paid by doing business with me. I've had one of my best years due to this small scale up in business. This is all without a website and proves that it's more important to give people a service they need. I plan to use the PPP money to build a website, expand and hire more people. I also learned I don't I don't qualify for full loan forgiveness as I was part of the First Loan Draw, but recent PPP loans do. I know, life is not fair but you won't here me complaining. So here an article on Loan Forgiveness:

ppp-loan-forgiveness

2) Boosting Your Business Using Social Media: 

Why I'm Reading: 

Haha, business is good and I don't even have a website. So my future plans will be to use social media to get that bag. 

3 Social Media Requirements

Prism - Appraisal While Black

1) Bias in Housing: 

Why I'm Reading: 

I try not to argue much nowadays, but to those who don't understand the systemic forces of racism, here is a solid article of how a system is not always equal:

Appraisals While Being Black