Minimum Capital To Become A Full Time Trader?
1 Billion to Buy a House and a Car.
With a capital of one billion rupiah, you can use it to buy a 3 bedroom landed house and a car in the Jakarta area.Of course, the capital needed may be smaller if you live in your hometown or already own a house in the sense that it's paid off.
Because you are full time on the stock exchange, you don't need to think about mobility to the office, meaning that you can live in your hometown as long as there is an internet network for activities on the stock exchange.1 Billion Deposits for Passive Income from Interest
The interest from these deposits is to meet minimum needs such as food, clothing, electricity, credit, etc. provided there are no mortgage payments, cars, or anything else. Although the deposit interest rate is stable, it will never increase to 25% per year, except in very rare circumstances.This means that if we consume deposit interest, the value of money will be eroded.
1 Billion High Dividend Yield Stock Savings
By getting income from high dividend yield stocks, of course our household economy will be better and can truly be full time on the stock market.In contrast to deposit rates, the dividend yield can increase following the business growth of the issuer.
For dividend stability, security, and convenience, this 1 billion rupiah fund should be divided into around 30 high dividend yield issuers or more. More than 30 issuers are fine as long as they are well selected. To hold forever, it is safer to hold many issuers.information about 40 high dividend yield issuers can be seen in my previous article: https://stockbit.com/post/3907865
The dividend yield target of this total portfolio could be an average of 8% net per year or 8.8% gross per year. The 8% net figure is moderate, not ambitious.If you target too high, for example 13% net per year, you are worried that the portfolio composition is not balanced, maybe it is too heavy for certain sectors which may be cyclical in nature so that they are not healthy. The initial dividend yield we received was 8% net over time, it could reach 25% or even 100%.Even though we consume dividends, our asset value can still go up, this is clearly different from deposits compared to my previous article https://stockbit.com/post/2569526
300 million Crisis Reserve Deposits
This is a reserve for the cost of living in the event of an economic crisis in the event of a spike in prices for living necessities or an economic crisis that causes dividends per share of issuers we hold to fall.is expected to be sufficient for a period of at least 3 years.
100 million Gold Reserves
200 million reserved children's school fees
If your sons and daughters have graduated and are working, this reserve may not be needed.
100 million Social Fund Reserves
This social fund is used when a relative is affected by a disaster and needs help or other things of a social nature.
500 million specifically for stock trading capital.this is the capital we actually use for stock trading. If you can consistently produce a capital gain of at least 20% per year, it means the result is 100 million per year.
100 million as initial capital. This is the initial capital for the cost of living for the next year before the shares we hold produce dividends.this includes buying a smartphone or computer if needed as well as credit costs for the next year.
If our capital is not that big I think it's better to be a stock saver eyeing passive income from dividends. Especially if you still have a business outside the stock exchange or you are still a permanent employee.do not be discouraged if the cold money you can invest in the stock market is only 100 thousand per month.
That amount of money can be used to buy BJTM or CLPI or 2 lots of IPCC or BNGA or 2 lots of NRCA etc. which are among the 40 high dividend yield issuers that I shared above. Over time, you will feel how comfortable it is to save stocks in pursuit of passive income from dividends.dividends are profits from real business, relatively safer than capital gains which may be a zero sum game.
It is better to bring regular and as much funds as possible to the stock exchange to get a share of the issuer's net profit (in the form of dividends) than to be too ambitious to take as much capital gain from the stock market as possible with the least amount of capital.The latter principle is less realistic because capital gains may be a zero sum game while dividends are real.
For those affected by layoffs with little ownership of assets, I am sorry, you need to keep trying to get a new job or start a business outside the stock market.or if there is a job offer but with a lower salary it should be considered as long as there are funds that can be set aside for a stock savings program.for those who are exposed to early retirement while your net capital after being deducted from debt is enough, as I mentioned above, I congratulate you, you can safely go full time on the stock exchange if you want.
As I mentioned in my Personal Notes End of last year, I feel I am on the right track https://stockbit.com/post/3353734
Summarizing my investment principles in the stock market are as follows:
# Use cold money, money that won't be used in the next 3 years.
# Chase first passive income from dividends until the dividends are enough to live on.
# Perform a dividend yield (DY) screening.this is an important FIRST stage.
The rationale:
High dividend yield occurs due to low prices, possibly low PER, PBV and DER. This is according to the investment principle, buy at a low price.
# Sort by the highest DY.
# Make sure that dividends distributed come from operating profit, NOT from selling an asset that is only once such as a BRAND.if it comes from selling assets, remove it from the list of screening results.
# Make sure that in the last 5 years you have never lost. If you have lost, remove it from the list of screening results.
# Check ratios such as ROE, DER, PBV, PER etc. Also calculate the AEPD.
# Make sure the GCG is good.
# Learn its EPS growth.
# Select 30 issuers from the above screening with good fundamentals.wide diversification in hold forever is important in order to share risk and share liquidity. Not everything with good fundamentals has high liquidity. But for retailers that are chasing passive income from dividends, liquidity doesn't really matter. For retailers like me, ADMF is still quite liquid but for big funds it is considered illiquid.liquidity is relative, in terms of liquidity, don't follow big fund standards.
# When entering (buying) pay attention to technical analysis and use money management
# Keep monitoring EPS developments and fundamental developments on a quarterly basis.
Saving Stock means understanding its fundamentals.
When we have entered (bought) and planned to hold forever in the course of time, do we not sell the shares that we have bought? If I dream more of getting passive income from adequate dividends.try to think longer for those who currently hold BBRI at an average price of Idr 1250, - of course, their hearts will be at peace because in addition to the 2020 DY of 13.46% (gross) which means around 2.5 X deposit interest is also still floating profit when the market is shaken deeply.
If he is tempted to sell at Idr 1850, - he may not be able to buy back at the current Idr 1250 price.he can buy at the price of Idr 1250, - because he bought it more than 5 years ago and never sold it. That's the peace and inner peace because it holds forever. But that doesn't mean we hold forever. If there are stocks that we hold, the fundamentals will deteriorate.
But sometimes because we need money, we also sell something.for example, I once entered in JPFA at a price of around Idr 1900, - and sold for around Idr 3,000, - or lastly at MLPT bought at 454, - sold at Idr 1,260, - At that time I sold JPFA because I felt the 5% DY was too small .
My experience shows that we can just enter as investors and leave as traders.but currently I'm still pursuing passive income from dividends and inner peace. That's my opinion.
0 Komentar
Post a Comment