**Hey Look Ma, We Made It!** :man_raising_hand_tone1: :raised_hands_tone1:
**As of yesterday’s closing the Net Asset Value of the FY Pub Trading Account reached RM 68,229.43 giving us a 103% Profit since January 2021 (Started at RM 33,641.26) :tada:!**
Our first post announcing the start of this Account: https://stockbit.com/post/6162407
We are incredibly lucky to see our results outperforming expectations and faster than our intended timeframe (as the goal was to achieve 5% gains a month through trading). We are also incredibly proud of our main man @acabks who was solely in charge of this project as he truly over delivered what we intended in the first place and continued to preach what we believe in most: which is that anyone who is willing to put in the work – are able to grow their net worth through stocks!
The purpose was to also show people that even with a relatively small account (RM 30k or so) paired with a good trading system and decent strategy(ies), all we needed was to be patient, stick to our trading plan, follow up constantly in the market and by capitalizing on opportunities we are able to minimize potential downside risks and gain heavily on rewards. Other things to take note on HOW we were able to generate such returns would be that we do NOT need to be trading 10 times a day and get the most volume but rather focus on the quality of our trades and have a good disciplined reward to risk ratio. That means that it is not a MUST to place a trade everyday if you are busy and sometimes, we just need to take a break whenever it is needed to ensure we are not forced in to get a good return and hit that quota. For this account we did NOT practice on what we usually preach which is to Earn, Save, Invest, Reinvest and keep having monthly contributions because we wanted to PURELY see how our returns would be in just trading therefore growing this account to where it is today was solely on the TRADING PROFIT and strategies established paired with some fundamental analysis to pile on to higher conviction trades. Below is a message from Shafiq himself on this project, hope you are able to get some value out of it:
“The FY Public Portfolio is a trading portfolio that we report our performance publicly. The first time I was given this task I took it as a very challenging opportunity to grow and challenge my own personal trading abilities and skills. It was not an easy journey, being a coach and figurehead where people look up to in Facademy’s trading community have made me put myself under the spotlight of pressure to perform to my maximum capabilities, and sometimes unrealistically perfect. The emotional journey is like a roller coaster, obviously the trades has been far from perfect, there were tonnes of easy opportunities that we missed out and also plenty of stupid mistakes that I made along the way. There was also a lot of self-doubt during bad times and sometimes I too lost my self-confidence and motivation along the way during draggy bad times. But I was always lucky to get both the emotional and encouragement support & trust from Warren & the Facademy team to gain my strength to manage the portfolio thus toughening up my mental abilities to handle such pressures, meeting achievable expectations along the way. Hence, I want to take this opportunity here to thank Warren personally, Facademy members and followers, Stockbit community members, and those who were involved directly and indirectly. Thank you all for supporting us and to give us a chance to preach what we do! :pray_tone1::raised_hands_tone1:
The initial idea for this portfolio is actually very easy and simple. In our FY Empowerment coaching sessions, we always share to our members to stick to a '5% satisfied monthly return' portfolio plan and we constantly preach on how this milestone is actually very realistic even for those who are new in the market. Of course, we need to prove to our members that we are able to “walk the talk”, so we created this portfolio with the realistic starting amount in which the capital is considered neither too big nor too small for most of our own members, and stayed focus in our trading mission to get the 5% gains every month as intended.
But after the first three months (since April) it turned out that the execution and the journey to the intended purpose was not as simple & easy as said. Instead of focusing on the disciplined 5%/month I got a little greedy and went aggressive on a bigger reward to risk ratio thus leading to some bad decisions which also took a bad turn during a downturn market and led to some continuous losses along the way. During those months I also took this as an opportunity to flex my own skills and compared this account to my personal performance thinking that I had to beat my own-self thus creating personal struggles on this fund management and increased the risk exposure at wrong times which also led to losses (an emotional problem to have). Our performance was decent enough but sometimes it was below my personal average monthly returns which made me doubt my own abilities and skills occasionally, creating that ‘why can’t I do better’ effect on the account. This, I believe is a very common trait that traders face when they always compare their returns to other traders thus leading to forced or bad decisions, thinking they can be better than others but not knowing that we should actually just stick to our intended ‘satisfied’ returns and not be too greedy when it comes to trading.
On hindsight, it's easy to blame the market sentiment post the very bullish 2020 which the market has been bearish and very choppy ever since especially for the BURSA market before all the political mess. With a few words of encouragement from the team and self-reflection I managed to get back on track and focus onto achieving the intended portfolio goals. To date, our average monthly return comes to 7.9% compounded which is higher than what we anticipated and planned initially. We are very thankful for that, especially as the portfolio have successfully served its purpose.
**To recap the strategy, in the first quarter we maximised our return on the bullish market by going aggressive, resulting to a 63.9% of return.** In the second quarter, the market started to be very choppy and we were quite poor in adapting to the market changes resulting to a loss of 0.07% for the month of April-June. In Q3, we brought the bad baggage from the previous bad quarter but we managed to reset our mindset and changed our trading style accordingly to be more conservative, did so by trading lesser than we should, focusing on concentration of positions and managed to develop a focus on quick “see profit take profit” trades. By doing so we performed better but when we felt the tempo was back we started to go aggressive again in hopes we could get a higher return which resulted in a few losses due to the ongoing market choppiness. High return expectations require higher risks at stake so we made a few wrong moves but we quickly took the L with no emotion, continued to find our profitable high conviction trades and resulted to a 15.9% of profit secured in Q3. A good chunk of our profitable trades also relied on fundamentally backed based cushion trades that allowed us to go in even more especially trading on WARRANTS (i.e. D&O warrants etc) therefore a mix of FA (Fundamental Analysis) + TA (Technical Analysis) is very important when it comes to sharpening our thesis on particular trades!
In terms of the overall trading decision, it was a mix of many trading strategies set out in different timeframes, ranging from day trading (very quick intraday trades) to position trading (buy and hold after a long correction) which depended on overall market situations at the time. With a proper plan and focus to achieve our portfolio goals, we also made unique trading decisions each time which was flexible in any current situation faced and that to me was very important when it comes to adaptability and trading execution during good or bad market times. Statistically, we made 177 trades (transactions) with a 54% winning rate. However, our profit factor is only 1.12x and the expectation value is RM181.03 for every trade which indicates that our strategy execution is actually quite poor ha-ha. Looking at the statistics & comparing those to my personal historical trading performance, I believe I could have performed much better within a faster timeframe. Nevertheless, like what I have shared before, it was an important leap for me in terms of experience and I managed to adapt skills learnt on managing a portfolio which returns are shared to the public. Hopefully, we can all continue to strive better and better in beating the market and hope this post motivates other serious traders to do well and be mindful of emotions during their trading journey. Thank you all again for the support that you have given us and all the best everyone!
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Who is Facademy ?
An establishment set to empower people to grow their portfolios through trading/investing in stocks. We focus on short term trades in KLSE to fuel our long term investments on high quality growth stocks mostly in the US with portfolio management principles.
Beliefs
We all deserve a FY Life
Money is Earned, Wealth is Invested
It's not about Stocks only but a proper FY Goal
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*Want to be part of the Facademy Fam? Kindly contact us or visit us here ; )
https://bit.ly/3uOT2kr