About AMAT Investing
Hi! My name is Jordi, you can find more about me on my LinkedIn profile. I do not have a background in Finance and, I do not work in trading & investing. That may be a good thing.
Why am I doing AMAT Investing?
For me, Trading & Investing (T&I) is the final frontier. The best dedication a person may have. Please, note that I'm using the word “dedication” as I do not want to use words such as job or profession. I do T&I without anyone paying me, I do it because I want. It is not a hobby either, because I take it seriously. It requires strategy, deep thinking, and discipline. It may be the closest thing to a professional sport player. You will play even it there was nobody watching.
T&I is the only “business” where you do not have a manager, colleagues, clients, nor providers. It is you and the markets. Not against the markets but with the markets. You shall flow with the markets, analyze them, measure them, feel them. The only obstacle that you need to avoid you. By trading you will discover yourself. You will face your limits and your ego. With training and perseverance, you will become better yet humble. Markets will humble the biggest of the egos.
I am writing AMAT because it helps me first and foremost. I helps me to order my thoughts, to stick to my words and to increase my discipline. Yet, I would love to know that one day it helps you too. That you find here educational material that helps you make better T&I decisions. Your decisions, not mine.
I find other material out there not fit for ‘normal’ people. There are a lot of books, websites, videos, etc. that explain how to analyze a company, how to build a portfolio, how to do technical analysis. I have more than 80 expensive books about T&I. The majority of their contents are not applicable to normal people. People with 9-to-5 jobs, a family, and a couple of hobbies, that cannot dedicate 20+ hours a week to T&I. People that will never develop the discipline to close a losing position. The famous 90% of the people that, those books claim, lose money in the markets. Have any of the authors think about what’s wrong with their teaching methods that make 90% of their students to fail? You cannot blame the students!
My goal is to develop a T&I method so simple, that even I can follow it. Through my IT career, I have developed the skill to explain complex concepts in the easiest of the ways. Teaching is in my blood. I was born with the talent to teach. I do not posses a great memory, just the opposite, my memory is very volatile and I cannot rely on it. So, I instead of leveraging memory I deconstruct the concepts, analyze their essence, and develop a logic system with less information that yields the same results. If you allow me to show my IT side, instead of using bitmaps (.bmp), I use vectors (.svg), to save images. The resulting image is the same, but the storage required by vector images is much lower.
Finally, I want to make it clear that I do this to make money. I will learn, I will have fun, and I will be entertained, but the final goal is to make money.
How am I going to make money?
Simplicity and clarity will be our guiding principles. We will create 3 different portfolios:
The Forever Portfolio: A very simple ETF portfolio to hold forever. We will do minimal changes to the portfolio if ever. This portfolio will increase in value through capital gains and dividend payments. The less that we trade it the better. We will allocate the majority of our capital. Gains from the other portfolios will be redirected to this portfolio to make it larger.
The Opportunistic Portfolio: Having a trading account and not trading is like having chocolate at home and not eating it. Impossible! We will allow us to trade. The opportunistic portfolio is for mid-term positions. We will trade, mainly ETFs, based on narratives, rotations, or themes. For example, we can enter a position on a humanoid robotics ETF.
The Risk Portfolio: This will be the smallest of our portfolios. We will trade high-risk high-reward opportunities, mainly using simple options positions, such as naked calls or verticals. We will favor 1-to-3 trades, where we will rish $1 to make $3. For example, we will buy a 1-year naked call on the SPY, so a LEAPS, when the right conditions appear.
What am I going to do make money?
I have been analyzing the markets every week for the last couple of years. I’ve develop a system loosely based on the C4 model to draw IT architecture diagrams. Different levels of “zoom” allow me to analyze the economy, the markets, and find trading opportunities, in a well structured way.
This method allows me to gain confidence in forecasting the most probable trend in the market (bull vs. bear), find low-risk high-reward entry points, identify sector rotations, etc.
As markets evolve and as I learn new concepts, I will be evolving this weekly market analysis. True strength lies in flexibility and adaptability.
There will be no trading alerts. I will update the portfolios whenever there is a new position but I am not planning by now to make trading alerts. Why not? Because you shall make your own decisions. Shadow trading has been proven not to work.
Also, I will write about different T&I topics. Just to share my opinion on things like “why volume is irrelevant”, “you are the 90% nor the 10%”, etc. Just for fun :)
Summary
Why: Because Trading & Investment is the last frontier of self-discovery and self-reliance. Emotionally and financially.
What: 3 portfolios: The Forever, The Opportunistic, and The Risk(y)
How: Weekly market reviews and portfolio updates
PS: I wrote this entire post without using AI. English is not my native language and I am not a professional writer. I will not use AI to correct my style in the weekly reviews, all what you are going to read is the unfiltered version of me.
Disclaimer
All content published by AMAT Investing is for educational and informational purposes only. The author of AMAT Investing is not a licensed financial advisor, certified financial planner, or registered investment broker. The author does not possess any formal financial education or professional credentials in the field of financial markets.
Not Financial Advice The analysis, data, and opinions shared on this blog (including discussions on ETFs and stocks represent a personal learning journey and should not be construed as a recommendation to buy, sell, or hold any security. Investing in the stock market involves a significant risk of loss, and past performance is never a guarantee of future results.
Due Diligence Readers are encouraged to perform their own independent research and “due diligence” before making any financial decisions. AMAT Investing and its author are not responsible for any financial losses, damages, or adverse outcomes resulting from the use of information found on this site. Before investing, please consult with a qualified, licensed financial professional.