Dave Petersen (aka Dave Peterson), Active Investor - Systems:

 

To begin with, I don't own a house even though I could, because it is a terrible investment for a single man like me. Investment-wise, owning a house is like having all your eggs in one basket, as well as it being a black hole for your time, money and energy. I prefer to keep my assets much more liquid, and to use my time for more important things than being a house slave!

 

Shorter Term

 

Swing Trading:

My main short term swing trading system uses global growth related leveraged ETF's; Technology, BioTech, Energy, Metals, China, etc. Again, I only buy leveraged indicies that are related to long term global growth. (one quarter of my total portfolio.)

Capital is divided into 7 sections for 7 possible diversified (as non-correlated as possible) positions, and those sections are further divided into 4-6 sections of cash each. If a chart looks good (i.e. hammered!) I buy in with one unit of cash. If it keeps going down, I average down based on the 20, 50, 120, and 200 day moving averages. I get out on the rising trendline. One unit of cash for each position is never used unless there is a market CRASH. This way the system can always keep moving.

System emerged from my overall investment approach around 2009; the system plus my overall approach together have averaged nearly 8 percent a year over a 9 year period, and I'm getting better and better at it.

 

Cash:

Cash in a CD ladder (One quarter of my total portfolio.)

 

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Long Term

 

Real Estate:

I have positions in 3 global REIT indices that own real estate in North America and Europe. This system is a dividend reinvestment system and is doing well; thus I own property all over the world with positive cash flow.

National and International Companies:

I have another dividend reinvestment system using indices of high dividend yielding companies around the world.

Because both of these systems are always buying shares with their own dividends, the income from them is going up the compounding yield curve (Together they make up one quarter of my total portfolio.)

 

Finally a longer term balanced, diversified portfolio is being managed in TD Ameritrade's Amerivest program for me (Also one quarter of my total portfolio.)

 

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Experiments with small amounts of money:

 

I own 3 stocks, Tesla, Berkshire Hathaway and Amazon; These three stocks are always being rebalanced against each other.

 

I'm also experimenting with faster trading with stops.

 

I also try to trade forex (with tiny amounts of money) but I usually get stomped!

 

 

Dave Petersen

 

(Brush High School, Anderson High School, Lynbrook High School, Long Beach City College, West Valley College, San Jose State University)

 

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