As day traders, we have got to look for ways to invest our profits outside
of our day trading accounts. Because if you’ve been trading for as long as I have,
you’d know that money could be made fast just as it could be lost fast.
That’s why its very critical for you to diversify where you are putting your cash
and make that money work for you. Whether it be lamborghinis, private jets, or pokemon cards.
Just kidding, I have none of those things. In this video, I’ll be sharing where I personally invest
my day trading income over the years through five major investment areas.
The goal of this video is just to bring some light to you, and many traders out there,
to start thinking about investing for your future goals or retirement. Because if you
want to be a full-time day trader, you cannot expect any employer benefits
or investment contributions. Your retirement is in your own hands.
Before we start, just a reminder that I am not a financial advisor. I'm just some guy
on YouTube. Wait I’m not even some guy on YouTube.
I’m not saying what I'm doing is the right way or the only way.
But these are the investments that have been giving me steady, stress-free,
and lucrative returns over the last seven years outside of my personal day trading account.
So, if you appreciate these fun and educational videos, all I ask is that you hit a thumbs up
at the bottom of the video and subscribe if you want to see more in the future.
Since I am a full-time day trader in the US stock market,
of course it only makes sense for me to have some of my long term investments
in the stock market as well. Keep in mind I am talking about my investment accounts, not
my short term day trading accounts here. Is very important that you keep them separate.
Let’s start by talking about individual stocks that I hold. When it comes to investing long term,
especially in individual companies. I like to invest in what I personally use,
and what I understand.
I hold most of my individual stocks in my Questrade investing accounts. The only two
individual stocks that I have some significant amount of capital in are Tesla and Apple stock.
The reason I like Apple is because… it’s apple. It’s reliable, I’ve been using
their products since back in college. And they are growing their suite of products.
I have been hearing all sorts of reports and analysts' comments saying that Apple is dead,
and they are not innovating anymore ever since I started trading over 7 years ago.
And all these years the stock just kept steadily going higher and higher.
Now for Tesla this is going to be an interesting scenario. I first started buying Tesla stock
around the same time I posted my first ever YouTube video on this channel
at the end of 2018. I spent the time and I did the research
and I shared it all in the video. Why I wouldn’t bet against Tesla stock in 2019.
At the time I started purchasing the stock was trading around $300 presplit at the end of 2018.
I bought the stocks in my TFSA account. And it just kept tanking and tanking.
On the current split adjusted price that’s equivalent to my holdings selling off
from $75 all the way down to $35. Yes, that’s more than 50% decline in my investments in this stock.
I remember seeing comments on my YT video people saying that I must have gotten
killed, bankrupted, or lost all my money that's why I was making videos on YouTube.
Well, little did they know… I have a very hands-off approach when it comes
to my long-term investments. I pretty much just buy and forget about it.
This is true for all of my other investments I will reveal later on. 27;27
I perhaps check my investments at most once a month, sometimes even once every
quarter. I don’t check every tick on every stock like I do in day trading.
As you can see on the chart, Tesla stock started rallying near the end of 2019
one year after I first bought in and went on to new highs in early 2020,
and after the 5 for 1 split. And the rest was history.
Despite the sell-off with the entire market, despite all the bearish reports saying how
Tesla is overvalued. Elon Musk had never disappointed me. Somebody just needs to
take his twitter away from him. Like seriously. I was a millionaire until Elon tweeted.
Tesla and Apple stock are the only two individual stocks that I regularly add on the dips.
There are investors who are scared to ruin their average. Not me. If I believe
in the companies and their future outlook. I don't mind buying high and buying even higher
on the way up. My most recent buys on these two stocks were during the middle of 2021.
I have a few other individual stock holdings as well, as you can see here. But all of these are a
lot smaller positions than Apple and Tesla stock. I have Disney, Raytheon Technologies, Corsair,
Bumble, and a few dividend stocks like SPG, Simon Properties, APTS and NHI.
SPG and the rest of the REITS: APTS NHI gives exposure to the real estate sector in the US.
I started buying them slowly during the pandemic when the share prices got destroyed
and they were all down more than 50% from the high. I saw this dip
as a good way to start allocating a small amount of my capital for stocks that pay dividends.
They have since then recovered to new highs. All except for
NHI. And that’s also my biggest loser in this portfolio.
Speaking of dividends, they are not my primary focus right now. Since I’m still
young and have 30 or 40 years to let my investments work. I prefer to invest in
high growth potential stocks, and ETF’s that I will mention later.
But I do dabble in some Canadian dividend ETF’s. And I actually prefer these over
the American dividend stocks just because it’s more tax-efficient
for Canadians to earn Canadian dividends rather than American.
So the dividend ETFs I like the most are XEI.TO and XDV.TO from iShares. They give me good
exposure in Canadian energy stocks as well as the banks, which are very regulated and well run in
Canada compared to the US. Both of these provide me with some decent dividend yields as well.
Again dividends are not my primary focus,
but it’s nice to have all the payouts monthly or quarterly reinvested back into buying more shares.
That’s where I get the compound interest, the eighth wonder of the world. Year over year.
Now let’s move on along to the broad market index funds,
which I have more capital invested in than individual stocks on Questrade.
And I invest in these ETFs every 2 weeks on Wealthsimple Investing.
Wealthsimple investing is a Robo advisor. And I really just use it for the convenience
to automatically contribute regularly to all of these ETF’s.
I have my portfolio risk set to HIGH, which is suitable for my personal time horizon
and investment goals. You should evaluate your own needs and situation
before picking your risk tolerance. Personally, I’m aiming for growth here over
the next 20-30-40 years. I’m not scared of market volatility. You can see the
majority of ETFs I’m invested in are in broad market equities in the US,
Canada, and international. My top three ETF holdings are VTI, IEFA, EEMV.
VTI is the Vanguard Total stock market ETF. The expense ratio is only 0.03%.
And this fund tracks the performance of US equity markets in large caps, mid-cap and small caps.
At the filming of this video, the market is near all-time highs. So,
this fund has done extremely well since the drop we had in march 2020.
The next major ETF holding is IEFA. This is a fund by iShares that invests in Large,
mid, and small cap stocks in Europe, Australia and the Far East. Essentially
providing diversification in the international markets outside of the US.
Then we have EEMV. This is another ETF by iShares that invest in Emerging markets equities,
such as China, Brazil, Russia, and India. I would say personally, out of all the ETFs wealthsimple
offers on their platform. This is the one is the most questionable.
The expense ratio is really high at 0.25%, and the returns have be
minimal at just 4%. And I think thats probably due to the recent performance in the Chinese stocks.
The other funds I have are XIC and VUS. XIC allows me to invest in the Canadian equities market,
mostly concentrated in finance and energy.
VUS is another Vanguard US total market etf, but Canadian dollars hedged.
You can look up these ETFs in detail if you want but they are nothing
fancy they are just all broad market ETF’s. Again, the reason I am using wealth simple
robo investing is that I want to do what’s easiest, hands-off, and time-saving for me so
I don’t have to lift a finger to invest regularly and have diversification outside of US markets.
I’m already busy day trading actively on individual stocks. I don’t want to do the
same for investing. I don’t bother picking out individual stocks or hidden gems in the market
that people are always looking to do on YouTube every other month.
The next investment asset class is where I have the most capital invested long term,
just a bit more than the stock market, and that is real estate. I live in Vancouver,
yes one of the most expensive cities in North America, and definitely in Canada.
I bought my first primary residence many years ago in 2016. At the time I was living at home
with my mom and had a decent amount of savings from day trading and of course my former career.
I'm not going to lie here. My mom saw that I was just spending disposable income
partying and going to music festivals, and uh not paying her rent… so one day she told me.
Okay Shay its time to grow up and you’re a$^%& off from that couch. And stop eating.
So yeah I guess she was right. I was kind of stupid with money back then. Yes,
I had to grow up and get off the couch. But I didn't stop eating though.
Once again, my mom was right. Unknowingly to me at the time, putting my money to work and purchasing
my first property was the best financial advice she could have given me. Not only did it allow me
to get my foot trough the door into the Vancouver real estate market 2016, it also forced me to
start budgeting and tracking for all my expenses. Basically, it forced me to grow the F$%^& up
Before this sure making money from trading was great, but I had no idea where the money
went with my spending’s, I didn’t know how to invest and spend in the most tax-efficient ways
and most my cash just sitting there collecting dust under my couch.
Now, I am very bullish on the real estate market in Greater Vancouver overall. This
is my way of capturing both the capital appreciation and monthly income from rentals.
Overall my real estate investment since 2016
had yielded me more than 3X return. And I have no plans on selling anytime soon.
What I love about real estate is the leverage. In Canada, you have to put 20% down payment on all
standard traditional loans. But you get to borrow the 80% from the banks in terms of the mortgage.
All of my loans are fixed-rate at sub 2%. So, I still get to sleep really well at night.
I will continue looking for more real estate investment
opportunities in Greater Vancouver and as long as the interest rate stays low.
Finally, we are now at my crypto investments. Yes, I saved the most speculative and volatile
investment for last. Compared to all the previous asset classes I just talked about,
this is definitely the area I understand the least about.
Therefore, it makes sense for my own risk tolerance to only allocate only a small amount
of my capital here. Essentially, I only invest in what I am comfortable with losing a 100%
The only cryptocurrencies I own are Bitcoin and Ethereum,
essentially the two big dogs in this space. I only started investing in them
in Feb or March of this year. At the time bitcoin was at all-time highs around 60k.
So instead of throwing all my intended capital into BTC or Ethereum all at once. I just dollar
cost averaged in. I regularly bought some every 2 weeks into both of these cryptos,
regardless of whether bitcoin is at 50K, 40K or 30k. I buy all my cryptos on Netcoins
and hold them in Blockfi and a cold wallet under my couch.
Again, I’m only investing in what I’m comfortable with losing,
which is a lot less than my stock portfolio and real estate. So, I already calculated my
risk. Please make sure you do too for yourself for any investment assets.
Hopefully, by this point, you see some patterns in my long-term investment strategies.
I invest in what I know and personally use
regularly, and I choose vehicles that are convenient, time-saving, and stress-free.
Please don’t just buy whatever I invest in.
Make sure to do your own due diligence and assess your own income and tax brackets.
The goal of this video is just to bring some awareness
to you and other traders. Remember to use your short term
profits from trading to build long term investment for your own future retirement.
If you enjoyed this video, please remember to hit the like button,
and subscribe. If you’re interested in learning how to day trade
in a step by step manner, feel free to check out the Humbled Trader Academy on my website.
Thank you guys so much for watching as always,
I’m the Humbled Trader and I will see you guys next time.