October was a bit of a weird one. My overall profits were way down, although my cash flow was sky-high. I didn’t manage to complete any of my goals, yet remember having a good time. Guess, when you’re in Bali it’s easy to forget your failures and just focus on your wins, the warmth of the sun, the good vibes, beaches, coconuts, parties and pools.
Although, I know that I really have to attack and level up in the last two months of the year. At least if I want to sustain my lifestyle here throughout 2021, which will very likely be much harder than 2020. The Corona Plandemic in 2020 just opened a lot of doors, which otherwise would’ve been shut. So, I’m very grateful for the opportunities presented to me in 2020 yet also mindful that this won’t last forever.
So, let’s review what was going on in the Dan Schenk Life. Goals, Profits and Losses as usual below.
I hope you enjoy my entrepreneur recap for October. Let me know any questions or comments in the comments section below
Table of contents
- Personal Update
- My monthly goals
- 1. DSL Trading: Proof of Concept on Live Account
- 2. Read 2 Books in the financial space
- Workstream Overview
- Dan Schenk Life
- Profits and Losses
- Overall Portfolio Performance
- DSL Trading
- Consulting with Tritium Growth Partners
- Cash Flow Overview
- Outlook for November 2020
October was relatively quiet.
At the beginning of the month I moved into my new crib, a massive 3-bedroom Villa in Sanur, Bali with a gorgeous pool, wide garden area and even a pool billiard table. Certainly, the best place I’ve ever stayed. Period. Thank you, Corona for making it happen. You really couldn’t have arrived at a better time in my life.
Besides that, I started the Q4 reading challenge, hence tried to grab my Kindle as often as possible. Reading at home, at the beach and at cafés around here. Still wasn’t able to finish the two books as set in the target. Guess I’m just not reading quick enough ha.
My monthly goals
On to my monthly goals as outlined in my previous Entrepreneur Recap.
Unfortunately, I didn’t close any of my goals last month. The DSL Trading goal failed again, which feels now like the 10th defeat. More about it in the DSL Trading section below.
1. DSL Trading: Proof of Concept on Live Account
Well, it turned out the Proof of Concept for my trading system failed yet again. Meaning, I have now switched gears and going back to the UK market, thus abandoning the US market for now. Apart from May and June this year, which looked like promising months, it just didn’t work out as I expected. Now armed with a new system, I’m testing the waters in the UK market again. More about it below in the DSL Trading workstream.
2. Read 2 Books in the financial space
While I did a lot of reading in October, I just wasn’t able to finish the 600 pages long The Intelligent Investor by Ben Graham in the end. However, I finished Trading in the Zone by Mark Douglas. So, depending on how much time I can dedicate in November and December to reading, I might still be able to finish the 6 books by the End of the year.
Here you find an overview of my ongoing workstreams, which are Dan Schenk Life, Investing, DSL Trading and Consulting with Tritium Growth Partners. Under Dan Schenk Life I’m grouping all sorts of income-generating streams and not just developments on this very website.
Overall, October didn’t bring in a lot of profit, unfortunately. The cash generated via Tritium was at its lowest level since April and on top came some huge losses in the DLS Trading workstream. So ending the month with less than £2k of profits, which certainly isn’t good for my cash-flow. I’m now hoping to be able to finish the year on some stronger 2 months.
Total Profits (all workstreams, excluding any gains/losses from investments): £1,979
Dan Schenk Life
dan-schenk-life.com actually made some revenue last month! Yeah, surprise, surprise!
It turns out, I actually do inspire one or the other of my readers out there, which absolutely means the world to me.
Thanking me for my efforts, I received a generous donation. You know who you are – my sincerest thanks to you and all the best for your future journey 😉
(yeah, in case you didn’t know yet if you enjoy reading these monthly updates, you can actually support me to keep this running via the Donate button – check the sidebar or scroll down to the bottom of the page)
Profits and Losses
You can see my full monthly portfolio review here. Top-level stats below.
October on paper has been the worst month for my portfolio since the start of the rally in April. Despite it all started really promising earlier in the month and for a short moment, I was in the green on the cumulative all-time performance. What followed were a few tough weeks with a few drawdowns. I used those drawdowns to go on a massive spending spree once again to get my overwhelming cash position of over 25% of my overall portfolio back into the market. At least the spending spree was a success, I entered a total of 8 new positions. More than I have done anytime before in a single month. On top, I sold one of my oldest holding for a juicy triple-digit percentage gain.
Overall Portfolio Performance
September 2020: -3.8%
YTD 2020: -7%
Ok, so October was a total failure on this workstream yet again.
I only had a 39% winning trades % and counting 7 red days versus only 3 green ones. That’s not how you make bank.
Consequently, my Profit & Loss curve just points straight downwards.
This means for me, I’m cutting the wire and going back to the drawing board. For about 1 year now, I was trying my luck on the US market. Testing various strategies and systems, but without much success overall.
Hence, I decided to go back to the UK market, trading UK equities. This time including fundamentals in my approach rather than purely trading from a technical perspective.
In short, here’s the game plan I will focus on for the remainder of the year:
- Identifying stocks which are fundamentally overbought, meaning either unprofitable or PE-ratio > 20 and a Book-to-Market ratio > 2
- The share price has seen an increase of over 100% in the past 12 months
I will then try and short these stocks to profit on a downward rally, which undoubtedly comes at some point for every stock that surged 100%+ in one year and doesn’t have the right fundamentals to support such growth.
I will document more details with real examples in the DSL Trading section, once I have been able to prove the concept of this system. I’ll keep you posted.
Total Profit: -£1061.15
Consulting with Tritium Growth Partners
Another a bit slower month with Tritium Growth Partners. We have stopped working with one of our clients and scaled-down significantly with another one.
However, we were also working on closing a new client, which could be a big one for us. Let’s see how it turns out. I’ll update in the next recap.
Cash Flow Overview
At least my Cash Flow was having a blast last month. Finally, some of the profits from Tritium were rolling into my bank account, leading to an explosive rise in my 12-months rolling cash flow KPI, which crossed the £6k mark with my monthly cashflow at an all-time high of over £4,325.
Also, on my expenses, I managed to keep it at a relatively conservative level. But with reduced income, I need to re-adjust my expense target downwards a little to £2,300 per month. And I’m still a little over that. Let’s see that I hit that in November and December.
Here’s the break-down.
- Health Insurance + Health Expenses: £54
- Rent: £681
- Living Expenses: £1,202
- Travel / Leisure / Gifts: £82
- Business Expenses: £31
- Tritium: £6,674
- Dan Schenk Life: £15
Total Outgoing: £2,364
Total Incoming: £6,689
Net Cash Flow: £4,325
Outlook for November 2020
November will look pretty much the same as October, when it comes to my goals. Q4 is all about leveling up for a great 2021.
Goals November 2020
- DSL Trading: Proof of Concept on Live Account
- Read 2 Books in the financial space
Firstly, I’ll be working on proving my new trading concept. As aforementioned, I’m back on the UK market, looking if I can apply the learnings I made in the US market there. This is pretty much the cornerstone of my 2021 agenda. If this fails, everything else fails. So I got to crack this nut.
Secondly, I want to improve my financial literacy knowledge further in order to make sound investment and trading decisions in 2021. Hence, I’ve decided on reading the 6 books below until the end of the year. Finished one and currently reading The Intelligent Investor by Ben Graham, which is quite an odyssey.
Trading in the Zone: Master the Market with Confidence, Discipline, and a Winning Attitude by Mark Douglas
- The Intelligent Investor by Benjamin Graham
- The Little Book That Still Beats the Market by Joel Greenblatt
- Principles: Life and Work by Ray Dalio
- How to Day Trade for a Living: Tools, Tactics, Money Management, Discipline and Trading Psychology by Andrew Aziz
- Unshakeable: Your Guide to Financial Freedom by Tony Robbins
I hope you enjoyed reading this Entrepreneur Recap for October 2020. If you did, you can read other recaps and more content in my entrepreneur lifestyle section.
If you are an entrepreneur out there and you are reading this, please contact me over social or drop me a comment in the comments section below, because I would love to catch-up. I’m also planning to interview other entrepreneurs on this channel, so let me know if you would be interested in that.
And as always, if you have any questions, drop me a comment in the comments section below.
Take it easy!