Trading and Investing

Personal Trading/Investing Objectives

 June 17, 2022

By  Steve

Started reading a book called Trade Your Way to Financial Freedom by Van Tharp. The author makes a big point about identifying personal values and having clear objectives. From this, it seems possible to identify a trading style that suits each of us.

My personal values and what I enjoy are going to be different from yours, and the same is true of objectives.

Luckily, I completed a course on finding one’s values, and I’ve known for some time what I tend to enjoy and thought I’d write a few notes about them. Objectives are somewhat subjective and believe they must include something which relates to a vision coupled with a practical bit about one’s current situation.

CuriosityInvestigation, Observation, Exploration, Inquisitive, Driving Force, Evidence
ChallengeQuestioning, Searching, Reasoning, Discuss, Why, Innovation
IntegrityPrinciple, Straightforward, Consistency, Tenacity, Endurance
FunDry, Satire, Action, Enjoyment, Witty, Play, Humour
UnderstandingWisdom, Judgement, Perception, Intuition, Refinement
DiscoveryRevelation, Learning, Exploration, Opportunity
StabilitySolidity, Perseverance, Commitment, Security
MasteryControl, Command, Pre-eminence, Authority

In addition to my core values are some points about my thinking style

ClarityIdentify what’s most important
VisionAchieving a vision is a pragmatic process which must include current reality
ProbingAsking better questions
Intrinsically MotivatedBeing in a state of flow
Creative & IngenuityThinking outside the box with a handle on reality
Making Unexpected ConnectionsApplying reason to analyse and hone concepts
Upgrade ThinkingNew models and new ideas
Exchange IdeasExchange ideas and explore possibilities

My objectives are to identify a way in which I can trade without being too frantic. My style will tend to be methodological, in other words, build a guidance/principle-based system. Note the word “guidance”, I don’t like the word rules, perhaps this has something to do with my very natural tendency to challenge the status quo (which can get me into all sorts of trouble)! Or it could be at least partly inspired by the Film Reach for the Sky, Kenneth More who played Douglas Bader said, “Rules are for the obedience of fools and the guidance of wise men.”

In terms of profits, I seek a growth on capital invested of 20% per annum compounding.

I need to say here that compounding may indeed be one of the wonders of the world, but it does tend to rely on the investor/trader/me being around long enough. This is not just a moot point, I was born in 1955 and according to the ONS, the average age of death for someone of my age is 85.

Between now and my demise is a scale of probabilities, I could for example drop-dead tomorrow at 13:55 having suffered a brain aneurism or I could go on until, way past 85 in a state of reasonably good health. Who knows?

My vision for life is to keep as reasonably fit and healthy as possible without going overboard. A sort of relaxed, active life, and will tend to play tennis doubles and eat whole foods. I will though allow for things like Hobnob biscuits, they simply are the most delicious things ever created!

My plan is to create enough profits to allow me to buy toys (for me), and leave something for my long-suffering wife and kiddies.

All my investments are in tax wrappers, a small SIPP pot, and an ISA. Note, if I die before 75, my wife gets whatever is in the SIPP, tax-free. If I die after 75, she will need to pay tax at whatever the marginal rate is! Don’t ask me why this strange rule is there, but it is. Whether she who must be obeyed is looking for the most tax-efficient way to despatch me is only of slight concern at the moment!

As far as I understand, ISA’s can be transferred tax-free.

Depending on where I am, I may try to take cash out of the SIPP and transfer it to the ISA. This will be taxed, though.

The ISA and SIPP are not that large, but are big enough to start playing with.

My other objective is to find a system that works for me and my personality. My plan at this stage is to work with something that exists already and use that as a control. If I can beat the control and repeat it, then I may put more emphasis on the new system.

I’m aware that moving and mixing styles of trading have their dangers, but my natural tendency is to challenge the status quo and improve that which exists.

Yes, I may be crazy, but that really is who I am!


My values are are as personal to me as your values are as personal to you.

Discovery - Curiosity - Understanding - Challenge all feature high on my list of values.

I love to play around with ideas, ask hard questions and enjoy working out innovations around business models, strategies, design and systems.

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