Hi all,
I have been thinking about starting a Spa 3 Trader satellite portfolio to get a bit of action. My ASX Investor Core has been going well, thankyou SWS, but being a longer term trading system does not have much happening at times.
My question is has anyone had any more success with a Spa 3 Trader system than the Investor system which returned me 19% last calendar year. Is the extra work involved worth the effort?
As far as I know there is no Public portfolio on the SPA 3 Trader to compare with.
You will certainly get more activity with SPA3 Trader because it is a shorter term more active system, holding more positions for a given capital investment. Several years ago I paper traded ‘Trader’ and found the turnover too onerous for me. Note SPA3 Investor effectively ‘superseded’ Trader for most SWS members from 2015 because the main metrics were superior for the execution effort expended - at that time there was lots of research available comparing the two - you may be able to find the comparisons in the Education Centre. I am pretty sure there was also a Trader Public PF at that time. Note the initial and ongoing commitment to mindset training is the same for both systems.
I guess you will have to define ‘more success’ for yourself - it seems you are focussing on return:- don’t forget drawdown and effort/time. 19% return not enough?
Finally I have recently suggested Gary/David include a comparison of Investor and Trader in one of the PF Comparison webinars which I’m sure would also address your query.
From my recollection in the early days, Trader was more work, more volatile and more profitable than when compared with Investor. The downsides are your brokerage increases, your workload increases and if you have trouble with mindset and volatility, you need to get your tolerance level to peaceful.
Also, if you have your portfolios in your SMSF, you should check with your auditor that he is comfortable as it could be construed as trading.
There is also a greater understanding with risk management, etc.
For me, Investor was a better option than trader.
Hi Guys, thank you for your replies, and the reality check, as I remember from trading Spa 3 about 15 years ago that it was a lot more work. Don’t get me wrong I am extremely happy with 19% return last year and would be happy with that any year.
I do enjoy the trading experience, so I guess you could call it entertainment value. I should take a leaf out of one of the great investors that said " a lot of times you are better off doing nothing for good returns, than thinking doing a lot of trading will bring a positive result" .
I would still like to see a comparison of Spa 3 trader results in recent times vs Investor for interest, and go and practice my golf.
I didn’t realize the Spa 3 Trader ASX public portfolio was available for download.
It looks like Spa 3 Trader ASX has under performed the Spa 3 Investor public Portfolio ASX in all 3 time frames here, but the chart the Trader seems to have out performed Investor over that period by $100K, or am I missing something?
SPA3 Trader really jumped out of the blocks after the COVID bottom as you’ve pointed out, and has outperformed over that time.
Anything can happen, but the SPA3 Investor public portfolio is closer to being out of drawdown than the Trader portfolio, meaning a new All-time High shouldn’t be too far away.
