Investor Round-Up With Stay Invested
Denis Gorbunov, from Stay Invested, emphasizes early investing, risk analysis, and financial independence through ETFs, stocks, and technical analysis.
I am interviewing Denis Gorbunov from Stay Invested.
Every investor has their own way to build their wealth by investing.
The goal for this interview series is to share lessons from investors so you can build an investment style that works best for you.
We are going to learn from Denis’ journey.
Let’s get started.
Denis, can you tell us a little about yourself?
A looming layoff made me start thinking about investing. I used to assume the stock market was a scam. Now I know not investing is the real scam.
That night, my boss told me I’d have to leave in the foreseeable future. I loved my job in research. I loved doing 70-80 hour weeks. But job security is a myth. Everyone needs to make money beyond their 9 to 5 to be financially secure. And if you want to go really far, aim for financial independence. You know, when your passive income pays your bills. I made financial freedom my goal. And I’m inching closer to it.
Beginning to invest was my best financial decision ever.
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Tell us about your publication?
Stay Invested helps you build a life where money is not a worry. There are a number of strategies you could follow to achieve a work-optional life:
invest in ETFs
invest in individual stocks, and
do a mix of both (and possibly add other assets like crypto).
Stay Invested helps you find the style that fits your risk tolerance so you stay in the market for as long as possible to maximize your returns.
Every strategy implies you should keep the big picture in mind. You build wealth if you give yourself enough time. Hence the name of the publication.
Can you describe your investment style?
I have two styles. One is dollar cost averaging into dividend ETFs and Bitcoin. The other is investing in individual stocks, where the entry point is crucial. I typically look for professional setups in stock charts to figure out when my target stock is most likely to go up.
The PIMM Trader is packed with stock ideas and charts to help you plan your next trade and grow your wealth!
How do you find the investments you want to invest in?
I start with technical analysis.
There are 5,000 public companies traded on the US stock exchanges. You can’t dive deep into each one of them. So I set a condition in my charting software like “Revenue growth of at least 15% over the past year.” This reduces the number of charts to analyse to about a hundred. And then I look at each one of them and try to identify institutional investors and professional traders. They’re distinct market participant groups that leave distinct fingerprints in stock charts. Investing with them reduces risk.
And when I’ve found an interesting stock chart, I take a close look at the company’s fundamentals. When they’re aligned with the price action, I invest.
How do you reduce your risk?
Risk analysis is the last step of my investing process. The lowest risk is when stocks reverse downtrends or complete bottoms (seen in their charts), and when they develop intermediate-term narrow sideways trends (a sign of institutional accumulation).
When do you sell?
When the revenues stagnate, the stock chart is at risk of a top, and institutional investors quietly dump the stock.
What is your most memorable investment whether good or bad?
I got burned at the beginning of my investing life when I invested in AT&T. The company’s huge debt ($150 billion) was due to a bad acquisition. When the cash flow became tight, AT&T cut the dividend.
My lesson is to never chase a dividend yield. It should be the last thing to look at if you invest for dividends. Make sure the company is financially sound, then look at the yield.
What advice would you give your younger self?
Start investing as early as you can, preferably in your 20s.
Before You Go
Thanks to
doing the interview. If you liked the interview, please consider giving the post a like and subscribing to Stay Invested.I’d love to have you as a guest on the Investor Round-Up! Just send me a message and I’ll be happy to feature you.
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Disclaimer: The views of the guest do not represent the views of The PIMM Trader or its affiliates. The author of this post is not a financial advisor. The information provided herein is not financial advice and should not be construed as such. This content is intended solely for educational purposes and should not be used as a basis for any financial decision-making. Investing involves risk, including the potential loss of your invested capital. Only invest what you are willing and able to lose.
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Thank you for the great post, Miguel! It's a pleasure to work with you.