Getting ready for investments this autumn

The most important decision I can make as a trader is to decide when not to trade.

Unfortunately, this spring and summer have been plagued by tragedies which were private in nature. Early on I decided not to trade while this was going on. First and foremost trading is a psychological challenge. If I have another issue that puts a psychological toll on me I should not trade.

During this time it has been awesome to have other investments that have generated passive income for me. I mostly use the peer-to-peer lending service called Kreditbörsen (Credit Exchange) which I founded a while back.

At Kreditbörsen I receive constant returns of around 10 % per year without having to get engaged in any daily decisions. I simply enter how much I want to lend to each individual borrower to control my risk and then Kreditbörsen does the rest.

The chart above is copied from one of my accounts with Kreditbörsen. Since May 2017 I have kept 45,000 in my account and since then I have received 12 % return after tax which I think is a great base income.

I also have accounts with Toborrow but unfortunately, Toborrow only issues corporate loans while Kreditbörsen caters to private borrowers as well.

I draw from my experience as having operated a private lending business to individuals in Sweden since 2011 when I say that the risks with private debt in Sweden is much lower than corporate debt. The system that Sweden has implemented works and offers great protection for lenders using services like Kreditbörsen to issue loans.

How should capital be allocated? Obviously, this comes down to your goals and your level of commitment. I myself is placing 40 – 50 % of my capital in passive income services that generates between 8 – 15 % per year, this gives me a very strong base.

I am now using this warm summer to prepare for more trading activity during autumn!