Thursday, September 29, 2011

Double track investment strategy clarified

In my yesterday entry, I talked about Double Track Investment Strategy. I wish to make a follow up to clarify further because I do not want to mislead/confuse my readers.

Working on two investment strategies are very difficult for a lot of people. It is very confusing because most people will find excuse to flip flop between short term and long term investment strategies. That is how people really can screw up their total return, sitting on heavy losses on speculative investment while taking profit too soon on their long term investment portfolio that is finally delivering.

Even though I am coming out here to share for free of charge but it does not mean I can talk anything I like. I still need to try my very best to maintain high level of ethics and reasonable care.

Why I do double track investment strategy?

I will not talk so much about he long term investment strategy because the benefits and merits are quite clear.

I guess the question is why do I do short term trading.

To confirm my hypothesis. This will force me to keep in touch with market psychology and macro development analysis. I will put a small sum of money to test out my theory.

My most recent hypothesis is Greece default can be contained.

You will be a lot more serious with what you are doing if you have real money on the line.

I cannot tahan when I see over-sold situation. When I see stocks or markets are in very oversold territory. It will be foolish if I don't exploit the situation.

How frequent I do that?

Just may be about 10 trades a year. Remember over trading is bad! I normally consider the money I make as bonus.

How long I hold on to trading positions?

Normally no longer than 4 days.

How much do I commit to this strategy?

Small sum, very small sum. I never commit any serious money to this strategy. It is just for fun.

Why don't I publish this portfolio?

I have no idea whether I have been influencing my readers with what I have written with my Turtle Portfolio. If those readers were to act on what I write, I do not think they will lose money so far.

However, if I put up a short term portfolio, when I really cut losses to minimize damage, and they don't. That will do tremendous damage to their wealth for 2 reasons. First they may get the sizing wrong(placing a lot bigger per bet). Two, they cannot pull off the cut loss trigger. So, it is best I keep this private.

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