[update] Trading Strategy Updated 29 Oct 2017

I read my earlier strategy, in Mar 2017 ( here) and thought it was timely to review my strategy.

Trading Principle

My intent of trading is to rapidly expand my investment capital, and eventually moving the earned capital into other forms of assets (e.g. income assets and value assets). Trading positions will be held onto as long as the trend persist, and to add onto these position progressively once i have hit above 10% gains with fraction of holdings. i.e. 15% profit as buffer, add 2/3 of existing position.

• income assets need to be neutral/positive in market outlook, decent yield ( abv 4.1%), increasing DPU per annum. if price surges, and yield becomes unattractive, realise profits.
• value assets are counters which are potentially the next speculative counters for me. give some dividend while i wait for them to be active in trading.

Procedure for trading

 

Identify potential counters using:

• trend. 50ma and 200ma.
• set-up. chart patterns
• volume. strength of buyers and sellers.

Plan trades your trades.

• triggers for entry. Breakout, confirmation above neckline. Trending, break of counter trend. Reversal, after the first pullback.
• stop loss. below support with a generous buffer.
• position size. based on own threshold and the stop loss, determine amount of shares to hold.
• time expiry. based on time frame of my indicators i use in my chart.

Edge

• profit buffer as a psychological edge. scaling up on a counter continuously as long there is a set-up and suitable profits.
• capturing trend. long as long as trend is intact. 

Managing risks.

• individual counter level. stop losses at $500 and below.
• portfolio level. risk exposure at my monthly's saving at any one time.

Comment

this will make trading clearer. but I need a larger overarching strategy.