Nenix Dreams

After browsing through your blog a bit, I am still confused. What exactly is your investment strategy ? Can you detail your trades and gain/losses in detail so that readers may understand the rationale for your trades ?

By the way, I adopt a value investing approach, similar to your brother.

Thanks.

 

Basically, I am trying to create a trading system. It will be based predominantly on Technical aspects.

The sole purpose of undergoing this project is because in the future, due to possible work commitments, I might not be able to do a lot of research.

As my investment strategy is to ride on the profits and cut on the loss. Based on this mantra, I will ride on the trends. As observed from recent data, there is always a multi-bagger (one that has over 100% returns) a year. So the aim is to ride on this particular trend. However, there are lots of downside of this system that I'm dealing with.

1) To invest in a definite trend, I would have missed the initial part of the trend. While for example, $0.40 and $0.45 might not seem much, if it rises to $1.20, it would be a 300% vs a less than 300%. That is a downside that I have to face for trend trading.

Furthermore, for my exit strategy, I will exit only if a downtrend is being formed. Again, this will cut on my returns. This is a tricky issue and I am constantly trying to figure out the timing to execute the trade.

2) The definitions of the rules itself is another challenge. While in theory, this style of investing does have it's advantages, the setting of rules is a headache. Again, this is what I am working on at the moment.

In summary, my strategy is rather simplistic. Maybe its so simple that people might not find it attractive. Buy when it is rising and sell when it is falling.

P.S. I've taken note of second comment. Will give a more detailed analysis of my trades in future. Maybe I should include a weekly statement on my condition of my trades.

P.P.S. I am open to other strategies. And in my opinion, i respect value investors a great deal. So hope to hear from you soon!