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| Monday, July 16, 2007 |
| AsiaEnv, MapleTreeLog update |
Like stated, these two stocks are rather weak at them moment and they have now touched my trigger point to sell. But however, like all stocks, prices always move up and down. So I was thinking, if I tweak my system to a longer-time frame, I would not be "faked" by signals to sell.
So the process goes something like this.
Buying signals
-> fulfill long term requirements
-> Fulfill short term requirements (an attempt to enter at a good price even though if its longer term, it does not really matter)
Exit signals
-> Risk is calculated should be tagged to the price when you purchase. Lets say, if I buy CAO at $1.88 cost price, the cut loss should be fixed at around $1.69. This is different from in the past whereby the cut loss moves with the closing price.
-> Cut loss should be performed when there is a sudden drop in price in a day or if it hits the set cut loss target during purchase.
-> Short term exit signals are warning signals. The ultra short term signal will be an indication to clear all leveraged positions. As leverage is a double-edged sword, lesser profit would be more desirable than magnified loss. The next short term signal would be and indication to liquidate the main position. During the period when the 2nd degree signal is breached but the mid term signal isn't, one should monitor it closely, determining if it's over reaction or if it has peaked.
Short term movements seems to be too random. However with longer horizon, those good stocks will be able to trend steadily upwards. I feel like I'm learning more with every passing day and I now have a clearer picture of how my system should work. Simulations have been carried out and like I mentioned in other posts, the worst case scenario should at most reduce my total portfolio value by no more than 15%. I've catered 5% extra due to slow reactions etc.
At the moment, I'm really satisfied with my performance. Despite gaining a 70+% in portfolio since August 2006, my net worth has increased significantly due to investments from others (guaranteed returns of 5%). And most importantly, I'm glad that I still keep my feet rooted to the ground. Usually, I will be very complacent if I have good results, but I know market is cruel and it will take it back from you when you least expect it.Labels: AsiaEnv, MapleTreeLog, NenixDreams Fund |
posted by Nenix @ 8:26 PM   |
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| NenixDreams Fund |
| Fund launchprice on 1st August 2006= $1
Target for 2007 = Beat STI index
Current price of NDF as of 1st Oct 2007 = $1.58
Current price of STI as of 1st Oct 2007 = $1.54
Difference with STI index is 0.04
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