This week was just ok for me. Didn't manage to beat the market as we are both level at 56% mark. But I know this is a long term game and I know that patience is important. Besides, the trends of most of my counters are kicking in and it's just a matter of time I see the rewards.
One significant change to my portfolio is the introduction of Wheelock. As you can see, it holds the largest percentage in my portfolio. There are a few reasons for this.
1) Wheelock is at the lower band of the moderate risk segment (3.17). This means that fluctuation is limited and thus indicates that taking on a larger position will be rather safe.
2) I am trying to trim the total number of stocks (excluding those in CFD) to about 10 to 15. This basically means that I will be taking more risk per position held. While I can save more on transaction fees, it also means that I might end up losing more. It's a balance that I found it very difficult to achieve, on whether to focus on cost cutting (transaction fees), risk incurred (potential losses for holdings) or profits (potential profits for holdings). Anyway, to reduce the number of positions, I could only start by adopting a larger position for subsequent stocks.
3) Property market are lagging at the moment possibly due to the focus on S-shares. People will start noticing it soon once the S-share craze has settled down. Wheelock recently exhibited uptrend and it still way below the price before the correction (The correction of property is way before the recent meltdown due to implementation of higher development charges) Below is the summary for the risks of my holdings and the cutloss price for Monday.
Risky Stocks
Gold - Exit price(EP): 60.55 - Comments: Not selling though as it is a long term holdings MiddleEast - EP: 0.205
Moderate Risk Stocks
AsiaEnv - EP: 0.675 ChinaAOil - EP: 2.50 FerroChina - EP: 2.38 - "Zero Risk" (This means that cut loss point is higher than purchase price, thus implying a guaranteed profit in adverse conditions) TiongWoon - EP: 1.03 - "Zero Risk" Swissco - EP: 1.23 PacAndes - EP: 0.755 CWT - EP: 1.11 - "Zero Risk" Rotary - EP: 1.30 OKP - EP: 0.775 - "Zero Risk" AdvSCT - EP: 0.925 - "Zero Risk" Federal - EP: 0.785 - "Zero Risk" Wheelock - EP: 2.55
Low Risk stocks
Soilbuild - EP: 1.30 Lyxor H China - EP: 20.96 - "Zero Risk" FJBen - EP: 0.84 - "Zero Risk" MMP - EP: 1.14 - Comments: Not selling as it is for the longer term Boustead - EP: 2.30 STI ETF - EP: 36.785 - "Zero Risk" - Comments: not Selling as it is for the longer term.
Please note that this EP is dynamic and it is changing everyday depending on the market conditions. This mechanism is to protect myself from drastic price shocks. However, if there are no price shocks, the only time whereby I will exit a position is when the trend bend. While this might not be as profitable as other strategies, it will at least ensure that I am earning profits.
Labels: NenixDreams Fund |
