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| Saturday, October 20, 2007 |
| A potential Merger! |
Seems like there might be a merger of funds! If you look at this blog http://melynn-lynch.blogspot.com, you will realize that he is an aspiring hardcore fundamental analyst. Even the blog link sounds fundamental. haha. For me on the other hand, while I have made quite a fair bit of mistakes, many in fact, my research is basely more on portfolio management, risk allocation, and some half past six technical analysis.
For my handling of my funds, I have realized that though TA tells you which direction it will go, it does not tell you how far it will go. This is especially true for a trend follower like me. However, with FA factored into the analysis, it will provide more depth on how far it can go.
At the point of typing, I am really excited by the prospect because this is something we have never done before. There will be lots of beneficial points from this merge.
A) More funds makes the approach easier as we could hold larger positions. We could now think of how to maintain the base of our holdings and take profits at the same time. It will be more cost efficient now as we have more power.
B) Two extreme schools of thought will be beneficial. Even though both of us are quite raw in our
trade, we believe that constant learning will improve our the odds of having a big runner.
However, lots of administrative work is needed at the moment
1) The standard operating procedure of analysis and asset allocation
2) Scenario analysis
3) How to approach disputes with peace.
My my my, this is so exciting. However, both of us have not gone through a crash/recession, so we do not know if we could really handle that. Furthermore, it is always likely that my TA or his FA will pull the fund down. Anyway, Asset Allocation is the main key to success and we feel that if this is ironed out, the probability will swing to our favor. Maybe if time allows, we will set a combined blog that tracks our holdings. Watch that space if that happens then!Labels: NenixDreams Fund |
posted by Nenix @ 11:19 PM   |
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| 2 Comments: |
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hey, I'm not as good as you sound me to be. Anyway,over these few months, I realised the importance to factorise some technical indicators into my trading system because the economy is evolving so fast that occasionally you might overlook things.I do believe that charts and fundamental information because although they sound contradicting in theory but still, the possibility that the crowd might be right can't be ruled out. Basically,the idea is to leverage on other people's work but having said that, I am not implying that following the crowd is the holy grail to investing. Soundful judgement still has to be made but at least I have an additional guidline to assit me with making decisions
I am currently relishing the possibility of a merge of ideas and hopefully, the transition will be smooth.
Melynn
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hey, I'm not as good as you sound me to be. Anyway,over these few months, I realised the importance to factorise some technical indicators into my trading system because the economy is evolving so fast that occasionally you might overlook things.I do believe that charts and fundamental information because although they sound contradicting in theory but still, the possibility that the crowd might be right can't be ruled out. Basically,the idea is to leverage on other people's work but having said that, I am not implying that following the crowd is the holy grail to investing. Soundful judgement still has to be made but at least I have an additional guidline to assit me with making decisions
I am currently relishing the possibility of a merge of ideas and hopefully, the transition will be smooth.
Melynn
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| 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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hey, I'm not as good as you sound me to be. Anyway,over these few months, I realised the importance to factorise some technical indicators into my trading system because the economy is evolving so fast that occasionally you might overlook things.I do believe that charts and fundamental information because although they sound contradicting in theory but still, the possibility that the crowd might be right can't be ruled out. Basically,the idea is to leverage on other people's work but having said that, I am not implying that following the crowd is the holy grail to investing. Soundful judgement still has to be made but at least I have an additional guidline to assit me with making decisions
I am currently relishing the possibility of a merge of ideas and hopefully, the transition will be smooth.
Melynn