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ASX Momentum Trade Book - Part 2

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interesting and helpful to me peter. regards your profit price target which is decided at the start, what is that about? you aren't doing the conventional "let your winners run" it would seem to me
 
Trading update: The XAO has closed below 5200 indicating its time to reduce our downside exposure. It doesn't matter that I think the dip is due to the weakness of a few stocks that dominate the index and is most likely temporary.

ASZ: Sell next open. Re-buy at 1.13
SIP: Sell next open.
 
Trading update: Sold ASZ, SIP on the open. Also decided to sell the losing trades in TPM-cfd and ISD this afternoon as the market is still going down.

We're culling the losing trades first, to reduce our downside exposure.
 
Executive decision: All profitable trades were sold at today's close (JHC, UGL, ACX, REG).

EGH is the only open trade remaining.

---------------------------------------------------------

My immediate goals for administering this thread were to support Pav, support ASF and to see this portfolio to a respectable profit. I think I've completed all three and it's time for something new.

The ASX Momentum Portfolio has reached an important milestone. It has earned (realised) over $10K profit. I consider +20% within a year to be a respectable profit trading equities with minimal leverage. In the current market conditions any delay might have seen these open profits disappear and that would have delayed the implementation of some changes I'm planning. Hence my executive decision to realise the profits while we have them.



The ASX Momentum Portfolio will remain a long only ASX equity trading account and I hope a good educational resource. I plan to continue this thread for a full year (16 weeks left). At the end of one years trading I'll ask if there is any interest in continuing.

This thread will continue and re-establish a new portfolio of trades. Of course I'm interesting in re-buying some of the trades we were in today if their prices rise to my triggers.
JHC: Rebuy if trades at 3.20
ACX: Rebuy if trades at 4.80
REG: Rebuy if trades at 5.95

My outlook remains cautiously bullish and I'll be on the lookout for other break-out setups.
 
It's time to announce some minor changes to the ASX Momentum Portfolio and something new.

1. Brokerage costs will be increased to $30rt from the current $12rt. The new cost will be closer to the average costs that retail traders pay. This cost of brokerage is the biggest hurdle to be overcome by small accounts. Currently our trading capital is approx $60K so brokerage costs of $30 is 5% of our individual trade risk of 1%. This $30 cost will be included within the initial risk of every trade. This means every trade will have to make $30 to get to break even.

Yes, this extra cost will slow the portfolio performance, but it won't stop us.

2. We'll trade more sub $1 stocks when the setups are identified. While tech/a's thread was going I didn't even look at any stock that was <$1. I have no intention of trading in a similar manner as tech/a. His style is unique to him. My style is much more relaxed and I prefer to manage these trades on an EOD basis.

Before I announce something new. Are there any suggestions from you that might make this a better thread?
 
NOW FOR THE SOMETHING NEW (and the main reason for grabbing those open profits)

The first 10K profit earned by the ASX Momentum Portfolio will be allocated to another trading account. This account will trade in the forex, index and commodity markets.

Our trading business will operate two accounts.
50K for ASX long only equity trades (and a few cfd trades)
10K for trades in the forex and futures markets.

The individual trade risk for a trade in either account will be based on the combined starting capital plus the realised P&L of both accounts. Currently this total is $60,534.
 
great stuff peter. it's great how your portfolio made some new highs . and yeah, i'm definately interested in following the thread.
 
rather than limiting your exposure, have you ever thought of just trading US shares while the ASX is trending down?
 
Trading update:

ACX: Bought near new high (4.77) SL is 4.40 Desperate to get back in this one.
GEG: Bought new high (1.07) SL is 0.95
SMA: Bought new high (0.049) SL is 0.042

Increased cost of brokerage applied.

grah33: I almost started a US portfolio and even prepared a spreadsheet for it, but in the end decided to trade leveraged markets instead. I'll trade both long and short the world's major markets.
 
EOW 37 update: ASX Momentum Portfolio +21.3% ( 41% invested in 4 stocks ) XAO -13.3% (past 37wk)

Our portfolio lost value this week along with the market.

This weeks sells: ASZ, SIP (Sells triggered), TPM-cfd, ISD ( losers sold to reduce risk)
JHC, UGL, REG, ACX (Sold to realise profits for second trading account)

This weeks buys: SMA, GEG, ACX
Both SMA and GEG have started well, so their TS have been raised to reduce downside exposure.

Outlook: My cautiously bullish outlook is under pressure and we'll be protecting our portfolio if the market continues lower next week.

[ DE means Discretionary Exit ]
 
Peter: when u do trade US shares, which universe do you look at (there are several)? And congrats on getting really good results. U profited a fair bit considering that you traded during the recent bear market.
 
grah33: When I do trade US equities, I stick to the SP500, NDQ100 and Russell2000. I also have a list of optionable stocks that I've trimmed over the years (approx 2500). There are so many to select that I try to find perfect setups.


Trading update: SMA placing a sell limit at 0.065 (+2R) to catch any spikes in the next few days.
 
Ka-ching!
SMA traded today at 0.066 and our sell limit was taken out producing a quick +2R result in 4 trading days for this portfolio.

This trend is capable of continuing much higher given time. Personally I've sold half and will continue to hold half.
 
Trading update: Buying back in on these favourites.

TGR: Bought new high (4.40), SL 4.10
JHC: Pre-empting break-out (3.18), SL 3.00

APO: Love it, but I shouldn't get carried away with one bullish day.
That's why I have to have limits on how much I put at risk.
 
peter, others: I didn't think SP500 was good as the shares are expensive but i now see that they too rise just as fast and just as much as cheaper stocks (or enough anyway) . so why are we focusing on usually cheaper stocks in ASX trading (like a few dollars or so)? i know the expensive shares cost more but often enough the total number of required shares to buy is still under 20% of our capital (it would seem). (and i'm sending you a little PM after this)
 

It's a psychological thing grah33.

People think with cheap stocks say a stock trading at $1.00, it only needs to go up by 10 cents to cash in a 10% profit. They think a stock at say $80, would need to increase by $8 in order to realise a 10% profit.... What's the difference? Not much really...

I personally think that larger operators are able to control the price of a stock which isn't backed by the large institutions a little more effectively. This means there action shows up on the ticker/chart and can easily be observed (and acted upon).

All depends on what theories you subscribe to but think about the operators like Jesse Livermore back in the day. Whilst these type of players aren't well known in the public, I'm sure they exist and play the market as they need to in order to walk away with $$$.

When looking at purchasing a $1.00 stock or an $80 stock, always consider the risk % of the trade to your overall portfolio - regardless of whether your position size is 10,000 shares or 100 shares.... I define my risk first and then position size accordingly.
 

SMA looks great if it can hold above 0.065!
 
Peter are you in APO? One of the systems I trade had a trigger to BOO the day it gapped up and I never bought thinking it would fill the gap. Price action was a give away over the last several days but I haven't being paying attention and can't bring myself to buy it on open tomorrow. Tough lesson I should have just bought it on the initial trigger
 
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