Australian (ASX) Stock Market Forum

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1. If you haven't broken down the financials, which takes time, skill and access, how do you know that they are sound? Access is not an even playing field. Without good access to the numbers and I'm referring to the off balance sheet numbers for banks, you actually have no idea what is going on. If you are really good with banks, even without access you can get a bit of a picture, but it will only show up once it is pretty late in the day.


2. Now this isn't meant in a nasty way, but 6 holdings is not diversified. It is about as concentrated as you can get. You mention risk management. What risk management? You have zero analysis of their financials. In later posts you have simplified diagrams of how the business is supposed to work. Fine. Do they actually? The only way to check is via the financials. In your technical trading, you had a myriad of indicators cross-referencing the same variables, multiple exits etc. Here you have nothing.


3. It is all RISK. You have placed your money into the market where now you have zero control. You only regain control when you exit. Your risk management hinges on those 2 decisions: entry, exit. Both of those decisions are based on whatever analysis you undertake. With a fundamental approach, that is an analysis of the fundamentals. And because you are so concentrated you have to break down every release these companies make. You thought technicals were time consuming? LOL. You will spend more time on the fundamentals than you ever did with the technicals. Why do you think so many go to the technicals? Because it is so easy and fast.


Now I see your yield is +/- 7%.


Here is an ETF I hold:


[ATTACH=full]167194[/ATTACH]

[ATTACH=full]167195[/ATTACH]


It holds all 100 but these are the top 15.


Yields: 12% paid monthly for ease of cash-flow


[ATTACH=full]167196[/ATTACH]


No analysis of financials required. Manage it on a technical basis, 10 mins month. Tracks the QQQ NASDAQ. Rebalanced for you.


The risk is now market risk. Credit risk is more or less eliminated.


jog on

duc


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