The Simple Weekly Income system

[RandR]

I understand you take a certain level of enjoyment from your investing efforts SC.

You appear to be able to save a hell of a lot of your time and effort by purchasing an index etf. Why not?

I know this thread wouldn't be half as exciting if it was. "Trade 35: Once again purchased another lot of STW/IOZ/VAS/IVV."

But have you considered it?

 

[So_Cynical]

I understand you take a certain level of enjoyment from your investing efforts SC.

Yeap a certain level of enjoyment.

You appear to be able to save a hell of a lot of your time and effort by purchasing an index etf. Why not?

Because this is about developing a "simple weekly income system" and i cant see how that would be possible with an index ETF, not any sort of parcel based system anyway, not in the same ETF and not weekly.

Considering the screen shot below, how would i have parcels in STW (for example) purchased over the last 8 months that were 55% in profit and 33% in loss...simply not possible.

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Interesting that ERJ is now (again) the biggest % loser, since first entry the stock has gone to the biggest loser to the biggest winner and now back again to the biggest loser...the key to the success or failure of this experiment will be outperform stocks like ERJ and having rules in place to make sure they are more often than not sold as winners not losers.
~

 

[So_Cynical]

Trade #35

• NHC - New Hope
• 520 Shares @ $3.88
• Week 35 - 20/09/2013

Some Coal exposure to round out the portfolio, struggled to find a pick this week as everything is looking expensive ~ Portfolio now +3.67%[/QUOTE]

 

[tech/a]

So C

I've noticed that your having trouble out performing the market.
I feel your unlikely to do so due to
(1) The number od stocks held
(2) the close to buy and hold strategy.

Is this something you expect?

 

[So_Cynical]

So C

I've noticed that your having trouble out performing the market.
I feel your unlikely to do so due to
(1) The number od stocks held
(2) the close to buy and hold strategy.

Is this something you expect?

The number of stocks held was always going to be a leveller, i think the portfolio performance is perhaps distracting attention from the system as a whole...the selling is where the profits are going to come from and there are many stocks held that are in substantial profit.

I haven't given portfolio performance much thought other than i expected to be in small (under 20%) profit.

 

[So_Cynical]

I took a week off last week, going away this week so might take 1 or 2 more off.

Trade #36

• WEB - Webjet
• 530 Shares @ $3.78
• Week 36 - 30/09/2013

Portfolio now +4.34% and we have a new leader, IPP @ 97.31%

 

[So_Cynical]

(20th-March-2013) Trade #11

• PGI – Panterra Gold
• 25300 Shares @ 0.079
• Week 11 - 20/03/2013

~

In for parcel number 2 of PGI, this time at a much lower price.

Trade #37

• PGI – Panterra Gold
• 41500 Shares @ 0.048
• Week 37 - 17/10/2013

Portfolio now +3.84% and about 1% in dividends paid.

 

[So_Cynical]

Trade #38

• LYC – Lynas
• 41500 Shares @ 0.36
• Week 38 - 28/10/2013

Portfolio now +7.33%

 

[So_Cynical]

Trade #4

• APK - Australian Power & Gas
• 4700 Shares @ $0.425
• Week 4 - 31/01/2013

Trade #39 - week 39 - 07/11/2013

Sold this week for $0.52 due to the AGL take over, 21.44% profit nice way to kick off the approaching sales part of this strategy.

Portfolio now +3.21%

 

[So_Cynical]

The Trade Rules

• 1 Trade (entry or exit) per week as long as system and funds permit.
• Dividends and credits not included in winning and losing % calculations.
• Maximum of 2 parcels per ASX stock.
• First 39 parcels (weeks) will be buying only.
• Week 40 will see the biggest (trade %) loser sold, repeating every 10 weeks (loser must be at least 20 weeks old)
• At week 42 and every 2 weeks following i will sell the 4th or 5th biggest winning Parcel as long as the selection is in profit by at least 12% and not within 5 weeks of an approaching or past ex div date.

Due to selling APK last week because of the takeover and compulsory acquisition, week 40 will see a new position opened rather than the first loser sold....that will now come next week.

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

Trade #40

• IMF – IMF Aust
• 1170 Shares @ $1.71
• Week 40 - 13/11/2013

Portfolio now +3.56%

 

[So_Cynical]

(8th-January-2013)

The Trade Rules

• 1 Trade (entry or exit) per week as long as system and funds permit.
• Dividends and credits not included in winning and losing % calculations.
• Maximum of 2 parcels per ASX stock.
• First 39 parcels (weeks) will be buying only.
• Week 40 will see the biggest (trade %) loser sold, repeating every 10 weeks (loser must be at least 20 weeks old)
• At week 42 and every 2 weeks following i will sell the 4th or 5th biggest winning Parcel as long as the selection is in profit by at least 12% and not within 5 weeks of an approaching or past ex div date.

Slight change in plan..2nd biggest losing parcel has been sold, UGL for a 39% loss as i have decided that selling the biggest % loser would sometimes be stupid, have to say my hearts not in this, selling losers is just not in my DNA.

The UGL chart for me is a screaming buy, and here i'am selling - following this rule set....its an experiment after all, and so i have decided to choose between the largest 3 losing parcels when its time to sell a loser (every 10 weeks) funny that after entering the UGL sale the portfolio lifted by almost 2%

Portfolio now +2.12%

Trade exit #2

• UGL - UGL
• 190 Shares @ $6.75
• Week 42 - 21/11/2013

 

[So_Cynical]

Ok so a bit of house keeping first, trade #39 should of been Trade exit #1

So lets make this Trade #39

• REX - Regional express
• 2300 Shares @ $0.87
• Week 42 - 06/12/2013

Portfolio now -0.87% with 40 trade entry's and 2 exits.

 

[So_Cynical]

So lets make this Trade #41

• AMP - AMP
• 460 Shares @ $4.35
• Week 43 - 09/12/2013

Portfolio now -1.40% More losers (19) than winners (17) now, first time in 6 months, the tide is turning.

 

[skc]

So lets make this Trade #41

• AMP - AMP
• 460 Shares @ $4.35
• Week 43 - 09/12/2013

Portfolio now -1.40% More losers (19) than winners (17) now, first time in 6 months, the tide is turning.

Can you add a little bit more details around your performance? Since your thread is about "weekly income", it'd be good to know how this income part is working out as well as the portfolio value itself.

May be something like:
- Total portfolio value = $XX
- Cash = $XX
- Open P&L = $XX
- Closed P&L = $XX
- Dividends received = $XX
- Overall return = $XX (XX%)

Just a suggestion.

 

[mikepowers]

Goal. 12% annual return per annum on $100k investment. You could have bought TLS a year ago and you would be getting 12% return with franking credits. But the river moves on... My point is that dividends are a wonderful thing for people looking for income. There are still some little gems out there that are still yielding well. I would have a serious think about allocating some of that capital to long term holdings in dividend paying stocks.

Agree! There will always be gold mine out there, utilizing it well.

 

[So_Cynical]

Can you add a little bit more details around your performance? Since your thread is about "weekly income", it'd be good to know how this income part is working out as well as the portfolio value itself.

May be something like:
- Total portfolio value = $XX
- Cash = $XX
- Open P&L = $XX
- Closed P&L = $XX
- Dividends received = $XX
- Overall return = $XX (XX%)

Just a suggestion.

The selling started a couple of weeks back and will now be regular part of this thread...as per the plan.

(8th-January-2013)r.
[/list]

The Trade Rules

• At week 42 and every 2 weeks following i will sell the 4th or 5th biggest winning Parcel as long as the selection is in profit by at least 12% and not within 5 weeks of an approaching or past ex div date.

Ill go with your template except that im not keeping track of dividends and interest on cash, so have decided to just add a lump sum every year (Jan) to represent dividends and interest, thinking that since Nabtrade is paying 3.65% on its high interest trading account.

3% would be a fair approximate return...since the portfolio was more cash than shares over the last 12 months and that at least half the shares held pay dividends, 35 stocks in the portfolio of wich 24 pay dividends...so fair enough i would think.

 

[So_Cynical]

I'm travelling until mid Jan and have no access to my portfolio software..im quessing that EZL meets the requirements for making it my first proper (in profit) sale.

Trade #30

• EZL - Euroz
• 2030 shares @ $0.985
• Week 30 - 15/08/2013

Trade exit #3

• EZL - Euroz
• 2030 Shares @ $1.20
• Week 42 - 24/12/2013

 

[So_Cynical]

Trade entry #42

• EPW - ERM Power
• 880 shares @ $2.30
• Week 45 - 08/01/2014

 

[So_Cynical]

Trade entry #43

• AVA - Aviva
• 8900 @ $0.225
• Week 46 - 20/01/2014

 

[So_Cynical]

Trade entry #43

• AVA - Aviva
• 8900 @ $0.225
• Week 46 - 20/01/2014

Like to be buying the above this week.

Anyway

Trade entry #44

• GNC - Graincorp
• 270 @ $7.57
• Week 47 - 31/01/2014