Ok, as promised, I set aside 6k for some trading play. After a huge burn on my portfolio last year (and still burning), I am going to focus more on trading and observe how monitoring volatility can help me recoup some of my losses.
As I think about my trades, to earn 3k all I need is:
- 1 trade of $3k net profit; or
- 10 trades of $300 profit; or
- 50 trades of $60 profit; or
- 100 trades of $30 profit
Based on my risk appetite and current market, don't think I am able to handle that 1 jackpot trade of $3k profit. Used to be able to do when I was still at the pioneering stage, but in the interest of time I think I need to play my funds more strategically to tap on profits across multiple counters, instead of dumping into 1 and expecting it to grow. Not every stock is like my UMS, or my Keppel DC REIT at the early stage. I must admit I no longer have early entry advantage, as more informed traders and investors enter the market to kill each other.
My second best bet? Probably a mix of the 10 trades and 50 trades. All using my $6k starting fund. First few hands were ok; I mean after watching AEM and some help / guidance from SGBBT, I am able to sense better the entry point. Just keep emotions in check and enter and exit where necessary. 2 winning trades from AEM. Then another from Capitaland; but I must say I was consumed by greed as I tot will go past 2.53, I had half the mind to exit from there but no. End up desperately existing at 2.49 (lucky bounced a bit) before price went further down.
It helps to see the behaviour of the stock. Every stock got its own "playing style" I realise. So far I am more used to AEM's stock movement behaviour; at least there's more trading interest and if I see traders have difficulty pushing down the price further (do I call that support?) then chances are I can enter at that range. To confirm perhaps wait the next day, nevermind letting go a few pips just to get assurance that my hypothesis is correct, and then I enter.
Just re-entered AEM today at 1.46 and by closed at 1.49. Buying pressure seems to be there. So we'll lie in wait and see. Should go past 1.5+ next week, and again I need to remind myself, just cash out once I hit my target selling price. No more than 1.6 or I may find myself in panic selling again.
Another stock I tried my hands on - manulife US reit. Ok not too confident on this, but seems to find "support" at around the 0.09X level. I entered abit too high as the moment after I entered, it went back down to 0.094. I'm pretty confident, though, that I will see a 0.1XX level. And I will cash out then. Again, hit or miss, no one knows, all about chances and probability.
Oh, and a more reassuring thing is with the Cash plus trading acc, my brokerage costs that used to eat into my profit is now down to a measly 0.08%. So for my both trades I only get discounted like, 2-3 dollars? That also gave me more confidence to play since I can cash out at a lower margin than having to feel the pressure to exit after 10pips kind of increase, which is almost impossible to expect from every trade.
This year I'm also reorganising my summary.. Won't show my top 5 since it's practically the same list every mth. Maybe I show my total portfolio, cut by trading and investment.
Update #38:
