Investing Period June 1st to July 11th
Portfolio Performance to Date = 4.25%
XIRR = 20% (for a period of 2 months)
Lessons Learn
Portfolio management
1. This marks 2 months of Investing (started on May 12)
2. Etrade Now upgraded to 9.99 per trade. Differences between Absolute Profit lose and with commission getting lesser.
3. 3 stocks instead of 4 stocks seems to be doing better.
Buying
4. Buying only on breakout and on strong reversal seems to be a good strategy.
5. Have to stop buying stocks when it has increased too fast up.
6. Buy stocks on the "bullish accumulation trend", where there is a previous period of strong accumulation. (Riding the wave!)
7. Dont pay a premium for stocks that are too illiquid.
Selling
8. Still do not know the best time to sell stocks. For now, just stick to +20%, or when -8%.
9. Sell stocks on strong weakness and/or distribution
Showing posts with label investing. Show all posts
Showing posts with label investing. Show all posts
Saturday, July 11, 2009
Wednesday, June 17, 2009
Markets have been bleeding the last two days. Stocks have been freefalling. Invested in two stocks that could have a quick turnaround in this apparent downtrend.
MR
high volume on long white candle, decreasing volume on decreasing prices.
very thinly traded. less bullish due to the dark cloud cover.
MR
high volume on long white candle, decreasing volume on decreasing prices.
very thinly traded. less bullish due to the dark cloud cover.
| 17-Jun-09 | -2,338.68 |
| 17-Jun-09 | -2,311.40 |
Sunday, May 31, 2009
1st month of Investing!
Monthly Update
12 May 2009 - Buy ERII @ 7.81.
14 May 2009 - Buy TNDM @ 26.7
18 May 2009 - Buy WATG @6.53 28 May 2009 - Sell WATG @ 7.55 (+15.6%)
21 May 2009 - Buy Thor @ 27.30 21 May 2009 - Sell Thor @ 26 (-5.6%)
22 May 2009 - Buy QSII @ 52 29 May 2009 - Sell QSII @ 29 (-5.8%)
28 May 2009 - Buy LFT @ 27.19
29 May 2009 - Buy PEET @ 25.74
Total Trades = 10 Trades. ($20*10 = $200)
Portfolio Performance to Date = -3.79%
XIRR = 0%
Lessons Learnt:
1. Commissions of USD$20 per trade makes a great significance to overall Portfolio Performance.
2. Need to cut down to holding 4 stocks to 3 stocks to focus more on winning stocks.
3. QSII had an earnings announcement on 29th May. The stock fell 15% instantly. Need to put stop Market Sells during any stock's earnings performance
4. WATG was a winning stock. However, got cold feet and sold the stock too fast. Now its up another 21% (from initial point). Need to find out a good selling system. Currently, using a stop market sell @ latest support level.
5. Buy only on breakouts ( cup and handle) or on strong reversal signs. Buyin PEET was in restrospect a rushed order as I didn't like the feeling of letting money doing nothing.
6. Reduced my portfolio to only 30 stocks as I was looking at too many viable stocks at the same time. The important criterias are
- Accelerating Quaterly EPS
- Accelerating Annual EPS
- Institutional <95%>20%
- ROE > 15%
- High RSI.
Lets see how things go with this.
12 May 2009 - Buy ERII @ 7.81.
14 May 2009 - Buy TNDM @ 26.7
18 May 2009 - Buy WATG @6.53 28 May 2009 - Sell WATG @ 7.55 (+15.6%)
21 May 2009 - Buy Thor @ 27.30 21 May 2009 - Sell Thor @ 26 (-5.6%)
22 May 2009 - Buy QSII @ 52 29 May 2009 - Sell QSII @ 29 (-5.8%)
28 May 2009 - Buy LFT @ 27.19
29 May 2009 - Buy PEET @ 25.74
Total Trades = 10 Trades. ($20*10 = $200)
Portfolio Performance to Date = -3.79%
XIRR = 0%
Lessons Learnt:
1. Commissions of USD$20 per trade makes a great significance to overall Portfolio Performance.
2. Need to cut down to holding 4 stocks to 3 stocks to focus more on winning stocks.
3. QSII had an earnings announcement on 29th May. The stock fell 15% instantly. Need to put stop Market Sells during any stock's earnings performance
4. WATG was a winning stock. However, got cold feet and sold the stock too fast. Now its up another 21% (from initial point). Need to find out a good selling system. Currently, using a stop market sell @ latest support level.
5. Buy only on breakouts ( cup and handle) or on strong reversal signs. Buyin PEET was in restrospect a rushed order as I didn't like the feeling of letting money doing nothing.
6. Reduced my portfolio to only 30 stocks as I was looking at too many viable stocks at the same time. The important criterias are
- Accelerating Quaterly EPS
- Accelerating Annual EPS
- Institutional <95%>20%
- ROE > 15%
- High RSI.
Lets see how things go with this.
Wednesday, May 13, 2009
Finally
Finally!! My etrade account is online.
I'm only going to use one method to account for my portfolio performace - IRR.
May 13th - (USD1,347.17)
I'm only going to use one method to account for my portfolio performace - IRR.
May 13th - (USD1,347.17)
Monday, May 11, 2009
Burying your Head in the Sand
http://www1.eere.energy.gov/vehiclesandfuels/pdfs/program/2008_energy_storage.pdf
About time someone notice that Li-ion batteries have several problems before mainstream application as batteries for EVs.
Not very sure why so many analyst are recommending stocks whose revenue comes from the sale of Li-ion Batteries to rise in price, the economies just doesn't make sense. Then again, whether EVs will be successful or not also relies on the car manufacturer's ability to have a economical car body that is well-suited for housing batteries.
I've always based my expectations on car batteries on the technologies' energy density/$ and efficiency, which I believe is the two most important elements, especially if you use a Life Cycle Cost Comparison Analysis.
I really dislike it when analyst write investment reports like journalist, they try to pick an "attractive" angle of a story eg :" Li-Ions are all the rage!!!" and just proceed recommend a stock.
The worst thing is that when the better alternative is not publicly listed, these analyst just ignore it and go for the "best available publicly listed" stock. Thats just so studpid. It's equivlent to burying your head in the sand.
About time someone notice that Li-ion batteries have several problems before mainstream application as batteries for EVs.
Not very sure why so many analyst are recommending stocks whose revenue comes from the sale of Li-ion Batteries to rise in price, the economies just doesn't make sense. Then again, whether EVs will be successful or not also relies on the car manufacturer's ability to have a economical car body that is well-suited for housing batteries.
I've always based my expectations on car batteries on the technologies' energy density/$ and efficiency, which I believe is the two most important elements, especially if you use a Life Cycle Cost Comparison Analysis.
I really dislike it when analyst write investment reports like journalist, they try to pick an "attractive" angle of a story eg :" Li-Ions are all the rage!!!" and just proceed recommend a stock.
The worst thing is that when the better alternative is not publicly listed, these analyst just ignore it and go for the "best available publicly listed" stock. Thats just so studpid. It's equivlent to burying your head in the sand.
Monday, April 27, 2009
Account
Yesterday went to open an account with etrade.com.sg
Read from a forum that they are quite consistent. They charge a flat rate of USD 9.99-19.99 per trade.
From my previous trading experience I tend to do very little trades, so these costs dont bother me too much.
Apparently they get very few customers who go all the way to their office; most simply post when applying for an account. ( You have to fill in a non-American citizen delaraction form to have tax benefits) Since my office is nearby I decided to just drop in.
Account will be open in 5-7 working days. This will mean I can start trading up next week.
I will be posting Interim IRR of my portfolio from time to time. Lets see how things go
Read from a forum that they are quite consistent. They charge a flat rate of USD 9.99-19.99 per trade.
From my previous trading experience I tend to do very little trades, so these costs dont bother me too much.
Apparently they get very few customers who go all the way to their office; most simply post when applying for an account. ( You have to fill in a non-American citizen delaraction form to have tax benefits) Since my office is nearby I decided to just drop in.
Account will be open in 5-7 working days. This will mean I can start trading up next week.
I will be posting Interim IRR of my portfolio from time to time. Lets see how things go
Saturday, April 25, 2009
Decided to start the investing actual by opening an account on Monday to start trading in US stocks.
Apparently if you file your information properly, you need not pay for taxes if you're not an American citizen.
here's what I have in plan,
1) Set up Trading Account
2) Buy 3-4 stocks from a shortlist of 12 stocks and see how things are going
3) Observe for a few months. If my IRR( or XIRR, since its less than a year) is more than 8%, I can start to think of investing other people's money for higher leverage.
Here is one stock i'm looking at.
1) Energy Recovery Institute
Apparently this company aims to decrease the cost of desalination for it to be competitive with other technologies. There are many reasons why I like this company but its primarily because I embarked on a similar project during my new venture creation of a Heat Pump based MED desalination system. In Theory the system I calculated can be a fraction of current RO costs, but this technology by ERI has already been operating and sucessfully decreasing the cost of desalination for many plants. So I figured, If you cant beat them, Join them!1
Some Reasons why I like this company
1) Great management team. HP Michelet is one of those serial entrepreneurs who has been starting up companies for a very long time.
2) Established Technology. As mentioned they are able to greatly decrease the cost of desal, which is really the achilies hell of desal today. Believe you me, I have read many many reports and I fully agree with that. This translate into a strong substainable competitive advantage
3) High Market Potential. Desalination is growing at double digit rates a yr. Even if ERI captures just a fraction of the market, it can still be very profitable.
Apparently if you file your information properly, you need not pay for taxes if you're not an American citizen.
here's what I have in plan,
1) Set up Trading Account
2) Buy 3-4 stocks from a shortlist of 12 stocks and see how things are going
3) Observe for a few months. If my IRR( or XIRR, since its less than a year) is more than 8%, I can start to think of investing other people's money for higher leverage.
Here is one stock i'm looking at.
1) Energy Recovery Institute
Apparently this company aims to decrease the cost of desalination for it to be competitive with other technologies. There are many reasons why I like this company but its primarily because I embarked on a similar project during my new venture creation of a Heat Pump based MED desalination system. In Theory the system I calculated can be a fraction of current RO costs, but this technology by ERI has already been operating and sucessfully decreasing the cost of desalination for many plants. So I figured, If you cant beat them, Join them!1
Some Reasons why I like this company
1) Great management team. HP Michelet is one of those serial entrepreneurs who has been starting up companies for a very long time.
2) Established Technology. As mentioned they are able to greatly decrease the cost of desal, which is really the achilies hell of desal today. Believe you me, I have read many many reports and I fully agree with that. This translate into a strong substainable competitive advantage
3) High Market Potential. Desalination is growing at double digit rates a yr. Even if ERI captures just a fraction of the market, it can still be very profitable.
Wednesday, April 22, 2009
Current Books
Suddenly Felt I should share the books I'm reading
1) Beyond the J Curve: Managing a portfolio of VC and PE fund
http://www.amazon.com/Beyond-Curve-Managing-Portfolio-Venture/dp/047001198X
Comments:
This is an amazing book. I've always been trying to find a good resource for VC/PE funds that goes beyond the theoretical surface information. Certain important parts such as how does the distribution waterfall actually work, whether the principal is repaid, how and when hurdle rate kicks in seems easy to understand but are difficult to apply. This is especially so when you try to contruct a financial model to see how does a PE/VC fund cashflow look like throughout the fund lifetime.
These concepts are very important but they are not explained fully in other books. So its very difficult when trying to understand a fully structured VC/PE model. This book however does provide much more indept explanation which is good :)
2) The 36 Strategies of the Chinese
Comments:
This is also a very good book, written by a NUS professor. It applies ancient chinese wisdom to a business setting. Being Chinese myself, and having a father who has sucessfully applied these strategies across various situations, I had read this book when I was very young in the past.
Now, with much more life experience, I have a very different pespective when reading this book. I will read it again when I reach 30 and see whether there is any new wisdom gained lol.
1) Beyond the J Curve: Managing a portfolio of VC and PE fund
http://www.amazon.com/Beyond-Curve-Managing-Portfolio-Venture/dp/047001198X
Comments:
This is an amazing book. I've always been trying to find a good resource for VC/PE funds that goes beyond the theoretical surface information. Certain important parts such as how does the distribution waterfall actually work, whether the principal is repaid, how and when hurdle rate kicks in seems easy to understand but are difficult to apply. This is especially so when you try to contruct a financial model to see how does a PE/VC fund cashflow look like throughout the fund lifetime.
These concepts are very important but they are not explained fully in other books. So its very difficult when trying to understand a fully structured VC/PE model. This book however does provide much more indept explanation which is good :)
2) The 36 Strategies of the Chinese
Comments:
This is also a very good book, written by a NUS professor. It applies ancient chinese wisdom to a business setting. Being Chinese myself, and having a father who has sucessfully applied these strategies across various situations, I had read this book when I was very young in the past.
Now, with much more life experience, I have a very different pespective when reading this book. I will read it again when I reach 30 and see whether there is any new wisdom gained lol.
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