In need of a simple system to take advantage of my talent for stock picking and entry timing, i have decided to paper trade (test) a weekly system using discretionary stock picks and a fixed total investment starting point, and some weekly rules that are not set in stone just yet.
- 100K starting money that will not be added to from outside the account.
- All buy orders will be for $2000+ rounded up to the nearest even number ending in 0
- All dividends will be reinvested (not DRP)
- Broker will be NAB trade with $14.95 brokerage and 4.25% p.a interest.
- Will be withdrawing 1K per month after 90 weeks, every month while the account balance is over 104K, with the minimum balance rising by 3K every new year.
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.
My goal is to create an account that will live on in perpetuity and give me an income of 1K per Month, every month in perpetuity...comments and suggestions more than welcome.
- PRG - Programmed Maintenance
- 1070 Shares @ $1.86
- Week 1 - 08/01/2013