What kind of trader/investor am I?

[Pommiegranite]

Hi all,

Would really appreciate some input.

I've been trying to perfect my investing/trading techinque and would like to follow it up with some reading, so that I can improve it.

However, I'm not really sure what techinue I have. Its proved successful so far, but not sure whether I've jsut been lucky, or am missing out on further gains. Allow me to explain:

A) I invest in sub $50mill MC resource exploration companies. Once I like the story, I plan on holding until production ideally. So that's easy, I'm an investor, paying 15% CGT after 1 year

B) However, I also hold another 20% in my wife's account, and buy in and out of the same stocks which I hold in my account. I sell at 10% profit and then rebuy after a 10% fall in SP.

The intention is that if part B goes pear shaped and I buy at 15c..but SP falls to 12c, I can afford to hold until 16.5c, as its a company that I like the fundamentals of in the first place.

Of course, if fundamentals change, I'd probably have to revist my whole game plan.

What do you think? Am I crazy?

 

[stevo]

Pommiegranite
The strategy sounds pretty simple, although I doubt that I would have much success hanging out for the lower CGT criteria.

I am not sure that I understand how your part (B) works. What happens if the stock drops - or do they always make a regular 10% profit? What is the exit strategy for the trading portfolio if they don't make the 10% profit? Do you just hang on regardless (unless the fundamentals change) until production starts?

regards,
stevo

 

[Pommiegranite]

Pommiegranite
The strategy sounds pretty simple, although I doubt that I would have much success hanging out for the lower CGT criteria.

I am not sure that I understand how your part (B) works. What happens if the stock drops - or do they always make a regular 10% profit? What is the exit strategy for the trading portfolio if they don't make the 10% profit? Do you just hang on regardless (unless the fundamentals change) until production starts?

regards,
stevo

Hey Stevo,

Thanks for the reply.

I am a more of fundamentalist than a technical analyst. So Part B works by me holding onto my stock regardless of where it goes down to, as I hold the same stock in portfolio A.

If there is a change in fundamentals, I would need to revisit my whole strategy.

I think I really need to look at the whole macroeconomic situation and put in stop losses on both portfolios accordingly.

 

[Knobby22]

Why do you stop after 10%?
You should let your profits run!