I have now been writing my blog for approximately five months and I have found the process very rewarding. Recently I commented on the benefits of writing a blog or journal so it is certainly something that I will keep doing throughout 2012.
Obviously 2012 has been a challenging time in the markets and although none of my stocks have “taken off yet” I think I have invested in a diverse range of companies that offer significant potential in 2012 and the years to come. I will be posting a brief article on what I would like to see from each of my investments shortly, but for the time being this post will focus more on where I see the blog and my portfolio going in a general sense.
As you would know all my investments are purchased based on fundamental research, however, one of the side benefits of this approach is that I gain an in-depth understanding of the company and its expected future news flow. On top of that I monitor each stock every day and at multiple times throughout the day. This has allowed me to gain an appreciation of strong support and resistance levels that I should be able to take advantage off. As a result I am going to allocate a small percentage of the portfolio >20% towards “trading”.
This will be limited to stocks that I already own or have researched in great detail. The benefit of this approach is that I will be able to utilise my knowledge of the company to generate additional gains in the short term and even if the price was to go against me (in the short term) it is something that I am happy to hold as a long term investment any way.
Obviously this is a slight change to my original strategy and is not something I will do every day/week/month. But when I see an opportunity I want some flexibility within the portfolio to take advantage of it. I will not necessarily trade off charts, but more my knowledge of the company and where strong resistance/support is usually found from my observation of the daily price movement.
Something I have not mentioned on my blog before is the fact that I do have some additional long term shares (blue chips) which I have held since I was around the age of 12-18. As I prove to myself that I am able to generate strong returns in the small-micro cap sector I will be selling off some of these older investments and re-distributing the funds into this portfolio.
I have not mentioned this in the past as most of the stocks have smaller capital amounts invested and are not something that I actively research on a daily basis (like I do with MHM, KGL and OBJ).
On top of all that I would really like to grow the readership of my blog a little more and generate some comments on my articles. So please do be shy, talk up and let me know what you are thinking.
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