In my recent post on where I saw my blog going in 2012 I commented that I wanted to utilise a small percentage of my portfolio (20%) to trade with. The money will be invested primarily on fundamental analysis (i.e. in anticipation with news), combined with my knowledge of the stocks movements from watching it closely on a daily basis and a little bit of technical analysis.
The stocks I will trade will also be ones that I am happy to invest in long term or already hold in the portfolio. This will limit the downside risk as even if the stock moves against me in the stock term I am happy to hold the position for a little longer as part of my overall portfolio. This will obviously not affect my attachment to the stock in any way as any negative fundamental news will see both my trading and investment holdings sold.
For the time being I have not figured out how to combine this into my weekly report to ensure that my calculations are consistent on a weekly basis, but I will give it some thought and should have it set by this weekend.
I know I should post these on the day it happens, but again I have been flat out, so you will have to take my word when I say that I purchased a position in KGL at 11 cents per share just before the end of 2011. The reason for the trade was due to the expected news on the Andash project and Jervois upgrade. Unfortunately none have been forthcoming just yet and it appears as though Andash may still be a couple of weeks away. However, the Jervois update is due any day now as the consultants are finally back at work after their Christmas/New Year break. I expect to sell this trading parcel on the back of either one of these announcements.
As I have previously mentioned I am not after massive gains on each trade but anything from 10-40% will be my target on a consistent basis.
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