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Objective
Strategy
Strategy Fundamentals
Portfolio (Realtime trading exercise)
January 15, 2000. The investment approach we take here may sound very risky to you; but I think this is the most conservative approach to investments. Most of the investors take far more risk than they are aware of whenever they invest into any stock. I am here just starting a real time trading simulation exercise just to show you guys a possible business like appraoch to investments.
Objective: Short to medium term aggresive trading with a target to double the money being risked within a year.
Risk capital 10,000$. Target trades 10. Risk 1000 dollars per trade.
Date | Symbol | Position | Rate | Stoploss | Target | Amount Invested | Amount Risked | Positon Closed | Profit/Loss |
1/15/00 | KM | Buy 500 | 9.5 | 8.5 | 14.87 | 4500 | 500 | 8.5 | -500 |
1/15/00 | PLC | Buy 2000 | 2.12 | 1.62 | 3.90 | 4250 | 1000 |
Opened 4.5 on 03/08/00 |
4,000$ |
1/15/00 | ORCL | Buy 2 Puts @100 | 5 | 0 | 20 | 1000 | 1000 | 0 | -1000 |
3/20/00 | IDC | Buy 200shares | 28 | 23 | 50 | 5600 | 1000 | 23 | -1000 |
3/20/00 | NTAP | Keep a limit order to Buy One Put 200 |
10$(should be executed when stock is 210plus |
0 | 40 | 1000 | 1000 |
3/30/00 40$ Stock price 155 split adjusted |
|
3/20/00 | IOM | Buy 1500 | 4.06 | 3.45 | 6plus | 6000 | 1000 | 3.45 | -1000 |
4/03/00 | AMZN | Buy 5 puts at 60$ | 2 | 0 | 10 | 1000 | 1000 |
10(48$ 04/13/00) |
4000 |
4/15/00 | IOM | 50 Call Options @5- 05/00 | 0.18$ | 0 | 1$ | 1000 | 1000 | 0 | -1000 |
4/15/00 | MO | 9 calls @22.5,05/00 | 1.12$ | 0 | 5 | 1000 | 1000 |
4.75$ 5/15/00 |
3500 |
5/15/00 | Dell |
5 calls @50, 06/00 |
2 | 0 | 8 | 1000 | |||
6/8/00 | EEEE | 1000 | 4 | 3 | 8 | 4000 | |||
6/8/00 | ZIPL | 500 | 5 | 3 | 15 | 2500 | |||
TOTAL | PROFIT |
Trade justifications:
KMart: Purely technical. 9.25 is a very strong support level. Economy and Christmas both great. Some good news expected or the quarterly result should take the stock to its target.
PLC: Purely technical. 2 dollars a strong support level. Volume dried up. A little higher bottom seems in the formation and the uptrend is likely very soon. New CEO. Revenues increasing. (03/08/00. Great. Opened at 4.5$ beyond our target of 3.9$. As per strategy, just get out at the target)
ORCL: NASDAQ and this stock both have shown too much volatility (big movement days) during last 2 weeks or so. This should be interpreted as a top-formation and widespread profit-taking by bulls, traders and other knowledgeable sources. ORCL has just bounced back from recent low and it does have broken the upward trend line.
NTAP: Trend line is broken. (great. Book the profit on 03/30/00.)
AMZN: see the stock tips page. (04/13/00. stock price is 48 today!!!!. At the closing, put option should be worth 13 dollars at least)
IOM: Risk 1000$ by buying 50 call options currently quoted 1/8, 1/4. Better than expected results; heavy volume; stronger when tech sector is down 25% last week. Play with quaters like in Las Vegas.
MO: Very strong on the charts. Buy 9 call contracts at 1 1/8. Broken the downward trendline. Great value.
Dell: Very strong breakout from the downward channel on 5/12/00. Should go up fast. Stoploss:44
EEEE: 4$ is a good support level. It is a fast growing 1 b$ sales company...Good value..
ZIPL: A good upward breakout...