Friday, June 19, 2009

Trading Spice Up

I've been trading for almost two months and things are starting to get a little bit boring using my defined strategy. Don't get me wrong, I'm meeting my financial objectives, but it quite boring and there are long lapses of activity while waiting for buy or sell triggers to be met.

Given this, I've decided to "officially" amend my strategy to include a more speculative component. I actual started this in May by buying into TSYS (Telecommunications Systems), then closing out my position when I realized that I was not adhering to my stated strategy. I've seen several interesting opportunities pass me by (TSYS, RIM, ETFC) in the interim and have decided to take advantage of these in a modest way.

As with my main strategy, I've tried to establish a few rules:
  1. Speculative stock should be limited to less than $10,000 in total.
  2. Stop Loss limits may be utilized as appropriate as I do not wish to hold these for the long term in the event of a downturn.
  3. No real selection criteria at this point, but obviously there should be some indicator that the stock represents a good value and has good prospects for the immediate future.

I'm interested to see if this leads to other bad habits!

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