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Old 03-20-2007, 12:18 AM
kimchi kimchi is offline
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Join Date: May 2006
Location: FU minbet
Posts: 1,246
Default Re: Pooling of human capital for the \'Two Plus Two Portfolio\'

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that took ages but i got it all set up in a yahoo portfolio acccount so its easy to keep track of. pumped approx $10K into each stock, not including fees after first hour its already up 0.28%!!!!

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This is an interesting thing to do and especially to watch, but in order to learn more from the experience, maybe you could consider a few more things:

1. How do you know how much to invest into each stock? A small volatile company represent a much greater risk than a bigger company like GE. Why invest the same amount in each? How about volatility-adjusted position sizing?

2. Have you considered stop-losses and how much of your portfolio are you prepared to risk on each trade before you sell?

3. Why/when/how will you sell?

4. You said 'pumped approx $10k into each stock' so was that all at the same time? What conditions led you into choosing that particular entry?

5. If you have cash reserves, how/when/why will you add to or trim down a winning posistion?

Sorry to be a bit serious, but you can learn a lot from paper trading and when I paper trade I try and treat it as if it were real cash. I know you've been learning and laying your mistakes bare on this board. I think this will be a useful exercise if taken seriously enough.

Anyway, I'll be watching this thread and I'll drop these stocks into my own system and see how they look.

PS - You're a UK investor, right? How are you going to manage the internation diversification side of things?
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