Tuesday, April 9, 2019

Invest4Success

What is Invest4Success?

Invest4Success is my premium Stocktwits Room. It's for investors who want to trade a little on the side. I advocate for anyone looking to start trading - or is already trading - to allocate only 20% of their available funds to trading, and put the remaining 80% into Vanguard Index funds as a long term investment

Do Not Touch or Trade Your Vanguard Funds; keep buying and accumulating when you have the money to do so. 

The aim of the room is to provide practical information of potential trades from my free Stocktwits feed and #sectorbreadth analysis.  The idea is to sate the itch for trading without the risk of ruin common with trading. 

So how does it work?

With experience I have found it's best to limit the number of active trades. So at any one time I will not cover more than 10 stocks or ETFs. In any given week, there will probably be one or two new stocks for new members to follow, trade and invest.

For each trade I will offer a sample number of shares to buy depending on your account size; this factors a sustainable risk metric to prevent you from burning your account to zero.


When to Buy?

Below is a sample post from the Stocktwits room:


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Charts are reviewed regularly and updates posted to the room. For example, Odonate Therapeutics ($ODT).


What's the Risk?

Two risk measures are employed:
  1. A set stop defined by price support
  2. A suggested number of shares to trade based on account size
Together, this will prevent you from overexposing your account to any one stock.

When to Sell?

I track all trades to an endpoint. I include some milestones for traders who want to exit at pre-determined points; for example a 3:1 risk:reward worked off the opening stop, a 10% , 15% or 25% gain, or a trailing stop hit. These milestones can be used to take partial profits; e.g. sell a third at a 3:1 risk:reward hit, another third at 25% gain, and the final third on a defined exit or trailing stop hit.

An alternative strategy is to sell covered calls on held stocks or ETFs when they reach overbought levels. This allows you to draw income from your holdings without having to sell. Buying a protective put will help limit the downside if looking for added security. 

What's the Goal?

I'm looking for an annualized account gain of 15% from the stock picks. If successful, I would be outperforming the vast majority of hedge funds and the typical S&P CAGR of 6.8%. I plan to use subscriptions to fund a trading account which will feature these stocks. 

Still Interested?

Try the 14-day free trial.   


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