My 2016 Challenge

[muss1]

Just for you winner:

Portfolio at close today

http://20kstockproject.blogspot.com/2016/02/the-portfolio.html

[JBmurc]

Did you have a goal in mind ...aka as a investor I would think 20-30% would be a great outcome ....for me as a trader 100% p.a so far It's looking good up round 30% so far for 2016

[muss1]

Did you have a goal in mind ...aka as a investor I would think 20-30% would be a great outcome ....for me as a trader 100% p.a so far It's looking good up round 30% so far for 2016

Hi JBmurc, I don't have a specific goal in mind as such. However, I am picking companies that I can see rerating 50%+ within the year. But due to the nature of my selections being long term prospects, I am realistic as mr market may decide to oblige next year instead. As you say 20-30% would be great, but hopefully I can get the rerates I'm targeting and get a bit more.

[noodles]

Well I unexpectedly completed my first full position today. Mobile Embrace is the company (ASX:MBE). I had an order in not expecting to be filled after a strong opening but it was.

I made a few posts today as I had the day off and was able to do some research (while watching a good black caps win). I won't always have the time to post so much, but hopefully a few times a week.

Muss1, You are getting some attention in the twittersphere.
https://twitter.com/shareideaasx/sta...51655304601602

[muss1]

Muss1, You are getting some attention in the twittersphere.
https://twitter.com/shareideaasx/sta...51655304601602

Thanks noodles - attacked on Twitter and I didn't even know! Luckily someone has gone into bat for me and corrected Claude's NPAT comment!

[muss1]

Latest update:

http://20kstockproject.blogspot.co.nz/?m=0

[Longhaul]

Hi muss1, just wondering if you are using TA at all?

[muss1]

Hi muss1, just wondering if you are using TA at all?

Hi longhaul, yes and no. I understand some basic TA and will use it to try and time entries, but that is only once I am convinced it's a buy based on FA. If I see a great opportunity based on FA I won't necessarily worry about the TA. For example a large intraday drop that provides good buying. This happened with PRO recently when I bought. It might go lower (it did today) so short term i am happy to ride it out.

After all, I am a long term invester at heart who is happy to ride out price fluctuations with good companies. This isn't fully conducive to a 1 year timeframe obviously, but with all buys I see enough value a year out.

[Longhaul]

Hi muss1, sounds good.

I only ask, since I looked at your blog post about Prophecy and had a look at the chart. I too think there's a real sweet spot using FA first, and TA to time your entry and exits.

In this case, it seems to be in a downtrend right now, or at least little sign of a turnaround. http://i.imgur.com/NnMDVQO.jpg

Did you consider waiting to buy when an uptrend was confirmed? Buying into downtrends puts you on the back foot from the outset. Unfortunately I've learned the hard way!

Note: I'm just trying to figure this stuff out too, but not investing for long term, just trading at the moment.

[muss1]

You're right - and yep I considered waiting for a turnaround. However, this is a company that has such high growth and a fair valuation that I see the SP correcting itself easily as announcements are released over the year. A case of "I'm very happy with the valuation and future prospects and would rather be in than miss out". I may even do the same again and buy my next parcel very soon.

I know it's not the best method, but I am trusting the FA completely on this one. If I'm wrong, I'm wrong anyway. If (when) the buyers show up this thing could move quickly and I'd like to have my position sorted. I know it's a bit muddled but I'm a long term FA invester at heart and can't resist a good deal when it's available.

I'll be writing an update on Prophecy in the next few days as I'm very happy with the announcement.