Monday, March 12, 2007

In my spare time I like making models on personal investing, trading strategies, financial goal mapping, financial plans , investments plans etcetera.
One of these which I'm trying to use myself and tweak it regularly is what I call the 10% trading strategy. It addresses 3 different scenarios basically with my supposed market reactions and what the investor (me in this case) can go about doing. As you can see its still primitive and the various permutations / combinations can be dizzying, but for simplicity this is how I would go about. Here it is:


Needless to say it does not take into account the vagaries of the markets in entirety. What this manages to achieve though, is the fact that trading demands consistency and careful monitoring with Stop Losses. After all, if it was easy, everybody would have been minting money by trading on the markets.

2 comments:

Anonymous said...

Can you change colors on that sheet?

;)


Jimi

maYank said...

tippy tippy tap.... what colour you want?!?! :d