Friday 1 September 2023

12% solution 'superhero' portfolio and 'moomoo' trading account - end August 2023 update

The "12% solution"" recommendation email from David Alan Carter for the end of August was for

60% MDY + 40% JNK

So I will have to update the '12% solution' component of my superhero portfolio by selling the QQQ holding and replacing it with MVV.US (MDY.US is not available in the superhero platform). I have placed a 'market' order to sell QQQ which should get filled tonight, and I will then reinvest the proceeds into MVV (I am not sure if the proceeds from the QQQ sale will be immediately 'cleared' and available to reinvest).

David Alan Carter's monthly "12% solution" update email reported the YTD performance for 2023 so far as being +21.5%.

My overall 'superhero' trading account was up slightly during August - from $2,149.11 to $2,162.41

My other 'moomoo' trading app account (where I try to read the entrails of technical charts to make profitable 'long' positions on the index trading VAS ETF) was also slightly up during August - from $5,072.30 to $5,179.63. Although a large part of that increase was due to the value of the 'free' shares allocated to the account as a 'new account' bonus. My actual trading result was a 50% win:loss ratio, with two trades losing an average of $73.94 per trade, and two trades gaining an average of $73.25 each. The win:loss ratio was quite good (but with such a small number of trades it is way too early to draw any conclusions), but the realized losses were higher than planned ($50) due to missing one 'stop loss' alert on opening, and closing out the position well below the 'stop loss' target price. I also closed out one positive position too soon, as it was my first trade and I got nervous and wanted to crystalize a 'profit'. At least I improved my trading discipline during the month, with the deviation of trade price from target decreasing from $0.92, to $0.62, then $0.26 and finally $0. The final 'trade' was actually to reset my existing position with new 'stop loss' and 'take gain' alert levels when my profit target was reached. As the chart seemed to show the up trend was being maintained, I decided not to close and reopen a position, but simply do a 'paper trade' and keep the position open but treat it as a new position.

Compared to the 'benchmark' of the S&P500 index my 'trading' seems to have been reasonably successful during August. Even if my account goes down in value, the trading is still a 'success' if it goes down less than the relevant benchmark. I'll see how this looks after a year to two of 'trading'. The dollar amounts involved are relatively trivial, but it gives me something to play around with while my superannuation and real estate investments just sit there and do their thing over several decades.

Subscribe to Enough Wealth. Copyright 2006-2023

No comments: