New Portfolio - starting new life after wipe off

I have paid dearly for not following my risk control rules and wipe off 60% of last year realized profit.

Bear trap - Queue to sell off all contra trades. Bite the bullet

Total estimated contra loss and cut losses = $61K !!!

Huge contra losses wipe off 46% of my last year profit of $134K in days!

I will need to re-strategise in view of very difficult market ahead before hitting the buy button again.

Portfolio update - Buying stocks on sales

Portfolio update - Sold Kep, Bought back Kep, and bought more STX

DOW vs STI

DOW has recovered +2% from its latest low at 12,589 on 8 Jan 08 while STI was at its latest new low 3,323 yesterday, 10 Jan 08.

I believe STI should recover aggressively today.

As of yesterday, DOW is -9.3% from its last high, and STI is -14.3%, so it means that STI has more room to catch up with DOW.

Portfolio update - Bought COSCO, STX and Hyflux

Portfolio update - Bought STX, SML, and Cosco

Realized Profit Target for 2008

My realized profit target for 2008 is $58K. Cheers!

Portfolio update - Contra SGX at loss and Bought Kep

STI DOW index trend

Last DOW lowest on 26 Nov 07 at 12,743, down - 10% from its last highest 14,165 on 9 Oct 07. Last Friday, 4 Jan 08, DOW closed at 12,800, down -9.6% from its last highest 14,165 on 9 Oct 07.

Last STI lowest on 22 Nov 07 at 3,313, down -14.5% from its last highest 3,876 on 11 Oct 07

Last Friday, 4 Jan 08, STI closed at 3,438, down -11.3% from its last highest 3,876 on 11 Oct 07

Win Lost Ratio - Hit score

Portfolio update - Bought SML and STX

Portfolio update - Sold STX and Kep. Bought Yongnam

2007 Review and Strategy for 2008

After reviewing those trades made in 2007, I have made the following observations:

- several contra losses due to lack of fund arising from over-trading.
- averaging down at narrow gap without significant lower average cost.

Change of strategy:
- Enforce discipline of 2% risk limit per counter and 6% risk limit per 6% drop in STI index. This will help to prevent overtrading.

- Harder to do contra trade for counters that are more than $3 due to change in bids. Will focus more on counters that are less than $3