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CGR and my investment tip for Fressa

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Almost all investment books I ever read over the years advocated some trading principles in the timing of your purchase.(Even the Buffetologists can be considered patient traders, waiting for the right opportunity). So here is my investment strategy 2c worth. All stocks spend a portion of time moving up (rerating), down (correcting - or rerating again) and a disproportionate amount of time trading sideways. My personal style is to anticipate. And anticipation requires careful entries. Only the big boys can spread their wings across vast numbers of stocks sitting in sideways positions in anticipation of the next move. I like to keep my portfolio tight and pick winners. So breakout trading plays an important part of my investment strategy. I have certain fundamental criteria to match before I even consider a stock, but when it breaks, I want to be in, period. My investment style is not to pick undervalued stocks (except if they hit my 'extreme price' rule), but to pick stocks on the move - I can't afford to have sideways moving stocks in my portfolio, I don't have enough capital to spread my wings that far. So, I keep my winners, and dump the sideways stuff (like Zeder, for instance, I am going to dump them) - and most important of all - under no circumstances whatsoever will i ever allow for more than a 20% loss on a position - if I stock moves more than 20% in the red, I get out, irrespective of how much I like it.
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Frequent Contributor
Thanks for advice, what do you look for as sign of break then? I consider price line to break thru 21 days EMA on a daily time frame chart but also check that MACD rises thru 0 level and Stochi thru 20 level (on settings of 6-14-5 for Macd and 25-4-6 for Stochi). 2 hours time frame price line should go in direction of daily trend as well before entry.
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Regular Contributor
Thanks skaaptjop. it seems we adopt a very similar strategy. i appreciate your advise :). a quick question. what stock do you have on your radar?
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Super Contributor
Very good stratergy,on your part.I also follow a similar pattern for most of my stock trades,except when i want to build up a longer term portfolio and of course my property trusts.
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