Sunday, September 16, 2007

My Strategy - Part I

I try to keep things simple! Thats my motto in life as well as in trading/investing.

If you show me two strategies, one requires an MBA and 3 hours/day of my time and returns 30% annually. The other requires 30 mintues/day of my time and is so easy a 15 yr kid can do it, but returns 20% annually, guess which method I will choose. Thats right, the second one - reasons being 1) I do not have an MBA 2) each day I have only 30 minutes for the markets 3) I am very lazy :)

So I will choose the second strategy and then try to squeeze 30% from it :)

Okay, so what would be a good strategy which does not require too much thinking/efforts, does not require too much of my time and if executed effectively gives steller returns! Options are-
1) Value Investing: Would have been the best strategy for me, buy and forget. But needs quite some time and efforts to analyse and also I am very fidgetty kind of person, I need results right away, I cannot wait for years for the street to acknowledge the true value.
2) Techincal or Event based Swing Trading: Neither very difficult nor time consuming, I have tried it in the past with great results but to be really successful you need to monitor the markets quite frequently during trading hours, which I do not have the luxury currently (day job too demanding!).
3) Momentum/Growth: Identify what is going up and join the crowd, easy to identify, only difficulty is to know when to buy and when to sell, that mostly dictates your returns.

So, as might be obvious I went with the third method but added some icing to fit it in my groove!

Details in Part II. Dinner time!

Cheers!
Lazy

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