Terry's Model Portfolio: Day 1

Good morning, Club members!

Welcome to this real time exercise. In an attempt to liven things up, I have created a self-imposed contest. My mission is to secure a 100% rate of return on a hypothetical portfolio for Terry by November 21, 2011. I have at my disposal the world. I can use Elliott Waves, moving averages and trends. I can do futures, mutual funds, or stocks, or anything else under the sun. I can go long or sell short. All that matters is beating the 100% goal by November 21, 2011.

Be mindful that I have a day job. So, this will add stress to the endeavor. Unlike the TSP which suits my middle-aged comfort level, the world of high finance is a young person's game. It is stressful because I have to make snap decisions in real time. I will be tapping into my knowledge and experience over the years. I will make mistakes. That is part of the game. The key will be to let the profits run and keep the losses short.

The first hour of the trading day is the most important hour. You can get a feel for the character of the day. Over my left-hand shoulder,I have on CNBC. I see the quotations roll by on the lower screen: BHP, FCX, VXX, WAC, SDS, etc. What to choose? What to choose?

It's 43 minutes to the opening bell. I will get dressed for the day now, so that I can give the opening hour as much focus as possible.

The Set up: We are in a down trend. Thus, rallies should be sold. Of the most importance to me is a selling zone reflected in the long tails on a daily chart in the 1290 - 1294 zone. I consider this a selling zone.

Inspirational Quote: "For example, today I bought the S&Ps when they were down sharply. Two weeks ago, I had written down the number 248.45 as the best entry for the S&P. The low today was 248.50. Consequently, I was able to buy into weakness today and make a good deal of money. I had a plan, I carried it out, and it worked." Marty Schwartz, quoted in Market Wizards, pages 274-275.

Cheers!

Wink

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1. This blog is for educational purposes only.
2. None of the individuals associated with the Las Vegas TSP Investment Club are registered financial advisors.
3. This blog is not an offer to the public to buy or sell any stocks, options, commodities or futures.
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5. This blog cannot take responsibility for the results of your investment and trading decisions.