Starting tomorrow, 9 October 2014, this blog will cease updating my trading portfolio. Please go to The Edge’s newly launched financial portal www.theedgemarkets.com to view the latest updates.
Tong’s Momentum Stock Trading portfolio and the fundamental analysis and reports on Stocks with Momentum (which are generated by our proprietary algorithm, based on trading volume and price trends) will be published in The Edge Financial Daily (FD) every Monday to Friday from 10 October 2014.
You can get free digital copies sponsored by SP Setia Bhd by registering at the above portal. A four-page news and analysis bulletin on Singapore business and investment news as well as the fundamental analysis of Stocks with Momentum listed in SGX can also be obtained for free.
By its very definition, these are companies which saw a price and volume breakout. The probability of substantial price movements after we highlight them are more than 90%. Equally, these companies are very likely to make subsequent announcements.
In the experiment we did in this blog by buying many of these companies on the basis that they were selected on Momentum, the verdict is still out. While Tong’s Momentum Stock Trading portfolio is up by 6.2% compared to the 3.1% decline for the stockmarket as a whole since 8 July 2014, it was mostly accounted for by one major successful pick and we lost money in many of the stocks we bought. Or we sold out the stocks too early. The lesson of the experiment is that even for us, with reasonably good knowledge of the equities market, short term trading is extremely high risk and the probability of profiting after transaction costs are less than fair.
Starting 10 October 2014, I am also introducing Tong’s Value Investing portfolio. This portfolio will be published in The Edge Malaysia business weekly paper. The companies selected will be those featured in www.theedgemarkets.com and in the FD, as Insider Asia’s Stock Picks.
This is our attempt to build a portfolio of stocks for longer term investments. We will try to discover companies with sustainable business models, improving productivity, unique products or services, innovative ideas, low stock valuations, good growth and strong balance sheet. Certainly not all the above characteristics are likely to be found in any one company. But there will be some companies with some of the characteristics above that will justify investing.
You can also track your own portfolio with risk management tools and receive email alerts on companies of interest to you, again for free. We will alert you on any newsbreak or announcements of these companies in your watch list. We also provide you the ability to calculate the risk of your portfolio against the market.
We at TEMG are excited about www.theedgemarkets.com and hope you will benefit from it as well. We welcome you to share your thoughts and ideas. This is only version One and we promise more exciting innovations and features soon. So, stay tuned.