A year in review (swing trade vs position trade)

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“What a year!” I shouted out loud.

In a nutshell, below is my trading summary for 2012:

Swing trade: YTD gain +24%

Position trade :YTD drawdown -15%

Net YTD gain for 2012 = 9%

I can still remember very clearly the day that I’ve decided to commit $AMRN and $USU to the position trade portfolio.  It was in September 14, 2012 when I penned the post: “5 years Bullish Plan?

Do I regret the commitment now that I have the hindsight?

No.

I had been watching and trading $AMRN since 2011 and I felt that September 2012 was the “right” time to commit since the potential for a buyout from a pharmaceutical company might be imminent.  Unfortunately, the month by month delay of FDC to issue NCE (new chemical entity) status to $AMRN for its approved fish-oil drug continued to postpone any constructive offer (if any); as a result, together with the announcement that Amarin would launch the sales & marketing of the drug alone, price tumbled down to current level.

At the same time, I also do not want to miss any sudden announcement of any kind that will propel the stock to $20+ level without me.  I missed the $8+ gap-up on April 18, 2011 because I was trading it.  Now, with a possible buy-out still in the wind (or even a possible successful self-launch), I’m content to sit on my drawdown waiting for judgement day.

I’ve been trading $USU for many years and I really like $USU as this price level.  I thought it was a bargain of the century when I loaded up on it below $1.00.  Now, there is nothing for me to do with $USU except to wait for it to become relevant.  And I believe 2013 may be the year for uranium sector to shine.

$LRAD is another one of my long-term position hold, you can read my history of my $LRAD trade by clicking here.

While these three position trades (AMRN, USU, & LRAD) gave me a 15% drawdown in 2012, I believe that these three musketeers have the potential to make my portfolio multiply generously in 2013.

It is also my belief that ever since I start sharing my trading ideas and thought here, my swing trading performance has improved significantly.  It is as though there is an invisible coach watching over me which also increases my sense of responsibility to my trades.  Without a doubt, the main responsibility I’ve taken seriously is my cutting losses quickly.

Cutting my losses quickly in my swing trades is a major contribution to my getting a 24% return in 2012.  The other major contribution is my willingness to jump back into a trade after cutting my losses, even at a higher price.

Happy New Year to everyone and wish you all have a prosperous 2013!

Thank you all for reading and Trade well!

Comments are closed.
Previous Posts by zenhunter

A year in review (swing trade vs position trade)

55 views

“What a year!” I shouted out loud.

In a nutshell, below is my trading summary for 2012:

Swing trade: YTD gain +24%

Position trade :YTD drawdown -15%

Net YTD gain for 2012 = 9%

I can still remember very clearly the day that I’ve decided to commit $AMRN and $USU to the position trade portfolio.  It was in September 14, 2012 when I penned the post: “5 years Bullish Plan?

Do I regret the commitment now that I have the hindsight?

No.

I had been watching and trading $AMRN since 2011 and I felt that September 2012 was the “right” time to commit since the potential for a buyout from a pharmaceutical company might be imminent.  Unfortunately, the month by month delay of FDC to issue NCE (new chemical entity) status to $AMRN for its approved fish-oil drug continued to postpone any constructive offer (if any); as a result, together with the announcement that Amarin would launch the sales & marketing of the drug alone, price tumbled down to current level.

At the same time, I also do not want to miss any sudden announcement of any kind that will propel the stock to $20+ level without me.  I missed the $8+ gap-up on April 18, 2011 because I was trading it.  Now, with a possible buy-out still in the wind (or even a possible successful self-launch), I’m content to sit on my drawdown waiting for judgement day.

I’ve been trading $USU for many years and I really like $USU as this price level.  I thought it was a bargain of the century when I loaded up on it below $1.00.  Now, there is nothing for me to do with $USU except to wait for it to become relevant.  And I believe 2013 may be the year for uranium sector to shine.

$LRAD is another one of my long-term position hold, you can read my history of my $LRAD trade by clicking here.

While these three position trades (AMRN, USU, & LRAD) gave me a 15% drawdown in 2012, I believe that these three musketeers have the potential to make my portfolio multiply generously in 2013.

It is also my belief that ever since I start sharing my trading ideas and thought here, my swing trading performance has improved significantly.  It is as though there is an invisible coach watching over me which also increases my sense of responsibility to my trades.  Without a doubt, the main responsibility I’ve taken seriously is my cutting losses quickly.

Cutting my losses quickly in my swing trades is a major contribution to my getting a 24% return in 2012.  The other major contribution is my willingness to jump back into a trade after cutting my losses, even at a higher price.

Happy New Year to everyone and wish you all have a prosperous 2013!

Thank you all for reading and Trade well!

Comments are closed.