“Trading Corner” Part 1 – The rules, German Basket Cleansing & neW Trade: Play Magnus Group (ISIN NO0010890726)
Disclaimer: This is not investment advice. PLEASE DO YOUR OWN RESEARCH !!!!!
A big thank you top all readers who either commented on my open question if and how to include “Trading positions” into the blog. Overall I concluded that I can allow myself the luxury of a small allocation to “trades” as long as I do it consistently and with good risk management. One of the luxuries of a private investor is indeed that one can allow oneself some fun without needing to explain it to third parties and having fun is important to stay motivated.
Following some additional deliberations, my approach (for the time being) will be the following:
- I will allow myself up to max 10% and up to max 7 trading positions at any given time going forward
- In order to track them I will write short summaries with a clear “game plan” for the position
- Close ot in case of a pre defined loss is a must
- The maximum time allowed will be set at 12 months and either they go out or get upgraded to my other “buckets” in order to avoid a lot of “Trade goes wrong and becomes investment” positions
- However, the “German Basket” will be “sacrificed”, as this honestly is already some kind of “trading portfolio”
German Basket “cleansing”: