Entry and Exit Strategy v1

Hello all!

As one of this financial blog’s main purpose is to blog everything related to finance, including my personal thought process, I had come out with an Entry & Exit strategy which I think is simple enough to understand. Nonetheless I believe there is much more than this and that I would have need to experience to learn what the improvements are!

As exactly from the notepad file I typed out during my lunch break:

ENTRY
1. To spot a watch-listed stock (blue-chip/reputable firms) with both fund & tech indicates undervalued– NAV/Book value per share + RSI/MACD
2. Enter by Dollar cost averaging technique- Intended investment divided equally into three consecutively months

EXIT
1. To spot a watch-listed stock (blue-chip/reputable firms) with both fund & tech indicates extremely overvalued (NAV/Book value per share + RSI/MACD)/losing out to competition/cash flows problems
2. Exit by Dollar cost averaging technique- Intended investment divided equally into three consecutively months

Expected returns annually
Est. 80% capital usage (20% liquid cash in trading account waiting for opportunity to invest on anytime)
Est. 5% average dividend return when holding any position
Est. 10% returns on selling (calculated in 50% probability of all investments to hit NAV 3x every 10 years)
Therefore, est. 12% returns based on this strategy

* NOTE: The expected returns annually are just some pointers for myself and not much research was done, on top of having zero actual investment experience myself, to confirm the figures.

What do you think of this version 1 of my Entry and Exit Strategy? Do comment if you think there is something wrong in my strategy or if it could be improved! I would very much love to learn from you guys too! 🙂

Regards,
The Independent Abecedarian

It’s either you dream big, or nothing!