Techno Trousers

I guess I would define my strategy overall as one that is akin to a Value or Quality Momentum approach. I use the Stock Ranks, but do not only select based solely upon them, and essentially try to find another reason why a share should be purchased. Once the story becomes more compelling, then that is usually enough and I may well then purchase the share.

Not all are successful, of course, and if they turn downwards then I may well sell, even if this is purely a technical decision. i.e. there is no other information that may be driving the price downwards. Basically, why hold on to something that seems unloved by the market, and I am quite happy to take some losses.

I hold shares usually for several months, but it may be weeks or even days if something goes wrong, so I do not adhere to the fixed length approach. However, one rule I do try to employ is not to jump too soon. To do nothing is also a decision, so I typically require real evidence that the downward (or flat) cycle is likely to continue. No point in holding a share to see it return close to nothing or negative values.

Diversification is essential to reduce risk, and this is my main focus behind my diversification. I have no clue which shares will move upwards, and find that my favourites often lag behind. This simply re-enforces the correctness of my decision to hold a reasonably wide portfolio, typically 18-25 shares.

Technical analysis feeds my buy and sell points, but I do not claim to be an expert of this, nor do I wish to spend the time so doing. I need it to be a fairly quick process, and as long as the weight of evidence supports one or the other, then that is usually enough. I don't always get it right, but most probably it is better than average so worthwhile.

I have massive goals, and always look to improve, but as I lead a very busy working life, the time I have available is also limited, not least in paying attention also to my very active family! I hope that I achieve them, and with Stockopedia, I feel that not only do we have the right tools, but also the right team to support us.