Since I have sold off all the shares in one of my counters as mentioned in previous post and had wanted to re-invest it into another counter but failed to do so.
I have looked through my remaining counters to think of a way to maximize my profits to try to hit the $20k target in one swoop or in this 2nd wave of selling off. Its really like thinking strategically, resource (capital) allocation for hopefully the best results.
I was busy calculating, setting selling points for all the counters, and cos the lots are more pricey, or that the market shot up within 2 days, hadnt bought back what I've sold yet at lower prices, so cannot enjoy the VOLUME EFFECT when prices are much higher. Hence I've mentioned earlier, earn a few thousand can, earn $10k not possible.
Hence I decided to strategize a bit. This is my current strategy after seriously thinking through, looking through my SG cash portfolio.
In my portfolio, there is a penny stock. But its still trading below its NAV, hence deemed it a safe counter. Its a HK company, assumed cos its incorporated using HK dollars, in Bermudas... Hmm a bit dubious. But its producing quick freeze food products in China and retailing it mainly in the China market. I noticed this stock after my dad invested in it 'for fun' and started monitoring its price ranges. Its seriously a penny stock, aka current prices $0.20, ie 1000 share is $200. I have just started buying in when prices dipped below my target price. Who knows, then this 2 days prices shot up a bit. But still within my target price range.
Using my trusty calculator, I will re-invest the proceeds from the sale proceeds, at a slightly higher price in Order 1, then set up another 2 trade orders, 2 and 3, at slightly lower prices to 1, to buy more lots and lower the average break-even price. I have already keyed in 3 orders which will activate tom when the market opens. I am commiting quite a bit of capital, but still its working capital, not touching reserve yet.
The plan is this, after all the 3 trades go through, I can really have one counter with serious Volume effect. Hence when prices of this share move up only several cents, I would start selling off in 4 batches. Eg sell off after share prices move up 6 cents, hence $60 per share. Sell 15 lots => 15 x $60 = $900.
Then I did the same calculations with other shares, setting up new Selling Points 1, 2 and 3 if I have more lots. Those with less, at most 1 selling point. Something like that. Refining earlier selling points. Then I just did a rough calculation using the selling points and break-even prices of my 'supposed portfolio' of shares (cos I really need to get that penny stock in large quantities) then if all sold off at all the designated selling points, may hit $10k if all sold. Its is NOT possible WITHOUT this penny stock. It wont hit those regions in the near term.
All the moves are now in place. I await the next move tomorrow when the market opens. Hopefully not much negativity to dampen the market UNTIL I have finished this game plan but one never really knows.
(In case you are wondering whether I am taking a risk. Yes I am. Its investing quite a sum in a single counter, plus not to mention, has links to China. But I am willing to take a calculated risk - researched company, looked at results a bit, looked at physical assets, looked at price movement, plus already below NAV, I feel I have done some due dilligence. What could happen? If things dont go my way, a big part of my working capital would be locked up until I can escape later by waiting for prices to rise. Hopefully no bankruptcy but my capital is 'protected' by being covered by NAV, theoretically. Also if things get locked up, then I still have reserve capital to work with, though its lower than having both working and reserve together)
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