Investment & Trading Plan 2.0

Having used the previous trading plan for a year and repeatedly failed to stick to the rules. This is a revised plan which better suits my personality.

My investment strategy

Reviewing the past mistakes, I believe they have been caused by an uncomfortably large risk of capital losses and an urge to own stocks. To remedy this, the new plan greatly widens the time frame and diverts a part of the capital to investments in dividend growth stocks.

  • Assets
    I invest in stable dividend paying blue-chip companies around the world.
  • Risk in the market
    I only use up to 2 % of my total capital per stock.
  • Entry
    I purchase dividend stocks with at least 3,5 % yield or higher.
  • Exit
    There is no exit.

My position trading strategy

I am however, not comfortable to solely owning and holding dividend paying stocks. The capital gains from dividend are small in comparison to the potential capital gains from trading. I also require the comfort of on demand accessible capital. To remedy this, the new plan still dedicates a large part of my capital to position trading.

  • Assets
    I only trade the domestic large cap OMXS30 index.
  • Risk in the market
    I only use up to 50 % of my total capital for position trading.
  • Leverage
    I only leverage by a maximum of 1,45 times my trading capital.
  • Entry
    I gradually scale into a fully invested position if price is above MA50.
  • Exit
    I make a complete exit when the price has decreased below the trailing Chandelier exit stop level.

My research and development strategy

I dream of big capital gains, I am greedy, I am restless and I like to experiment. To keep myself from ruining the profitability of my other strategies, I have dedicated a small part of my total capital to research and development.

  • Assets
    I may not use assets that permits losses greater than the invested capital.
  • Risk in the market
    I only use up to 5 % of my total capital for research and development.