Low risk entry points are arrived at by regularly assessing related news flow, price action (includes technical analysis) and short-interest trends . Once a position is taken, we intensely focus on these factors and ready to admit mistakes. The end objective is to cut losses and let the profits run. As a rule of thumb, we rarely allow any single investment to draw down by +10%.
Thus we actively trade fundamental ideas and this active style is from a risk management perspective only.
Most of the website covers bottom-up stock ideas and they are organized in thematic clusters. Our top down perspective is addressed in occasional postings. We look at capital flows circulating through various asset classes and geographical markets in search for preservation and growth. the direction of such flow inflates or deflates financial assets and is determined by perceptions of current state of world economy and politics. We try to determine such a direction by utilizing a factor to framework model, with the following illustrated example:
For this reason, it is important that you actively track how we trade investment ideas.
