Investor's Opinion

Portfolio Update

Published: 2012-01-04 03:14:00 EST by Unknown

Again, it has been too long since my last post. It is now 2012. So here is the good and the bad for the end of November 2011 and all of December 2011.

In November, while looking over my losers of the past year, I came to accept that with the macro-economical news causing such aggravating swings, I can not play the trader game while still holding down a J.O.B. for  8 hours a day. So with that I decided that I will start applying  a variation  of the Asset Allocation Strategy of 4 cycle diversification. So with that I increased the gold position of my portfolio with the cash I liquidated from my losers. I BTO additional shares of GLD on November 21, 2011 and again on December 13, 2011 to dollar cost average my position down. As of the close of the market on January 3, 2012, GLD is at $155.92.

While making the transition to an Asset Allocation Strategy based portfolio, I took a short term gamble on the IWM ETF continuing to tank on December 9th after already tanking on the 8th. So I BTO a Jan 21 2012 72.00 Put. However, it reversed and I closed it out for a loss. To make things worse, the follow days saw IWM go back down again before bouncing back up.

Furthering along the transition into an Asset Allocation Strategy based portfolio, I BTO my position into the TLT ETF on December 9th. I then purchased again on December 14th and 20th. Since then, TLT has declined.

As one last gamble for 2011 I BTO a position into the ZNGA IPO. Unfortunately I BTO too high and closed out 99% of my position for a loss. Since then, ZNGA has bee trading above my close out price.

For the coming year, I will only be buying shares of GLD, TLT, and dividend paying stocks. All other positions I currently hold will be held until I am able to collect a profit or collect premiums through options.

That is my opinion, you can take it or leave it. Disclaimer: See bottom of page.

BTO - buy-to-open / bought-to-open
GLD - SPDR Gold Shares
ETF - Exchange Traded Funds
IPO - initial public offering
IWM - iShares Russell 2000 Index Fund
TLT - iShares Barclays 20+ Year Treasury Bond Fund
ZNGA - Zynga Inc.

Labels: Asset Allocation Strategy, diversification, exchange traded funds, put options, trade terminology in use, trading strategy

Updated: 2012-01-04 03:17:37 EST