Methodology

(Of a Swing Trade-n-Hold Portfolio)

The primary goal of this portfolio is to slowly build long-term positions while preserving the initial cash position of $50,000. Conceptually, the methodology to do so is straightforward. Every stock purchased is held until a small profit has been made, and then just enough shares are sold to recoup the initial investment amount, and the remaining shares are then held "free-and-clear." That is, without any fear of losing the initial investment amount.

A notional example:

>>The portfolio purchases $10,000 of LOW at $100 per share, resulting in a purchase of 100 shares.

>>At some point in the future, the portfolio sells $10,000 of LOW at $125 per share, resulting in selling 80 shares of LOW.

>>The remaining 20 shares of LOW are kept as a long-term investment in the portfolio.

The 20 shares of LOW are now owned "free-and-clear" because the initial $10,000 investment was recouped when 80 shares were sold for $125. This helps to both preserve investment capital for continued investing as well as build a truly "sleep well at night" portfolio of stocks, with the added bonus of generating income from any of the "free-and-clear-shares" that offer dividends.

In reality, the portfolio seeks to hold each of the large $10,000 investments for as short a time as possible and harvest the initial investment after a roughly 3 to 6 percent rise, which is generally a $300 to $600 "profit" on the position. Stock entry points are made using a combination of fundamental and technical analysis to monitor for temporary oversold conditions. Stocks are initially selected on a largely fundamental basis after "due diligence" analysis to ensure the portfolio enters positions it does not mind holding a very long time in the event a modest swing up from the initial purchase price does not occur.

The portfolio-related data provided in this website should not be construed as investment advice and the specific investments provided should not be replicated. This strategy for investing should be considered a "high-risk" strategy owing to the relatively large initial investments in equities that could be subject to severe declines and thus a loss of a significant portion of investment capital.

This website is built only to demonstrate implementation of the methodology described above, suitable only for experienced, self-disciplined investors.

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