2024 H1 Recap: Four "D" Trading Strategy and H2 Outlook
1) Half-Year Recap
The most important event in the H1 is the inflation rate which indirectly affects the Fed's decision to cut the interest rate. There is speculation that inflation is here to stay and there may be only one rate cut or none in 2024. ![]()
P/L Analysis (P/L Calendar) is a useful tool to monitor our investment return. Due to privacy reasons, I'll only reveal a few daily P/L in H1:
P/L Analysis (P/L Calendar) is a useful tool to monitor our investment return. Due to privacy reasons, I'll only reveal a few daily P/L in H1:
2) Four "D" Trading Strategy
(I) Diversification
I have adjusted my portfolio to be "more cautious" by diversifying my assets, earning smaller profit and avoiding high fee. S&P500 has increased 15% YTD and is moving uptrend hence my strategy is to DCA into the ETF.
Guideline: Don't put all eggs (money) into one basket (a single stock).
(II) Distribution of Asset based on Risk
Emergency Fund will still be kept between 12 ~ 18 months to prepare for any black swan event. My asset risk distribution remains the same:
10%: High risk (Options and Value stocks/ETFs)
20%: Medium risk (Dividend stocks and Short term fund/government bonds)
70%: Low risk (Moomoo cash plus funds and High Interest Saving Deposit)
Guideline: Invest within your means. Don't YOLO all your money and avoid greed (FOMO).
10%: High risk (Options and Value stocks/ETFs)
20%: Medium risk (Dividend stocks and Short term fund/government bonds)
70%: Low risk (Moomoo cash plus funds and High Interest Saving Deposit)
Guideline: Invest within your means. Don't YOLO all your money and avoid greed (FOMO).
(III) "Disciplined" Approach
I am selling covered calls (or puts) using a "disciplined" approach to manage risk. It will be documented and tested with papertrade. I'll be using Moomoo features like Greeks, TA charts, Analyst ratings, Options Analysis charts, Options price chart etc to systematically select expiration date and strike price. Moomoo options commission card will help to reduce trading fees.
Guideline: Follow strictly the investment plan and avoid fear (panic). ![]()
(IV) DYODD (do you own due diligence)
(IV) DYODD (do you own due diligence)
Posting my P/L review monthly/ quarterly/half yearly in the Moomoo community is always helpful. Joining the chatgroup has taught me to always ask for sources of information when someone commented/posted some info about a stock. Verify your information can done by using more than one search engine (SE) - besides Google there are other SE like Microsoft Bing, Tencent Baidu, X.com, etc).
Guideline: Learn to have a "balanced view" by reading positive and negative news on a stock.
3) H2 Outlook
As for important events in H2, I'll read (and analyse) the company's financial report (earnings) of the stocks I am following. I'll also monitor the FOMC meeting and inflation indicators (CPI, PCE, non-farm payroll etc) and economy data (GDP, export, factory production, unemployment claim etc). Here are some of my previous posts about H2 outlook which I'll not repeat here:
1. Fund Investment in H1 and Outlook in H2 and beyond
1. Fund Investment in H1 and Outlook in H2 and beyond
Disclaimer: The above is not financial advice. Selling call/put options can be risky as the loss is unlimited. We have different risk appetites hence don't follow blindly how others invest.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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I reflected trading experiences by writing journals. My comments are for educational purposes not financial advice.
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Timothy Tham : Excellence!
Wendyfbe : Great stuff as usual! Wondering if I should double down.
ZnWC OP Wendyfbe : Hopefully the July Non-farm payroll and CPI data will convince Fed to cut rate soon.
ZnWC OP : One limitation in the P/L daily calendar is it can't show the profit earned in dividend. Investors who buy stocks to earn dividends usually have daily book loss. Holding dividend stocks for the long term is a kind of investment strategy that ignore volatility.
I Am 102927471 :