P/L analysis calendar for August 2024, following the trend of interest rate cuts.

My investment logic,

Basically, it is to follow the trend.

Specifically,

A. 80% of the investment is in blue chip stocks with high dividend yields and low volatility. For example, Reits and bank stocks.

B. 0%-50% (yes, sometimes leverage is also used) as chips for short-term operations. For example, TMF, stocks that fall a lot in the short term.

In the part A, the main investments are in N2IU and DBS. The choice of N2IU is based on its dividend yield >6.5%, NAV 0.7-0.8, although there is a risk of poor occupancy rates in Hong Kong and mainland China, the price risk of 1.2x before is not great. After the trend of the July rate cut in USA became clearer, I added 40% in July, sold bank stocks in August to reduce leverage. This part requires a long and patient wait. In fact, I started with 1.42, then stayed patient in the range of 1.22-1.23 for 6-7 months until it paid off in July. DBS was held in January and sold in May. A small amount was bought and sold again in August.

In part B, the main purpose is to add some enjoyment to life and avoid losing expectations due to the long wait in part A. Because it is intended for short-term trading, I set strict profit-taking and stop-loss targets. Not every trade goes smoothly, TMF has brought good returns while PDD has incurred a small loss, but fortunately the stop-loss setting kept the loss within a small range. The trading records above may have a time lag, but in reality, TMF has been profitable since July.

In addition, for the main investment targets, I will use a step-by-step approach to add and reduce positions. Taking N2IU as an example, assuming my benchmark stock quantity is 0.1 million shares, when the price falls, I will buy in batches in increments of 0.02 million shares, up to a maximum of 0.16 million shares. Once it exceeds the target price, I will reduce positions in batches, but I will always keep a minimum of 0.06 million shares. This way, it may result in slightly less profit during price increases, but it will also reduce some losses during price drops and avoid being caught empty-handed in case of a sustained rally.

I also wish all Mooer investors successful and fulfilling investments.