Dear friends,
This post explains the various parts of VIP portfolio and how you could benefit the most with your access to it.
People will have various needs and expectations from a service like this. We may not be able to cater to everyone’s expectations but we surely try our best to support as many as possible
Hence the VIP portfolio follows a few different strategies to cater to different interests.
Weekly updates and all the new buy suggestions highlight what those strategies are for the selected stocks.
There are certain strategy that results in quicker turn over particularly in current market fluctuations when the capital should be preserved and protective stop loss need to be respected. It is absolutely important to respect the stop loss to limit the losses and to preserve your capital to invest over longer period. No point in blowing up your account without a stop loss.
Different strategies applied in VIP investment Portfolio:
(1) For those who like more hands off approach with limited active management and with downside to be limited with stop loss - ‘the weekly MACD strategy with consolidation breakout set up’ (in short Weekly MACD Strategy) is better suited. This works best in trending bull market.
Qualifying stocks are identified on the weekends for next week with predefined stop loss. For Eg., you will see in VIP portfolio- EIN3, YETI, GOOGL, AMZN, DVA, DOV, BKG etc. You buy and wait till either the stop loss is hit or MACD crosses negative after many weeks to adjust the stop loss up.
The predefined stop loss are there to protect the losses if the stock goes against our analysis.
I think, this might be a better strategy for many busy professionals with little time (or interest) to watch the stock market during the week.
(2) There are scope for long term investments as well in VIP. These stocks are managed with wider Stop loss or without stop loss for e.g., RBLX, COIN, WISE.
(3) Those who like momentum stocks and odds of catching quick moves and potential long term winning stocks take up a bit more risk but with that comes potential rewards. For eg DLO, DOCS, UPST, ETSY, GLBE etc.
With these names if they don’t perform well initially then we have to get out to limit losses, book profits as we go along, and protect capital etc. Hence more turnover with this strategy.
(4) As you know, VIP also caters to crypto traders too. But it follows a method to the trading which allows to limit the risk. After many months of staying on the sidelines during crypto crash, our method has allowed us to get back in to some trades recently to benefit from the resumption of bull trend in crypto market. This is how our crypto strategy protects us from massive drawdowns.
For those who like a bit of U.K. investment, VIP currently has 3 U.K. stocks.
Not all of these methods would suit everyone. You choose the ones that works for you and stick with it for long term to increase the odds of successful investment returns over time.
Most people give up in the first year and miss out on the benefits that come from sticking to a particular strategy over time.
Remember, I’m here to help and for you to sound your thoughts and ideas off of.
If you like 1:1 time with us to talk about investments GrowWealth services has facilities for that too. Annual members have this included within their subscription. Make use of them to get the most from it to your benefit.
I look forward to continuing this investing journey together with you all as a community for much longer.
Happy Learning and Successful Investing. 🙏
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Disclaimer: Material published in this site are all for educational purposes only. Stocks mentioned are not buy or sell recommendations. Investment in financial instruments or product has a risk of capital loss and you may get back less than what you invested. Seek help from personal financial adviser if you need financial advice.