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I'm surprised by the negativity in this topic. Clearly [USER=57364]@Skate[/USER] 's huge number of system posts haven't convinced some people that it's possible to trade ASX small cap stocks profitably using weekly charts. Skate didn't look at fundamentals. His ranking was based on price, the lower the better. Some shares did fall by 20% and more. So what, each position was only 5% of capital. These small cap stocks can easily increase by 100% in a weekly trend. When price got stuck in a range due to a cap raise or any other reason skate's time stop sold the position and bought another.All systems will go through poor periods. If your hoping for a system that generates +30% pa every year trading a large number of positions. I'll tell you, you're dreaming. If you want +30% every year, you'll have to risk a lot in some years. Small caps go in and out of demand many times through out the year. Well financed investors will only gamble with the small caps when their portfolios are performing well.I traded a 30 position small cap portfolio live here at ASF for 38 weeks. The performance was +60% in that period. Since then the small cap sector has been off the boil. I would estimate that this portfolio may have only gained an additional 5 - 10% in the rest of the year (14 wks). A lot of work for little extra. Every sector has it's good and poor periods. A profitable system makes more in the good periods than it loses in the poor periods.Frank. don't let the negativity slow you down. Yes, it's going to take some work to create a system with robust results. You can do it trading the ASX spec stocks. It won't be perfect but it only has to do a reasonable job because you can create other systems that work better when combined. Build your trading business one system at a time. ASX small caps do have a place in your trading arsenal.
I'm surprised by the negativity in this topic. Clearly [USER=57364]@Skate[/USER] 's huge number of system posts haven't convinced some people that it's possible to trade ASX small cap stocks profitably using weekly charts. Skate didn't look at fundamentals. His ranking was based on price, the lower the better. Some shares did fall by 20% and more. So what, each position was only 5% of capital. These small cap stocks can easily increase by 100% in a weekly trend. When price got stuck in a range due to a cap raise or any other reason skate's time stop sold the position and bought another.
All systems will go through poor periods. If your hoping for a system that generates +30% pa every year trading a large number of positions. I'll tell you, you're dreaming. If you want +30% every year, you'll have to risk a lot in some years. Small caps go in and out of demand many times through out the year. Well financed investors will only gamble with the small caps when their portfolios are performing well.
I traded a 30 position small cap portfolio live here at ASF for 38 weeks. The performance was +60% in that period. Since then the small cap sector has been off the boil. I would estimate that this portfolio may have only gained an additional 5 - 10% in the rest of the year (14 wks). A lot of work for little extra. Every sector has it's good and poor periods. A profitable system makes more in the good periods than it loses in the poor periods.
Frank. don't let the negativity slow you down. Yes, it's going to take some work to create a system with robust results. You can do it trading the ASX spec stocks. It won't be perfect but it only has to do a reasonable job because you can create other systems that work better when combined. Build your trading business one system at a time. ASX small caps do have a place in your trading arsenal.
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