A Year Of Long & Short Tech Stock Trades

By: ispeculatornew
Date posted: 12.23.2013 (3:00 am) | Write a Comment  (1 Comment)

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hawaiAs most of you know, I manage my investments with a bucket system and the most speculative part is where I trade technology stocks. It’s a lot more risky but also my favorite part. I love keeping up to date with these stocks, trying to figure out which ones will do well, etc. There are 2 main types of trades that I do with those stocks:

Longer term speculative stock picks: I rarely do these. When I see a stock with significantly more upside than downside, I’ll take a longer term position in that stock that is relatively big. To give you an idea, I’ve done 2 such trades in the past 2 years.

-2012: Purchased Facebook (FB)
-2013: Purchase Apple (AAPL)

I’m up 175% and 40% on the 2 picks and do expect to keep these positions for some time. I’m also hoping to find another good opportunity next year. More on that soon obviously:)

Long & Short tech stocks: This type of trading is a lot more speculative and more short term. I do post my trades here:

http://www.intelligentspeculator.net/livetrades

The year started off extremely well but I got burned on a couple of trades later on. Still, the average return of my 24 trades is 1.83% which comes up to a 6,5% return for the portfolio. It’s not amazing but not terrible either. I’ll be closing out the final 2 trades this morning on the open.

The biggest change I made was giving myself more room when a winning trade crossed the +20% threshold. That worked extremely well. Unfortunately, I lacked a bit of discipline in closing some losing trades which I’ll certainly try to correct in 2014.

I’m also very excited about starting to trade Twitter (TWTR) in 2014 as the IPO hype and extreme volatility seems to be calming down As you know, I’m not a big believer in the stock so I might try shorting it at some point in the next weeks/months.. it would be a high risk/high reward play and I’d close it quickly if the trade went against me. Shorting a name like Twitter is something I always do with extreme caution.

I’m also hoping for a few tech IPO’s such as Dropbox, Uber, etc. We’ll see if those end up happening next year.

How Was Your Trading In 2013?

I also had a good year with my more passive dividend and ETF trading, so overall it was a great year. How about yours?

image credit: MostlyLisa

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1 Comment

  1. Comment by Johan Lindén — December 27, 2013 @ 9:30 pm

    Thanks for this year!

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