DON'T BE TOO SURE.

If something appears too good to be true, it probably is. A casual glance at those 3 months shows if the winning team put all the money in the top gainer for the period, they'd only have made 67% before expenses.

And checking top gainers in each single month to allow for trading, still doesn't yield much more than 70%.

To achieve 90%, winning team had to purchase-sell-buy, without splitting, the top gainer in each month: REA 20% BAT 15% SCAN 50% Making it a game of chance rather than skill.

This simulated environment appears buggy and questionable!

In fact the 90% only possible, even in the extreme position, only when there's compounding 1.2 x 1.15 x 1.5

These guys have nothing on Stockmaster. He trades REAL money which involves REAL emotions. As many of us know that's the BIG difference between making money and losing it. When you are using MONOPOLY money, you can have nerves made of ice.

Stockmaster , continue your HAPPY HUNTING!

u cant compare the winners with stocksmaster, master is pure class!

ACTIVITY 13:SALE OF 22,800 KCB SHARES AT AVERAGE PRICE OF KSH 22.875.
DATE: 07/10/2010

VALUE OF TRANSACTION= KSH 22.875 X 22,800 SHARES = KSH 521,550
Less 1.82% transaction cost = KSH 9,500

CASH RECEIVED FROM ACTIVITY 13: KSH 512,050

CASH IN HAND AFTER ACTIVITY 12: KSH 1,295

SUMMARY OF PORTFOLIO AFTER ACTIVITY 13:

TOTAL CASH IN HAND AFTER ACTIVITY 13: KSH 513,345

SHARES CURRENTLY HELD: 2111 SCBK SHARES

RATIONALE OF ACTIVITY 13:

My average buying price of KCB net of transaction cost was Ksh 19.44. At the Ksh 22.75 - 23.00 range, this represented a net gain of 15.5% within 17 Days of purchase.

Although my initial target was an exit price of Ksh 26 or March 2011 (6 months horizon), 50% of my target in KCB was achieved within half a month. That to me means a need to reevaluate wether going forward, another counter exists that can give me a superior return on investment.

KCB still remains an attractive investment even at current prices but as it approaches a P/E of 15, it begins to assume a fair price.A large number of those who purchased the share at Rights (Ksh 17) will have a strong urge to lock in some gains at current prices which will slow down the forward momentum.I expect some profit taking as early as tomorrow(Friday 08/10/2010.

I anticipate KCB will announce about 28-30% rise in Q3 2010 in Net profits which should support the share at current prices upto December 2010. The share should test the Ksh 26-27 range prior to End of year results in February 2011 and the Ksh 30 levels at around April 2010.

As the funds clear within the next four days, I intend to scan the NSE seeking for bargains.

As for the SCBK shares, the Q3 results are eagerly awaited before an investment decision is arrived at.

Happy hunting.

@SM, what I dont get is why the funds have to clear in the next four days. Do you first get a check and then deposit the funds back to the broker?

In my case with CFC if I don't intend to cash in, my shares can get bought the next day after I sell from one counter.

@young,go back and read post number 1 on this thread.

@ Young:
Good to hear from you and thank you for that insightful piece. Your advice is always highly valuable.

As I mentioned in January 2010 when i started this thread, i was curious as to wether a person can successfully play the the NSE and make any worthwhile returns as compared to passive investing which was and still is my main NSE investing method.

I thus decided to perform a small experiment which would act as a control test on my NSE investment. I created a modest seed capital of about Ksh 0.5M and decided to engage in highly speculative high risk investment strategy with minimal diversification a trading methodology that has so far taught me alot.

In short, I believe that both strategies (highly diversified minimal trading AND highly speculative high risk trading)can both co-exist.

The high risk strategy has ensured my eye is always on the market and has resulted in a more frequent restructuring of my main portfolio resulting in better returns on investment for the year 2010 so far.

Happy hunting

@stocksmaster you got out of kcb too quick. We will hit 28 faster than any other stock can get you that kind of return.

I have a similar strategy where 10-15% of my portfolio is PURELY for speculative purposes.....

In 2010 its my long term buys doing most of the work and i'm not doing that well at speculation...

Though i hope this will improve