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When I kicked-off OPNewsletter few months back I started it with the objective of 5-7% monthly returns on “invested portfolio” (it delivered consistently >+20%) and also shared portfolio allocation guidelines.
After reviewing my past 12months performance, I wanted to stretch my target. Though I have already secured over 100% returns in less than 6months time on overall capital, but I don’t think doubling in every six month is a realistic and achievable target as markets had been on a roll in past six months as well. But doubling every year is quite inspirational and motivating, for me.
I am now stretching myself for “doubling capital” every year!! On the surface this seems quite an ambitious goal I am getting into, but when I nail it to monthly level it is 6% per month compounded that can deliver this goal. Though on absolute number basis, it is still similar to OPN’s target but now I am targeting on “portfolio capital” not “invested capital”. That means there will be some months of positive gains and some with losses, but overall I should generate enough returns to compensate for 6% compounded. I shall find ways on how to post audited results as soon as capital is doubled.
This goal will be harder when portfolio is large. I shall therefore also be paper-trading for a large capital base and fine tune strategies to achieve similar objective for that.
I shall share more later how I plan to achieve this. Till then, enjoy the ride,
Have fun, profitable trading, OP