robleregal
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I’ve been active in the stock market for 6 years as of this month (November, 2018). I started a firm while in University and things picked up recently when I was given the opportunity to manage some investments for a couple of Saudis, I took the opportunity and headed to the Middle East. I’ve managed large sums of money on my own before but this was, and still is, uncharted territory for me. I am managing two and a half billion US dollars and the clients have high expectations - which leads to a lot of pressure. I just wrapped up my first month managing the funds and this is what I’ve learned:
First thing I really learned is that technicals go out the window when filling orders in the tens, and sometimes hundreds of millions. Overall, I’m a technical trader (I consider myself a swing-trader) and my analyses have always been based on the moves of the market and large institutional investors. But now, I could be a market mover myself and realized very quickly that others were following my moves. At first I thought this would be advantageous (I could increase the price of a stock and eventually just sell them off after a few days or even intraday) but it wasn’t. The market was slow to react to big buys and fast to react to sell offs, which lead to my second realization:
People FEAR much stronger than they HOPE. I picked up some PACB shares mid October I was filling orders for the first 10 minutes after the market opened. A few moments after I finished filling my orders, the price increased by half a percent. By 10am the price plateaud at +0.89% of my average share price. I sold less than 10% of my holdings the same day and watched the price plummet. I decided to wait on this position for a few days seeing that I was down 4% by the afternoon.
It can be discouraging seeing a portfolio down millions but one benefit from being a technical trader is that nominal amounts don’t affect the psyche, the focus is on the real return. Eventually made a tiny profit on the position but learned something crucial:
You can’t day and swing trade hundreds of millions at a time and expect productive returns. So I decided to divvy up the funds into 2 - $1.5 BB in longterm investment and $1 BB day/swing trading. I divided the $1 BB allocated towards day/swing trading into 20 smaller portfolios of $50 MM. I committed to opening and closing 20 positions within the week - I found this strategy to work the best.
As of yesterday’s market close, my returns for the month were 4.8% (3.2% from closed positions, and long term investment is up 1.6%), before deducting my fees and commissions. I’m still exclusively invested in US markets but will be venturing off into Asian markets soon. These are just my observations after one month of managing $2.5 billion and the results are subject to a number of factors including market conditions at the time of trading, in no way is this intended to be investment or financial advice.
Happy trading,
Roble Regal
First thing I really learned is that technicals go out the window when filling orders in the tens, and sometimes hundreds of millions. Overall, I’m a technical trader (I consider myself a swing-trader) and my analyses have always been based on the moves of the market and large institutional investors. But now, I could be a market mover myself and realized very quickly that others were following my moves. At first I thought this would be advantageous (I could increase the price of a stock and eventually just sell them off after a few days or even intraday) but it wasn’t. The market was slow to react to big buys and fast to react to sell offs, which lead to my second realization:
People FEAR much stronger than they HOPE. I picked up some PACB shares mid October I was filling orders for the first 10 minutes after the market opened. A few moments after I finished filling my orders, the price increased by half a percent. By 10am the price plateaud at +0.89% of my average share price. I sold less than 10% of my holdings the same day and watched the price plummet. I decided to wait on this position for a few days seeing that I was down 4% by the afternoon.
It can be discouraging seeing a portfolio down millions but one benefit from being a technical trader is that nominal amounts don’t affect the psyche, the focus is on the real return. Eventually made a tiny profit on the position but learned something crucial:
You can’t day and swing trade hundreds of millions at a time and expect productive returns. So I decided to divvy up the funds into 2 - $1.5 BB in longterm investment and $1 BB day/swing trading. I divided the $1 BB allocated towards day/swing trading into 20 smaller portfolios of $50 MM. I committed to opening and closing 20 positions within the week - I found this strategy to work the best.
As of yesterday’s market close, my returns for the month were 4.8% (3.2% from closed positions, and long term investment is up 1.6%), before deducting my fees and commissions. I’m still exclusively invested in US markets but will be venturing off into Asian markets soon. These are just my observations after one month of managing $2.5 billion and the results are subject to a number of factors including market conditions at the time of trading, in no way is this intended to be investment or financial advice.
Happy trading,
Roble Regal
