The big money is made by holding leading stocks for months,...

The big money is made by holding leading stocks for months, sometimes even years. So I never have pre-determined profit targets. I either buy stocks trading at or new highs, or a stock going up that is experiencing temporary weakness. I then hold as long as possible before getting stopped out. After first buying a stock I usually sell it if it drops 7%. This means I have made an error with timing or stock selection, so I am delighted to exit losing trades.

A stock like NEA could be held using a simple trend following system of 30 and 100-day EMAs. An entry at around $0.68 (Jan 16, 2018) would be still open today at $2.57. The 30 period EMA has been above the 100 period EMA the whole time without crossing down. This is one example where using a wider trailing stop results in larger gains.

Two of the stocks in my portfolio may soon need weeding out. I just let the chart action decide for me. No emotional attachment to any stock.

The All Ords should ideally be trending up above at least the 10-week EMA. Then check the sectors that are out-performing the All Ords. My daily scans reveal that XIJA, XJRA, XMJA, XMMA, and XGDA are currently the strongest sectors. Mining, gold, and information technology are outperforming.

Get in the habit of checking which stocks are trading at new 52-week highs.

12 to 18 stocks in a portfolio is a good compromise. They tend to pop on different days which boosts average portfolio performance.

Portfolio: AX1, ALU, AWC, BPT, BVS, JIN, NEA, NHC, NST, RRL, RMD, WSA.

1. http://clients.weblink.com.au/clients/equitiesinfo/