ASX Power Setups® Discretionary Portfolio
Short Term Discretionary Trading for the ASX
The ASX Discretionary Portfolio is an ideas generation service based on our foundation trading course TRADESMART – New Traders Blueprint. The Chartist’s Portfolio Analyst Craig Fisher identifies potential trading ideas on the ASX based on traditional technical analysis and his own experience. Being short term in nature, the average trade is held for between 3-14 days.
What is Discretionary Trading?
Discretionary Trading is the use of chart patterns to identify low-risk opportunities. Discretionary chart patterns cannot be programmed into a computer, but by using prudent trading principles we are able to create an edge over the longer term. Being a discretionary trader allows you to be completely in charge of the trading process and add your own ‘colour’ to trade selection and position management.
The Chartist highlight ideas on both the long and short side but we tend to be biased toward the direction of the underlying market, which is defined with our proprietary Daily Momentum reading.
The Chartist provide a daily ASX market commentary and it is highly recommended that this also be used as background before taking any trade. For example, if we suggest the market will consolidate for the coming week, then sometimes it’s best to stand aside or trade a smaller position.
On average the strategy will trade 200 – 250 times per year with an average hold time from 2 to 20 days.
What You Need
A ‘non-cash’ account if you intend to use leverage. ** WARNING: The use of leverage can lead to large losses as well as gains.
An online or discount broker that offers ‘stop’ or ‘contingent’ orders.
Minimum suggested account size of A$30,000
The ASX Discretionary Portfolio uses fixed fractional position sizing to determine how many shares are to be bought or sold. You should not allocate a specific dollar amount, e.g. $5000, to each trade. We provide a position sizing calculator for you to determine the correct number of shares to buy based on your available capital and risk. ** It is strongly recommended that the value does not exceed 2%.
The ASX Discretionary Portfolio is an ideas generation service, no performance data is maintained.