In a volatile market, it is a good idea to make small profits and realise them as they come along.What is the purpose of holding a stock over a year if it goes up and down and by the end of the year, you haven’t made a dime in profit!Why not profit from the ups and downs so that when a stock is oversold, you buy and when it is overbought you sell.Then by doing this religiously and in a disciplined manner, you will accumulate gains during the year and hopefully make an overall gain.There will be some losses but as long as you make an overall gain for the year, that would mark you out as a profitable investor.And also remember to take small profits (5-10%) and to not be greedy i.e. do not expect huge windfall gains as being greedy will just wipe out the gains that you had so painstakingly built up through disciplined investing.As Warren Buffet advised a rule of investing is don’t lose money!

Having said all that, this investment portfolio will use Vantage Point indicators and charts to time entry into buy and sell trades.Since the US economy is not exactly super fit right now, I would recommend staying away from small stocks in energy, and to stay away from stocks in consumer cyclicals and financials.I would recommend a portfolio that consisted of some non-US ETFs, stocks in consumer non-cyclicals (such as food and low cost retailers), and selected stocks in technology and conglomerates and utlities.These stocks are important since in any economy, everyone needs to buy food and other essentials, and one also needs to use electricity and water and conglomerates are diversified across product range and geography and people can’t seem to live without technology these days!

So here it is, this portfolio begins as at 27/08/08:

price units value
bud 27/08/2008 purchase 67.75 114 7700
el 27/08/2008 purchase 49.57 155 7700
fss 27/08/2008 purchase 15.27 504 7700
oln 27/08/2008 purchase 26.73 288 7700
ppg 27/08/2008 purchase 61.74 125 7700
atvi 27/08/2008 purchase 32.5 237 7700
brcm 27/08/2008 purchase 24.92 309 7700
hrs 27/08/2008 purchase 51.9 148 7700
jbl 27/08/2008 purchase 16.62 463 7700
sigm 27/08/2008 purchase 17.35 444 7700
s 27/08/2008 purchase 8.77 878 7700
tasr 27/08/2008 purchase 6.14 1254 7700
kep 27/08/2008 purchase 14.7 524 7700