Following a structured process to build a portfolio of stocks.

Wondering where to start?

Here’s how I do it.

Firstly, it’s always a challenge and I don’t always get it right, but I follow a logical process to build a portfolio of stocks that increases in price and in end the simple aim is to hold on to those that go up and eliminate those that don’t. Sounds easy doesn’t it.

In recent You Tube video I talked about managing and building a Stockradar (5-stock) portfolio and I have followed the development of this example portfolio over recent weeks so you can get the feel of how I manage the stocks, their trends, and their fails. I revisit this regularly on my you tube channel – Richard Lie – Stockradar.

Behind these portfolios are many Stockradar defined rules and filters that regulate qualifications, so this is just an overview example for you to get an idea of  how my process works and how a portfolio unfolds if you are disciplined in your approach. In the end, the open position profile should look a little like what I’m going to show you.

There are 2 example 12-stock portfolios below, the stocks are organised by our Trend Intensity Ratings, and if you check the entry dates the better returns tend to be the ones held for the longest, so I’ve indexed on the right, oldest to newest. Hopefully I can help your understanding with a simple uncomplicated approach to building you own portfolio based on the price action format Stockradar uses.

I have completed this impartial portfolio process with 2 portfolios starting from stock 1 of all Stockradar’s open positions and taking every 6th stock for Portfolio 1 and then for Portfolio 2, start from stock 3 on the open positions and taken every 6th stock from there. The Stockradar Open position profile 8/3/21 was published in a recent edition of the Radar Newsletter (Issue 511 March 2021- and is reproduced at the end of this blog.

You’ll note the same profile is reflected in this complete Stockradar open position. The longer dated stocks are more likely to have the best returns and the more recent ones reflect the lower return entries which are either developing trends or they will soon be stopped out at a predetermined risk limit. Our two premium 5 and 10 stock portfolios whose returns are shown on the Stockradar home page reflect this profile.

Portfolio 1:

Portfolio 2:

This can be cut and diced any way and the outcome will be roughly the same. That’s the principle behind the process driven trending and money management approach we use to building a portfolio as we go through the process of qualifying and disqualifying stocks following and for the most part, they will all follow this profile.

If anyone is interested in chatting about how we develop our portfolio process, please get in contact with me, Richard Lie at richard@stockradar.com.au