Above is a chart of my old favourite – the Nasdaq 100, which is a weighted index of the biggest shares in the Nasdaq Composite index excluding financial shares.My first selections for Operation CFD are geared to capturing that performance. They also have strong momentum. The number in brackets is the number of shares you should buy to align with my strategy.
Apple. AAPL Buy @ $160.50 (10 shares)
Alphabet. GOOGL Buy @ $2,978 (1 share)
Microsoft. MSFT. Buy @ $343 (5 shares)
Nvidia. NVDA. Buy @ $329.85 (5 shares)
Allianz Technology Trust. ATT. Buy @ 371p (300 shares)
Polar Capital Technology Trust. PCT. Buy @ 2738p (40 shares)
Invesco QQQ ETF. QQQ Buy @ $404. (4 shares)
iShares Semiconductor ETF. SOXX. Buy @ $537.5 (3 shares)
There are eight shares because I don’t want the total cost to exceed $15,000.
It has occurred to me that an easy way to reduce the vulnerability to a crash is to start the strategy with more than $3,000 or the sterling equivalent (£2,233) of funds in your account. You could put in say £5,000 or even more so you never have five times leveraged, which would make the strategy even less stressful. Bear in mind that if you are funding this strategy by selling shares from an unleveraged portfolio you are still increasing your exposure to the stock market.
So here goes – day one of the Operation CFD/ Rule of 10 strategy. These are the November selections. I hope to select another batch in December.
I am doing this in a dedicated CFD account so I will be able to see exactly what happens.
If you really don’t like leverage there is nothing to stop you doing this in an unleveraged account or in smaller amounts on a zero commission platform that allows you to buy fractions of shares. However much of the power of the strategy comes from the leverage.