I’m new to managing stocks myself. I have a SIPP that is invested separately through my IFA, but I’m looking at funding my SIPP more regularly and taking charge of those investments myself.
As I look on my SIPP as my ‘safe’ retirement investment, I’m looking to be more aggressive with my ISA, I’m still looking at a 20-30 year retirement horizon, so can afford to have a bit of fun also and accept some volatility.
Having said that In want to think a bit more strategically than just throwing money at the latest buzz stock.
I like the idea of using funds/ETFs in terms of doing a lot of the hard work and rebalancing for me as well as mitigating risk, so I’m keen to base most of my investments around those rather than individual companies.
I have done a lot of reading around momentum strategy, checking fund performance each month, looking at funds and sectors that are underperforming in comparison to the rest of the portfolio and switching these out for the best performing funds in the previous 1-3 month window.
Does anyone else follow a similar strategy?
Any tips, things to look out for?
It seems to be a very effective strategy in a rising market, but less so in a falling market. What advice can people give around this, what are typical trigger points into a move into cash, bonds or commodities?