๐๐๐ซ๐ค๐๐ญ ๐๐ก๐๐ฆ๐ข๐ฌ๐ญ๐ซ๐ฒ
Big shout out to my ๐๐ followers! Hope you're all enjoying the ๐ค๐ค ๐๐ข๐ ๐ ๐ซ๐๐๐ง ๐ค๐ค markets today.
My stock pick in ๐๐จ๐ฆ๐ฆ๐จ๐๐ข๐ญ๐ฒ ๐๐ก๐๐ฆ๐ข๐๐๐ฅ๐ฌ that I've been actively trading was $SOLB.PA (SOLVAY) It recently spun off a major part of itself as a new company. Here's how I traded that event.
Solvay was in my actively traded list because of its strong fundamentals. Just a reminder that the strategy for my portfolio is to actively trade and hold stocks across all the MSCI sub sectors based on fundamental factors. I do look at technical factors to suggest points of entry and exit for short term gains, but this kind of analysis is not well established empirically.
So, because all the items in the portfolio are good solid companies, when they experience corporate actions it's usually for good reasons, and there's money to be made.
I held $SOLB.PA as the ex dividend day came for the new company to be distributed, which is currently trading on eToro as $SYENS.BR (Syensqo SA) After an event like this stocks usually face huge volatility. So I waited a day or so for the parent company's price to crash, and bought a second position in $SOLB.PA to make the most of the bounce.
After a few days the price of all the positions had stabilised a bit and floated back up, and I was able to cash out. There was the combined profit of the original $SOLB.PA and $SYENS.BR, which was a pretty tasty 20%. And on top of this, I made about 10% on the second $SOLB.PA position.
All in all, managed to snipe about 30% on this market event by doing basically nothing other than keeping an active portfolio of healthy companies.
While I'm sure that there's lots of positives to come in the future from this demerger, the details aren't yet clear to me to fully understand the new situation. So, for the moment, I won't be reentering positions in $SOLB.PA or $SYENS.BR and have replaced them with $HUN (Huntsman Corp) in the watchlist to actively trade that instead. $HUN isn't quite as healthy as the old $SOLB.PA was, and so at some point in the future, when the dust settles a bit, I'll review my ๐๐๐ญ๐๐ซ๐ข๐๐ฅ๐ฌ: ๐๐ก๐๐ฆ๐ข๐๐๐ฅ๐ฌ, ๐๐จ๐ง๐ฌ๐ญ๐ซ๐ฎ๐๐ญ๐ข๐จ๐ง & ๐๐จ๐ง๐ญ๐๐ข๐ง๐๐ซ๐ฌ portfolio and consider what the best choices are moving forward.
This is the kind of strategy I'm employing in managing my assets on eToro. If you like it, then perhaps trying copying me for 6-12 months. Or just follow for updates like this.
๐๐ก๐๐ญ ๐๐จ ๐ฒ๐จ๐ฎ ๐ญ๐ก๐ข๐ง๐ค? ๐๐ข๐ ๐ฒ๐จ๐ฎ ๐ญ๐ซ๐๐๐ ๐ญ๐ก๐ $๐๐๐๐.๐๐ ๐๐๐ฆ๐๐ซ๐ ๐๐ซ ๐ญ๐จ๐จ? ๐๐ข๐ ๐ฒ๐จ๐ฎ ๐ฎ๐ฌ๐ ๐ ๐ฌ๐ข๐ฆ๐ข๐ฅ๐๐ซ ๐ฌ๐ญ๐ซ๐๐ญ๐๐ ๐ฒ ๐จ๐ซ ๐ฌ๐จ๐ฆ๐๐ญ๐ก๐ข๐ง๐ ๐๐ข๐๐๐๐ซ๐๐ง๐ญ? ๐๐จ๐ฎ๐ฅ๐ ๐ฅ๐จ๐ฏ๐ ๐ญ๐จ ๐๐ก๐๐ญ ๐ญ๐ก๐ซ๐จ๐ฎ๐ ๐ก ๐๐ข๐๐๐๐ซ๐๐ง๐ญ ๐๐ฉ๐ฉ๐ซ๐จ๐๐๐ก๐๐ฌ ๐๐จ๐ฐ๐ง ๐ข๐ง ๐ญ๐ก๐ ๐๐จ๐ฆ๐ฆ๐๐ง๐ญ๐ฌ.
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