2009-04-01 Picks

Today's Picks:

Vodafone Call 2009/09 1.40 R198 1.26 +3.83 4.6 +12.16
BP Put 2009/09 5.00 R206 4.60 -3.16 1.1 +5.99
Lloyds Put 2009/06 1.00 R363 0.68 -1.02 2.3 +5.08
BP Put 2009/09 6.00 R283 4.70 -2.47 0.6 +4.53
Barclays Put 2009/06 1.60 R358 1.50 -1.54 2.3 +2.49
HSBC Put 2009/06 4.79 R360 3.90 -2.48 1.5 +1.56

Yesterday's 2 picks were both in list of past poor performers (I call this list "blacklist"). As per new change introduced a blacklist will be maintained. The day one or more blacklisted share shows up on "picks" list we will mock invest (so, okay, this is mock invest within paper trading and we can call it paper trading within paper trading except it is part of strategy) ... and if a mock investment turns out good then un-blacklist good share. The amount will be equi-cash assuming all picks are being invested. So, as an example, suppose we had 6 picks and 2 are on blacklist mock amount invested would be one sixth.

Surprising thing is both of yesterday's picks even though poor performers in past performed well. That is, their returns exceeded 2% nett after commission and since bid-offer prices are being used to figure performance this was real. They overcame commission bid-offer loss by more than 4% percent. Already I am having doubt if this black-listing thing is good. But this needs to be put in context. Okay that they performed well but would I have known before day began? That is always the question for an investor. How do we know big jumps is coming before they come? After they had come they are news, they cannot be used to be millionaire.