I started re balancing my SMSF portfolio last year before a 'trumpeted' labor win, so going out of dividend stocks (due to their imputation credit policy, thinking they would win) and into stocks not relying on dividend income but more on capital growth.
I had just completed unwinding those and back into dividend stocks in January as the covid-19 struck (a bit too slow I might add), however I held more cash at this point so I'm about 60% cash/ interest (@ 1.5%) & 30% equities. This does place me in a better position to buy up 'cheaper' equities due to covid, with caution.
I now do more trading buying on the dips and selling as soon as I meet a predetermined target, no holding, no favour, no loving any particular sector - just buy and sell on price differential. I know I'm trying to beat the trading algorithms, so far so good as the bigtime traders haven't got wind of the narrow trading range window that stocks rise and fall within. So far so good, you just have to sell before your gut says hold on for a bit more profit!
It's a counter-intuitive strategy for me as I normally invest rather than trade, I know it's a 50/50 chance of being caught on the wrong side of the trade at some point, I hope to have made enough to cover any potential losses by then. However I will still intend holding about 40% cash to live on for a few years in case this stuff drags on.
