2007 plan and goals

I plan to form my account around 20 core positions (long or short) each being roughly 3 to 5% of the account value each being well thought out fundamentally and technically sound position. I intend to initially commit to a 3% position at an opportune time and risk no more than 10% of the value of the position. At a point I may choose to average up into the position bringing my total to no more than 5% of the account but I will only do this to positions i am already making money on. I may choose to hedge positions with calls or puts to reduce the volatility if market or stock conditions cause uncertainty. However, if things are working well I would like to maintain as much exposure un-hedged as possible as that is my best chance of creating significant value.

In addition to these core positions I intend to have up to 10 positions trading companies that have recently issued new stock either in the form of IPO's or secondary offerings. These positions will be 1 to 3% of the account value and will be shorter term trades based primarily on the technical aspects of how the stocks are trading.

Finally, I will be active in the syndicate calendar as the risk/reward profile for most of these trades is very good. I will hold only the deals that work well for intermediate-term gains. Deals that do not hold above their offer price will be quickly hedged or turned out to minimize damage. I will strive to be involved in all deals in order to keep good relations with the underwriters and will hopefully therefore receive good treatment on deals expected to do well.