Cheng On Tsun from HKU had the 4th highest trading score. His portfolio consisted of 3 US stocks - Tesla (TSLA), Futu Holdings (FUTU), and GameStop (GME). He employed swing trading and momentum trading strategies, rebalancing his portfolio weekly. While his portfolio emphasized short-term growth, he aimed to mitigate risks through diversification across industries and markets.

1. CHENG On Tsun (Ethan) | HKU | 4th in Trading Score
Portfolio
Evaluation

2. FUND MANAGEMENT (US BASED)
Weekly
Rebalance
• Readjustments of portfolio
 Stocks picks, weighting
• Avoid inactivity
 5 consecutive silent days
Intolerance to the
underperformed
Short-term growth
of capital
PORTFOLIO
OVERVIEW
Cheng On Tsun, HKU, 4th
• Efficiency and Effectiveness
 Time constraint: Clearing
per fortnight
 “What is right in the
future does not
necessarily be right at
this moment”
 Total Loss: HKD$3,845
• Profit-oriented
 High profit / A spike in
profit
 High beta & Viral stocks
 Total Gross Profit:
$467,624.01

3. 3
Stock Picking
Earnings Growth Relative Strength P/E Ratio
Cheng On Tsun, HKU, 4th
• Consecutive
earnings growth for
the past year
• Turn from loss into
profit
• Monopoly or
dominant role in
the market
• Comparative
advantage in
specific aspects
• P/E ratio has yet to
overcome the
industrial average
• Benchmark for
assessing viral
stocks
=> Cash flow
Popularity
• Sentiment and
amount of the
discussion flow
• Actual usage of the
products offered

4. 4
TSLA:US
Cheng On Tsun, HKU, 4th
Consecutive earnings growth; Turning from loss to profit (Yahoo! Finance, 2020)
Increasing cash flow; high operating efficiency and improving potential
(Yahoo! Finance, 2020); Despite P/E ratio at roughly 1,644.68
• Evident technological lead over other
competitors
E.g. Toyota, Volkswagen
• Branding, Reputation, Symbolism
Cost at $725; Currently $878 (as of 2/4/2021)

5. 5
FUTU:US
Cheng On Tsun, HKU, 4th
Consecutive earnings growth; Turning from loss to profit (Yahoo! Finance, 2020)
Surmounted client’s admissions and assets; high daily usage (Futu, 2020)
• Initial Public Offerings (IPO) Mania
=> New users & Commissions
• Easily accessible to everyone in the
society. Aesthetic UI + Distinctive
discussion wall
Cost at $73.36; Currently $132.95 (as of 2/4/2021)

6. 6
Trading Strategy
Swing Trading
1351, IQ
Momentum Trading
IQ, 2333
News Trading
Nio, GME
Cheng On Tsun, HKU, 4th
• Range trading, buy-
in at supports or
break-out, and
secure profit at
resistance level.
• Follow stop loss
straightly according
to the two levels
• Trend trading, stay
in position until the
circumstances
altered.
• Buy-in when
momentum is
strong and
guaranteed profit
• Correspond to the
news releases,
sentiment changes,
and impactful
events.
• Priced-in of the
news

7. 7
Swing Trading (1351:HK)
Cheng On Tsun, HKU, 4th
Stop Loss (5-6%)
Clear position
Day Trading

8. 8
Swing Trading (IQ:US)
Cheng On Tsun, HKU, 4th
Buy-in: Support
Resistance formed
Clear
Buy-in: Break-out
(Momentum)
Resistance formed +
Underperformed
Clear

9. 9
Momentum Trading (2333:HK)
Cheng On Tsun, HKU, 4th
Strong upward trend,
surging moving average
Support formed, higher low
Strong bull-stick recover
Historical high and with a
Dragonfly Doji.
Resistance formed and the
momentum decreased
Trend altered and cleared
position

10. 10
Portfolio Allocation
Swing Trading Momentum Trading News Trading
Cheng On Tsun, HKU, 4th
9, 69%
4, 31%
Market
US HK
TSLA:US
68%
FUTU:US
11%
GME:US
21%
Holding
TSLA:US FUTU:US GME:US

11. 11
Risk Management
Cheng On Tsun, HKU, 4th
9, 69%
4, 31%
Market
US HK
• Hong Kong market fluctuates
according to the US market
• Heavily influenced and supported
by China; Enormous money
inflow
IF US market faced threats and
fluctuated
HK market could be supported by
the inflow from China
Reduced the impact and sustain
the portfolio
IF HK market performed poorly
US market would not be harmed
and continue in improving the
portfolio
TSLA:US
68%
FUTU:US
11%
GME:US
21%
Holding
TSLA:US FUTU:US GME:US
• Stock volatility
Invest in big companies, high price
stocks
Lessened the probability of massive
fluctuation
• Profit-oriented (High risk & High
Profit)
Invest in news and events boosted
stocks, highly discussed stocks
Boost the profit and could possibly
result in a spike
Management
The portfolio aims at outperforming
indexes or ETFs, as stated: short-term
growth of capital
Relatively stable stock would balance
and mitigate the possible fluctuation
of certain stocks
AVOID PENNY STOCKS whenever
possible