If a tree falls in the forest...
Day 28 - Friday
Total Account Value: $5187
Available Equity: $2791
Positions Opened: 2
Positions Closed: 0
I didn't even log on to my trading platform until 11am today. That's how confident I am that my "big picture" strategy will work in the long run. There's no need to panic when daily losses occur - it's much worse when trades are taken with the daily flow and not closed out before the day's end. Today the market opened down and stayed down, but my stocks were holding up quite decently. Following a gain of $600, a loss of less than $100 is not bad at all.
Stop losses are one aspect I feel I've improved on. Both BNB and PDN would surely have been stopped out if I stuck to my original pattern of trailing a tight sell order after a day of large gains. I kept reminding myself of Timbercorp (TIM) - the fish that got away last week. Despite technicals indicating strong bullishness I grew paranoid as it followed a successful day with mediocrity. I was happy to exit the position with a gain (such was the overwhelming quantity of losses I'd suffered) at $3.43. The stock now sits at $3.79, which would have boosted my profit to an amazing $621! Trees were falling in the forest and I didn't hear.
I shouldn't be dwelling on mistakes but occurences like this are handy to reflect upon when faced with similar circumstances. Cut your losses early and let your winners run. It's been said many a time before and I'll say it again.
Iluka Resources (ILU) continued to fall with conviction so I pyramidded what was a tiny position to boost the holding to around $7500. In no way does this break the bank but you may have noticed that my conservative half is starting to win the battle over my inner brash adventurousness. The charts point toward heavy support at $7.00 even so I will monitor this closely over the next few trading days.
Bank of Queensland (BOQ) appeared ready to bounce off support at $15.00 but I wanted to wait and see what would happen throughout the day. It fell through to $14.85 but the order book looks very thin so I let the opportunity slip by. It will be interesting to see whether the $15 mark has now become solid resistance or not. The other interesting two are Arc Energy (ARQ) and Bluescope Steel (BSL) which both appear to be hovering around major support and resistance zones. Soon uncertainty will give way to confident movement and I will be ready to pounce. This method is much better than pre-empting the market - I may feel like a hero if the cards fall my way, but if they don't I'm no more than an idiot.
Total Account Value: $5187
Available Equity: $2791
Positions Opened: 2
Positions Closed: 0
I didn't even log on to my trading platform until 11am today. That's how confident I am that my "big picture" strategy will work in the long run. There's no need to panic when daily losses occur - it's much worse when trades are taken with the daily flow and not closed out before the day's end. Today the market opened down and stayed down, but my stocks were holding up quite decently. Following a gain of $600, a loss of less than $100 is not bad at all.
Stop losses are one aspect I feel I've improved on. Both BNB and PDN would surely have been stopped out if I stuck to my original pattern of trailing a tight sell order after a day of large gains. I kept reminding myself of Timbercorp (TIM) - the fish that got away last week. Despite technicals indicating strong bullishness I grew paranoid as it followed a successful day with mediocrity. I was happy to exit the position with a gain (such was the overwhelming quantity of losses I'd suffered) at $3.43. The stock now sits at $3.79, which would have boosted my profit to an amazing $621! Trees were falling in the forest and I didn't hear.
I shouldn't be dwelling on mistakes but occurences like this are handy to reflect upon when faced with similar circumstances. Cut your losses early and let your winners run. It's been said many a time before and I'll say it again.
Iluka Resources (ILU) continued to fall with conviction so I pyramidded what was a tiny position to boost the holding to around $7500. In no way does this break the bank but you may have noticed that my conservative half is starting to win the battle over my inner brash adventurousness. The charts point toward heavy support at $7.00 even so I will monitor this closely over the next few trading days.
Bank of Queensland (BOQ) appeared ready to bounce off support at $15.00 but I wanted to wait and see what would happen throughout the day. It fell through to $14.85 but the order book looks very thin so I let the opportunity slip by. It will be interesting to see whether the $15 mark has now become solid resistance or not. The other interesting two are Arc Energy (ARQ) and Bluescope Steel (BSL) which both appear to be hovering around major support and resistance zones. Soon uncertainty will give way to confident movement and I will be ready to pounce. This method is much better than pre-empting the market - I may feel like a hero if the cards fall my way, but if they don't I'm no more than an idiot.
posted by Trader Andy at 4:55 am
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