An Experiment In Not Losing Too Much Money

**Jay** · 21-03-2015, 09:59 AM

I see you seem to be making up rules as you go along (not that you are not allowed to) The last 2 buys are not on the same rules as the first 2 or3 - that is making a higher high than in the last 12 months.

I know you did say and now for something completely different!

Just saying that's all :-)

**ratkin** · 21-03-2015, 11:35 AM

I find for weekly long term trend type trades and ATR OF 3.5 works best although 3 or 4 ok too

**nzspeak** · 21-03-2015, 10:58 PM

Originally Posted by Paper Tiger

Do you regard 12.5% as a lot?

It is not illiquid - average daily turnover is about 4,500,000 shares (or AU$40M).

How would you describe it?

It was 'bought' because it is going up and will be 'sold' when it stops (however that is defined).

This thread is currently about trading for a profit and limiting the losses on route.

The fundamentals of any of the companies have not come in to it.

I would describe am illiquid market as one that doesn't trade in the same time zone, or close to it, as America. Unless you pick an absolute dog of a stock, a stock will go up if the US market went up over night. If you are trading, ignoring fundamentals "the fundamentals of any of the companies have not come in to it" then what happens overseas is paramount. Buy a stock with P/E over 30X in Australia you are playing Russian roulette. Your whole strategy is hoping that the US market went up and if it doesn't you aint going to be able to cash out because the market is closed. It's almost impossible to lose money in the the current market but that's not going to go for ever.

**ratkin** · 23-03-2015, 06:20 AM

Originally Posted by nzspeak

I would describe am illiquid market as one that doesn't trade in the same time zone, or close to it, as America. Unless you pick an absolute dog of a stock, a stock will go up if the US market went up over night. If you are trading, ignoring fundamentals "the fundamentals of any of the companies have not come in to it" then what happens overseas is paramount. Buy a stock with P/E over 30X in Australia you are playing Russian roulette. Your whole strategy is hoping that the US market went up and if it doesn't you aint going to be able to cash out because the market is closed. It's almost impossible to lose money in the the current market but that's not going to go for ever.

A little over dramatic there.With that attitude you would never cross the road in the morning. If the US markets start to tumble there would normally plenty of time to exit the aussie stocks. The likes of Resmed are not going to roll over just because the US has a bad day. In 2008 there was plenty of time for an orderly exit for those who wanted one. 1987 was maybe a different story, however even that wouldnt have been a real disaster , given the massive runnups beforehand, unless of course you bought all the stocks just before the top.

A simple index filter addition to a trading system would prevent operating in most of the times when conditions were not appropriate for trend trading

ie no trading if xao below 13 week ma

Here is an equity chart to based on buying highest highs (52 weeks) with a filter (see straight line in 2008 when no trading) (Weekly charts)

Attachment 7220

**Snow Leopard** · 25-03-2015, 05:08 PM

Trade #6:
Date: 24-Mar-2015
Buy 1417 ASX.HSN (Hansen Technologies) for $3301.61 ($2.33 each)
brokerage of $15.37
total is $3316.98

Minimum No-Loss Sell Price: $2.355

Maximum Risk Amount: 15.0% of buy.
Risk Sell Price $2.00 (why not?); (loss $498.35)

ASX-HSN-20150323.PNG

Only arrived in the ASX300 on Monday. New 12 month high (to keep Jay happy).
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nzspeak: An 'interesting' definition

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ratkin: pretty charts

.

One more buy on Thursday and out of money unless we sell something.

Malaysian GP from Friday & THE FINAL on Sunday (Go the Black Caps, please

)

Best Wishes
Paper Tiger

**Snow Leopard** · 25-03-2015, 05:16 PM

EXP-20150324.PNG

Windup fees = 6 off Brokerage to sell all shares.

Best Wishes
Paper Tiger

**Snow Leopard** · 27-03-2015, 12:48 AM

Trade #7:
Date: 26-Mar-2015
Buy 2324 ASX.CSV (CSG) for $3300.08 ($1.42 each)
brokerage of $15.37
total is $3315.45

Minimum No-Loss Sell Price: $1.435

Maximum Risk Amount: 8.4% of buy.
Risk Sell Price $1.30 (I be worried if it dropped below that price); (loss $278.88)

ASX-CSV-20150325.PNG

Never heard of them until they started popping up in the new highs list. Do not even know what they do. The joys have buying things straight off the chart

.
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Today was not totally a good day for the portfolio.
GXL and maybe SRX looking a bit iffy.

Hopefully McLaren are able to do something tomorrow in 1st & 2nd practice

Best Wishes
Paper Tiger

**nzspeak** · 27-03-2015, 08:55 PM

"A little over dramatic there.With that attitude you would never cross the road in the morning. If the US markets start to tumble there would normally plenty of time to exit the aussie stocks" I'm a cynical about traders. I don't really understand how someone in NZ can beat the market, when we get information late, when our market is closed? If George Soros resided in NZ he would still be screwed. I understand how $NZ currency traders could beat the market but stock traders?

**Snow Leopard** · 31-03-2015, 12:01 AM

So Friday GXL closed below the $8.30 initial stop loss we put up and never moved so today we sold them for $3,056.53 ($8.28 each) booking a loss of $264.45 on the trade.

Perhaps I should have had a looser stop, or not have bought at all

, but it is done and dusted now.

So time to look out for something else to buy.

Best Wishes
Paper Tiger.