Sunday, April 23, 2017

question and answer: short term trend following and long term position trading .. (23 APR 2017)

from a Finance Manila reader this morning ...

question:

Hi Sir Shoyu

Am a long term here (ACR) . But buys when I think price is cheap. But using technique as a short term trend follower I entered @ 1.45 when MACD is higher at 0.01. I added again April 21 @ 1.53 when MACD is .02. Am I doing the right thing?

My long term holdings with ACR average 1.25

TIA


my reply:

a short term trend follower follows the cycle of the stock price .... when the macd is below the 0 - horizontal and it is going up na (as well as the price ) you start buying ... then sell when the price is lower (cutloss) or when it hits your trailing stops (when the price is higher which means profit ka ) ... one cycle lang .... buy low .. sell high ...

if you are a long term trader ... you wont mind the cycles .. basta buy ka lang ng buy ...

so either short term trend follower ka .. or a buy and hold long term trader .... you cant be both ...

if you want to be both ... make a distinction .. two positions ... one is for short term trend following ... one is for long term position trading ... then trade them separately ... wag paghaluin ...

when using the macd .. i dont look at the numbers ... just look at the positions of the lines .. if the macd HISTOGRAM is below the 0 - horizontal and is rising (as well as the price) .. yun .. start buying ako ... walang number numbers ...

ask lang if may tanong ka pa ...

good luck! 8)

TRANSACTIONS (23 APR 2017)

last fridays transactions ...

sold all my LMG ... potah bad trip ....

added to my MRC from my LMG proceeds ..