Saturday, November 10, 2018

would i buy this stock now? AC, ALI, BDO, SM, SMPH (10 NOV 2018)

***follow me at finance manila

* these notes are good only for the next trading day ... and NOT for the subsequent trading days
* these notes are mine alone ... and are for sharing with short-term trend followers

i buy stocks only when they fulfill two conditions:

- their macd histograms are below the macd 0 - line and
- their current prices are higher than their most recent bottoms ...

so .. would i buy these stocks now?

1. AC - no
2. ALI - no
3. BDO - no
4. SM - no
5. SMPH - yes ... cutloss just below 32.50 (example: 32.40) ...

*my buy criteria: i buy when the following happens:
1. the macd histogram is below the 0 - line
2. if the current price is higher than the most recent price bottom
3. i buy on breakout ONLY when adding to an ALREADY EXISTING position

*when do i sell? i sell when:
1. i cutloss just below the most recent bottom
2. my trail stop is hit (this means that my position is already net positive)

*what stocks do i buy?
1. index stocks
2. stocks that have a current story as disclosed in the edge website ...

*what do i do when i start buying a stock?
1. when i buy, i buy in tranches .... when i see a stock fulfilling my buy criteria .... i initially buy 1/3 or 1/4 of my allocation for a particular stock ... then i wait and observe ...
2. on subsequent days ... when the price of the stock advances... i add 1/3 of my allocation ....
3. i add my last 1/3 allocation when the stock advances some more ...

*what i dont?

what is a "short term trend follower"