Sunday, October 20, 2019

some select stocks (20 OCT 2019)


aba: the macd histogram is already above the 0 - line: look for some other stocks to buy ...

ali: the macd histogram is above the 0 -line already: dont buy pa

bdo: the macd histogram is above the 0 - line already ...

ferro: cutloss just below 4.58 ...

phen: altho the macd histogram is above the 0 - line already, traders might still buy this up until wednesday ... but short term trend followers of my variety wont risk it anymore (on the sell side na) ...

sm: the macd histogram is above the 0 - line pa ...

smph: the macd histogram is above the 0 - line pa ...

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***i am not a day trader
***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

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HOW I TRADE:

*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 breakouts 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 don't?
what is a "short term trend follower"