I dabbled in the AAII.com screens for a bit this year and bought AIRT on 11/17/09 after it showed up on the Grahman Enterprising screen. I figured it was worth a shot. I sold that POS on 12/28/09 for a stinking 6.73% loss. It wasn't a trend play but more of a position play that didn't pan out. Lesson learned, this screen is for suckers and not for me.
Went long SLXP yesterday (1/7/10) @ $27.72. So far so good! Let's see where she takes me.
When I started formulating my simplified trading strategy, I tested it out on GOLD. GOLD made a new all time high on high volume on 5/20, I entered on 5/21. Needless to say, I caught a small portion of the trend before being stopped out. The system worked nicely.
Here's the entry chart (the before):
And here's the exit chart (the after):
NEP showed up on my all-time high scan yesterday but after a closer look at its chart it scares me. Looks like the bears came out and created a hammer. I think NEP is screwed.
A great master at the game of GO once wrote that many advanced players begin to trip themselves up when they forget the basics of ladders and nets. Ladders and nets are just simple beginner strategies that are grounded in the basic rules of the game. These simple game formations are much like a stock's price and volume, and its technical chart.
Going back to the basics of understanding candlesticks, prices, volume, and formations associated with an asset can make the difference between success or failure. Basics are important and now is a perfect time to go back and study a few.
Lately every new all time high appears to be Pharma related. Today's scan picked up Salix Pharma (SLXP) and it looks tantalizing. Its got lots of heavyish volume on gaps higher but gaps are sometimes doomed to fill themselves, or as the candlestick chartists say, "close a window." With two trading sessions closing higher but after opening even higher and then closing lower, makes you wonder what the Bears are up to, or if SLXP is entering lightly defended territory.
The question is, would you buy SLXP now?
SWN showed up on my screens cause it keeps making new highs. The question is, would you buy it now?
I went long TEVA today. My new trend system said to get long and hold tight.
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I'm using a very simple trend strategy now. I just buy all-time highs, use strict positioning sizes, and enter a volatility stop each and everytime. I let the market tell me which stocks to buy (and when to get out) instead of a complicated neural net system.
My $GOLD trade was the beginning of my simplification of my trend strategy, it was a winner and I realized that perhaps I've been doing everything wrong. It wasn't until November that I started entering positions, losing a bit of money here and there, and then finally honing my new strategy.
Positions sold or reduced
Current Positions
Stalking
