Archive for June 16th, 2009|Daily archive page
today – ewc – cfe
Leave a commentwhat a lot of red in the heat map on market opening today!
With the general market drop, I had an entry point hit on EWC at 0.575, a share I have traded a number of times. Purchase is based on trendline starting early March this year through another touchpoint mid May. Given the market drop, I always get a feeling in the bottom of the stomach… I have purchased on a retracement – but by definition I am therefore not buying on immediate strength. Its counter-intuitive for me – when I want to buy something making higher highs. I’ve got my plan in place for this share, so will follow.
CFE closed at 0.335 (4% loss) to protect my overall portfolio, and avoid a margin call. This was above my stop loss for the individual share, but given the general weakness today I closed this out.
The ongoing question in the press and even at lunch with the guys I work with – are we in a bear market, or are the bulls breaking into a run? Whilst I am interested in views, I just try to trade the same way I would otherwise. I saw this article, couldn’t help notice the Aussie reference. I do wonder myself when looking at all this cash being pumped out by the various world governments whether I am watching a bubble being born.
Books to read
I have built quite a collection of books on trading that I have purchased over the years, find a brief overview of them here. This text will continue to be updated over time.
“The Bear Book – Survive and Profit in Ferocious Markets“ by John Rothchild.
The linked version is newer than mine – I have an old (well 9 years old) hardcover version which I lend to friends occasionally who think that the bear market we have now is the end of finance as we know it (and I am assuming they’re wrong!). The book is relatively easy to read, talking about recognising bear markets and dealing with them. Understanding the players in the bear market, and where to invest. Whilst this text had not specifically addressed my trading methods, it has factored strongly into my view of the longer term phases of the markets. It reminds me why I construct a plan. If reminds me about cycles, and it reminds me why I seek to manage risk. I have enjoyed this book.
Further reading:
I found this list here interesting, and I struggle to disagree with any of his descriptions – for the books I have read. I’m off to buy a copy of “Basic Economics – A Common Sense Guide to the Economy”.
tradersams blog 