tradersams blog

Continuing the BHP paper trade.

all ords daily today

The ASX all ordinaries today took a spike up, stopping just shy of a longer term resistance line – but given the narrow daily performance of late this is quite a move.

Checking my charts today, I saw bounce backs on a few of the shares I exited recently – not enough to re-enter them at the moment.  I noted a couple of setups, but I want to see some short term new highs before entering to the long side.  See how things go tomorrow.

bhp 14-7-09

So – back to the paper trade. See the BHP graph.

BHP clearly was sympathetic to the greater market move, and recovered its recent dip.  A close on the stop loss indicates a close to the paper trade.

This results in a paper trading loss of ~5% (this trade was to the short side).

Going off on a tangent, my blog entry that grabbed my attention today was by howard lindzon, who is talking about ‘Being too small to fail‘ – fun short entry.  Funny – the bit that really caught my attention was actually the following:

“…I am doomed to have most of my money working, ALL the time.”

My cash is working all the time, as I haven’t been under 60% invested for a few years – and if you include the margin loan, I’m more than 100% invested.  This forces a behaviour I need to constantly remind myself of “Trade the plan”.