Archive for July 28th, 2009|Daily archive page
trade idea bhp-9
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bhp - decisions...
More on BHP – the big Australian.
This has been a paper trade going on for a while now, and the long position is profitable.
I am however cautious about this current long market… we are now over 10 days increasing on the trot – and that doesn’t happen too often.
Does this break the rules of a paper trade? I am long the trade (in this paper trade scenario), and have a mid / long term bullish view of BHP. I do however think that the bulls have good a good trot – and at the same time as BHP is hitting a point I’d expect to see resistance. So – today I entered a short leveraged position in BHP expecting a short term dip. Not on paper – a warrant trade on BHPXOQ – I must say a risky position, and highly leveraged – so only small. Lets see how this plays out.
Too confusing now – two positions in one thread…?
today – chc
chc close
CHC: closed the position today, for a small 4% loss – not exactly according to the plan either.
I have noticed the general ‘positivity’ of the markets over the last few days, and in my chart scan tonight I noticed 2 things:
- A number of my shares are under performing the market in the last 5 sessions
- A number of them have the same pattern for the last few days – that which can be seen in this CHC graph.
If the market is taking off , and this is only known with hindsight, I appear to be backing a few shares that haven’t taken this last weeks spurt. Trimming CHC is a move to limit my exposure to the particular graph formation you can see above – even though it hasn’t actually hit the stop loss.
So, I came to a couple of conclusions over the weekend – if the markets are taking off, I need to focus more on which shares I trade (ie: limit the number of open positions) and target the moving parts of the market. Over the last few months, and obviously the two months I have been documenting some of my moves, I have been discretionary trading – going off ‘hot spots’ in the market from a heat map, combined with general chart formations. I must say its been treating me well – the last few months have nearly got me back my losses for the last financial year (no – not since the start of the dive yet!).
When System A (my own coded system in c++ so I don’t need to think) is running, it manages my number of positions to an extent, so issues like that above don’t happen too often when the bulls are running.
On another note – System A scan on the weekend – still nothing!
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