tradersams blog

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!