tradersams blog

jbh pyramid

JBH: pyramided into my JB Hifi position again today, at $17.50 – this trade is looking like the ones you see in book so far (ok – yes, I do put too many lines all over the place sometimes!)

The original entry can be seen in the diagram to the right when the earlier downtrend crossed the more recent term uptrend.  So far the channel has held quite nicely, and is returning nicely.

On to other things – ran System A scan – still nothing!

Weekly readings:

At the Bespoke Investment Group you can see a write up which compares the ability of their respondents to accurately pick the market direction, and compares it (un)favourably to going by the toss of a coin here.

Another interesting read at Daily Speculations (a website about – amongst other things – ballyhoo deflation!!) which talks about risk and loss aversion.  This article is well written, but I did resonate with the following line (quote):

I think most investors who are not professionals have a very shallow understanding of risk.

When you sign up to trade CFD’s, options, shares and other things you have to sign all sorts of documents regarding risk – but until I lost money sometime ago the concept of risk was just that – a concept.  Now its something that I find I manage no a daily basis – whether its the amount of money I have in a share, my portfolio balancing, my amount in cash – I’m constantly casting an eye across the where the money sits – and hence – where the risk sits.

anyway, time to relax before the new week starts – adios!

minor edit – 27/10/09 – realised the heading said closed instead of opened