tradersams blog

ifm close

IFM: Closed my position in Infomedia today at 0.38 for a 2.5% loss.  And this is annoying.  Small loss, but this one frustrates me.

This is my worst exit in a while – 3 clear exit signals where given to me, but I held on thinking I might at least close out even.  BIG MISTAKE.

The price fell through my trailing stop loss (first circle in the picture), then on the third day hit the uptrend line I had on my chart – and fell through that too.  The price then tracked along the bottom of the trendline before taking a dive again yesterday.

Yes I still reckon the share may recover – but that is irrelevant – I didn’t stick to the plan….I should exit, observe from the sidelines and jump back in when the conditions are right.

I have been lucky actually – if this was the market about a year ago, a break below that trendline and the buyers would have been heading for the exits leaving me with a rapidly falling stock price and the commensurate hole in the pocket.  It must be a bull market – they reckon anyone can make money in a bull market – and I got out lightly here.

Repeat … trade the plan … repeat … trade the plan …

all open

ALL:  Opened a position in Aristcrat Leisure today for the first time in years, at 5.06.

I was drawn towards the share from the market heat map, which showed higher price movement than usual.  A review of the daily chart showed:

• break through downwards trendline yesterday
• new mid term high today
• 200 day SMA turned up about a month ago
• good volume

On top of this the share was in a consolidation pattern for some time – so lets see if it shakes off the shackles of the bottoming process.

Whatever happens – follow the plan!