tradersams blog

mcc open

MCC:  Opened a position in Macarthur Coal today at $10.20.  The share made a new high for the year when I was entering, but has since subsided into the close of the day.  Volume was good today (double yesterday), so all in all a reasonable looking entry.

Counting against this entry is the observation that this share looks to have lost some of its momentum over the last 3 months or so – maybe this new high will change that… maybe it wont.

Campbell Brothers - 4 entries, 1 exit

CPB:  Closed my position in Campbell Brothers today at 26.99 for a 15% profit by the time you take into account all the entries I made when pyramiding.

You can see in the pink circle the effect of the capital raising, which has stalled the price action in its tracks.  The fourth entry, shown as the low down green blob is the entry point of the shares collected via the capital raising.

Fairly straight forward trade, stuck to the plan for the first bit, a momentary panic when I had to think how I would react to the capital raising, and then (new plan under the arm) I traded the second half according to my updated plan.

To date I have not updated my plan with how to deal with this situation, as I wont hit it too often, and looking at a few over the years, I have had some capital raisings that have treated me well – and some have been a disaster.  You can see above the plan in this case simply involved resetting my ATR based stop loss when the price stabilised.