tradersams blog

jbh - system A open

JBH:  Opened a position in JB Hifi today at 22.78.

As noted in my last post, my System A has fired an entry in JB Hifi.  System A is a medium/long term trend following system, that has so far only triggered on two stocks in the last 6 months.  The system is only scanning the ASX200 at the moment – I really do need to sit down and tweak the system to scan other markets – but I haven’t done that yet.

I have no issues at all making this entry – this is one of the smoothest up trends in the market.

iif close - very late!

IIF:  Close my position in ING Industrial Fund today as 0.45 for a 13% loss.  This has been a bad trade, and exploits a gap in my system.  As noted in other posts, I haven’t clearly planned what I will do when a company does a capital raising.  That said, the recent capital raising in Campbell Brothers treated me well – a feat I was hoping to happen again in this share.

But it wasn’t to be.  In the diagram I have drawn three circles – 3 exits I should have taken.

The obvious question is why did I exit today?  Well, with the price drop thursday, the price of the share dropped below the price at which I could buy more shares from the capital raising – that can’t be good.  The companies attempt to raise funds will result in selling me shares dearer than I can get them on the market.  So – someone else can have my shares – trade closed.

Anyway, a few more stops being toyed with, so I’ll keep going with closing those positions…