tradersams blog

Market took a dip today – must have been the first day after a public holiday – oh yeah, it was.  I should analyse that and see if there is a seasonal trade in there somewhere to be profited from in the future.  Anyway, on with daily summary.

WAA:  Opened a long position in WAM Active Limited today on System B at $1.145.  Similar to my entry into PRG recently, a previous entry in this share was stopped out, but the recent climb has taken it to a 2 year high.

Volume for the last two weeks has been healthy, which is a positive, although not a decision maker.  I have noticed that this share is a slow mover, and not a lot of gain, however making new highs should not be underestimated.

SNL: I also opened a long position in Supply Network today on System B at $1.02.  This share has been on an almost straight upwards trend for a while (about a year on a weekly chart) and has reached the emotional barrier of $1.

I have been reluctant to enter this position recently as it can be thinly traded.  I noticed today that I was one of the few buyers, and at one stage it appeared to be down to one seller (should I be thinking on the greater fool theory here…?).

Last week was a rare week for me.  I travelled to Taiwan for a week, and basically lost touch with the market.  I managed a few checks of stop losses, but not much.  Why was this rare?  Two reasons – I’ve never been to Taiwan before, and its the first time I have travelled without coming back to a decimated share portfolio!  Woop Woop I say.  I somehow managed to travel for the global tech crash, and on a mobile phone call found I had lost a bundle – that was due to, well, poor sector diversification.   In other words – if it was a tech stock I had it, if it wasn’t I didn’t.

So a week of travel and no crash – a double bonus that seems to me.  Now I am back, remember to recite: Stick to the Plan.  Plan the trade and trade the plan.