Tuesday, January 6, 2009

Time to Solo

My friend "Pete" is comfortable enough with the SA software now, and He wants to go it alone. I'll still be checking in on him from time to time, but I have personally taught him enough to get started.

Heck, the software is practically fool-proof, even for "Pete" (just kidding buddy). He is still amazed at what his 25,000 has turned into. I was actually thrilled, and at the same time terrified, to play with someone else's money, but all worked out fine. I will still miss the fun of it.

However, I need to get back to basics anyway and write some more tips and give more insight into my take on trading. As always, I just want all of you to make the most out of Stock Assault 2.0 and everything it has to offer. I enjoy the feedback I get, and I learn a lot from all of you as well.

I believe the market is trying to return to some sense of normalcy with the expected bumps along the way. I still think any oil-related signals you get should be pounced on, as the black gold makes a comeback. We'll see what each day brings and makes the most of what we get.

Have a good one,

Monday, January 5, 2009

Closing Two Runs

Well, I hope some of you were able to make some money by following my money management trek. I closed MO today, 4670 shares at $15.35, and DO 1212 shares at $67.73 . That's a profit of 5.14% and 20.41% respectively. I believe that both are good a little longer term, but I want to do 20 percent or better on some other equities, and these two are due a pullback.

The $25,000 I started December with has now turned into $85,600. That's a 242% return in about a month, annualized out to about 2,900%. I really hope that I have helped in some small way to highlight the more important aspects of finding winners and their entry points and exits.

Remember, don't ever get greedy. I am now going to start scouting my next money management picks for a very happy friend. I'll keep you informed, and maybe some time in the future I can set up a real time venture where we can partner and make some money.

Have a good one!
- Roger

Sunday, January 4, 2009

Looking for Exits

I began looking for exit strategies on my two holdings in my money management portfolio this weekend. I've included charts on the stochastics, price resistance, and another on Bongo which is a somewhat obscure indicator that I use. The Bongo signal is used for signaling an upward or downward bias for stocks. The signal is determined by the value relationships of 3 different Wilder RSI's and a moving average.

For my DO holding I see resistance at about 70 dollars. The dashed red line above %K on the stochastics shows my projected rise, and the Bongo is green on the daily. I will sell when I see a move down in %K or when Bongo goes red or when resistance is met. I still plan on holding out for a little more, but I must not get greedy as there are so many stocks that I need to analyze that show the start of a ride that I don't want to miss out on.

I think I will dump MO on Monday during the first 30 minutes of market open if I can get a slight rise in price. I believe it is about done as indicated by resistance and an impending downturn in %K. DO still has room to run, and if it breaks through the first level of resistance at 70, the next level of resistance is about 76, but like I said I don't want to get greedy.

Greed can blind you and cause heartache in the trading process. Just wanted to keep you up to date on what is going on inside my head, as promised, in my money management attempt. Once I get clear of MO, I let you know what I am eyeing next and the reasoning.

Have a good one,