Thursday, September 19, 2013

Some promising starts

While a few days don't make a trend, these stocks are showing initial promise after being traded by myself or members of the mentoring programme.

Remember, more than half our trades result in losses, which are kept to an absolute minimum. Those that move into profit, however, are allowed to run as long as the trend persists. The average win size is much larger than the average loss size, which creates the overall positive expectancy and performance shown here.

The old maxim of 'cutting losses short and letting profits run' can also refer to time as well as price movement. Trades that do not perform from the off are cut - those that do are allowed to develop. Losing or non-performing positions can be closed within 24 hours of being opened. With the profitable trades, some I am currently holding have been open for 9 or 10 weeks. Trading in this manner ensures that you have as little of your capital tied up at any time.

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