Hi guys, thought i would share one of my strategies for the market at the moment. this is a conservative strategy i use, i will often pyramid with my positions, but i feel now is not the time to do it. This one of my low risk entries i took yesterday, i didnt want to hindsight, but i dont think im allowed to show it at the time of entry, as ASIC dont allow it? anyway this is more of a help thread for those who want to see what a strategy can look like. feel free to critic, im happy to hear anyones opinion. So as i said this is not a gloat look at me im making money thread, its only intended to show how a simple strategy may look.
STOCK; AMP.asx $6.11 28/9/09
REASON FOR TRADE; Stock has completed a-b-c correction in 4th wave, and is currently sitting on support. Rule of alternation complied with (EW). Banking and financial sector still looking strong with good momentum. Price oscillator confirms weak pull back. moving average confirms, volume confirms. Market conditions have pulled back, presents at this stage as low risk entry position. Although monitoring of broader market will need to be looked at for evidence of a reversal.
ENTRY STRATEGY; Bought at current levels of $6.11. Support has held and can therefore be safely bought off this level, with expectations of a 5th wave advance. Initial stop loss can be put at $6.02 cents.
EXIT STRATEGY; Half the position will be closed at resistance of $6.60. The rest of position will be left to run to $6.98 with a trailing stop then moved to $6.56.
DATE ENTERED; 28/9/09
ENTRY PRICE; $6.12
EVALUTAION OF TRADE;