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CFD Diary

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Lachlan6

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1 October 2005
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Gday all. Its been a while since I have posted on this forum. Well going to make a new thread similar to a trading diary and would appreciate feedback etc.

Looking at opening up new trade Long (DOW) today. Waiting to enter at $7.68. It has formed a breakout pennant like formation. My target is $8.00, stop loss, $7.44. Closed out of (PBL) today for 5.8% profit. Also closed out of (CSM) for 2.4% profit and (AWC) for 3.8% profit. I am currently Long (NAB) getting in yesterday at $44.34, Long also (WPL) getting in at $40.34 (current stop, $42.24) and short (ALL) after getting in at $15.15 a few days ago. Also looking at short position in (TTS), probably get in at $4.93 if it gets down there today. (TOL) is another prospective Long. My trigger is $22.85, stop at $22.12.

The market may be finding its feet at the moment, crucial support at 6294 on the AUSSIE200 needs to hold. If so the market will not fall further today. Let's see.
 
Sorry that should have read got in at $40.34, stop at $42.24.
 
Lachlan6 said:
Sorry that should have read got in at $40.34, stop at $42.24.
Click to expand...

Sorry Lach, but do you mean 42.24 is your target price....or you've gone short and its your stop loss?

Cheers,
 
Lachlan6 said:
No $42.24 is my trailed stop. Cheers mate.
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Lachlan, how do you shortlist stock ? I am new to CFDs and creating a shortlist and further handpicking is quite difficult and timeconsuming for me.. Hope you can shed some light on it.
 
G'day ROn. Well what I do is limit my short list to the top 100, as this will give you the greatest opportunities, i.e less outlay (typically 3-5% margin rate). I check pretty much every stock then look for trading opportunities during the day such as a break of overhead resistance (opposite if going short), a bounce off a trendline or an ominous candlestick pattern emerging such as a bullish/bearish engulfing pattern, or doji reversal candle.

For example, I have short listed a few candidates for tommorow's trading. On the long side, I have (CTX) which is currently in a large triangle like formation. I would look to go long on a break to the upside of that pattern, probably around $24.65-70. (CGF), may be about to break either way as in holding pattern at the moment, maybe double top? Probably sell below 15 day MA. Similar situation for (CPU) although may be triple top, may be just consolidating for move higher, i'll watch tommorow. (OSH) similar pattern to (CTX), I'll watch tommorow. (LEI) I will look for a break to new all time highs to trade long, as well as (CSL).

Short candidates, include (TTS), I will look to go short around $4.93. (TEL), short around $4.25-6. Bias is definently short the market at the moment, (how long can we go up like this?), so will scan for short opportunities in line with market performance. Hopefully that helped you out a bit .
 
Lachlan6 said:
. Hopefully that helped you out a bit .
Click to expand...

helped me out immensely.

I am also trying to work out my entry and exit strategy. I use an EMA 20 and SMA 20 with RSI14 and CCI14 to give me an entry. Do you thing its allright ?

I am also experiminting with SMA 20 and EMA9 with SMA50 as support line. Do you think its allright ?

Your help and anybodys suggestion to tweak my strategy would help us noobs a lot.
 
Whatever works for you is fine. Remember trading is not an exact science, so I tend to predominately look at raw price data within the chart itself. I favour the 15 day EMA for picking short term trends and generally place stops below/above this line. RSI can be very effective for picking up on divergences and is one of my favourite indicators, for picking up on possible imminent weakness/strength of a stock. In terms of intra-day trading the stock off the daily entry, I use 5 minute candlestick charts and ONLY trade in those that are strongly trending during the day and fine tune my entry/exit strategies. In many ways this is crucial, as when I first started trading, I used to get occasionally stopped out of trades intra-day.

I STRONGLY recommend a book called 'Trade your way to financial freedom' by Van Tharpe, it is a bit of a bible for those wanting to trade derivatives. The most important thing is the entry is only a very small part of the overall trade, the most important thing is how you manage the trade.

An example of the above, is I entered two long trades during the day. One in (TOL) at $22.85, it trended strongly up intra-day all day and also (DOW) at $7.68, same story.
 
thankyou very much for helping me out and clarifying a lot of stuff..

Continue with your Diary... it will be an interesting read.
 
Gday all. Pretty directionless day so far. Looking at a few potential trades. The best of which I think is a long position in (BXB). My trigger is $13.30, so should hit that today. Missed out on (CTX), probably a little conservative with my entry. Not to worry, NEVER chase a trade. Was a little nervous about (DOW) earlier in the day. Seems to be consolidating now, have to watch carefully, my stop is at $7.44. I have also trailed my stops on the (ALL) short trade and (TOL) long trade.
 
Well what an amazing day on the markets. It seemed a little lacklustre until the (XMJ) bolted away with both (RIO) and (BHP) having HUGE rises, especially the former. Anyway, went long (BXB) as alluded to earlier in the day, at $13.30. Looks like forming nice little double bottom, and bounce off trendline support. Got out of (ALL) today at $15.3 for small loss (short trade), and entered long trade in (WOW) at $28.05. (WOW) has been punished a little lately and today's action alludes to possibly higher prices in the near future. Stop loss is $27.5.

Went short (TEL). Feel like with the market looking like may reverse relatively soon, that a short trade will be wise. Entered at $4.23. It has broken the short term uptrend, my stop is $4.33. Raised the stop on (TOL) to $22.54 and (WPL) to $42.88. I expect to be out of the latter soon. Looking carefully tommorow at (MIG) to go long and a possible long in (TTS) and (SGP).
 
Lachlan

Just wondering on average how long do you stay in your trades. And what percentage risk do you use and position size? Thanks for posting...plenty of us cfd traders out there and great to be learning from each other!.

moxy
 
Hello Moxy. The position sizing is CRUCIAL for controlling risk and I cannot emphasise that enough. You may get tempted during the day when you see a trade that might look too good to be true. In my opinion it doesnt matter, never change your percentage risk per trade. I currently risk 3% per trade of my entire portfolio, so that if a trade goes bad I tend to only lose a small amount. I have had trades (RMD the other week) dramatically gap against me, but there is nothing you can do really about that, short of having a guarenteed loss something I dont do.

I tend to stay in trades from two days up to 10-12 days. It really depends on how far the trend goes. Hope that helped you out a bit.
 
Gday all. Today was a busy day trading. I started off by selling my (WPL) longs at $43.02 for a 6.6% gain. This stock has had a dream run and i decided to lock in profits. Also sold (DOW) at my initial stop $7.44 for a loss. I dont like exiting at my initial stop, prefer exiting at a trailed stop for a smaller loss, but if the stock does nothing, you cannot trail the stop.

I entered (SGP) at $8.87, but it trended lower all day, I have set my stop at $8.63, so will have to watch that carefully tommorow. Entered long position in (LEI). Got in at $37.51, after it hit new highs today with one of my favourite patterns, the ascending triangle. A little nervous about (TEL), but didnt hit my stop so sticking with trade. Meanwhile it was a good day for (TOL), (WOW) and (BXB), so I have trailed my stops on all three to be in a money making position now.

I exited (NAB) below my trailed stop at $43.43. One thing which I forgot about was it reporting earnings today. My promise to myself is never hold a stock when they are reporting earnings, have AGM or other important potentially moving stock price information coming out. Ah well, I will be more attentive in the future.

Tommorow, watching (TTS), (CCL), (JHX) and (TCL). Cheers.
 
As expected our market is responding to the big fall overnight in the US. I just went short (CSM) at $3.65, broken short term support and trending down today. One trade I am looking at carefully, is a long in (TAH), it looks like it may be forming a bullish engulfing reversal pattern today which corresponds to strong support from the early March highs. Watching carefully today. Will probably get in around $17.82. Having trailed any stops today yet, but (LEI) may be trailed from yesterdays purchase later.
 
Another week over. As I alluded to earlier in the day was watching (TAH) closely waiting for an entry. Got a little excited so I jumped in prematurely at $17.82, the exact high of the session. I had the memory of missing (CTX) the other day in my mind and didnt want it to happen again. Closed at $17.65, so still a valid trade. I also went long (FGL) at $6.58. It seems to be bouncing off short term trendline support and is actually approaching completing a nice little double bottom pattern (I love these). Closed the week at $6.62, will watch with interest next week.

Closed out of my (TOL) trade today for a slight profit (1.5%), and trailed my stop higher on the (LEI) trade. Still in (SGP), but may be out Monday. Closed at $8.68, still above the 15 day EMA though. Enjoy the weekend!
 
Sorry a small correction, the earlier message in the day should have read short (CSR) at $3.65.
 
Lachlan6 said:
Sorry a small correction, the earlier message in the day should have read short (CSR) at $3.65.
Click to expand...

Lachlan, FGL is just about to cross its SMA40 line, do u jump in early or do u use another indicator as well.. just trying to learn off your experience... hope its allright...
 
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