Stocks: 8th May 2017

Disclaimer - Read this first!

This is not a signal service. While endeavoring to post signals before time occasionally I will only be able to post signals a day or two late

I am not a financial adviser. Some of these are paper trades. I am not suggesting you follow these signals. If you take any action based on my blog you do so at your own risk.

Easy Share Trading System.

System Status: ON (As at 28 November 2016) Take new positions. Trailing stops are approx 25% of the most recent high.

System details.

1. Only trade the Top 300 shares on the ASX and put 10% of your money in each stock.
2. Select stocks priced between 10 cents and 20 dollars - theoretical price leverage.
3. Buy the stock if it makes a 1 year high. For example: Friday's close is higher than last Friday's 50 week upper Donchian Channel That's the buy signal. If there is more than one stock that week making a 50 week high, pick the cheapest one.
4. Sell the stock if it at any time since it's highest recent price it falls more than 25%. For example: If you buy the stock at $2, and it rises to $4 but then falls 25% to $3, you sell. This is called the 25% Stop Loss Rule.
5. Now re-employ that money into another stock that is making a 1-year high and use the same rules as 1 to 4.
6. Any purchase should have a minimum $500,000 a day turnover for my trading size.
7. Use XAO_AX Daily EMA 20 and Daily EMA 30 as an on off switch. This should smooth the equity curve even though it will probably also reduce returns a little.

Opening Stock Trades.

• Nil.

Closing Stock Trades.

• Nil.

Weekly Momentum System.

System Status: ON - as at 28 November 2016 - Portfolio re-balanced each five weeks, positions checked weekly. Stop Loss either a close below the 2.7 x 21 week Average True Range, or, a spike above 7% in the 2 day volatility on the daily chart.

Next Re-balancing 15th May 2017.

Opening Stock Trades.

• Nil.

Closing Stock Trades.

• Sell BSL - Trailing ATR Stop.

Chart of the Week

IFN

In the Momo system since Jan 2017 - Not a lot happening here.

This is the type of trade that has one wanting to tweak a system - we are wired to want action and profit. Sadly these flat-liners aren't possible to avoid. Probably 80% of my trades will make or lose a small amount of money and you must let them do their thing because, occasionally, some make you a lot of money and that's where the overall profits come from.

Further Information

Disclosure - Personal Interests: AWC, CGC, CSR, CWY, GDI, ISU, MLD, RFF, SDF, SIP, BPT, BSL, CDA, CDD, CKF, GMA, GUD, OZL, S32, WOR.

All Stock charts courtesy of www.IncredibleCharts.com

Note: I do not receive any benefit from promoting Nick Radge, Dave Landry, Andreas F Clenow, Incredible Charts or anything else.