Dave’s Trading Diary: Why I Love This Job – A Week Of Winnings And Five New Stock Buys
This excerpt from the trading diary is for educational purposes only and is not to be interpreted as trading or investment advice. See Terms Of Use here.
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Earnings season. Probably the most anticipated time of the year in the stock market. And this earnings season is not disappointing.
At least that is what the price trends in individual stocks are telling us - this week solid entry signals have been firing off all over the place. It’s been amazing. Of the five stocks I managed to get into this week, the average gain over three days is a whopping 7.65%. See if your bank manager can match that one – even if you give her 12 months to do it in and not 3 days.
Which is why I love this job. Apart from writing about it all and sharing a tiny bit of learned wisdom each week with savvy and intelligent readers like yourself, to quote the A Team’s John Smith “I love it when a plan comes together“.
The plan I am using, of course, is the very same plan that comes with the Complete Trading and Investment Course at this site. It’s not a secret in any way shape or form and the methods have been gleaned by myself from the hard work of analysts from America, London and Japan over more than 120 years.
Trades And Buys In The Trading Diary This Week
Having said all that however, my life is no silver spoon. I still work to pay the mortgage, and save what I can to invest. This is the way fortunes have been made for centuries. It’s just my main passion happens to be what I do with that saved money and how it is invested, and I also take the time out of my week to put it on a public forum like ASX Market Watch.
This week I got entries in SWM (Seven West Media), ARP (ARB Corp), KAR (Karoon Gas), TOL (Toll Holdings), and QUB (QUBE Logistics). The majority of these were bought using a “buy stop”, set up the previous night, which triggered in a lot of cases when earnings were released.
However, I am not perfect. I have missed trades over the last few weeks that have given perfect entry signals according to the rules. AWE is one example, and NWH is another. Both have really taken off this week as well. SEK and SUL have also done well. I guess the comforting thing is that these stocks all exhibit nice entry signals according to my rules, so the signals were there.
Current Trading Diary Holdings and Performance
The new trades are not the only ones outperforming this week. Apart from COF (Coffey Int), now leading a 36% gain in around four weeks, other stocks have joined the “double digit returns” ranks. BLY (Boart Longyear) boosted to 14.09% this week. CAB (Cabcharge) made a stellar performance to 14.65%. MND, ASL, and IMD are all up to double digit gains over 10%. And Sims Metal Group (SGM) is back in positive territory after starting out at a loss (but not hitting the stop loss).
Of course, the market will not rise every day.
The Benefits Of A Solid, Tested Trading Plan
All of this is why I personally use a solid, tested trading plan. I still test it manually every few days, just to ensure it works and to keep the faith in its signals. If you want to do all this yourself, back-testing a stock over the last 10 or 20 years with positive results is a great way to figure out a plan that works for you.
Share a comment or question in the comments section below.
Until next week, happy trending!
Dave McLachlan
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February 25, 2012
Tags: ASX, buy signals, online trading, stocks to buy, trading diary, trading plan, trend following Posted in: ASX, Dave's Trading Diary
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