Dave’s Trading Diary: Five More Buys, Market Confirms Up-Trend And Risk Management Released!
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.
The groundswell continues on the Australian market – a small but growing number of stocks that are breaking out, up and into new upward trends. These are the stocks I am buying, and a high percentage of them are seriously outperforming the overall stock market.
It’s nice to see the All Ords give a small up-trend confirmation this week, after we’ve been following the strong sectors and stocks and outperforming the market for over three months.
Current Trading Diary Performance
Current performance continues to be stunning. We are holding a win percentage of 84%, in other words 84% of stocks I’ve bought over the last three months (and therefore for this financial year) are showing a profit.
The average profit per trade is 10.48%, including any losing positions. Not including losers, the average winning position is 12.86% in around three months.
Of course, we need to be able to take great winning streaks like this with a grain of salt. The average win percentage during back-testing this strategy is around 50 to 60%, with the average profit three times the average loss, giving us a solid edge.  The system can still expect to have a losing streak of around 10 trades at some point in its career. That’s just simple probability and mathematics that we can take you through in our Money and Risk Management. It’s not rocket science and most of it is even simple enough to do without a calculator or just a pen and paper.
New Buys In The Trading Diary
New buys in the trading diary this week include CPU, SMX, MEO, GUD, BTA. All of them are in positive territory after only one week, and MEO has taken off nicely for a start, as has BTA from the healthcare sector. All were bought according to the Entries and Exits module, also on this site.
While I have missed some entries in stocks as they moved up over the last 3 months, it is comforting to see the majority of them all had entry signals according to that module. AWE, NHW, SEK, MMS are just to name a few.
I am thinking of opening up the Trading Diary to show ALL entry signals that occur according to the “Entries and Exits” module rules, not just the ones I take. If you think this is a good idea, let me know in the comments and we’ll see how it goes.
Risk, Trade And Money Management Is Available For Individual Purchase
The new module Risk, Trade and Money Management is now available for individual purchase. It’s an absolute steal at $27.00, far too cheap in my opinion (but then I am not one of those spruikers who doesn’t trade yet charges $10,000.00 for their very average, un-tested idea). Instead, this inexpensive module goes through total Risk, Position Sizing, managing your trade as it unfolds, adding new positions, expectancy, losing streaks and more. Most new traders will gloss over this stuff on their learning journey, but it really is the lifeblood of the best trading systems that people create.
Have A Great Week
I hope the market is treating you as well as it is me, and you’re investing in outperforming stocks and sectors! Until next week, happy trending.
Dave McLachlan
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April 1, 2012
Posted in: Dave's Trading Diary
4 Responses
Hi Dave
I would like to see all the entry signals please.
Again, I commend you on the energy and work you put into this site.
Kindest regards
Lu
Thank you Lu – it is always great to have you here.
Looks like the people’s choice is more stocks with entry signals, so you’re not alone with this choice
Hope your investing is going well!
- Dave
Hi Dave,
While it is probably a bit late to say. Please show all entry signals.
Thanks for your patient teachings on this subject.
Phil
Thanks Phil, will do.
Looks like the market is just starting to roll over, so could be interesting times ahead
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