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Welcome to this news letter for Easy Share Trading Systems.
Well the market continues to go up. In the last 12 months the ASX 200 has risen by around 8%, not including dividends. Add dividends and a return of around 12% is looking to be the result for 2012.
Not bad.
It goes to show one cannot predict what will happen. Despite the Fiscal Cliff, the European mess, the US election, a China slowdown, Julia Gillard falling over, Tony Abbot, a sluggish economy, the Mayan calendar predicting the end of the world as we know it, the market continues to do the unpredictable, this year, go up.
Above is a weekly chart of the XAO.
The green line is a 6 exponential moving average and the black line a 24 exponential moving average.
What the hell does that mean…..for those that are not at all technical?
It means that despite what you may read or hear, the short term and the long term trend is up. How long will it last? Will there be another crisis? Will the market go up, sideways or down?
I don’t know, but what I do know is probability. You have more chance of succeeding if you understand this, rather than trying to predict. Follow strong stocks, buy the right amount, sell them when they fall and you give yourself the best chance of succeeding.
Last week I showed the charts of a few stocks.
MOC has recovered well from the mini sell off, a good example of why it is important not to panic, but wait for confirmation of the sell signal. It certainly is a volatile stock this one, but with correct position sizing that issue is not such a problem.
SGN is a stock I said we would follow, it hasn't moved a lot at all last week, so it's all ho hum for that trade.
As with IRI being a sell last week, I have been holding VTG in my portfolio, and VTG was up over 50% from my second purchase at 33, I use a “ tight stop” to protect trades in good profit, even if the normal parameters are still valid, as above. These rules were in the Course Pyramid System that I taught recently.
This was a great trade, making me 100% on the 1st position and 60% on the second.
I have now re-invested the money into other opportunities, after selling VTG this morning on the open at 53. You don’t need to be at your computer to do this, the order could have been placed last night or early this morning, or even on Saturday morning, ready for the days trading Monday.
That is what trading or active investing is all about, buy, profit and re-purchase to maximize return.
But as I keep saying…………… not too often. It just so happens that I have had two of these trades in 2 weeks, which is unusual, but great examples for you.
NEW Trade:
Monday morning I bought IMF
IMF is a legal company. It has a market Capitalisation of 206 million, pays a dividend yield of 6% and has a PE of 6.85. (A PE under 10 is perceived as good value, not an iron rule though)
Over the next few weeks we can follow this trade with the others and see how it goes.
New FREE Service: 52 WEEK HIGHS
I have noticed some confusion amongst clients and seminar attendees about what EXACTLY is a 52 week high. I have decided to publish the 52 week highs for the ASX 500 on the website.
Each week I will publish new 52 week highs for the ASX 200 and the ASX 500. if you go to the website you will be able to find them here.
Upcoming Courses
January Courses
In January I will be running two courses. From my feedback sheets I have determined the following is what people seem to be asking for...so here goes.
1/A follow up course from the two courses I taught in October and November
2/A new course teaching just one simple system, the Course Pyramid System, Versions 1 and 2 which are specifically designed for SMSF or just general trading and wealth building.
3/ Smaller class groups
DETAILS OF THE FOLLOW UP COURSE
It takes a while for most things to sink in doest it? I realise I tend to have a lot of content in my courses, perhaps too much for some, so I thought a review day was in order. On this follow up day we will review the lessons from the first course.
Review open and closed trades in both the systems, be that the Momentum System or the Course Pyramid System 1
Don't forget the very effective single position Course System 3 either, the one I taught in module one, we can spend some time reviewing that one as well.
It is not essential to pyramid, just an option for some. We can discuss the pitfalls and benefits of pyramiding also.
You will go away from this day with a more clear understanding of trend trading methodology, the pitfalls and advantages of the process.
DETAILS OF THE PYRAMID SYSTEM COURSE
Although I have taught this system in the first two courses, it has proved so popular that a lot of people will benefit from a review of it. I myself trade a version of this system.
This is a popular system for many as it allows the trader to trade the top 200 with good results.
I choose to trade the smaller cap stocks, but many traders don't feel comfortable outside the 200 or 300. Perhaps you are already holding stocks in those larger indexes, and are looking for a method to use in the future.
Whatever your situation, this is such a good method a second look wont hurt.
PRICES AND DETAILS:
THE FOLLOW UP COURSE
Saturday the 12th of January
Time 1pm to 5 pm . Afternoon tea provided
Cost $150
THE COURSE PYRAMID SYSTEM 1 and 2
Saturday 19th of January
Time 1pm to 5 pm . Afternoon tea provided
Cost $200
FOR THOSE THAT HAVE NOT ATTENDED A COURSE
Depending on numbers people that have not done a course with me I recommend they attend the Course Pyramid System day on he 19th.
However I recommend you have some trading experience, if you are in doubt as to this ring or email me.
As usual I will be donating to the Khedrubje Kadampa Meditation Centre. This is included in the course fee.
NOTE: The classes will be a lot smaller than the one I held in October at Wamberal. The course I taught in Wollongong was more effective for the students in my opinion, as it was around the third the size of the first course.
I want to spend more time with students so they have a complete understanding of the methods.
I hope everyone has a great week ahead of them.
Peter
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