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 This is a follow up from a previous newsletter about the need to sell falling shares, obvious statements you are probably thinking. However traders struggle to buy into the market for they are constantly fearful of losing. Fear can be reduced by having a proven method and remembering uncertainty of outcome will always be present in any investment decision, be that a share, a house or a widget. Constantly reminding yourself that trading and investing is about risk control and probability more so than being right or wrong, helps overcome fear of uncertainty.

Another dilemma too for many investors is that to make money you have to be "in" the market, sitting on the sidelines in cash does not bring results. Sure, you won't lose, but you won't win either. A decision to go in or not needs to be made. That decision is made easier if you have clear rules to go by....and follow them. Below is an example.

 One of the good things about having a live portfoilio to reference to is it's a great teaching tool. You can see the equity graph from Peters Portfolio (you can view on the website) had about 40K in cash around 5 weeks ago at the beginning of last month. The system buy filter became active and so that cash money was immediately employed in the market. No hesitation. There is no hesitation because the system uses risk control and probability rather than an a subjective decision. The cash had come about from selling falling shares during the correction in Sept and Oct, but now new opportunities were being signalled to buy, so in it went. The market has been volatile and unpredictable since then, so how has that new money performed? Below are the stocks bought and their current standing after 5 weeks of being "in and not yet out"

 MNY          +$450

 NEA          - $644

    RFG              - $45 

  TAH            +$288

     TGA          + $1130

   That's a profit of 1,179 dollars from the 40K that was put into the market at the beginning of November, so that's 5 weeks ago, which works out at around 30% p.a. annualised return on the money, which is what the systems long term results are, not including dividends. Small and insignificant testing sample of 5 weeks only you could argue, but in that time the XAO has fallen almost 6% and our money has gone up  3%. More important than that is this: you are positioning yourself with strong uptrending shares while others panic and dither. When the market gets over its current uncertainty the strongest shares are the ones to outperform, and the good thing is you are already "in" and what's better they are "not out"

As with the horrific example chart last week of the crashing BCI, the objective is to follow the golden rule of trading, sell losers hold winners. Take the sells when they signal and DO NOT sell until you do get a sell signal. But Hold. Dont panic out because of the news. The 2 big performers in the portfolio are MNF and IFM. They are so because they were bought when Boss Market told me to and have been held until the Boss tells me to sell, which has not happened yet. See those charts below.

It's the trades that keep trending that make all the money. The stocks that were bought 5 weeks ago with the re employed money and positioned in the market, could become a good trender like the above trades. TGA looks promising, but it is important not to get attached to it because it could fall over and NEA (the worst performer currently) could surprise. With trends you just never know, the important thing is THEY ARE TRENDING and the trades are in the market ready to move up when this market does again, as it will do.

                                     Thank You to everyone for the Allana Beltran Fundraiser

Thank you very much for your support in the Allana Beltran fundraiser. Allana suffers debilitating migraines and is in Johannesburg having extensive operations to alleviate and hopefully permanently cure her. If you missed last weeks appeal or want to know more or even re visit the site to contribute, click on the links below. Could you also please forward the appeal to anyone you think may be interested or in a position to contribute.

I would like to make a special mention to Anne, who donated a very generous  $2000. We all give what we are comfortable to or can afford, every amount equal to ones capacity, a sincere thank you to everyone, big and small, it all adds up.

The generosity has really made a difference to Allana and her family, they have nothing to do with the stock market so it's been an eye opener for them, perhaps for others too that bothered to click on Allana's information link. Personally for me it has helped restore some positive faith in human nature, which in this game is regularly tested. Peter.

Click here for the links from last week and view the funding target progress

http://www.easysharetradingsystems.com.au/Newsletter-Archive/archive/view/1-mailinglist/72-angel-shares/24.html 

https://www.mycause.com.au/page/85792/helpstopallanasmigraines

 Market comments and alerts

click on the links below for 52 week high alerts and market comments

I have also updated the portfolio, it has fallen slightly (due to the pullback in IFM) but all trades are holding up well with no sell signals

http://www.easysharetradingsystems.com.au/How-to-Trade/52-week-highs.html

http://www.easysharetradingsystems.com.au/peters-portfolio.html

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