One new trade executed today. I say executed as I did not click the buy button at a certain price instead I set it up as an order in my spread betting account.

RSA

The first trade to execute was RSA(Royal Sun Aliance). I set a buy order at 134 with a stop at 126.7. With Hindsight I should’ve set my entry price lower and I’ll explain why. I am in the process of reading Technical Analysis Explained: The Successful Investor’s Guide to Spotting Investment Trends and Turning Points. This so far seems like a very useful book and I highly recommend it to any one interested in trading off technical analysis. I am not posting direct quotes from the book but my interpretation of them so forgive me if they are not 100% accurate. In the book it explains about DOW theory and suggests that when an instrument is trending up the retracement of the trend will be between 33% and 66% of the recent up swing.

RSA in my opinon is trending or is about to trend upwards. The ADX(14) value is 27 DI+ is > DI- the 20, 50 and 200 day moving averages are all increasing therfore I have deemed it to be in an uptrend. Price has just pulled back but had I read Technical Analysis Explained: The Successful Investor’s Guide to Spotting Investment Trends and Turning Points sooner I would’ve set my entry price lower than 134. I would’ve set it around 50% retracement which would’ve been 129.15. Anyway you live and learn as I am with this.

I have no idea if anyone even reads this blog so if you do please e-mail me and let me know and I will try and put more time into posting details about all of my trades.

 
Here are a list of my open positions. You will notice that I have added some new colums to the spread sheet. These are how much risk I have on each trade and what the ATR(14) of each open position is. If you have any questions just e-mail me and I’ll do my best to answer them.

February 25, 2010 by Harry
Category: blog