Free Trade Alerts Stock Portfolio Update – 25/10/13

backtestwizard open positions of theor free trade alerts portfolio

It hasn’t been a great week for our free trade alerts subscribers in terms of banked money because we have only closed a losing trade. The good news is that our open positions are doing nicely.

The real killer of the weeks losing trade was that it was in $UCO which gapped lower than our stop-loss. The result being that we got stopped of the trade for a 1.3% loss where we’d normally only be stopped out for a 1% loss.

Gaps are something that you must always be wary of but you must just see them as a cost of doing business. Having said that, when trading individual stocks you should always monitor when a company is scheduled to release earnings because some gaps can be 40% or more in extreme cases.

Our trade in UCO was not such a big concern because it is a commodity ETF. For a Commodity ETF to gap 40% or more it’s probable that aliens have landed on Earth to provide us with advanced nuclear fission technology. In which case a thousand dollars lost in the financial markets won’t be so bad!

It’s not all bad news though, if we closed each of our trades at current prices we would bank 4.4% profits on our account balance.

Of course, gaps don’t always have to be against your position either and as we saw with our trend trade in $SGG this week, when a gap works in your favour and you don’t have any from profit targets the gains can be large.

Our most promising trades continue to be long $TGA and long $COW.  As ever, both free trade alerts were a product of our core trend following trading model and were sent out to subscribers. If you haven’t already done so you can gain access to our free trade alerts right here.

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Our trend following trades in general are beating the returns of our counter-trend trades but that is to be expected. $SGG, $TGA and $COW are all making nice gains for us and trailing stops are being moved to lock in profits.

Remember that trend following is the main wealth building method of our free trade alerts portfolio. Our counter trend trades are shorter in duration and have tighter stop-losses but they provide us with our regular income.

Our existing counter-trend trades in $BT.A, $KGF and $TED are all in profit for the time being while we are taking some heat on the $UGA trade. Regarding $UGA, we have already closed half a position at the first profit target so we are basically running a free trade.

As I have been saying for the past couple of Months, this is a raging bull market so the important thing is that we are invested and that we are not constantly trying to pick tops.

Our indicators suggest that the markets are more likely to keep rising for the time being and with the dow top less than 100 points away I suspect that the indicators are correct.

Free Trade Alerts Portfolio – Open Positions Video Re-cap – 25/10/13

 

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