Sub 10c medium term trading strategy

[burglar]

... considered gambling? ...

Take the race track.
Some make income, some fees and a few win prizes.
The bookmaker has positive expectancy!
The aficionado does much homework.

But the (irrational) punter is the driving force.
That is why horse racing is considered gambling.

 

[pavilion103]

I've had some really good trades recently in the 20-50c range actually. I try not to take too many but seems to be working at the moment.

 

[Craton]

Pav, hope you don't mind. It seems like a full time job to me so am assuming you are a day trader. If not, how much time do you invest in scanning the charts per day?

Really enjoying this thread BTW.

 

[pavilion103]

Pav, hope you don't mind. It seems like a full time job to me so am assuming you are a day trader. If not, how much time do you invest in scanning the charts per day? Really enjoying this thread BTW.

Nowhere near as much time as you'd think. I am not a day trader, although some nights I log on to the FTSE futures for a bit. It takes less than one hour every night to do scans, pick prospects, place trades and amend stops on existing trades. Most nights it is closer to 30 mins. I don't have to check them during the day at all if I don't want.

The most appealing thing about trading is this: put in a couple of thousand hours of study early on and then once you learn how to do it you can develop a strategy that is not time intensive.

That's my kind of investment. Hard work early on and then ride the benefits for life. I continue to learn though of course. I'm all about efficiency. Maximum results for as little time commitment as possible. Very happy with this situation.

 

[Craton]

Thanks for the reply, all understood and nice one in that you certainly live by one of the old adages that are part of my mantras, namely, "work smarter not harder". I like it.

To my next question. I'd assume that one needs some sort of charting s/ware to see the Set Ups materialize or would the online (Comsec/Etrade) brokers offerings be enough?

 

[Rider]

Take the race track.
Some make income, some fees and a few win prizes.
The bookmaker has positive expectancy!
The aficionado does much homework.

But the (irrational) punter is the driving force.
That is why horse racing is considered gambling.

Burglar I'm interested in your experience with sub 10c stocks or small cap stocks in general ( have you dipped your toe into the Shark pond?)

 

[pavilion103]

New setup




Updates:
Setup 6 - cancelled
Setup 10 - cancelled

 

[pavilion103]

Thanks for the reply, all understood and nice one in that you certainly live by one of the old adages that are part of my mantras, namely, "work smarter not harder". I like it.

To my next question. I'd assume that one needs some sort of charting s/ware to see the Set Ups materialize or would the online (Comsec/Etrade) brokers offerings be enough?

Yeh you want some sort of charting software to run scans, do analysis on etc.

Good value for money imo is Amibroker. Check out there website. They are one of the ones I have.

 

[pavilion103]

 

[pavilion103]

 

[pavilion103]

Here is the summary. Three stocks in the portfolio now.

 

[pavilion103]

Here are the three updated charts.

PAA is the new entry (Setup 11). Not off to the best start with that reversal on the entry day.

Also note that the original intended entry was 0.014 for this one but I had a limit of up to 0.016. This means that the intended number of shares for 0.014 was taken for 0.016, meaning that instead of $400 risk, there is $600 risk.
This is one issue that I can already see occurring with poor entry likely for some of these. I don't hide this fact.

 

[wombat40]

Oh no..not pharmaust, ive been in that since day before 9/11...a real dog !!

 

[kid hustlr]

Loving the detail you are putting into this Pav, very interesting. I see you're also slowly mastering excel, colours everywhere!

I'm really worried SDL is just going to drift back to sleep and you will have let a 5 bagger go. All part of the learning process for now I guess. Hopefully I'm wrong.

 

[pavilion103]

Loving the detail you are putting into this Pav, very interesting. I see you're also slowly mastering excel, colours everywhere! I'm really worried SDL is just going to drift back to sleep and you will have let a 5 bagger go. All part of the learning process for now I guess. Hopefully I'm wrong.

I'm thinking maybe the same thing mate. But I put these rules in place before I started and the objective isn't to pick up 5R. It's to nail a big one. However I will trail stops. I don't want it to be all or nothing. But they will be widish.

This is going to be a medium term project and it won't be until at least 3-6 months that anything will really be deduced in terms of the effectiveness of this portfolio. It may even be 12 months.
Unless of course the account begins to grind down to a point that it is too difficult to recover. I'm at interested as everyone to see how this goes. It's not how I normally trade but worth playing around with IMO.

 

[pavilion103]

SETUP 9 - GGX triggered @ 0.029, we wanted 0.028 - the risk is $229

SETUP 12 - CVN triggered @ 0.079, we wanted 0.078 - the risk is $222


I won't updated charts every night.

All will be done at least once a week in a summary
OR
when there is big movement.

 

[mr. jeff]

Oh no..not pharmaust, ive been in that since day before 9/11...a real dog !!

Would you kindly contribute to the conversation in a more constructive manner.

It may be unfortunate that PAA has not performed in the past, however this does no have any bearing on the technical analysis of the stock. It is not respectful, particularly of this thread, to place an emotive comment about a selected stock when it is clear how the decision was made and why.

You should say "PAA is a dog because their new strategy to put new drug XXXX into the market relies on......"

I am sorry to be pointed. Apologies and please carry on with the great posts everyone.

 

[tech/a]

SETUP 9 - GGX triggered @ 0.029, we wanted 0.028 - the risk is $229

SETUP 12 - CVN triggered @ 0.079, we wanted 0.078 - the risk is $222


I won't updated charts every night.

All will be done at least once a week in a summary
OR
when there is big movement.

CVN seems to have traded at a high of .028c

 

[pavilion103]

Do you mean GGX?

On IB this is showing up as a buy at 0.029 for me.

 

[tech/a]

Do you mean GGX?

On IB this is showing up as a buy at 0.029 for me.

Sorry Right Code wrong Price
.078 --CVN