Australian Share market Update 7 January 2010

The Australian market has moved up sharply since 22 December 2009.

However as the multiple moving average chart shows below, the formation of a new up trend is not confirmed until the short term group go through a compression during a price pull back. If you don’t know what this means sign up for Just Shares free Introductory training at www.justhares.com.au

We wait for the up trend to be confirmed before entering any new trades.

SOT Trade Update – 7 January 2010

Happy New Year to all our readers – may 2010 be a happy and successful year for you.

The SOT trade from last year is still live.

SOT Chart 7 January 2010

We entered this trade using the Count Back Line trading technique way back on 17 August 2009 for 73 cents.

The current value of SOT is around $1.68.

Our open profit on this $10,000 trade is $9,769 or in perectage terms 97.7%.

We have set a stop to take half our profits should the price fall to $1.59.

STW Trade Update 11 November 2009

The STW trade closed at a lost following the pullback in the Australian share market and the end of the overall market up trend.

This trade resulted in a loss of $163.55 on a trade size of $10,000 which is equivalent to loss of 1.6%, well within our money management risk tolerance level.

SOT Trade Update 11 November 2009

SOT was suspended from trading on 4 November 2009 pending a company announcement.  Press speculation links SOT with a takeover of Pipe Networks.

The trade is profitable as of the last traded price, $1.295.

Current open profit is 77%.

Until SOT starts trading again there is nothing to do but sit and wait.

Market Update 11 November 2009

The Australian share market has finished its primary up trend as shown in the charts below.

At the current time the multiple moving averages show that the market has entered a period of uncertainty – tight stops needed on any open trades and care in entering any new trades are the traders current mantras.

New Real Time Trade 13 October 2009

To capitalise on the overall market up trend we entered a moving average cross over trade (Max) in STW on 5 October 2009 at $43.50.  The entry was deliberately timed to match the pull back in the overall share market.

STW is an exchange traded fund, and allowing for trading efficiencies, mirrors the ASX-200.

This trade will be exited when the moving averages cross over.

STW 13 October 2009, moving average crossover

Australian Market Update 13 October 2009

The Australian market continues in its up trend as shown in the charts below.

The market is now at levels last seen in October 2008.

Australian ASX-200 13 October 2009

ASX-200 Multiple Moving Averages 13 October 2009

SOT Trade Update 13 October 2009

Well the SOT Count Back Line trade just keeps going on and on – somewhat embarrassingly!

You see we prefer trades that from an educational viewpoint pose some challenges but at this stage SOT is showing a profit of around 70% or $7,000 profit on our trade size of $10,000.  For new traders – this is not typical.

We have set a price level of $1.17 to take half our profits and the remaining stop being defined by the count back line and waiting for a closing price below this level.

Sometimes we just get lucky but the key here is that had the trade gone against us straight away then we would have sold using the count back line method – remember successful trading is all about keeping any losing trades really small.

SOT count back line trade

Real Time Trade Update – SOT- 10 Sept 2009

The SOT trade continues based on the count back line technique.  Prices dipped below the CBL value during 10 Sept 09 but closed above the CBL value.

SOT has opened trading on 11 Sept 09 a little below the current CBL value of 83 cents.  It is the closing price that determines whether we sell the next trading day or not.

We have also put in place a price alert at 79.5 cents which we will use to trigger a sell should their be a precipitous fall in the price.

We entered this trade at 73 cents on 17 August and so this should be a profitable trade.

how to trade shares - SOT

Market Update 10 Sept 2009

The Australian share market has continued its recent short trem uptrend.

The multiple moving average chart for the All Ordanaries shows another compression of the short term group that has had little effect on the long term group.

how to trade shares - 10 sept 09 all ords

how to trade shares - 10 sept 09 all ords