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