Re: End of Year Assessment
As the year comes to a close it is time to assess my trading. Most importantly, I am still trading. I had one bad trade that took out quite a chunk of capital. The company went bust and stops were no use when the price plunged 90% overnight.
Fortunately it was virtually balanced by a good win later in the year. I will end up by about 3% on the year.
Overall I am pleased with the way I have managed my trades and trading activity. I am still using P&F charts but have added more to increase the kind of trades I can do.
I now overlay an Ichimoku Cloud chart over the P&F price data:
This is a chart of Mothercare. You can see how the green cloud shows support and that the stock is healthily above it. There is an active profit target of 810.
I am now also using Guppy Moving averages with Equivolume:
It is interesting how the long term averages mirror the cloud of the Ichimoku chart.
Finally I have found an Ease of Movement chart a useful adjunct to the Equivolume chart:
The different displays let me evaluate potential stocks over a wider span of trade types, from potential trend trades to sharper swing trades. I use the most appropriate chart to manage the trade but usually if a stock is running higher than the long term Guppy averages or the Ichimoku cloud I let the trade run.