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Saturday, April 23, 2011

Trend following case study

If you were able to enter at 2 pesos to 47 run, then I will not sell my holdings like Buffet. I will just wait for dividends if any and probably live happily ever after. 

How can I follow that trend from 9 to 45. If you follow the Livermore theory, you cannot, you have to exit from the 40 to 30 drop, otherwise you are stucked for 4 months. You have to follow your rules.

As per Livermore, you must not fail to re-enter if it makes new high. So, that is 42 last April 14.

Link below was my hyping of DMC from 9 pesos up.
http://www.financemanila.net/forum/viewtopic.php?f=1&t=278&start=871

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