Disclaimer: This is a legal notice. Please read it carefully in its entirety. It is your responsibility to understand this notice. If you do not understand it, please seek the assistance of a competent advisor.The content in Trend Follower is for educational purpose only. This is not a recommendation to buy or sell any security and no information contained here should be interpreted or construed as investment advice. My opinion is subject to change without notice. Trend Follower will not accept any responsibility or be liable for any investment decisions based on the information discussed here.

Saturday, December 31, 2011

Happy New Year!!!!

2011 was a good year for trend follower.
For 2012, will just follow the trend, as it unfolds.

Happy New Year to All!!!

Thursday, December 29, 2011

Window Dressing????

         Dec 9   Closed       Dec 29 Closed       P/L
DIZ             9.10           11.38                     20%
GLO           953             1133                   16%
CMT          1.34             1.60                    17%
PAL            6.01            6.99                   14%
HLCM        8.4              9.40                    11%
PNB          53.0             56.4                       6%
AC            293               311                       6%
DMC         39.05           41.30                   5%
MPI           3.48             3.66                      5%

I selected December 9, because that was the time Euro problems in the headlines. PSE reacted on the news from December 8 to 12.

Selected stocks were actively traded except HLCM.

Sunday, December 25, 2011

Example of Money Management Final

Not bad for 3 weeks trading on a bearish sentiment market.





Great traders concentrate on good risk management. They constantly manage their open positions. Linda Bradford Raschke

Position Sizing is THE most important aspect of your trading system, because if you have positive expectancy, your position sizing rules will determine your profits.  Dr. Tharp - Trade Your Way To Financial Freedom
http://tracer-tracer.blogspot.com/2011/12/example-of-money-management-2.html
http://tracer-tracer.blogspot.com/2011/12/example-of-money-management-3.html
http://tracer-tracer.blogspot.com/2011/12/example-of-money-management-4.html
http://tracer-tracer.blogspot.com/2011/12/example-of-money-management-5.html


Friday, December 23, 2011

A Merry Merry Christmas Indeed


Good News from Heaven the angel bring.
Glad tidings to the earth they sing;
To us this day a child is given,
To crown us with the joy of heaven.
-Martin Luther


Thursday, December 22, 2011

Example of Money Management 5




The Bounce

As I mentioned previously in FM about CEB, you would be lucky if it will bounce 10%, it only bounce 5%.
Is 5% worth the risk?

Probably the bounce was due to the reco of a broker. (I was even wondering why it recommended a buy).
As per dow theory, manipulators can move a stock for a short period only.

Tuesday, December 20, 2011

Price Action and News

When I was a newbie, I believed in what the news and blogs says, and I lose a lot of money believing them.
When I just watch price action against the news... my portfolio change dramatically. Bloomberg, CNBC and other economic gurus does not concerned me anymore.

I remember as early as 2005, bearish news all over.
And I read that the market since early 19th century, has been moving 60% of the time in bearish sentiment.
So, how can you trade???


Some experts suggested isolation - no business news, no Wall Street Journal, no listening to other traders, just you and the markets. A. Elder

Saturday, December 17, 2011

MPI Green Signals

When all lines crossed.

MPI Green signals. Nice to see a active stocks are showing green signals, it's a long time.
The last time was last year when this blog was founded.

Friday, December 16, 2011

Foreign Buying VS Selling 2

If CEB is an eye sore. P6 is the opposite. 37 days of foreign buying since Oct. 11 against 8.
Why do I consider it important. Because of their deep pockets, they can move the price in any direction.

As of Dec 16,  47 issues broke above Sept 19 closed ( Phisix 4,308 Top, prior to the crash) and  70 still stuck up
.

Tuesday, December 6, 2011

Breakout????

Continuation of DJIA Power of "N" Live

Foreign Buying VS Selling

From Oct 11 2011, ( Start of foreign buying)  to present Dec 6.
17 up days ( Green Color ) 17 down days ( Red Color )
Only 7 days foreign selling against 30 days foreign buying.

As of Dec 6,  44 issues broke above Sept 19 closed ( Phisix 4,308 Top, prior to the crash) and  76 still stuck up.
But 98% better than First week of November  which was only 24 above  Sept. 19 and 98 stuck up.


DJIA Price action Live

Monday, December 5, 2011

Last Minute Short Covering

When all Lines Meet


Above example of buying the dips, SMA 20,50, 100 lines meet. Time to buy???
Not all the time like MA charts above, all lines meet, but sideways. Well at least, sideways,
better than staring at the ticker every second.

LCB

The Green Signal

Speculation is far too exciting. Most people who speculate hound brokerage offices or received frequent telephone calls and after business days they talk market with friends at all gatherings. The ticker or translux is always on their minds. They are so engrossed with minors ups and downs that the miss the big movements. Almost invariably the vast majority have commitments on the wrong side when the broad trend swings under way. The speculator who insists on trying to profit from daily minor movements will never be in a position to take advantage of the next important change marketwise when it occurs. Livermore

Long AUD USD

Saturday, December 3, 2011

Only one side of the Market, The Right Side

Dow Monthly charts, Notice the increased in volume before price making higher low.

IBM and OSG, same time frame, but opposite direction. Chart speaks for itself.
IBM wild fluctuations due to human emotions, panic, but price always goes back to the mean.

Always follow the line of least resistance. Livermore