March 9th, initial trial...not by choice

Today is the first day of implementing my newer rendition of my PP200 trading plan by incorporating the London effect and a long haul approach to exiting the trades. My initial intent was to just come out fighting and trade these calls for real to see some profits or performance reflected in the cold hard numbers on the account balance. That was not to be the case, once again.

As I type I am in the middle of a trade that I was prepared to take as I watched the moving averages converge and squeeze the price out. I ended up having to take a call that I could not put off so I just jotted down the worst case inside quote entry price. Had I had 60 seconds more before the call came in I would have been in the trade and still been able to take the call based on my stop approach allowing me to not have to track the trade so closely.

HGD at $ 8.96.

The momentum took the price of HGD up to $9.10 quickly and I placed my stop at the breakeven point of $8.99. I chose to follow the 50sma of HGD for stop movement for now so I have my stop moved up to $9.02.

Note that these will be real stop loss orders placed when I am trading these for real. I am liking the idea of letting the price run rather than sweating over every penny and deciding to take the profit or let it run...well...I don't actually sweat about it, it was fun, but the relaxed approach is a much better plan to use over the longer term. I can still get some regular stuff done while the trade progresses.

It is worth noting that our daylight savings time is not followed by those across the ocean so the London market is now open until 1200h our time instead of 1100h. Interestingly my entry point shifted exactly one hour later, helping to prove my point and giving me that much more confidence in my new method.

As I finish this post my virtual trade is at $9.11 (inside bid) and my stop is at $9.06. My profit, if stopped is $40 based on a 400 share position, less $12 in commissions. $28 tax free for the sake of placing the trade and moving a stop every once in awhile. It's only the beginning.

Jeff.