HF - Hanfeng Evergreen

This is a trade that I entered this week.

Ticker symbol - HF
Company - Hanfeng Evergreen

They are based in Toronto and deal in fertilizer with China...which is more than I need to know about the stock but I thought I would share what I can recall of them. With potash pricing taking off and China's development this is a good candidate for some nice prices down the road.

I have traded them in the past and made decent profits on same day and next day trades. Now I am looking to increase the returns by increasing the length of the trade by using the CTP approach. While the price may not take off and make great gains I figure that it is a good trial of the system and, hopefully make some nice Target trades.

I marked the chart the same as for the CTP example...green circles the short sell zone, red circles the buy zone. The little red arrow is the day that I actually placed the trade so I currently have 100 shares of HF.

Here's the six month chart: I'm still working on getting these nice and sharp but this gets the point across.













This one is not down trending, it is a consolidation triangle which works a bit differently. I am entering this stock later than I would like but I wasn't watching it for these entries in the past. As it is I hope to at least make a small profit and at best be there when the prices takes off...we'll see.














This is a 2 year chart to show the price historically. The last six months is all I have made notes on as it is the most relevant and the most defined trend. Prior to that the price was not very predictable but could have still been traded using the CTP principles with varying results.

This does look like a very shallow downtrend over the last year

Out of curiosity I applied my strategy historically on this stock and four trades would have been made since February. Those trades combined would have profited $4.75 per share. Considering that the very first price bought at would have been about $11.25 that is a 42% realized gain or profit. I skewed this against me as there could have been another $1.25 in there, but I prefer worst cases. This cash would be used as a buffer for the next few trades as the possible profit per trade gets smaller the farther along this particular trend type that you get.

That't the theory, we'll see how well I fair as time passes on other similar trades.

JD.