The posted CMC trades, just one of the stocks that I am tracking and trading, has produced a decent return on investment since September.
Five trades posted, 4 winners and 1 loser.
Using the typical "$1,000 invested could have been..." method of reference seems a little unrealistic as the price varies and percentages can be deceptive if spun the right way. Assume that a trade size of 100 shares (the typical lot size) the first trade (a short at $14.50) would have tied up $1450... so I will use that as the starting capital. All trades thereafter remain 100 shares and, but as it turns out, $50 would have had to have been added to keep this size as the price does rise into the last trade.
Total profit was $400 for a 27.6% return based on the first trade of $1450 (26.7% if you count in the extra $50 added at the end)
Not bad.
Doing the compounding thing based on the share prices for each trade turns this out to $406. Interesting as I thought that it might have been a bit higher. The loss early on and the larger share price at the end reduced the effectiveness of the compounding.... but an extra $6 is still $6.
I'll post my total record next time around. I have the data but just have not run it through the ringer yet, some I traded and some I did not so it's a little all over the place right now.
Jeff.
Questrade, My direct access discount broker.
Sunday, April 24, 2011
CMC and not so live trade blogging
I've been somewhat tied up in other projects (personal and work related and I have not taken the time to keep my blog updated. Some of the trades that I have been tracking I have not actually managed to get into, and some I have. I can only do so many things. So, I am updating my favourite stock following today.
My CMC trade posted active on November 23rd, 2010 didn't get entered. The way the price hovered around $15 then broke up just did not instil much confidence in a followup drop in price, basically the setup looked far more bullish than bearish. As a result I just decided to let it settle into the next groove. In the interest of not looking like I am fitting the trades to the hindsight circumstances I will keep it in the mix as if it were made anyway.
Book one loss of $1.50
As such the setup came for a long trade, a little more aggressive based on older support / resistance rather than new trend establishment, enter long at $15.50 following the mid-December high of $17.46. February 17th saw the $18.00 break which made the setup a little less aggressive but still active.
Mid-March saw the price spending most of it's time in the $15's so there was lots of time to get a decent price for this trade. Target exit at $17.00 met on March 29th.
Book one profit of $1.50
Of course a short is in order next, target entry was for $17.50 to allow a little space to wind up and make this a lower risk setup. Trade filled on April 1st and closed on April 18th at the target of $16.00.
Book another profit of $1.50.
All in all not a bad producer.
Jeff.
My CMC trade posted active on November 23rd, 2010 didn't get entered. The way the price hovered around $15 then broke up just did not instil much confidence in a followup drop in price, basically the setup looked far more bullish than bearish. As a result I just decided to let it settle into the next groove. In the interest of not looking like I am fitting the trades to the hindsight circumstances I will keep it in the mix as if it were made anyway.
Book one loss of $1.50
As such the setup came for a long trade, a little more aggressive based on older support / resistance rather than new trend establishment, enter long at $15.50 following the mid-December high of $17.46. February 17th saw the $18.00 break which made the setup a little less aggressive but still active.
Mid-March saw the price spending most of it's time in the $15's so there was lots of time to get a decent price for this trade. Target exit at $17.00 met on March 29th.
Book one profit of $1.50
Of course a short is in order next, target entry was for $17.50 to allow a little space to wind up and make this a lower risk setup. Trade filled on April 1st and closed on April 18th at the target of $16.00.
Book another profit of $1.50.
All in all not a bad producer.
Jeff.
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