This is a site about trend following. Using a stock screener, I find stocks that are in major trends, either up or down. I simultaneously buy stocks that are trending higher, and short sell stocks that are trending lower, thus buying high and selling low. ---> This method will produce winners nearly 45% of the time!
Thursday, September 18, 2008
Northwest Pipe Co. (NWPX)
Scanned on 9/17 at a price of $59.60
Stop Loss at $53.56 or cross of 50dma, which ever is first
Avoid getting involved with weak counter-trend moves
Cut losses short
Let winners run
Separate emotions from decision making
Avoid trying to predict the future
Game Plan
1) Get into stocks that are in massive trends
2) Place stop immediately after placing order. Stop placement is determined using formula that incorporates stock and market volatility. (Stops become less tight as volatility increases)
3) As the stock continues trending, profits are locked in as 50 day moving averages climbs.
4) Spread capital amongst several short and long positions. Avoid losing 5% of trade capital in any given trade.
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