Wednesday, September 8, 2010

Looking A Little Deeper

at VLNC...below is the backup sheet for "V". Just by the narrowest of margins, the stock was signaled as a buy, based almost entirely on the boost from yesterdays burst up. Does not matter how narrow or weak the signal is, the trade has got to be taken. It could end up as a whipsaw, but thats part of the whole process. You take some lumps on the whipsaws to guarantee you are on the right side of the trade when the trend begins. Taking a closer look at VLNC and how it has acted within the sytem:

In 1225 days of trading the system has called for 25 trades, about 50% winners and 50% losers. VLNC has not been a particulary great stock to trade within the past 4 or 5 years. However, having said that, a great breakout of this stock would give us a very nice return. Average number of days between trades has been about 49 days. A great example of a trending stock (in this case downward) has been CNXT. Thats the kind of return for each of these stocks that we want to see. Patience is key.

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