Charting your stocks By Garth Mackenzie
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Charting your stocks By Garth Mackenzie
description
Charting your stocks By Garth Mackenzie. Identify the major trend Time your entry Execute the trade Manage the risk. Identify the major trend. Uptrend : Richemont (CFR). Identify the major trend. Uptrend : Richemont (CFR). Identify the major trend. Sideways trend: ABSA (ASA). - PowerPoint PPT Presentation
Transcript of Charting your stocks By Garth Mackenzie
Charting your stocks
By Garth Mackenzie
1. Identify the major trend2. Time your entry3. Execute the trade4. Manage the risk
1. Identify the major trend
2009 February March April May June July August September November 2010 February March April May June July August September November 2011 February March April
15
20
25
30
35
40
45RICHEMONT (39.9900, 40.0000, 38.9400, 39.1300, -0.39000)
102030405060708090
100Stochastic Oscillator (63.0944)
Uptrend : Richemont (CFR)
1. Identify the major trend
2009 February March April May June July August September November 2010 February March April May June July August September November 2011 February March April
15
20
25
30
35
40
45RICHEMONT (39.9900, 40.0000, 38.9400, 39.1300, -0.39000)
102030405060708090
100Stochastic Oscillator (63.0944)
Uptrend : Richemont (CFR)
1. Identify the major trend
July August September October November December 2010 February March April May June July August September October November December 2011 February March April
100
105
110
115
120
125
130
135
140
145
ABSA (131.250, 132.390, 129.650, 130.700, -1.80000)
0102030405060708090
100Stochastic Oscillator (80.5227)
Sideways trend:ABSA (ASA)
1. Identify the major trend
July August September October November December 2010 February March April May June July August September October November December 2011 February March April
100
105
110
115
120
125
130
135
140
145
ABSA (131.250, 132.390, 129.650, 130.700, -1.80000)
0102030405060708090
100Stochastic Oscillator (80.5227)
Sideways trend:ABSA (ASA)
1. Identify the major trend
Sep Oct Nov Dec 2009 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2010 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2011 Feb Mar Apr
3.0
3.5
4.0
4.5
5.0
5.5
6.0
6.5
7.0
7.5
8.0
8.5
9.0
9.5
10.0
10.5DRDGOLD (3.44000, 3.44000, 3.38000, 3.40000, +0.0000)
0
50
100Stochastic Oscillator (75.3521)
Down trend:DRD Gold (DRD)
1. Identify the major trend
Sep Oct Nov Dec 2009 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2010 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2011 Feb Mar Apr
3.0
3.5
4.0
4.5
5.0
5.5
6.0
6.5
7.0
7.5
8.0
8.5
9.0
9.5
10.0
10.5DRDGOLD (3.44000, 3.44000, 3.38000, 3.40000, +0.0000)
0
50
100Stochastic Oscillator (75.3521)
Down trend:DRD Gold (DRD)
2. Time your entry
19 26 3May
10 17 24 31 7June
14 21 28 5July
12 19 26 2 10August
16 23 30 6 13September
20 27 4 11October
18 25 1 8November
15 22 29 6 13December
20 28 3 102011
17 24 31 7February
14 21 28 7March
14 22 28 4April
11
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44RICHEMONT (39.9900, 40.0000, 38.9400, 39.1300, -0.39000)
102030405060708090
100Stochastic Oscillator (63.0944)
Richemont
2. Time your entry
19 26 3May
10 17 24 31 7June
14 21 28 5July
12 19 26 2 10August
16 23 30 6 13September
20 27 4 11October
18 25 1 8November
15 22 29 6 13December
20 28 3 102011
17 24 31 7February
14 21 28 7March
14 22 28 4April
11
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44RICHEMONT (39.9900, 40.0000, 38.9400, 39.1300, -0.39000)
102030405060708090
100Stochastic Oscillator (63.0944)
Richemont
2. Time your entry
19 26 3May
10 17 24 31 7June
14 21 28 5July
12 19 26 2 10August
16 23 30 6 13September
20 27 4 11October
18 25 1 8November
15 22 29 6 13December
20 28 3 102011
17 24 31 7February
14 21 28 7March
14 22 28 4April
11
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44RICHEMONT (39.9900, 40.0000, 38.9400, 39.1300, -0.39000)
102030405060708090
100Stochastic Oscillator (63.0944)
Richemont
2. Time your entry
2010 February March April May June July August September October November December 2011 February March April
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130131
132
133134135
136137138139140141142143144145146147ABSA (131.250, 132.390, 129.650, 130.700, -1.80000)
0102030405060708090
100Stochastic Oscillator (80.5227)
ABSA
2. Time your entry
2010 February March April May June July August September October November December 2011 February March April
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130131
132
133134135
136137138139140141142143144145146147ABSA (131.250, 132.390, 129.650, 130.700, -1.80000)
0102030405060708090
100Stochastic Oscillator (80.5227)
ABSA
2. Time your entry
2010 February March April May June July August September October November December 2011 February March April
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130131
132
133134135
136137138139140141142143144145146147ABSA (131.250, 132.390, 129.650, 130.700, -1.80000)
0102030405060708090
100Stochastic Oscillator (80.5227)
ABSA
3. Execute the trade
• Buy / Sell Price• Stop loss level• Target level• Risk as a % of account• Quantity
4. Manage the risk
• Entry level• Stop loss• Risk as % of capital• Calculate quantity to trade
4. Manage the riskExample: Trading Capital = R100 000 Buy Richemont @ R36.00 Stop loss = R34.00 Risk 2% of capital = R2000 R2000 = 1000 shares R2.00
4. Manage the risk
If you don’t bet, you can’t win
But
If you lose all your chips, you can’t bet
Questions
