Trend Plays #1 Did it Again
Again, a Trend Plays #1 trade was closed for a really nice profit today:
TCHC bought 6/22/07 for $11.13, sold today for $14.51 = 30% profit
The profit is actually even larger, because I bought some more on 7/2/07 for $10.77 as a result of a portfolio re-allocation.
(click to enlarge...)
Note the 45% drawdown early may--it's real, not a split!
6 comments:
I can't see how the trade you show has anything to do with a "Trend". (I mean the entry signal, not the up move afterwards, of course)
Do you know how they calculate their signals?
This is what the system description says about it:
Trend plays #1 buys stocks that are undervalued. We are contrarian investors. We buy the stocks that others have unloaded to such a degree that they are now in great value. We try to catch the stocks that the herd oversold to put them in great value.
Technical anaylisis is used to determine the entry and exit of all trades. Strict trading rules are in place for every trade.
I also understand the vendor scans the universe of stocks based on volume, price and volatility and then determines the entry point based on chart reading.
> We are contrarian investors
So this means the system works kind of "contrarian" to its name. It doesn't use any trends, rather the opposite...
...which means, that its a good system, (besides the word "Technical anaylisis" in its description... ;)
After years of research I've learned that this "contrarian" trategy is the only thing which works reliable in stock markets. :)
To clear up the confusion I have added this paragraph to the detailed description in my system:
We are trying to catch stocks that have been derailed from their long term trend. We are trying to buy the stocks before they bet back on track of their long term trend, thus the name trend plays.
Tomm (Trend Plays #1)
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