Olam hit the trigger and I sold it for $3.12:
8% returns:
Lessons to learn:
Should have a Capital Preservation Rating so that profits won't erode: Though it might preserve profits, it can break me out of the trend, which is not "riding the profits". A possible implementation.
Weakness of MA:
Realized that for big trend climbers have this weakness: as it climbs longer, the divergence will spread. Sometimes, it spreads so wide that waiting for price to cut down before selling is already too late. I tried using shorter duration EMAs to compensate for this but it doesnt seem to work. Other measures have to be taken for exit strategies I suppose, as lagging gets worse on a power trend.
Other holdings:
Sales of Raffles Edu tommorow
Test out capital preservation method tomorrow on golden agri:Labels: GoldenAgri, Olam, RafflesEdu |
