BIG shows need for new stops
THE week, from Wednesday last week to Wednesday this week, saw our market basically mark time while it decides which way it wants to go.
The only big loser in our portfolio for the week was Bigun (BIG), which fell just over $1 for the week.
It fell on Friday the 9th, when it opened trading almost $1 below the previous close.
If it was not for the loss on BIG last week, we would have seen the portfolio increase by around $5000. It all adds to the pain of not adhering to trailing stops because, had I not abandoned my system late last year, I would have sold BIG at $4.18 in November.
I had not sorted out how I was going to reinstate my stops system and, again, this cost a lot of money.
The loss on BIG just reinforced the lesson learned over the past couple of weeks.
I now have it clear in my mind as to how I am going to return to a system of stops to try to halt the recent losses and hopefully begin to claw back some of those losses.
It is too late to just sell, so I am holding all stocks and am using the price action of the past week or so to set new stops.
I will explain how I have done that for each stock held. The portfolio position will now reflect the new stops.
This is the first time I have seen fit to lower stops, something I have strongly advocated against in all my workshops and personal trading. It won’t happen again. Altura Mining (AJM) formed a slightly higher spike low on February 9 at 30c and that is now the stop.
The stop for BIG is last Friday’s low of $1.56 but I will sell it if it reverses to the downside before that.
Australian Mines (AUZ) had a spike low at 8c on February 6, which is strong support and is now its stop.
Whitehaven Coal (WHC) had a higher spike low at $4.33 on Monday this week and that is now the stop.
Lithium Australia (LIT) formed a slightly higher spike low at 16c on Friday and this is strong support going back to July last year.
Pilbara Minerals (PLS) has bounced off 77c twice in the past two weeks and that is now the stop.
Queensland Bauxite (QBL), the stock involved in medical marijuana, formed a higher spike low last Friday at 4.7c, which is now the stop.
Bass Metals (BSM)’s stop is the strong support low formed on February 6 at 1.7c
CCP Technologies (CT1) had a low on February 2 at 2.1c, which is now the stop.
Last Friday’s spike low is the stop for all others.
I NOW HAVE IT CLEAR IN MY MIND AS TO HOW I AM GOING TO RETURN TO A SYSTEM OF STOPS TO TRY TO HALT THE RECENT LOSSES AND HOPEFULLY BEGIN TO CLAW BACK SOME OF THOSE LOSSES.