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buying the big moving stocks

  1. What have the following stocks got in common, stocks that I traded in the last financial year, that enabled me to outperform the market and most fund managers by 21% in real terms in the last financial year.?

    WWA (Wridgeways Transport) --------------------82.7% realised net profit in 5 months (was up 100% at one point).

    API (Australian pharmaceutical Industries)-----37.3% realised net profit in 4 months.

    OPS (OPSM Optical)---------------------------- ----29.5% realised net profit in 5 weeks (Market -9.2% same period).

    HSP (Healthscope Ltd)------------------------------27.9% realised net profit in 9 weeks (Market -10.3% same period).

    NUF (Nufarm chemicals)----------------------------20.9% realised net profit in 14 weeks.

    CDO (Colorado Group)------------------------------20.1% realised net profit in 10 weeks.

    ARP (ARB corp)---------------------------------------10.8% realised net profit in 2 months

    MCP (Mcphersons)-------------------------------------9.0% realised net profit in 6 weeks



    What they have in common is the following:

    They were all 12 month highs. (Most people don't buy new highs, I didn't at one point either, but after studying the biggest moving stocks for the year I realised that if I didn't I wouldn't end up owning them)

    They all broke out of a sideways price movement (short and long term).

    They all had an increase in volume relative to themselves at the point of the price breakout.

    They all belonged to an index that was, or was very close to a new high.

    I was able to avoid the stocks that had risen too far by using the sell stop countback method, and most importantly I used a sell stop and trailing sell stop on all the stocks, winners and losers that enabled me to hold the stocks that were rising although I was tempted to sell them when they started falling a little bit, and sell the stocks that were falling in price immediately, although I was tempted to do the "if I hang on they will turn around" method. All part of the 4 common human behavioural problems that work against your ability to be a good trader, but thats for another posting.

    If anybody has any questions feel free to e-mail me.

    If anybody wants my list of common mistakes not to make, (but most people do make) e-mail me and I will send it to you, or wait and I will post it in the next fortnight.

    [email protected]

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