Learn the Discipline Model Portfolio

We hope you remembered your Sweetheart today and let them know how much you care! Learn the Discipline

We encourage those who have not read our Model Portfolio explanation post on Saturday, Feb 7 to take the time to read it. Here is a portion of that posting:

“We want to reiterate that this is an intermediate term strategy and we would expect mixed results while the market stays in a sideways trend and for the first few weeks of operation until any good trends we get into have a chance to develop.” “If you are a hyper-short-term trader this will be a lot like the old fable of the tortoise and the hare. Just remember the tortoise didn’t look that good in the beginning but in the end won the race.” “Entry and exit trades will be placed in a real-time virtual account so it will simulate the placement of real trades.” We started with a $152,000 account balance and for now are making stock trades only. Starting position size is approximately $2,000.

18 new positions were opened this week.

10 positions were stopped out. 14 positions are open after week 2, so approximately $28,000 is currently invested.

The trades are working in line with the expectation that there will be several small lossess in the few weeks as signals fail and the larger winning trades from signals that follow through with a good trend move taking several weeks to accumulate larger profits. Week Two Summary and Comments Comments AMED stopped out on a automatic trailing stop GME stopped out on a raised stop PPD stopped out and moved 1.67 lower CAM stopped out and moved 63 cents lower CPLA stopped out on a gap down due to EDU announcement STRA stopped out on a gap down due to EDU announcement DV stopped out on a gap down due to EDU announcement HLF stopped out and moved 16 cents lower CHL stopped out and moved 6 cents lower ICE stopped out and moved 74 cents lower AMED – we chose to use an automatic trailing stop here because of the approaching ERD. In this case the trailing stop proved to be moved too quickly even though the trade produced a profit. GME – the manual trailing stop worked fine in this case. STRA – we entered a trade on STRA on the day before earnings because APOL and ESI had an earnings gap up and we concluded there would be reasonable probability that STRA could experience the same. STRA did beat expectations, however, EDU had a negative announcement and as a result all educational stocks gapped down on the open Feb. 12 filling the stop on STRA, CPLA and DV below the pre-determined stop. A gap down in a stock and being stopped out with a larger than desired stop is one of the risks that exists with placing a stop in the computer.