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RAX on the move


Another excellent stock of a company making money, which also looks a bit resistant to market’s roller-coaster moves and volatility. This stock appeared on my screen list a few days ago (when it broke from its flat base on December 04, 2009) and it is still on the list. Today, when the creepy market overreacted on – in my opinion – not so important news this stock moved to new 52 week highs. I decided to buy my initial position of this stock.

Tomorrow I will buy 37 shares of Rackspace Hosting, Inc (RAX) on the market open.




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Posted by MartZee December 16, 2009
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MED reached next threshold


Today, Medifast reached my next threshold for adding next position to the existing ones. I added MED:

12/16/2009    09:57:22    Bought  5  MED  @  33.1675




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Posted by MartZee December 03, 2009
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Stock screening: ASIA,RSG,RAX,PRGO


I ran my screening and the following stocks fit my criteria for buy: ASIA, RSG, RAX, PRGO

When further researching the selected stocks, ASIA provided the best results and I decided to buy an initial position of this stock at tomorrow’s market open. Per my loss control calculation I can invest $690 and buy 25 shares of this stock.




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Posted by MartZee December 02, 2009
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Visa added to portfolio


Visa (V) broke from a short, three week long consolidation today. It also reached my decision point for addition of a new position. Tomorrow morning I will buy additional 9 shares of Visa.

This morning I have bought Visa at this price:
12/02/2009    09:31:08    Bought  9  V  @  83.05




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Posted by MartZee December 01, 2009
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Medifast (MED) added to portfolio


Today I added to an existing position of MED to my portfolio:


12/01/2009    10:14:13    Bought  6  MED  @  27.65




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RINO added to portfolio, JADE sold


I decided to get rid of JADE, which doesn’t fit to my trading strategy. As I mentioned earlier, this purchase was a deviation from my rules. This is the reason why every investor or trader needs to remind his rules as long as he remembers them.

11/30/2009    15:36:47    Sold  34  JADE  @  3.0805

I also added 3 shares of RINO to the portfolio:

11/30/2009    09:30:16    Bought  3  RINO  @  33.49

Why I added only 3 shares? As the Reverse Scale Strategy dictates, you should add only the same amount of dollars to the position as your initial investment was. When I ran my portfolio loss control calculation I could add 15 shares of this stock, but RSS rule says not to do it. The reason is simple. If this new position turns against me and I will be stopped out, I will lose the second purchase, but the first purchase will make up the loss and I will end up equal. If however I would have purchased more than the first position, the second position loss would easily wipe out the first position gain and get me into a loss. For example:

My first purchase into RINO was $100 (per the loss control plan I could not spend more).
My second purchase into RINO was also $100. If this position turns against me and I will lose money, I will lose $28 on this purchase. But my first position is already making me $38, so I will end up with $18 gain. If I have purchased 15 shares instead, I would lose $150 on the second position and the whole trade would send me into -$112 loss.




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