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|
Magic Charts Newsletter
April 2nd, 2002 |
This issue includes...
1) "New features in Magic Charts !"
2) "How is the sample portfolio ?"
3) "When to break the rules . . ."
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1) "New features in Magic Charts !"
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Starting today we have extended the Magic Charts modules with
the Canadian stock market. We start with the TSE 100 and 300
but will extend the number of Canadian charts soon.
We also included the Canadian dollar vs USA dollar chart to
be able to have the Canadian Dollar as the default currency.
That way it is possible to have a portfolio with a mix of
stocks from the US, Canada and Europe. Just decide in which
currency you would like the totals of your portfolio, US
dollars, Canadian dollars or Euro's !
We also added the feature to download the Magic Chart files
from our site rather then have them send every day. This can
be a relief for your email box if you don't use the
Magic Charts every day.
Details about how to switch from email to downloaded files
are in the next issue of the updated Magic Charts files.
If you don't already have a subscription
to the Magic Charts
and you would like to see the Canadian Charts subscribe to a
FREE one month trial of the Magic Charts!
Download the demo here. After installation,
it will generate
a base code with which
you can subscribe to the free trail.
Or even better, subscribe to the Magic Charts, and get one
month for free!
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2) "How is the sample portfolio ?"
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Our sample portfolio is on 11.9% gain, which is pretty good
compared to the 3.3% of the DJ, and -4.5% of the Nasdaq Comp.
We had room to strengthen the positions of the best
performing stocks in our portfolio so we bought Owens
Illinois, Moore corp and Harmony Gold for $22.000 each.
There is a screen
shot of the sample portfolio on the bottom
of this page
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3) "When to break the rules . . ."
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One of our 'Golden rules' is to sell when the stock closes
lower then 20% under it's highest point, see our January
issue for more information about this subject.
The -20% rule often is the best way to insure the portfolio,
but recently we found two examples of when it was profitable
to break that rule.
The first one way Racing Champions which took a dive when the
company announced that it would put 1.5 million extra shares
on the market on top of the existing 3 million shares.
We where reluctant to sell the stocks when it reached $13.75
(- 22%) because we felt that it was a temporary setback. The
next day the stock regain confidence and climbed to a new
high of $20.89 in just over 2 weeks!
The latest was Harmony Gold Mining which we bought at $10.56
and dropped straight to $8.47 (-23%). We felt that in this
case it was also a correction, so we kept the stocks and it
is on $11.31 (+7%) now, we even bought some more shares!
So if you have enough confidence you can try to keep stock
when they cross the -20% line, but be sure to follow that
stock closely! As you can see in our January issue in the
majority of the cases the stocks ended up lower then the -20%
level on which we sold them.
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Copyright 1998-2002 by Magic Charts. All rights reserved.
This document may not be copied in part or full without
express written permission from the publisher.
Trading in stocks involves risk. You can lose money. We are
not making recommendations to buy or sell any stock. We share
our views about how to trade stock.
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Magic Charts sample portfolio per 04-01-2002
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