How to Implement. Module 6 Importance. Review Module 5. 5 Key Principles. Action Items

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Christian Bennett
5 years ago
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Figures and information provided refer to the past and past performance and are not a reliable indicator of future results.

1 Disclaimer The VectorVest Program ( the System ) which we promote is not intended to provide you with specific or personalized advice. In all circumstances where you are looking to apply the System to your own personal needs you should consider whether you should first seek advice from a suitably qualified investment professional. Figures and information provided refer to the past and past performance and are not a reliable indicator of future results. Where stocks are quoted in foreign currencies, returns may increase or decrease as a result of currency fluctuations. In the event that you, as a recipient of this presentation, have any doubts as to the suitability of the investments or services promoted you should seek advice from a suitably qualified investment professional. You should be aware that the value of shares and other stocks may rise or fall. The rules on tax can change, and these changes may have an influence on the effectiveness of the System in the future. It is for you, as the tax payer, to assess the System s effectiveness throughout the process. Some assets are more readily realizable than others, and you should bear in mind that it may be difficult to deal in or obtain reliable information about their value. You should always take account of dealing charges. In addition to any initial charge quoted there may also be a bid/offer spread or dilution. Investments in options and other forms of derivatives may expose you to a higher degree of risk given market circumstances relative to other forms of quoted investments. The System even if used in its entirety, cannot be guaranteed to provide specific returns in the short, medium or long term and you should bear in mind that individual securities may and can fluctuate considerably in value from day to day. The System has been designed without any reference to the specific interests of a particular investor. We reiterate, when using the System, you must take into account your own specific needs and liabilities. This financial promotion has been approved by European Financial Publishing Ltd trading as VectorVest UK which is authorized and regulated by the Financial Services Authority under Register No European Financial Publishing Limited is a company incorporated in Scotland under Company Number SC35322 with its registered address at Exchange Tower, 19 Canning Street, Edinburgh EH3 8EH. 1

2 Review Module 5 Module 6 Importance 5 Key Principles How to Implement Action Items 2

3 Implementation Formula 3

4 You make mistakes 4

5 You make excuses You get off track 5

6 Stay on track and have a clear path 6

7 Key Principles Plan 1 st Trade 2 nd 1 7

8 Once you ve found a stock you like, the stock graph is where you begin to plan your trades BEFORE you place them! Make note of the high price. Plan an entry.12 or about ½ percent higher than the high. 8

9 Set your initial stop. (i.e. Your line in the sand) 40 day MA VV Stop Price Recent Support or Pivot Where is this stock likely to go? 2. How long might it take? 2 9

10 Size Your Position $$ Per Trade / Entry Price Example: $10,000 / $44.60 = 224 shares 10

11 11

12 Look ahead, Not Behind 2 There will be times when you follow all the rules 12

13 And things don t go as you d hoped. That s ok. Don t play the shoulda woulda coulda game. Focus on managing the trade going forward. 13

14 Enforce your Limits 3 Entering A Position 14

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18 Exiting A Position 18

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21 Run Through Your Checklist 4 21

22 Set your routine 5 22

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26 26

27 Run a Prudent bottomfishing search. 27

28 ADBE Turnaround candidates ADBE Turnaround candidates ATVI Turnaround candidates 28

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30 Size Your Position $$ Per Trade / Entry Price Example: $10,000 / $81.06 = 123 shares 30

31 Size Your Position $$ Per Trade / Entry Price Example: $10,000 / $30.47 = 328 shares 31

33 33

34 ADBE gaps up next day. Order fills at open of $82.09 which was below our limit of $ Days after entering trade, ADBE gaps up. New stop becomes the low of that day. New Stop 34

35 New Stop never triggered. ADBE moves above 40 day MA which now becomes the Stop. Price closes below 40 day MA. Enter order to close if it falls 0.12 below the low. 35

36 Price moves back up above the 40 day MA. Cancel sell order and the 40 day MA is back in play. New Stop Price gaps up but pulls back off its high. The high represented a 19% gain in the portfolio. ADBE closed at a 13% gain. New stop becomes the gap low. 36

37 Price closes below the gap low. Enter sell order to close the position if it closes.12 below the low. Common question: Can the gap low be used instead of waiting another day? Yes. Price moves sideways for a few days but never low enough to trigger the sell order. 37

38 Price closes below 40 day MA. Enter sell order to close.12 below the low. Special Note: 6/17/2016 was also the day of a Confirmed Down signal. Additionally, you previously saw a bearish divergence between Price & RT. Both signs to consider taking profits. 38

39 After a couple of up days, price closes back below the 40 day MA. Two days after that, the position was closed. 39

40 Getting Cocky 40

41 Congratulations! You did it! 41

How to Implement. Module 5 Importance. Review Module 4. 5 Key Principles. Action Items

How to Implement. Module 5 Importance. Review Module 4. 5 Key Principles. Action Items Disclaimer The VectorVest Program ( the System ) which we promote is not intended to provide you with specific or personalized advice. In all circumstances where you are looking to apply the System to