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TRADING WISDOM

 

"The elements of good trading are: 1) cutting losses, 2) cutting losses, and 3) cutting losses. If you can follow these three rules, you may have a chance."

 ~ Ed Seykota

 

"The market can remain irrational longer than you can remain solvent."

~ John M. Keynes

 

 "If you trade without a stop-loss, eventually the markets will stop you from trading by creating permanent losses that can never be recovered."

~ John DiCecco (TrendCharts)

 

"Economists have correctly predicted nine of the last five recessions."

~ Paul Sameulson

 

"Trend following is an exercise in observing and responding to the ever-present moment of now."

~ Ed Seykota

 

"Risk comes from not knowing what you're doing."

~ Warren Buffet

 

"When a position is moving in the direction of your trade, do the opposite of fear; but when a position is moving against the direction of your trade, do the opposite of hope."

 ~ John DiCecco (TrendCharts)

 

"As a general rule (when trading), avoid those things that give you comfort; it's usually a false comfort."

 ~ William Eckhardt

 

TrendCharts Model Portfolio

For our Model Portfolio we track 5 major market indices, 12 market sectors, 12 commodities, 4 currencies, Apple, and over 500 individual stocks for TrendCharts Trade Signals.

Our Members are able to follow all of our trades in our Model Portfolio by gaining access to our TrendCharts Weekly Buy and Sell Signals.

In addition to the fixed ETF positions for index, sector, commodity, and currency trades, we can hold up to six individual stocks/ETFs in the portfolio, and we have allocated 5% of the portfolio to trade Apple.

On May 16, 2012 we introduced a new component to our Model Portfolio: the MacroView Index (MVI). The MVI was created to identify extreme OVERBOUGHT and OVERSOLD conditions on the SP500. We have allocated 2% of the portfolio to both LONG and SHORT MVI trades. TrendCharts Members can track the daily level of the MVI on our site.

Below are all the individual components of our Model Portfolio along with the maximum portfolio allocation per component (you can click on each ETF symbol for a brief summary of each).

 

INDICES (5)

ETF

% ALLOCATION

TOTAL

SP500

SPY

5%

 

TSX (Canada)

EWC

5%

 

NASDAQ

QQQ

5%

 

EMERGING MARKETS

EEM

5%

 

GERMANY

EWG

5%

25%

 

 

 

 

SECTORS (12)

 

 

 

GAMING

BJK

2%

 

BIOTECH

IBB

2%

 

US HOMEBUILDERS

ITB

2%

 

US TRANSPORTS

IYT

2%

 

CLEAN ENERGY

PBW

2%

 

US RETAIL

RTH

2%

 

US FINANCIALS

XLF

2%

 

US 20-YEAR BOND

TLT

2%

 

US ENERGY

XLE

2%

 

US UTILITIES

XLU

2%

 

GOLD MINERS

GDX

2%

 

SP METALS/MINING

XME

2%

24%

 

 

 

 

COMMODITIES (12)

 

 

 

TIMBER

CUT

2%

 

GOLD

GLD

2%

 

AGRICULTURE

JJA

2%

 

COPPER

JJC

2%

 

COAL

KOL

2%

 

PLATINUM

PTM

2%

 

URANIUM

URA

2%

 

SILVER

SLV

2%

 

STEEL

SLX

2%

 

US GASOLINE

UGA

2%

 

NATURAL GAS

UNG

2%

 

WTIC OIL

USO

2%

24%

 

 

 

 

CURRENCIES (4)

 

 

 

$CDN

FXC

2%

 

EURO

FXE

2%

 

YEN

FXY

2%

 

$USD INDEX

UUP

2%

8%

 

 

 

 

INDIVIDUAL STOCKS (6)

 

 

 

 UP TO 6 POSITIONS

 

 

 

2% EACH POSITION

 

 

 12%

 

 

 

 

APPLE TRADING (1)

 

 

 

LONG APPLE

 AAPL

 5%

 5%

 

 

 

 

MACROVIEW INDEX (1)

 

 

 

 LONG SP500

 SPY

 2%

 2%
 

 

 

 
TOTAL

 

 

 100%

 

 

Note that the vast majority of our trades are non-leveraged although we may occasionally take leveraged positions on trades when the TrendCharts trade signal is extremely compelling.

 

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