EWC declined in price today and I was stopped out at $0.96 for a small loss of $100 plus commission. Looking back I should have made this (or any) trade prove itself by looking for entry above the high of the previous day (if there is entry setup), rather than looking for an entry where the stock dips lower. It is better to have a stock show some strength to the upside when looking for a long side trade.

Moral: Always have a stock show some strength at entry; that is, the stock is moving in the desired direction when the entry is triggered.

I am stalking EWC. I have placed a contingent buy order for 5,000 EWC at $0.98. I am looking for a sell target of $1.10 and will be setting a stop loss at $0.96, if the buy order is filled tomorrow.

I like EWC because it is in a strong up trend on both weekly and daily MMAs, has pulled back and could pull back a little more tomorrow (so my order will be filled). The 21 day, the 50 day and the 150 day EMAs are diverging suggesting increasing momentum and the Stochastic indicator is in over sold territory and has not turned up - see chart below.

BNB passes through my sell target of $33.50 and has a high of $33.90. I have a profit of $583.20 less brokerage. This is a gross return of 7.5% over 4 trading days of which I was in the market for 2. These are the kind of swing trades I look for.

As I said in an earlier entry, I am unable to watch the markets during the day so I lodge contingent buy and sell orders or place orders and let them sit in the market. This is what I do with sell orders when I am long. I establish a sell target and place the sell order in the market, so if it is reached during the day the sell order is triggered.

BNB rises again and I am in profit. I am moving my stop loss to $32.55 - one tick under Fridays low. This locks in a profit of $331.20 less brokerage. Whatever happens from now on in I have profit. My sell order of $33.50 is still in the market.

I will be looking for more swing trades this weekend and will post them on the blog before market opens Monday 18th June 07.

Profit Loss Statement Weekend 15th June 2007

Buy Date	Trade	Ticker	No.	Entry Price	Cost	Date	Action	Price	Profit/ Loss
14-Jun-07	Long	BNB	240	$31.17	$7,480.80	16-Jun-07	Move stop to	$32.55	$331.20

BNB rises and I get filled for 240 shares at $31.17. I am looking for a profit of 7.5% so have placed an order to sell the 240 at $33.50. I have a stop placed at $31.15. Lets see how BNB plays out over the next few days.

BNB has fallen further. Stochastic even more over sold than yesterday. However, BNB weekly still looks OK. I am now a buyer at $31.17 with a stop at $30.74, if order is filled. All ords have slipped a little more, but still look good on the weekly chart with trend still intact. Still remain overall bullish. It is hard for Aus market to fight the negative sentiment out of the US where the DOW fell and the NASDAQ went no where.

Close of business on Tuesday 12 June. The All Ords has had an inside day and BNB has not gone anywhere. I am still looking for a short term 'thrust' to profit target (see below) that will yield around 7.5% return on capital invested. My analysis and price order is still OK; if anything, a little better than yesterday, so I will leave the order stand as it was yesterday.

For any one interested, I maintain 2 trading accounts. I have $5,000 with a CFD provider and another $5000 with an online Broker so I can trade stocks not on the CFD providers list. Being a short term swing trader, I am not overly worried about fundamentals. However, I will NEVER risk more than 2% of trading equity on any trade - on $10,000 Equity that means I will not risk more than $200 on any one trade.

With the CFD account I will NEVER gear/leverage beyond 50%. In other words, with $5,000 sitting in the CFD account I will not go beyond purchases of $25,000  while risking only 2% per trade.

BNB has declined in line with the current market slide. Weekly and daily Multiple Moving Averages (MMAs) show the stock to be in a strong up-trend. Price has pulled back to the 21 day EMA while stochastic shows that the stcok is in over-sold territory. See chart below.

I am prepared to buy BNB if it 'proves itself' by rising to $32.00 (Fridays high was $31.92 and close was $31.42). I have set a contingent buy order to purchase 240 BNB at $32.00 when it trades at $32.00. When purchased, I will immediatly place a stop loss order at $31.00 thereby risking $240. Total cost of this trade is $7,680 including brokerage. I am looking to sell at 34.50 for a profit of $571. The reward to risk ratio is right on my limit of 2.5:1. I will not trade if reward to risk ratio is less than 2.5:1; that is, if I cannot receive $2.50 for every $1.00 risked

Thoughts: I could be a little early and BNB may continue to decline. However, the US market rose while the ASX was closed for the weekend. If BNB continues to fall the contingent buy will not be triggered and I will review the order the following day.  I will also review the order Tuesday morning after US trading on Monday.