Big Wave Trading Portfolio Update
Joshua is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
Big Wave Trading remains fully invested in all margin and IRA accounts. Big Wave Trading has been fully invested since the full BUY signal was generated on 1/5/2012. While many traders/investors tried to deny the uptrend as just another suck out our model told us to expect more via the price and volume action across a myriad of stocks across multiple sectors. The past week the market finally took off and our long positions were rewarded greatly. We at Big Wave Trading could care less how much the market moves up from here. We know that we can not control the gains. We can only control how much we lose in the stock market. Therefore, if the trend persist, we will continue to sell stocks underperforming and move the bad cash to good stocks outperforming the market on a Relative Strength basis. We do not get emotionally involved with gains at Big Wave Trading. We could care less. It is simply doing the process right that gives us the pleasure. Being right is meaningless. Getting rich is meaningless. It is the process that allows us to be right and get rich that matters. The most important ingredient in this process is cutting losses fast. Big Wave Trading never holds losers. If the stock is losing money, we sell it and move on. No questions asked. Big Wave Trading’s win/loss ratio is at a point that we could be right 10% of the time and still not lose money as we refuse to lose 1% of our total account value in any one trade. Losing is not an option. Winning is the only goal. We will continue to stay fully invested until poor action among leading stocks (Relative Strength basis) and distribution days start to litter this market. If many distribution days occur, the Market Direction Model will switch back to NEUTRAL and possibly switch to SELL. Switching to a sell signal depends on the amount of distribution days and time frame in which they occur. We do not expect that to happen any time soon but expectations are resentments waiting to happen. Therefore, we remain completely agnostic towards the future. We are prepared for a continuation of this uptrend, a top, or possible consolidation. All game plans for each outcome have been analyzed and our ready to be used accordingly.
Top Current Holdings – Percent Gain (non-margin) – Date of Signal
IRE (NYSE: IRE) – 64% – 1/12/12
YINN (ARCA: YINN) – 37% – 1/5/12
RENN (NYSE: RENN) – 35% – 1/11/12
FAS (ARCA: FAS) – 28% – 1/5/12
UMDD (ARCA: UMDD) – 28% – 1/5/12
RF (NYSE: RF) – 24% – 1/5/12
DVR (NYSE: DVR) – 23% – 1/13/12
MOTR (NASDAQ: MOTR) – 23% – 2/2/12
RAM (NASDAQ: RAM) – 21% – 1/9/12
RGR (NYSE: RGR) – 20% – 1/5/12
VNET (NASDAQ: VNET) – 20% – 1/10/12
RATE (NYSE: RATE) – 20% – 12/28/11
The Motley Fool has no positions in the stocks mentioned above. BigWaveTrading is long IRE RF DVR MOTR RGR VNET RENN RATE RAM YINN UMDD FAS. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.