My Winning Trade

I just won a trading game - Solstice to Equinox Challenge Game. The contest was sponsored by www.astrologicalinvesting.com and Investopedia.com. Truly, the combination of financial astrology with technical analysis can be a very useful tool in achieving a very profitable trade. The contest ran thru December 21 to March 20.

Best Buy
My winning trade was CLG, which I started accumulating as early as February 6 and sold all at $7.30 on February 21, a few days after the news came out that is being acquired by AEM.

Timely Exit
What gave me a good lead over others was a very timely sell on February 23 and February 26. Having reached a good profit level on February 22 and 23, I put more weight on the technical picture that set the scenario for technical correction.

Technical Clue
February 26 was the exact day a very bullish Jupiter transit on the Gold chart and gold stocks were not performing very well. Gold and gold stocks were oversold already in the RSI and Stochastic indicators. I took that as a sign that the rise in gold will not continue.

On February 27, the sell-off in the markets and the liquidity problems of investors due to the unwinding of the carry-trade gold stocks went down as well.

Important Lessons
Concentrate on the market that you know best. I concentrated on gold and mining stocks, with a few energy stocks. My Gold astrological chart has been giving me correct price projections for gold for a long time. Majority of gold stocks trail the price of gold except on key turning points such as when it is bottoming out or topping out.

You cannot time every move even if with the use of astrology and even if you do, you cannot time every market. Focus is necessary.

Don’t be too greedy. Sell when there is enough profit. Re-invest your funds in lower-priced stocks.

Follow the technical indicators. A stock cannot rise forever, corrections happen. Having said that not all oversold condition bring a big drop – that is where astrology comes in.