Saturday, October 27, 2012

TRADING AROUND A CORE POSITION


Late August Due Diligence (DD) persuaded me into a core position for Speculating (months) in Xinyuan Real Estate Co. (XIN).  I was willing to hold a core position for several months.
 
I planned to scale in beginning with a position consisting of 10% of my capital/portfolio at $3.01.  I was prepared to add another 5% on a 20% dip around $2.40 but it broke out and I took a third off at $3.44 for 14% gain and another third off  at $3.28 for 9% gain. Friday, I added a third back (doubled up) at $3.16 for a 6% of capital/portfolio at $3.09 average just below the $3.10 support.  I plan to add another third if it pulls back to the $2.70 support reestablishing the 10% core position and another 5% around $2.40 to complete the 15% intended core position; otherwise I will scale out a third twice with gains if it breaks out of the current flag and repeat the process over and over again.

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