Aurelian Trading Plan
I have been cautiously long a small test position in Aurelian for a couple weeks now and all was going well until today.
Why?
Because Aurelian reversed its trend today. That is, the share price fell below its 30 day Moving Average.
Now of course, the price could gap up tomorrow like Bayswater did shortly after I sold it.
However, the trick of successful investing is very simple: keep your losses small and let your winners fly.
By selling Aurelian now, I don't lose any money (unless the stock gaps down severely tomorrow) because my stop was trailing the share price.
So I am guaranteed no loss on this speculation.
However, if I stick with the stock believing this great story of one of the best drill results ever, I leave myself vulnerable to further losses.
Yes, the stock may quickly rebound, but seriously, you (or anybody else) never knows for sure.
So I feel this is the safest and most prudent thing to do at the moment.
As far as shorting the stock, I think I am going to wait a couple days to see how the stock reacts.
As you can see by the chart above it looks scary if you think about the worse case scenario. If the share price goes below $15.45, I think we are then going to go much lower than that.
From now until that time (if it happens), it is very difficult to predict.