Friday, August 28, 2009

Got stopped out of IGR, cancelled stop loss orders, bought back IGR, bought IIA

While I was on vacation earlier in August 2009, with stop loss orders set at 20% on most and 25% for harvest, I came back and discovered that I got stopped out of one of my positions, the ING Clarion Global Real Estate Income Fund (IGR), because the price temporarily and suddenly dropped mid-day by some 40% as if one large position was cashed out all at once. I got stopped out relatively high on that drop, and the price subsequently shot almost right back up to where it was, albeit a little below the high for the day. Not only had I cashed out on a stop loss after a 50% gain in about two months' time, but I was also able to buy it back lower than I had been stopped out of it. However, I only bought back enough shares to equal $ 200 worth and kept the rest in cash.

With the extra cash from that, and some extra cash I threw in, I also acquired a position in ING Clarion Real Estate Income Fund (IIA), which I have long been eyeing and finally bought, again about $ 200 worth.

Near middle of August 2009, there was a more sudden sharp drop in the overall market over two or three trading days which was nothing more or less than a normal profit-taking correction, however, nearly all of my stop loss orders were in danger of being triggered. It was then I decided to cancel all the stop loss orders and instead watch the positions closely.

All my positions are long, and I don't want to get stopped out due to normal market movements even if they are somewhat volatile still. However, I still need to be ready to sell in the event of any unforeseen acatastrophic event.

In the meantime, my overall portfolio is up 10% and enjoying monthly dividends of about 13% annualized and growing still.

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Thursday, August 6, 2009

Adjusted Trailing Stop on Harvest Energy Trust to 25%

I recently changed my trailing stop loss limit on Harvest Energy Trust (HTE) from 20% to 25% of the most recent high price to help ensure I'm not unintentionally stopped out of what I believe are significant impending future profits during possible short term volatility, while also ensuring that I am still protected against any sudden and sharp drops in the entire stock market or possibly just the energy sector. In addition, harvest energy trust in particular has been more volatile as compared to my other monthly dividend payers which I own, so a little extra buffer on the stop loss limit seems like a good idea to me. Overall, I still believe Harvest Energy Trust is a huge winner in the near long term.

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