User Groups are all about fun, fellowship and learning. At every meeting you will learn how your fellow investors analyze the market direction and individual stocks. You will learn what stocks your fellow investors are buying or watching, and come away with stock ideas for further study. Often there will be a feature presentation on a topic of special interest to the group.
In December, our Edmonton User Group (UG) received a terrific presentation by UG member Sherry Manners. Sherry is a successful VectorVest investor who makes frequent presentations to the group about using the VectorVest program. The presentation was recorded by Dave Ingledew, founder and past leader of the Edmonton UG. Dave records all presentations for the benefit of the group.
Dave sent us the recording with the comment, “This is an outstanding presentation that would help everyone!” We agree. So, with Sherry’s permission, we are pleased to post the video recording of her presentation on How To Create A trading Plan. Here is the link: https://www.dropbox.com/s/eevgjk8rrjc4y94/Sherry%20Without%20Video.mp4?dl=0
NOTE: When you click on the link, you should see a ‘download’ button at the top right of your screen. You need to download the video to your computer in order to view the entire presentation. Also, there were some technical difficulties, for example, the group was unable to get the cursor to work. So, you won’t see what Sherry was pointing to, so you will have to do some guessing around that.
While showing her own dynamic trading plan, Sherry points out in the video that everyone’s trading plan needs to be unique according to their own investment experience and goals.
Here is brief summary of what you will learn from the video:
- The 3 basic questions that need to be answered by your trading plan.
- Elements of Sherry’s Trading plan for the Canadian market including her basic rules (her trading plan and rules for the US market are similar, but different):
- Buy and hold a maximum of 12 Canadian stocks
- Keep 15% cash available
- Evaluate trades and the entire plan every three months
- Never average down.
- Leg in and average up.
- Use a dollar weighted amount for full positions.
- Summer no trading zone, a busy family time with too many distractions.
- The importance Sherry places on Market Direction and her rules
- Primary Wave must be up (PW/Up)
- MTI must have crossed above the 8-day moving average of the MTI
- 5-EMA has crossed above the 13-EMA on price of the VVC/CA (upper MTI graph)
- BSR (Buy/Sell Ratio is increasing)
- Sherry’s chart set-up for entries, including the importance of price, RT and volume:
- Start with 5-year daily graph and draw your support and resistance lines
- Zoom to 6-month graph daily graph
- 5-EMA has crossed above 13-EMA
- RT (Relative Timing) is trending up
- The 5-day simple MA of RT has crossed above the 25-day simple MA of RT
- Sherry’s 3-Strikes You’re Out rules for exits:
Strike 1 – 5-day MA of RT has crossed below 25-MA of RT
Strike 2 – 5-day EMA on price has crossed below 13-EMA on price (5/13-EMA cross)
Strike 3 – Price breaks below upward trendline
Over-riding the Rules: BAD NEWS, BAD EARNINGS – SELL IMMEDIATELY
Our thanks to Sherry and Dave for their willingness to share this informative presentation with our VectorVest community. THANK YOU.
Thanks to Sherry for sharing your Trading Plan and thanks to Dave for presenting it to our VV Canada Blog! Great information. It doesn’t get any better than this. Cheers.
Thankyou so much for your kind words, glad to see that you enjoyed it.
Hi Sherry can you send me a copy of your trading plan mentioned in the vector best canadian blog
Thank you so much for sharing your trading plan. I have traded stocks for many years but never had one. I know I can capture much more of my gains if I followed your method and didn’t just rely on dividends and also trusted Vector Vest. I have printed the summary but was wondering if the template mentioned in the presentation would also be helpful and can I get one?
Thankyou ..I too took quite awhile to get my trading plan in place, it is definitely a progress in work. As far as the template I will get ahold of our Edmonton UG leader and perhaps get it emailed to you..
I really like your plan and your presentation. If possible could you also send me your template. Even better if you could put it in the blog.
Thankyou Geoff that is a great idea, I will contact Stan and see how we can do that..
Trading Plans are truly a work in progress, I’m sure this one was developed over a significant period of time.
Will share this at our February or March VectorVest meeting here in Kitchener-Waterloo.
Yes a trading plan is definitely a progress in work and I have made many changes over the years and probably still will, markets and lifestyle changes so reviewing every 3mos seems to keep things on track…