Step 13 3.17.17


EOM Garden Growing Prep:  Step 13   3.17.17

I always define my risk, and I don’t have to worry about it. Tony Saliba

One has ZERO business trading unless the targeted profit and loss (max. pain) price or percentage is established and stop orders placed. When day trading, bracket orders are a must.                                                                          DOE
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The process to identify, allocate, set alerts and purchase our “Garden Growing” candidates may seem intimidating but after purchasing the first two to three funds, it should become muscle memory.

When we near the end of this series, I plan to offer an “in-person” seminar on Monday, March 27th from 6-8:30 PM. The location is F119 at JALC. This event is for paid EOM Members Only. You will receive a VIP Pass to attend. More to come…

Step 13

Allocate amounts/prices/shares of the VIP Closed-End Funds (BA 3) on the worksheet. In this part of the training, I analyze each candidate, extrapolate the number of shares purchased with an estimated target price then determine alert conditions.

Key Points on PFN

1.  Pays a (consistent) monthly dividend and a bonus payment last December
2.  In the last two years, it has pulled back 18%, 9%, and 8%
3.  Since my goal is to share appreciation for the next seven years, I want to buy after a price drop then only with a weekly SS Buy Signal, confirmed with a daily SS Buy Signal
4.  I plan to buy incrementally and budget $500 for each purchase

Action Points for Setting Alerts

1.  Price drops down to the 6 SMA
2.  CMF crosses under zero
3.   MACD Histogram crosses under zero
4.  RSI closes under 30
5.  Slow Stochastics crosses under 20

Per my DOE Sample worksheet, since no one knows the exact price when the Simple Simon Buy Signal hits, I extrapolated an (R1) targeted $9.00 entry price.

This would give us 55 shares. Any unused funds are swept into the Round Two (R2) allocation for future opportunities.

We will wait to see if/which alarms hit. When hit, we will monitor until a Simple Simon Weekly, and SS Daily Buy Signal is generated before buying.

For those wanting to be all in simply allocate all 1K.

If having problems downloading the “ES Allocation Worksheet” (Members Vault), you may need to click on the “Enable Editing” button in your MS Office application to access the editable “Landscape” format. It should look the same as the PDF version.

When my analysis is complete, I plan to compile all steps into a single PDF document, available exclusively to EOM Members.

If you have questions, please send them to me at eyeonthemarket@outlook.com.

Next week, we will analyze the “new” 2017 Q1 Dividend Fund Report and focus on the All-Star A and B candidates for our next Garden.

If you have questions, please send them to me at eyeonthemarket@outlook.com.

Enjoy your weekend,

David O. England

Plan your work, work your plan, and share your harvest! 1 Timothy 2:1-2

This information is for Educational purposes only. It shall in no event be construed or interpreted as an offer or recommendation to buy or sell securities of any kind.

DAVID O. ENGLAND is the founder of the Eye on the Market-Training Academy and Associate Professor Emeritus of Finance. This column is presented for educational purposes only and not intended as financial advice.

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