Step Seven 3.3.17


EOM Garden Growing Prep:   Step Seven  3.3.17   

By failing to prepare, you are preparing to fail.                Benjamin Franklin

Plan your work, work your plan, and share your harvest!                          DOE

This week, all traders won a long fought war-on trade commissions.  Schwab and Fidelity lowered their commissions forcing ETrade and TD Ameritrade to follow suit.  
             
On Monday, I plan to answer your questions concerning building your gardens and fine-tuning your alerts/entry points.  

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 will become second nature.

When we near the end of this series, I plan to offer an “in-person” seminar to further explain the procedure and answer all question. Since my EOM Members are located from Seattle to Florida, I am working to offer it online with only a few day delay. The location-seminar details will be finalized and announced next week.

Step SEVEN

We 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 IVH
1.   Pays a monthly dividend
2.   Had two end-of-the-year amount spikes
3.   Has reduced their dividend payment minimally
4.   In the last two years, PCI has dropped 29% and 9%
5.   Since my goal share appreciation for the next seven years, I only want to buy after a price drop then only with a weekly SS Buy Signal, confirmed with a daily SS Buy Signal
6.   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.   MACD Histogram/CMF crosses under zero
3.   RSI closes under 30
4.   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 a (R1) targeted $14.00 entry price.

This would give us 35 shares. Any unused funds are swept into the Round Two (R2) allocation for future opportunities.

We will wait to see which alarms hit first. When hit, we will monitor until a Simple Simon Weekly, and 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.


Enjoy your evening,

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.

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *