Recent done trades

I have done below two trades recently:

2 lots of China Minzhong @0.60 on 24.05

• Cut loss point 0.50
• Profit taking point 0.80

3 lots for Q&M dental @ 0.36 on 28.05

• Cut loss point 0.3
• Profit taking point 0.5

Moving Average

How to use Moving Average (MA) effectively in investing/trading:

For Stock/ETF Index Investing

Using MA50 and MA150 to identify the trends
1. If MA50 is crossing over MA150 and it is moving upwards - time to entry
2. If MA50 is crossing over MA150 and it is moving downwards - time to exit

For Forex Trading

Using EMA5, EMA20, and EMA50
1. EMA5 crosses above the EMA20
2. EMA20 crosses above the EMA50
3. EMA 20 is at least 30 pips (1 pip = 0.01%) above the EMA50

Z Score Bankruptcy Model

The formula as below:

Z = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E

A = Working Capital / Total Assets (WC/TA)
A measure of the net liquid assets of the firm relative to the total capitalization.

B = Retained Earnings / Total Assets (RE/TA)
Retained earnings is the account whick reports the total amount of reinvested earnings and/or losses of a firm over its entire life. In addition, the RE/TA ratio measures the leverage of a firm.

C = Earning Before Interest and Taxes / Total Assets  (EBIT/TA)
A measure of the true productivity of the firm's assets, independent of any tax or leverage factors.

D = Market Value of Equity / Total Liabilities (MVE/TL)
Shows how much the firm's assets can decline in value before the liabilities exceed the assets and the firm becomes insolvent.

E = Sales / Total Assets (S/TA)
The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets. It is one measure of management's capacity in dealing with competitive conditions.

Z > 3 : Safe Zone
1.8 < Z < 3 : Grey Zone
Z < 1.8 : Distress Zone