Welcome to TSX, the Canadian Stock Exchange, now on the Trending Stocks Dashboard!

A Case Study: The Disney Company

A Case Study: The Disney Company

THE TREND

Dropped right into your inbox

Free trialers automatically get the Trend

WEEKLY

TIDBITS

Get our Newsletter “The Trend”

Investing

In the coming months, we will provide various case studies to show the capabilities of a trend following strategy along with Buy and Hold.

This exercise is designed to demonstrate the benefits of limiting risk while simultaneously growing wealth in a specific stock over time.

Here is the Process we followed:

We went back to March, 2018 in order to have a reasonable length of time to carry out the study and watched the market data for an uptrend.

When the price reached 15% above the most recent low, the first buy was initiated for both investors, TF and BH. Each portfolio began with $5,000.00.

Fifteen percent (15%), in this case is an arbitrary number. Each time the stock declined by 15% from most recent high, TF’s trailing stop loss sold the stock and BH held.

TF would rebuy the stock when the price rebounded from most recent low by 15%. The process continued until April, 2023.

Let’s take a look at a company we are all familiar with, the Disney Company and whose shares many people want to own.

The Transactions

The following shows each Buy/Sell activity for TF as well as the High and Low price which drove the activity.

  • On 4/5/2019, each investor bought 43 shares of DIS @ $116/share for a total investment of $4,988.00.
  • On 11/29/2019, DIS reached High of $151.50.
  • On 2/24/2020, TF sold 43 shares @$128.85 generating $5,540.55.
  • On 3/19/2020, DIS reached a Low of $85.76.
  • On 4/7/2020, TF bought 55 shares @ $99.58/share for $5,476.90.
  • On 3/8/2021, DIS reached a High of $201.91.
  • On 11/12/2021, TF sold 55 shares @$171.62/share for $9,439.10.
  • On 8/3/2022, TF bought 89 shares @$105.66/share for $9,403.74.
  • On 9/21/2022, TF sold 89 shares @$106.22 for $9,453.58.
  • On 12/16/2022, DIS reached Low of 90.10.
  • On 1/21/2023, TF bought 91 shares @$103.62/share for 9,429.42.
  • ON 3/9/2023, TF sold 91 shares @$96.22 for $8,756.02.

Current Status

BH holds 43 shares valued at $4,298.71.

TF sold 91 shares and holds $8,756.02 in cash anticipating the next Buy opportunity. TF still desires to have DIS in the portfolio for the long term.

Net

TF owns 48 more shares and has $4,457.31 more capital (aka Wealth) than BH.  TF took the opportunity the Market provided to grow Wealth because a risk management strategy was put in place.

You might actually call it a Wealth Management Strategy!

Remember: Ride Your Winners; Cut Your Losses!

Use your 4 week free trial to find those trending stocks and always be sure to manage risk.

Is there a feature you would like to see? Let us know! 
Don’t have a subscription to the Trending Stocks Platform?

Your 4 week free trial is available here!

No credit card needed! Are you already a paid member? Click and find those trending stocks.

Team Trending Stocks

Disclaimer
Trending Stocks is an information platform only. Information provided on both the website, through the reports, The Trend and Trend Tidbits is meant to help users with their own analysis and strategies. Users are solely responsible for their investment decisions.

Trending Stocks
Charting the next frontier of investing
Have questions?
We have answers

Email: support@trendingstocks.io

  • READ FAQS