Following on from my last post I had mentioned I wasn’t sure about jumping on any trades as I wasn’t sure if they were going to change direction… Well they did exactly that and as always the system gave the correct signal. You can see this in the charts beneath. Obviously I’d been watching these and was on early. On the other side paddy power has produced an unusual chart that I haven’t really encountered before, as I didn’t get a sell signal but took a loss which is strange??? Obviously I will get a signal eventually but I didn’t want to risk losing more so I suppose that accounts for It really? I actually closed the trade out for a loss of just over 200 points… My biggest loss in yonks although I made it back on the DJ so I suppose I was lucky in that respect. But that’s one of the most vital rules for any trader, cut your losses and let your profits run… Also I had an idea of a strategy, is it possible to take out numerous trades, close the losing trades and let the others run and make profits ? I have no idea if this will work but it’s just an idea?
I don’t know about you but this time of year seems to be manic? The energy people seem to give off is distracted and stressful and everything seems a rush or is that just me? I have been really busy with eBay as well as scouring the markets of an evening looking for some juicy trades… Generally day to day the markets are very volatile but surprisingly they seem to be holding up. Dow, Nasdaq, S&P500 are have all been on buy signals although is that just about to change??? Following the signals I feel too late to jump in on any of these though so shall wait to see if they give a sell signal? Much rather be on the sidelines if I’m not sure . Also I found this chart of green mountain coffee , you could have traded this practically all year on a buy, you had to reverse positions a couple of times and you may have been stopped out once but things don’t go up in a straight line do they. Then when the sell signal was given in late September you could have made a killing on the crash… Beautiful. I reversed my position on paddy power again as it has given a buy.
I closed my gold and silver trades at the cost of a few points, next time I’m not waiting or doing anything stupid. If I had followed the system rules as I always do I could already have been in profit by reversing my positions. So you live and learn. Although It doesn’t make it any easier to swallow. Paddy power did give sell signal I mentioned so I have reversed this position. Out of silver and gold.
Here is an interesting chart it’s the S&P500 broken down by which sectors are the most important [spread betting gives you the ability to bet on sectors] apparently for many years Financials where the most important sector but now its Technology. I have a read lately Technology is really leading the next boom and healthcare is also a very important sector which covers pharmaceuticals/biotech.
Also keep an eye on paddy power as it looks like it’s about to give a sell signal ? Silver gave a buy signal but I have been tempted to stay in mainly because it is so far into profit and I think it’s going to fall sharply again ? I should have just played by the rules as it’s what’s be making the money… It’s strange even though I knew I should have reversed my position I didn’t do so ? I think I shall email Vince Stanzione and ask his advice on this one as I’m using hindsight again and as we know that doesn’t work at all… I sort of feel I’ve let myself get carried away and too cocky on this one?