Tuesday, August 4, 2009
Tradable Decline is Nearing
My Chart Watch post from March 8th (click the link to the left and read the post just below or go to the archives and look it up) turned out to be a very profitable trade. I invested about 10% of my capital and increased my total return by 25%. That means I had a boat load of big winners. F, BWEN, DRYS, DDM, GE, VRAL just to mention a few. Now if I have had the guts to push all my money into the market I may well have been 5 yrs. closer to retirement. But, we must remember Bulls make money, Bears make money and Hogs get slaughtered.
Now is the time to show patience when trying to take a position that will make money in the opposite direction. All of my orders from my last post that would have placed me in a bearish position did not get filled. That tells me the market proved me wrong. I had enough sense to not place market orders. I placed stop and limit orders which would have let the market prove me right! It didn't happen. That strategy got rid of some holdings like Berkshire and kept me in positions like XRX and DRYS. Which both of those stocks as well as others I've already taken healthy profits from. So, here's where I'm at, very few dollars in the market with a lean toward overbought and looking to play a correction or continuation to the downside. I will be patient and not allow emotion to overrule logic. Trades will be placed above resistance and below support. The Moose entered a new position and of last Wednesday you could have got in below the MoosePrice. Good luck to all and thanks for stopping by to see what the hell ol' RedDirtTrader has been up to!
Now is the time to show patience when trying to take a position that will make money in the opposite direction. All of my orders from my last post that would have placed me in a bearish position did not get filled. That tells me the market proved me wrong. I had enough sense to not place market orders. I placed stop and limit orders which would have let the market prove me right! It didn't happen. That strategy got rid of some holdings like Berkshire and kept me in positions like XRX and DRYS. Which both of those stocks as well as others I've already taken healthy profits from. So, here's where I'm at, very few dollars in the market with a lean toward overbought and looking to play a correction or continuation to the downside. I will be patient and not allow emotion to overrule logic. Trades will be placed above resistance and below support. The Moose entered a new position and of last Wednesday you could have got in below the MoosePrice. Good luck to all and thanks for stopping by to see what the hell ol' RedDirtTrader has been up to!
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