Notes are on the chart. This is a reversion trade ONLY. Don't get too excited yet. The weekly trend is still DOWN.
Trade closed: stop reached
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Well Friday sucked. I did not expect such a brutal, steady retreat and I failed to have a plan to resist profit giveback. I closed for a miniscule loss (which was hard after having a double on it), but allowing my trading capital to be hit as well would be irresponsible. Out, disappointed, learned. I won't let that happen again. The timeframe I set for this trade was to close by Friday's close and EOY. Given a short-term trade like that, I should also include short-term profit protection strategies. Could have very easily held onto my gains. Oh well, this is very good because I'll never let it happen again which means in the future, I can count on being even more profitable! : )
Comment
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Obviously, I got stopped out before the run really got going. : P
Comments
BillBaehr
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Monthly trend is still up
ClosingBasis
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@BillBaehr, I use the daily 100MA as a simple bull/bear frame. Right now, the 100MA is trending down and price is below it. Any return to the 100MA is a mean reverting bear trend until the 100MA is broken above again and holds.
BillBaehr
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@ClosingBasis, I use the monthly 12ma or the weekly 52ma or the daily 365ma, all trending up. Why use the 100 MA?
ClosingBasis
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@BillBaehr, sounds like you're using fairly long-term strategies. I'm a swing trader so I'm looking for holding days to weeks. The 100MA is the 20week moving average which gives me intermediate-term context, then I use the daily 20MA or 10MA depending on the strategy I'm using for short-term context.
BillBaehr
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@ClosingBasis, I am long term. Thanks for your insights on swing trading.