My eurka moment!

Discussion in 'Stocks' started by crayon851, Nov 22, 2014.

  1. So, long story short, I can pick winners. The majority of winners to losers is like 3-1. This could also have been because of the bull market we are in, but I've been doing it for the last 9 years.

    I've always been taught to take profits, so whenever id hit 5% in a month or so or less I'd take it. some notable trades:

    BBRY @6,8,9; now at 10 multiple times
    MAL @1.85, now 13ish
    GRPN @6
    TD@ 47
    BBD.B @3.65
    BABA @103/104 call spread. (shouldve just bought the call).



    I am sure i'm not the first to have figured this out, in fact, im probably the dumb one because it took so long.

    So what's this eureka moment?

    Trailing stop loss and trailing stop limit orders! I've always known about them, just never thought to use it or. stops in general. It was probably due to arrogance. Now, I think this is the missing piece to my puzzle and I just wanted to share that.

    The final piece of strategy (now is a bit late due to over extension of the market, so instead I'll be looking for sector rotations and counter bull market trades) is to use implied volatility to calculate calculate my trailing stop loss and actually use stop limits now.

    I feel like such a dumbass.