i've been trading for about 2 years. i've made money overall, but lately i've just been going nowhere to slightly losing money. i've read all the books, tried all the indicators, tried no indicators.... i know about money management and position sizing (which probably saved me from doing worse), but i still can't seem to get anywhere.
here's a trade i exited today for yet another loss.
PSC, daily chart, the stock is at a low point of an overall uptrend. i bought it 9/18 because of the move it made the previous day. i used money management and position sizing to determine the number of shares i would buy based on where my stop would be (under the previous day's low)... i usually either do that or at the end of the day i check to see if it is closing under that low. well sure enough, today it went under the low and also closed 7 cents below it. i know that isn't much but i had to stick to my plan and sell...watch it go up tomorrow.
can anyone here see any problems with this strategy?
As someone who has also had difficulty using traditional trading strategies in recent months, I am probably not the best qualified to tell you what you are doing wrong, but here are some comments.
Recently I have noted that very few of the traditional strategies are working. The old momentum strategy of wait for a pullback and then buy /sell 1 tick past the previous high/low keeps failing, with major reversals just as these points are reached.
You should note that we are in very unusual times right now and a lot of the traditional rules are broken. This has been compounded with the recent events of 9/11. I have been strictly doing short timeframe intraday scalping (.30 to .75) for the last four weeks with some success, but my preferred trading method of 3 day swing trading is not working right now (except on the short side). Given the impending possibility of war any day now, I am also wary of holding overnight.