Scratched MLNM and AEOS for small gains. Mon almost broke even... What a whacky market. Can drive a swing trader nuts.. massive whipsaws... i guess thats earning season.
THis market is a swing traders nightmare. The volatility is great.. but the market is whipsaw city!! THis is why its difficult trading in bear markets.. or when the key indices are under their 50ma's.
I agree Mike. The market is tuff for swings. To much whip! It is times like this I am very protective with my trades. Yet, like you I am BE on the month w/ my breakout/breakdown trades. I have only made 24 swing trades this month as compared to 33 last month, 52 in Feb and 72 in Jan. Turns out Jan. has been my most profitable month YTD with my breakouts/breakdowns. I was BE in Feb. and up some in Mar. Anyone have some stats on a pullback to trend swing method so far YTD? Thanks, PatrickQ
I am here because I want to learn someone else's trading strategy. I did a lot of back-testing for various strategies. I may post some of stats for certain strategies, breaking down to year, month, even days. For example, if you prefer to buy breakout on heavy volume as Mike did here (am I right?), my back-testing stats may show some interesting statistics why you may feel comfortable. I will be back soon.
The best markets to swings are the directional ones. Obviously we never know how directional something is.. only until after the fact. One thing I have noticed is that bear markets are not easy to trade. The volatility increases, as does the whipsaw. Right now your typical NYSE stock chart has spent time topping out from last dec. to march.. and now they are starting to roll over. How deep this correction will last no one knows. It could be a minor correction and the market will chop and base around before we get another leg up.. or it can be more serious. Given the fundemental landscape of the US economy which does not look good.. especially with the fed hiking rates.. I think at best we will get an overall wide and loose swinging market not giving too much ground either way. If we are in the works of a major bear market I wouldnt be surprised either. What I mention above has no bearance as to my day to day swing trading.. but its just assumptions as to what type of market conditions we can all expect. This means I will be quicker to take profits and more defensive overall. ---MIKE
I still trade the IWM and ER2. But I normally only short them.. if I want to go long I buy stocks. Now that everyone trades the Russell its starting to correlate too much to the overall broader indices and has lost its "smoothness". It has become another choppy index.
Completely agree with you there. When everyone is happy and drunk at the party, it's best to leave early.