swish, nobody is forced to read my posts. I think I have some plans but if you live in a world of chaos you have to be flexible. A plan can be changed, if it's wrong or right I don't know. If you think I have no clue that's just fine. But what makes you that sure that there is a main axiom in trading? Best wishes.
I'm not going to get into some drawn out debate that serves no purpose.... Ain't worth the time. Good trading and best wishes....... Swish
No offense but arent you supposed to buy strong stocks and short weak ones? If this is not a case of picking a top then I dont know what is. It is much easier to go with the trend, especially in this market. To all those counter trend traders, thanks for providing me liquidity
With all due respect. Is your risk profile always inverted? Willing to risk a lot more than your reward? ie. risking 9 or 10 points to make 3 or 4. If so, then you have much more guts (or something) than I do
I have enjoyed seeing your trades in KKD and CAT. But I would have to agree with many of the others here that your trading seems to lack consistent rules, or any rules for that matter. Some have commented that your style of trading is a sure way to go bust. These are actually pretty fair comments. You go against everything I have learned the hard way for myself. I have a firm set of rules that have evolved where I have hard stops, let my winners ride, criteria for stock selection, do not add to positions (especially losing ones!!!) and quite a few others. In my trading these rules cannot be broken, for over long periods of time and hundreds of trades small differences in returns per trade will be huge. A firm set of rules within a system also helps one emotionally deal with small set backs rather than a casino, fate, gunslinger, gambler mind set. Anyway, with the trade you did with KKD you had two buy in points and three sell points netting you 2.17%, .95%, and 2.47%. You managed this trade pretty well although you should have been in much earlier. I just wouldn't have picked KKD to trade with at all. It tends to gap up and down more than that. I just don't like the way it moves, the risk/reward is poor on my system charts. I think CAT is a bit better choice cause it "moves" better. I think this trade could be a pretty good one as the chart shows. Monday will be interesting, either the stock heads down or a divergence will be building. You could have waited until CAT breaks the trendline, it would have been lower risk but probably smaller gain. I don't follow this stock, but the chances are probably around 55% + or - it will move down before your stop (?) would be hit. I will be watching to see how you manage this trade!
When I started this post I didn't expect to get that much response. It seems that there emerge a lot of questions that I'm not able or willing to answer. Also IMHO some people here think that I have a certain style or not. To give some hints: I only post a very, very small fraction of my trades here on ET, only when I'm in the mood to do so and just for fun. Fact is that I'm doing about 10,000 trades a year. My performance is about 230% for the year so far with a new all time high this Friday. If you think that consists of luck, that's just fine. I won't comment any new posts regarding the CAT trade, but I will give the exit whenever that may be. So good luck to everybody.
I sell short the position I covered with a profit @ 74.36. Now we are even higher than my initial short position but I have a little profit on it(so far).