Not too much follow through in the market. But this month has been decent for me. I finally got a decent winning streak going. This is the first earnings season I am actually making money. I have been trading 15 months and I usually suck during earnings season. I used to try and focus on too many stocks. BUT there is too much going on and a lot of "noise." This earnings season I have been keeping it simple. Every morning I try to have 2-3 GOOD ideas...instead of doing research on too many companies. Earnings season is tricky. The volume hasn't been that bad this week, with the exception of today...BUT August will probably be even worse. Good time to go on vacation if you plan on taking one. Because after summer the volume and volatility will pick up.
I'm having a better month than last but not really making a lot yet as I'm easing into trading. Today was up and down for me... Mental breakdown and down $500 by 11am.. Up $100 by close, chasing PDLI around all afternoon worked well. There still are some volatile stocks out there and thats one of them..
With two trading days to go, I can say that this month was somewhat inconsistent in the psychology of the market. I did make a lot of money, but I could have also lost a lot just as well. Up a couple of bucks this month due to strict money management, and a handful of really good trades. I think that adapting to the trading environment and using Oz's third method of trading* made all the difference. Not as good as January, May or June, but still a respectable month. I normally do well in the summer. I know many who don't like trading in the summer, but for some reason I am more relaxed and know how to read things better during the summer. *This method of trading consists of shorting certain stocks and buying certain stocks at the same time. For instance, shorting the sky scraper setup while buying the swing pullback setup. It worked really well for me this month. Of course, I kept overnight risk minimal and closed most positions intraday (129 out of 144 trades were closed the same day). Bill
I've been stopped out about twice as often this month. My trades just seem to sputter out, no follow through. The volitility has diminished on the stocks I follow. If you follow particular stocks look at their ATR (average true range) over the last month, I'll bet it's down on all of them. Also, the market has been less consistent with more gaps and less of a pattern, which makes it difficult.
Thanks for all the replies guy's.... I guess it's just the time of the year, no follow through season. I will be trading less and taking profits quicker then normal for now. Hitman, I found your post encouraging.... I trade in a similar fashon as that trader. I basket trade about 15 small caps but I hold on to positions for days...I guess you could call basket swing trading. As time passes, I weed out the loosers and let the winners run while I protect any significant profit. This month however the winners don't seem to want to follow through. I become profitable within the first to second day and then go negitive. I then liqidate everything and start again. If I would take profits within the first day or two I think I would be doing fine. Anyway guys , thanks for all the replies.... Nick
DEFINITELY....The same with day or swing trading. No BIG follow through. Lately I'll buy 1000 shares of a stock and immediately offer half my position up 30 to 50 cents depending on the momentum of the stock...just to lock in a profit. So if the other half comes back to where I bought it I have made at least some money on the trade.
There's always some sectors with lots of momentum even during the summer doldrums. E.g. energy has had all the momentum you could want in both directions during July. Especially OSX and XOI names as well as the IPPs (CPN, MIR, DUK etc.) among the utilities.