You know what: I refuse to let myself become a slave to this business as I have done over the years. Sit here like a chump hoping that I’m going to be able to squeeze through the door by a few points. And then sit with the worry that this maniac in charge of things has nothing to do over the weekend but send out Tweets or make trouble somewhere. I don’t want to be the last guy in the bar trying to pick up the barmaid!!!
Capital intact. Nothing lost. Matter of fact: 2.4% gain for the month!!! LOL!!! Sorry folks. Pretty sure that’s not what you were expecting. Still better than the bank though!!! LOL!!!
If anything: probably been worth it (these last three weeks). This the first time I’ve managed to work out and implement correct position sizes for this trading system and they’re spot on. Furthermore: I think I’ve worked out that a fixed stop based on those very same position sizes could be the ticket actually (as long as it’s a mental stop i.e. not going back to the days of being stopped out for fun). Put another way: there is no way that without a fixed stop in place that this system would not have cost you some serious money if this whole lot ended up tanking to December levels. I just honestly thought that a fixed stop would interfere. But I can tell you that with a full position on the Hang Seng that still had a third of the way to go to reach that fixed stop: that tells me that 5% based on my position sizes is correct. Point is really that if the Hang Seng had actually reached that 5% then RSI(2) would be so far away from reality that the position wouldn’t even be able to break even (although this is a slippery slope because although it would always end in a loss it may not have been that big). Anyway. That’s it. Sure I could have used the money. But oh well.
So I’ll be back next week Mr. Market. Go take out some other poor sap. (No offense is meant by that).
So there you have it folks. Must say: for some or the other very strange reason this actually feels quite good. Empowering is the word that comes to mind. Certainly not something I’ve ever approached in this manner before.
Put it this way: there’s only ONE thing that you can be 1 000% sure of in this business and that is that there will be another trade around the corner.
FOR THE SAKE OF CONTINUITY:
I shall now be waiting for RSI(2) to signal the closing of what WOULD have been my trades. In effect this means those trades would have been over. And then time to wait for new entry signals. Rinse and repeat.
Oh and I MAY (note MAY) see where things close tonight and then be very selective about re-entering and starting to scale-in again from scratch. I don’t think there’d be anything wrong with this logic. BUT: prices would have to close definitely lower than yesterday for me to consider.
One demon I can see myself having to deal with here and that’s shorting these markets as indicated by the 200-day SMA. The Dow closed below this thing for the last three days and right now as I type this the S&P is trading below it. The NASDAQ is right on it right now. And as many will know I have a long bias.