One of the biggest quality a trader can have is the capacity
to adapt. And so, every morning it is important to align your weekly plan with
the new information you have and make necessary changes.
Like I wrote yesterday in my newsletter, gold and
particularly miners represented by GDX and GDXJ are down big time pre-market. I
don’t want to be involved this week with gold or gold miners except if there
are some unexpected and exceptional changes.
UGAZ is not surprisingly up, like I wrote in my newsletter
it could continue to climb. However, what’s the possible gains in the short
term? Limited, in my opinion.
DWTI is particularly interesting, because we might see oil
plummet back to $45. However, I won’t buy DWTI because the bid-ask spread is an
enormous 5%.
I’m watching UWTI
closely for an entry point, and I’ll be buying at $2.85 and lower.
It never quite got to 2.85 did you hop in at 2.9?
ReplyDeleteHi Peter! It did actually pre-matket. It went down to 2.82 right after I bought it at 2.85 and then bounced back up. Are you in too?
ReplyDeleteNo I went 1/3 in on NUGT at 14.04...looking for a swing into resistance at 15.25. I do think I may move to UWTI and DWTI after this swing though. Gold miners have just been too sideways of late. Congrats at picking it up at 2.85, I think it has potential for mid 3's.
ReplyDeleteYes gold and especially miners offer slim margins right now. Congratulations at 14.04 you're in a good position for a swing. As a long term investment however, miners may be one of the best that is without a doubt.
ReplyDeleteIf it punches thru 3.00 resistance I may take a position in UWTI as well. If it gets past 3.00 then 3.15ish is the next resistance level. I had a bad experience in JDST at the beginning of January and am just getting my feet back under me. I lost 60% of my portfolio....lots of lessons learned.
ReplyDeleteCongrats for not hiding this! And also for not giving up. What kind of money management system do you use now?
ReplyDeleteI never used stop losses before....obviously now I do. I am only going into positions 1/3 in case I need to average down. Obviously with swing trading there is no timing the bottoms. I have done much more research and studying, in other words humbly acknowledging my need to know more.
ReplyDeleteExcellent. That's perhaps the best quality in trading and in life in general; aknowledging that there is always more to learn. Ideally, The stop loss should be set at approximately 3% if you go all in everytime, or 9% per 1/3 of your portfolio. And there is a good reason for that. Are you familiar with mathematical concept such as the binomial law and the normal law?
ReplyDeleteNo actually I've never heard of them
ReplyDeleteIt's too long and complex for a comment but I might make a post of it. It could help you to control your portfolio.
ReplyDeleteI would most definitely be interested in reading it.. and I may do some studying up on it in the meantime
ReplyDelete