Lessons

1. If VIX is under 26, buy the dip. If VIX is over 26, sell the rip.

2. Always trade in the direction of the larger trend. Find the strongest trend in your time period.

3. Nothing as bearish as a failed breakout. Nothing as bullish as a failed break down.

4. Don't worry about the last dollar. Take your money and go to the beach!

5. No more than four positions at a time. Preferably 2-4. Scope out others. Pick the strongest.

6. Buy the strongest; sell (short) the weakest.

7. Nothing is guaranteed. Nothing.

Tuesday, April 10, 2012

Trading

It seems that I am getting some readers, so I'd like to clarify my trading style.

I trade out of two accounts, long-term (swing) and short-term.

Because I cannot watch the markets on an intra-day basis, and because I am not always patient (something I am working on), in my long-term account, I tend to buy dips/sell rips rather aggressively, but in steps. (Buy dips in a bull and sell rips in a bear.)

For instance, I bought TNA at 60 at 53 and I plan to buy around 49.5 if it gets there. *I know* I will make money on this trade.

In my short-term account, I trade and scalp equities. This is when I can watch the market more closely.

My goal is to become a more accurate trader in the LT account as well. In this, I am working on more patience. This is the most important quality of a trader, and I need more of it. However, I recognize that I cannot be perfect, and I am not pursuing perfection.

Just FYI, my LT account (most trades are published here) is up about 35% in the past six months. It will be up at least 30% from its current level within the next 2 months, give or take.

If and when I have time, I will start a blog trading record, with $ amount of all trades.

2 comments:

rc4090 said...

Please post more often. Thank you.

Win said...

Thanks, RC. If things play out the way I expect, I think the RUT is going to 1100 in the next year or so. That is why I have been so aggressive about buying, especially in my LT account. INDL will double, as will many equities. Basically, every daily and weekly chart I look at is telling me to buy. This includes TLT, TNX, $BSE, $SSEC, $RUT, $COMP, SOX, and individual equity charts like FREE, DRYS, etc.