Eddy just a comment. The safest trade is to go with the flow. Shorting a strong market just isn't a good idea until you get a confirming signal. I've done it just to see overbought indicators stay that way for much longer than I expected eventually you end up losing a lot of money. I also feel(emotion) that a sell off is nigh but I won't trade it until my signals say so. Just don't get in too early on an impulsive trade.
Eddie, Now your sell signal is opening up. Sto, RSI crossed and Rom & OBV dropping. I said afternoon would open the signal (That glass ball thingy as TC asked) NO I AM NOT AN INSIDER ;-), BUT wait for afternoon/close to confirm and then test strength on volume and commodities after 15h30 when US opens. This should confirm strenth of sell for you.
Thanks to everyone who replied in an informative manner.Skaaptjoppie,venice,Rich and CpeterS,much appreciated.I went short the day before this magical run to the upside started about a month ago.Once again,everyone who did the opposite of what I did for the time frame that I did it in,would be sleeping with a huge grin.At least there were a lot of positives this time:my exposure was considerably smaller than that SAPPI trade(who can forget that),I never paniced and made emotional decisions.My result,exactly the same.This time it was just dragged out for a month,last time it took a day.I had 800 in my account in January,at todays close I had 89.I'm so happy I was introduced to shorts,so very happy...
Eddie, Eddie, Eddie... we told you on the SAPPI trade you were giving your money away to easily ;-) Now SimonPB has a nice fat bonus to look forward to.... Take some silly advise for a change. An old saying Q-"How do you double your money?" A-"fold it in half and stick it in your back pocket"
I can't even really connect to how sad that is, mate. Please stop for a while, think about it. Read what Simon said about shorts. Go to the courses. Holding thumbs for you, but you need to do something different. Right now.
Eddie, there are so many strategies out there with different positives & negatives. The short term guys(which I think you are?) take big positions on short term corrections on a share. this strategy requires you to be consistent, and drawdowns on your capital are a deathnail - and very few short termers go for the big one, and they all have very tight stoplosses. The trend catchers are longer term guys who are prepared to take bigger drawdowns in the hopes of catching the big one. The strategies vary with differing levels of success (the turtle traders were famous for having a very low success rate with 1 or 2 trades making the windfall). A trend catcher never bets against a trend. Their primary objective is to ensure that they are invested in the right instrument and to ensure that they are always in the market on suspected trend move. Again though, trend catchers spread their net wide over a number of instruments and their money management is designed to ensure that a) they still have sufficient funds to catch another trend and b) that a drawdown on a single stock doesn't impact their portfolio by more than 2%-4%. I trust that you know which strategy your are trying to follow?
Eddy, sorry bro for the loss of cash. When you went short you must have had a stop in mind when you placed the trade. If this trade went against you in day 1&2 and broke your stop why didn't you get out? Either you did trade this emotionally (hoping for the pain to end) or your stop loss was totally wrong or ignored.
Because the TA says it is a sell and the smart money is taking profits while the market moves. Retail investors always get in at or near the top and the smart money knows it, so they sell to the retail buyers
Well, 24 hours later the sell signal closed again. I did say I was not sure if it would last or even be worth trading a short, and guess the market proved that theory correct. New highs and a target of 275 in sight.