When to Hold

At the end of two weeks ago I had given back my returns from the first weeks gains after starting this blog. At the end of week three (last week) I was back up to $220 dollars or about a ten percent gain. It's decent but not where I was expecting to be. I need to tighten some screws on this operation. Let's take a look: 

Unfortunately I ended week two getting stuck for a week in CERC. The trade looked like it had good momentum, it was very bullish both on the long term and on the one day chart. I wanted to catch some momentum into the next day, but it dropped quite a bit. I didn't feel good about closing it and the reason is because it held support well. Here's what I mean:

CERC.PNG

This is looking at a 9 month chart of CERC although much of it is cropped out.

This is about as complex as I will make a chart. Drawing channels and support and resistance levels is pretty arbitrary so I don't give it too much weight, however, it is another tool on the belt and has it's uses. I could see the trend was in tact, at least according to my own criteria and I felt comfortable holding the position. I held for a week and the momentum picked right back up and I closed with about a 7% profit. 

This is about as complex as I will make a chart. Drawing channels and support and resistance levels and all that is pretty arbitrary so I don't give it too much weight, however, it is another tool on the belt and has it's uses. I could see the trend was in tact, at least according to my own criteria and I felt comfortable holding the position. I held for a week and the momentum picked right back up and I closed with about a 7% profit. 

Side note: The amount of money shown is about $10 less than what is in the account on account of buying power. 

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You'll notice that I did exceptionally well on a day-trade with PIXY. I was pretty happy about that but then gave my profits back on OGEN. I seem to be fairly hit and miss with my day trades. My swing trades are simultaneously less volatile and more consistently positive.

My approach here is to be brutally honest with you but more importantly with my self. I think if I can be truly honest with myself about my flaws in my trading game I will improve much much faster than otherwise. Also, I want to point out that my watch-lists always outperform my own trading skill. We determined we have about a 70-80% accuracy when it comes to picking winning stocks based on our past history. You should check out our numbers for 2017 on the subscribe page at the bottom. Best of luck to all.