Sunday, February 21, 2010

review

The easiest trade from last week was JCOM -- I picked it because it was above its 20 day MA, its 20 day MA was sloping up.  This stock was already heading up.  All I did was ride the wave.  The other easy trade was DLM.  It was also above its 20 day MA.  Its 20 day MA was heading up slightly (in a long base).  It broke out the next day for a quick, easy, fast gain.

The worst trades were shorts going against the trend.  Whenever I bought a stock that was down for the day, below its 20 day MA -- it kept going down.

 What worked, and what didn't work -- was so obvious it is stupid.   The market has a very one-way mentality.

 For next week -- I'd like to continue buying with the trend.  One short would have worked out much better had I waited for my clear 3 bump pattern to emerge. I think this pattern is still highly effective -- but in an uptrending markets, it would have required greater patience as it wasn't there on the short side until Friday.

Nonetheless -- no matter what -- it pays to go with already trending up stocks rather than fishing from weakness.

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