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.
No comments:
Post a Comment