Rules are not bad.

Looking back at a few trades -- I think my rules are actually quite good and effective.

 Just need to actually -- you know-- follow them.

not my market:

It seems I am struggling to figure out how to trade this market.  It's probably best I step aside then.  My focus on the 20 day MA is a good rule -- it seems all the strong stocks move above the line.  Below is a time of consolidation and danger -- and that's where most of the stocks I follow are.

 However, the HAO is above its 20 and consolidating there -- this may not be such a bad time in a few weeks.

 I need to relax.  Observe more, trade less.  See what is working.   IPXL was one I bought and it immediately went up.  Those kinds of over-the-20-day stocks are working still.

 You can't always win when the markets are not moving.  So stay focused.

trade: ENDP

Lost a little -- stop was hit.

 ENDP was up on earnings - above all MAs -- thought I saw my pattern.  Stopped out for smallest loss possible (now even lower).

 I guess this was a good trade... I'm okay with it as I did what I thought would work and protected the downside.

 Today I see the market as choppy so not really much to do.   I think my read is right on.

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.

20 day MA

Can swing trading really be as simple as waiting for the 20 day MA to turn upward and riding the wave?

 Well, yes and no.  The 20 day MA must turn up for a rally to happen.  But some stocks jump way above an others linger for weeks.

The other signals would be to watch underlying indexes and most importantly, doing some good value research.  Many small caps blast off way too fast when they finally rally.  But it's a good start to a system for swing traders.

position size

As a longer term investor:  It's important to keep position size small to withstand drawdowns.

 Watching the market and raising cash at extreme levels and rebuying is easier.

 But also knowing there will be times of drawdowns.  You have to lose sometimes in order to win big later.

 Not being overly concerned during the down times is part of the game.

 Being patient and waiting for the fat pitch is the other.

 I took a few small trades and my position size now is very small.  I need to refocus and revive my confidence so I can be successful for the long term.

trade: ATPG

did a quick trade for practice --  bought strength on the open... also saw my pattern and saw volume.  Bought it and it was up right about from the start... never dropped more than .10 from the purchase.  Sold it too early most likely for .20 profit...   (sold because market is red and very weak).

 Key was:  found strength, bought strength.